Sick pay for casuals ‘a job-killing tax’

Industrial Relations Minister Christian Porter. Picture: Getty Images
Industrial Relations Minister Christian Porter. Picture: Getty Image

Industrial Relations Minister Christian Porter and national employers have attacked a groundbreaking proposal by the Andrews government to grant paid sick leave to casuals as a “massive” job-killing tax on Victorian business.

Federal Labor and unions backed the two-year pilot scheme to allow up to five days of sick and carer’s pay at the national minimum wage for casual workers ­including cleaners, hospitality staff, security guards, supermarket workers and aged-care staff.

Declaring insecure work “toxic”, Premier Daniel Andrews said industry would be subject to a “modest levy” to finance a fully funded scheme after two years.

“This is not something that any government has ever done, and it’s about time that we got on and fixed this,” Mr ­Andrews said.

“We can’t in 2020, and certainly in years to come, settle for a system where hundreds of thousands of workers have nothing to fall back on.”

Mr Porter, who will unveil new industrial relations policy measures in weeks, said the state proposal morphed over two years from a small government-funded pilot into “a massive tax on Victorian businesses” forced to pay a 25 per cent casual loading and an industry levy.

“After Victorian businesses have been through their hardest year in the last century, why on earth would you be starting a policy that promises to finish with another big tax on business at precisely the time they can least ­afford any more economic hits?” he said.

“It must surely be a better approach to let people have ­greater choice between casual and permanent employment than forcing businesses to pay a tax so that someone can be both a casual employee and get more wages as compensation for not getting sick leave — but then also tax the business to pay for getting sick leave as well.”

Federal Labor industrial relations spokesman Tony Burke said Victoria’s move to protect low-paid vulnerable workers showed real leadership, in contrast with the inaction of the Morrison government.

“Workers cannot be forced to choose between paying their bills and protecting their colleagues, customers and patients. Whenever we force people to make that choice the community is put at risk,” he said.

Australian Industry Group chief executive Innes Willox ­accused the state government of using the pandemic as “a cover to drive ideological agendas which raise costs for businesses and ­employment”.

Australian Chamber of Commerce and Industry chief executive James Pearson said the Victorian government was ­attempting to redefine casual work by “adopting union slogans on ‘insecure work’ and bankrolling sick leave entitlements for ­casuals already receiving 25 per cent more pay than permanent employees”.