JobKeeper changes could see Australians lose $300 a week as bosses try to slash workers' hours - even if their business has nearly recovered
- Workers could be losing $300 per week in huge change coming to JobKeeper
- Federal government looking to continue pandemic-inspire emergency powers
- Employees could not have wages dropped to $1,500 but they can now be $1,200
- JobKeeper version 2.0 begins September 28 with some changes to the scheme
- In April, the Fair Work Act was amended to give businesses more freedom
- Under new scheme business with 10 per cent turnover can use amendments
Workers could lose $300 per week as businesses are offered the power to slash hours in new a huge change proposed to JobKeeper rules, even if they now longer qualify for the scheme.
The federal government is looking to continue pandemic-inspired emergency powers and JobKeeper for another six months beyond September 27.
Under current rules, workers' wages could not be reduced below the bottom level, which was equivalent to the $1500-a-fortnight wage subsidy.
But under rules proposed by Treasurer Josh Frydenberg on Wednesday, these hours could be cut further - even if a company is booted off JobKeeper.
'The measures will provide continued workplace flexibility at a time businesses are still in distress,' Mr Frydenberg said.
But unions are concerned that this increased flexibility will mean companies cut workers hours, even if they're no longer on JobKeeper.
Workers could be losing $300 per week as businesses have the power to slash hours in new a huge change to JobKeeper laws (pictured, woman wearing a mask in Melbourne on Monday)
The federal government is looking to continue pandemic-inspired emergency powers (pictured, shoppers at Carriageworks Farmers Market in Sydney over the weekend)
Firms remaining on the scheme will still have the power to change employees' hours, duties or work location.
But those booted off JobKeeper will also retain the capacity to change conditions if they prove a ten per cent reduction in turnover compared to the same period last year.
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The bill extends JobKeeper to March 2021, splits it into a two-tiered system for full-time and part-time workers and outlines what companies can do if they're no longer eligible.
Previously, workers could not have their wages dropped to less than $1,500 a fortnight but new changes will drop the figure to $1,200 a fortnight.
Under the existing scheme, amendments to the Fair Work Act were introduced in April to assist struggling businesses and help with the implementation of JobKeeper payments.
The bill extends JobKeeper to March 2021, splits it into a two-tiered system for full-time and part-time workers and outlines what companies can do if they're no longer eligible
Workers could not have their wages dropped to less than $1,500 a fortnight but new changes will drop the figure to $1,200 a fortnight (pictured, women in masks in Melbourne)
These changes for employers included the ability to temporarily stand down employees, alter their duties and work locations, and reduce the number of hours worked.
If a company can prove its turnover is still down by just ten per cent, they can reduce a workers' hours to 60 per cent of what it was prior to the pandemic.
Labor's industrial relations spokesman Tony Burke says workers could therefore lose up to 40 per cent of their wage, which would amount to $300 a week for someone on minimum wage.
He wants the government to consider a safety net provision so a worker can't have their hours reduced to the point they're paid below the JobKeeper rate.
'We can't be agreeing to change the industrial relations system to allow people who at this time have been struggling already through the pandemic ... to then face further cuts because the business they work for is doing better,' he told parliament.
'A full-time retail worker, under what's before Parliament right now, could lose $325 a week. Obviously falling well below the current JobKeeper rate,' he said.
Extending the program to March takes the total cost of JobKeeper to more than $100 billion.
'The phasing down of the JobKeeper payment will ensure a smooth and gradual transition to economic recovery,' Treasurer Josh Frydenberg said as he introduced the bill.
Firms remaining on JobKeeper will still have the power to change employees' hours, duties or work location (pictured, a Melbourne Centrelink in March when the pandemic began)
Labor's industrial relations spokesman Tony Burke (pictured) says workers could lose up to 40 per cent of their wage, which would amount to $300 a week for someone on minimum wage
Shadow treasurer Jim Chalmers is worried scores of workers still can't qualify for the scheme, such as casuals and university and aviation staff.
The rate of the scheme is up to Mr Frydenberg and Labor hopes he aligns the payments with the current state of the economy.
'We need him to get that right,' Mr Chalmers said.
Industrial Relations Minister Christian Porter said the flexible arrangements had saved hundreds of thousands of jobs during the pandemic.
'The worst possible thing that you can do to a struggling business is to force it to pay staff to do work that doesn't exist because of COVID-19,' he told parliament on Tuesday.
Mr Porter said while there were potentially 3.5 million workers covered under the measures, just 667 disputes had been lodged with the Fair Work Commission.
He said the system was safeguarded by a test ensuring the employee could not be usefully employed for normal days or hours because of coronavirus-linked issues.
Two women shopping at Carriageworks Farmers Market in Sydney over the weekend (pictured)
A review of the initial laws found anomalies in the way it operated.
Labor will support the legislation even if the party's concerns about employers cutting working hours aren't addressed.
The Morrison government plans to cut the wage subsidy from $1,500 to $1,200 a fortnight at the end of September and then to $1,000 from December to March, for full-time workers.
Treasurer Josh Frydenberg is responsible for setting the rate, meaning that change won't need to be legislated.
Labor wants JobKeeper to remain at $1,500 a fortnight for another six months, with Victoria's coronavirus lockdown smashing the national economy.
'We want to make sure that low-paid workers aren't missing out and aren't going to have their already low wages slashed substantially under this legislation,' leader Anthony Albanese told ABC radio.
Meanwhile, Tasmanian workers without sick leave will receive access to a $1,500 pandemic leave payment to help them through their 14-day self-isolation.
