Della Takes on Contractors Bill

Date: 03 August 2006

NSW Minister for Industrial Relations, John Della Bosca, has announced that the Iemma Government would put its case against the Commonwealth's Independent Contractors Bill at a federal senate inquiry in Canberra today.

Mr Della Bosca said the Independent Contractors Bill was a further attempt by the Howard Government to remove legitimate employment protections by over-riding State laws.

"Like Work Choices, the Bill tilts the employment balance too far towards the employer, encouraging sham contract arrangements that remove basic entitlements," the Minister said.

"In the name of 'freeing' contract employees from the 'burden' of an award safety net, families can lose basic conditions and protections."

Employers who make staff 'independent contractors' no longer have to provide:

· minimum rates of pay
· annual leave
· long service leave
· superannuation
· workers compensation
· sick leave, and
· public holidays.

"Contracting is a completely legitimate way to do business and earn a living, but it must not be used to undermine job security and transfer risk to the worker," Mr Della Bosca said.

"The Commonwealth Minister for Workplace Relations has criticised the minimum wage in Australia, saying it is $70 a week too high - this Bill is a further element of the campaign to drive it down.

In the absence of any terms of reference for the inquiry, the NSW Government has made a submission arguing that contracting arrangements must be entered into freely, without duress and with full understanding on both sides.

"This Bill offers little that is either new or useful, but instead removes the protections that employees and small contractors require when dealing with employers who have much more power in the employment relationship," he said.

"Section 900 of the Bill even provides a ready-made defence for any employer who sets up sham contracting arrangements to avoid their responsibilities," Mr Della Bosca said.

"The Bill states an employer cannot be held responsible for any sham contract, as long as they 'genuinely believe' the contract is for services, not employment.

"The NSW Government endorses the view that independent contractors should not be subjected to excessive regulation, but this Bill doesn't achieve that.

"It simply extends and hammers home the damage being done by Work Choices and prevents small contractors from accessing the NSW Industrial Relations Commission which reduces their rights," he said.

The Minister encouraged anyone adversely affected by Work Choices to have their say by visiting the NSW Government's Fair Go website at www.fairgo.nsw.gov.au or calling the Fair Go Hotline on 131 628.

For further information

Contact:	Daniel Dew
Phone:	9228 4777
Contact Mobile:	0401 122 951

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