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Federal Coalition's Approach


July 2009

The Federal coalition has long had formal positions of support for self-employed people. In 2006 it introduced the Independent Contractors Act, a world first which put into legislative effect the International Labour Organisaton principles relating to independent contractors. ICA strongly supported and continues to support the Act. ICA did not and does not support the exclusion of owner-drivers in NSW from the protections available under the Act. In 2009, the Coalition demonstrated its understanding of and commitment to the sector in moving for amendments to the Fair Work Act. The following quotations from Hansard perhaps best explain the Coalition's position. Extracts from Hansard: Quotations from Senator Eric Abetz: Debate on the Fair Work Bill 17 March 2009:
    "Even the International Labour Organisation as recently as a few years ago said it is vitally important---they can see the sense in this---to separate out independent contractors from the employment relationship."

    "...if we were to pass the amendment that you suggested earlier that we should give effect to---not just consider but give effect to---ILO recommendations in this legislation, there would not be that sort of reference to independent contractors. Even the ILO says that that is a sensible way forward."

    "...we believe that independent contractors should be subjected to commercial legislation. Even the ILO agrees. I honestly thought it would be a no-brainer, given the most recent determinations out of the ILO in 2003 and followed up in 2006, that the government would be supportive of this, especially given that, chances are, the independent contractors are a more representative voice as to the needs and aspirations of small businesses involved in contracting than the government is."

    "Just in relation to our very first amendment in this tranche, if you go to page 6 of the bill, there is the heading 'Rights and responsibilities of employees, employers, organizations etc'. Anybody would be forgiven for thinking that that was dealing with the heart of industrial relations law. It then says: Chapter 3 sets out rights and responsibilities of national system employees, national system employers, organisations and others (such as independent contractors ..."

    "So we are interweaving independent contractors and enmeshing them with employer and employee relationships, which the law has consistently said should be separate. What is more, we can even quote the ILO in support, but we do not get actual engagement in relation to that aspect."

    "What Labor have snuck into this legislation under the definition of 'workplace law' is: '(c) the Independent Contractors Act 2006'. As I have said before, they are deliberately blurring the distinction between independent contractors being covered by commercial law---something the ILO acknowledges, and common law has recognised for a long time---and workplace law. They are now deliberately saying the law that applies to independent contractors will be part of the workplace law regime. Be under no misapprehension what Labor are trying to do with this regime. That is why the independent contractors, and we who unashamedly are on the side of independent contractors, are saying they should be disentangled---because it breaks a tradition of, I think, over 100 years of law in relation to independent contractors and is something that is now being recognized worldwide. I make that point as strongly as I can."