The Housing Industry Association has criticised the Fair Work Act review which failed to make 'sweeping changes' that would help the struggling small business sector which makes up 85 percent of the residential building industry.
HIA Industrial Relations spokesman David Humphrey said that an opportunity for reform had been lost in the review of the Act and the 53 recommendations are of a technical nature rather than the sought after broad scope reform.
"The residential building industry is drowning in an ocean of red tape and regulation, with industrial laws being near the top of the list," said Mr Humphrey.
"In comprehensive submissions, HIA had identified numerous areas where the Act could be improved to increase productivity and return confidence to hire in the sector."
"The Panel's finding and recommendations with respect to independent contracting are particularly disappointing."
"Over the past 18 months, the legitimate right for small businesses to operate as independent contractors has come under sustained attack."
"The unions, with the acquiescence of Fair Work Australia, have successfully exploited provisions in the legislation to include terms in enterprise agreements that unreasonably restrict the engagement of contractors."
"However, despite concerns from industry that such terms go way beyond the reasonable scope of the employment relationship, the Panel disregarded the need for change," concluded Mr Humphrey.
