A conservative think tank has called for a vicious overhaul of Australia's industrial relations framework.

The HR Nicholls Society, a policy group focused on industrial relations reform, has unveiled its new paper titled "The Employment Act: A Modern Blueprint for the Future of Work". 

The proposal outlines sweeping changes to workplace regulations, sparking significant debate over its implications for Australian workers and businesses.

The paper criticises the current Fair Work Act 2009 as overly complex, restrictive, and detrimental to productivity. 

“The Fair Work Act is shackling our potential… Australia’s workplace relations framework has locked the country into decades of stagnant productivity,” says the Society’s president, Frank Parry KC. 

To address these challenges, the paper proposes abolishing the award system in favour of a single minimum wage, and restricting collective bargaining rights to workers earning below $125,000 annually.

It says Australia should weaken its unfair dismissal protections for employees in businesses with fewer than 50 staff, while also reinstating enterprise bargaining to foster workplace flexibility and innovation.

The Society argues these reforms are essential to reinvigorate productivity, enhance flexibility for employers and workers, and support small businesses facing regulatory burdens.

The Australian Council of Trade Unions (ACTU) has strongly opposed the proposals, describing them as a “radical employers’ agenda designed to tear up protections for workers.” 

ACTU Secretary Sally McManus says the reforms would result in significant wage cuts and reduced rights for millions of workers. 

The ACTU estimates the plan could remove over 3.3 million workers from awards and collective agreements, potentially lowering wages and workplace protections.

The HR Nicholls Society, established in 1986, has long advocated for deregulation of the labour market and aligns closely with the Liberal Party of Australia. Critics, including former Prime Minister Bob Hawke, have historically labelled the Society’s ideas as extreme.

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