Franchise sector questions Labor's IR policy

Franchise Council of Australia (FCA) Chairman John O'Brien this week questioned elements of Labor's proposed changes to current Australian workplace law in their 'Fair Work Australia' model.

"Labor has indicated multi-employer collective bargaining between unions and more than one employer will be legal under a Rudd-Labor Government. Pattern bargaining occurs when unions reach workplace agreement with businesses across common industries - a one size fits all approach roping businesses into one set of wages and conditions with no flexibility to respond to their local market."

"The FCA understands where more than one employer and their employees or unions with coverage in the workplaces voluntarily agree to collectively bargain together for a single agreement they will be free to do so under a Rudd-Labor Federal Government," O'Brien said.

"We can only assume the 'Fair Work Australia' model will give unions the ability to bargain across entire industries - locking them into common rates and conditions. It is hard to imagine a neater fit for this aspect of Labor's policy than the franchise sector. The key question for franchises now is how will low-paid employees and employees who have not had access to collective bargaining be defined under a Rudd-Labor Government? And who gets to make that decision?" O'Brien said.

"On behalf of the $128 billion franchise sector, the FCA has some key questions for Labor:

> Under 'Fair Work Australia' - what will bring multi-employer collective agreements about? 
> Will employees be able to request them?
> Will unions be able to request them?
> Will multi-employer collective agreements require a request from a majority of employees and if so, across how many of the businesses?

"So-called low paid employees and employees who historically haven't had access to collective bargaining may well include those people employed in franchises. This Labor proposal will affect franchise operations across the nation. It is important to remember unions were established to seek common wages and conditions across an industry and it is naive in the extreme to suggest that they won't take advantage of these rights Labor is going to give them," O'Brien said.

"Many franchise outlets rely on trading over extended hours in retail and food outlets to provide great customer service. They require flexibility in their employment agreements to provide this service and to remain competitive in their working conditions. The success of franchising depends on serving the customer how and when they want and having competitive and profitable franchisees in local neighbourhood workplaces. A return to pattern bargaining threatens the profitability and flexibility of thousands of Australian local franchise businesses."