By Catherine Ngo Content writer, presenter and podcaster

Across Australia, the federal government's "Same Job, Same Pay" legislation will significantly increase the wages of thousands of labour-hire workers. This law aims to ensure that labour-hire workers receive equal pay to direct employees of the same company, eliminating the previous discrepancy based on the hiring entity.

Starting November 1, 2024, the new workplace law mandates equal pay for labour-hire workers performing identical tasks as permanent staff. This change is expected to impact various industries.

The Fair Work Commission will grant pay increases to over 2,000 airline cabin crew, 200 meat processing workers, and more than 350 miners under initial agreements that were approved. The law's implementation is set to bring consistency to labour-hire workers' compensation, aligning it with their direct employee counterparts.

Addressing wage stagnation 

Addressing wage stagnation was highlighted by Workplace Minister Murray Watt as a key objective of the reform.

"Labour hire has its place, particularly for handling temporary or seasonal workforce demands. However, the labour-hire loophole has been exploited for far too long to undermine agreed-upon wages. Our reform will put an end to this once and for all," he declared.

Watt emphasised that the new legislation would guarantee that workers "performing the same tasks, wearing the same uniforms, and showing up for the same shifts week after week" will no longer receive significantly lower compensation than their directly hired counterparts.

Wage increases of up to 28%

Beyond the initial wave of approvals, the Fair Work Commission is currently reviewing an additional 40 pay agreements. Notably, Qantas labour-hire workers will receive wage increases of up to 28%, highlighting the significant adjustments intended by this legislation to promote pay equity.

The Australian Council of Trade Unions (ACTU) has expressed positive expectations regarding the legislation's ability to address long-standing pay disparities within industries relying heavily on labour-hire employment.

ACTU Secretary Sally McManus voiced her support for the new laws, emphasising that pay increases for workers were the primary reason some businesses exploited labour-hire arrangements to slash wages. This law ensures that workers will not be placed in situations where they perform the same tasks as others but receive lower compensation in the future.

McManus also acknowledged concerns raised by unions that certain corporations might contest the new rules in court to delay pay rises through legal means. She pointed out that many affluent employers desire the reinstatement of this loophole and are actively lobbying political parties in anticipation of the upcoming federal election. This suggests that some businesses may use their financial clout to resist changes until the next federal election, scheduled to take place in May.

Change welcomed by Unions 

Representatives from affected sectors have expressed their support in response to the recently enacted industrial relations reforms. Notably, Teri O'Toole, Federal Secretary of the Flight Attendants' Association of Australia, has emphasised the significance of wage parity for labour-hire employees.

O'Toole highlighted the wage discrepancies faced by cabin crew employed by labour-hire companies despite performing the same duties as directly employed crew, emphasising the importance of addressing this disparity. She expressed optimism that the pay raises resulting from the reforms will contribute significantly to restoring the dignity of their profession.

While the government has implemented the legislation, the opposition has announced plans to review these reforms if elected. This potential review could reopen the debate surrounding the 'Same Job, Same Pay' policy, potentially leading to further discussions and negotiations regarding labour rights and fair compensation.