Unions and the Albanese Federal Labor Government appear to be pursuing policies that risk undermining Australia’s future tax revenue and weakening the very industries that generate it. Their recent actions—already contributing to steep rises in electricity prices—may further push up the cost of goods as union demands add pressure to business operating expenses with some claiming that Union demands with Federal Labor support is turning the Country into a Communist run economy where profit is a “dirty word”.

Retailers, distributors, manufacturers, and the broader supply chain are already under strain. Now they face a wave of new regulations that could impose major burdens on industry, potentially leading to job losses—an area unions now want greater control over, limiting employers’ ability to manage their own workforce.

Backed by a Labor Government heavily populated by former union officials, unions are increasingly attempting to dictate how Australian businesses should operate. Ironically, the same businesses whose profits they seek to restrict through mandated wage increases, new regulations, and union-backed sanctions are turning to artificial intelligence as a tool to offset rising costs.

Prime Minister Anthony Albanese has in the past sought advise from former Victorian Premier Dan Andrews who’s government’s public health measures during COVID-19, were described as authoritarian when he was in power. Andrews Victoria’s Belt and Road agreement with China (later cancelled by the federal government), was interpreted as aligning with a communist state.Picture Sky News.

 

Sky News picture

Savvy business operators understand that profitability, cash flow, and cost control are essential for survival. Many also carry the additional responsibility of managing significant borrowings. Yet the ACTU and affiliated unions continue to demand tightened industrial relations laws aimed at shielding workers from what they see as the threat posed by AI—despite AI being one of the few options available to employers trying to remain viable in an environment where profit is treated as a political liability.

Recent workplace and industrial relations reforms—driven by politicians and a heavily unionised public sector—have already reshaped the retail sector’s ability to stay profitable. Major changes include:

  • Expanded collective bargaining and easier access to enterprise and multi-employer agreements.

  • “Same job, same pay” rules requiring labour-hire workers to be paid similarly to direct employees in equivalent roles.

  • Casual employment reforms, allowing employees who work regular hours for 6–12 months to request conversion to permanent roles.

  • Right-to-disconnect provisions, permitting employees to refuse work communications outside normal hours.

  • New protections for gig-economy workers, contractors, and digital-platform workers, narrowing the definition of “independent contractor.”

  • Stricter wage and safety regulations, increased penalties for breaches, and expanded rights for union delegates.

Now unions are pushing for even further obligations on employers, including tighter rules around superannuation payment timing and restrictions on layoffs resulting from AI or automated processes.

Critics argue that these policies revive workplace practices that have historically hindered Australia’s economic competitiveness. With Labor governments in power federally and across several states, union influence is expanding. The combination of broader bargaining rights, multi-employer negotiations, and stricter rules around casual and contractor labour significantly strengthens union leverage in the retail and supply sectors.

ACTU assistant secretary Joseph Mitchell warned that jobs are “under threat right now” from the rise of AI. He welcomed the government’s commitment to ensuring workplace laws remain “fit for purpose in the AI age,” calling for meaningful consultation with workers and increased employer-funded training.

Finance Sector Union national secretary Nicole McPherson said voluntary AI guidelines are inadequate. “We need obligations employers must follow,” she said, adding that technological change in finance is accelerating rapidly. Absent, however, is any explanation of how businesses are expected to fund additional staff costs while profits are being squeezed by regulatory and union demands.

One Harvey Norman retail executive told me recently that in some countries, such levels of intervention would be described as “communism.”

Retail magnate Gerry Harvey has also criticised Australia’s growing regulatory burden, describing red tape as “choking the economy” and worsening over time. Speaking on productivity challenges, he said it has become increasingly difficult “to make something in Australia or build something in Australia” due to the many obstacles created by successive governments.

“Every government says they will reduce regulation, but once in office they move in the opposite direction,” Harvey told The Nightly. When asked whether workers should benefit from productivity gains through a four-day work week—an initiative supported by the ACTU—he replied: “No, no, no. They need an eight-day week to lift productivity.”