Workplace reform disadvantages small business

The workplace reforms which seem likely to pass through the Australian Parliament this week disadvantage small business because small business owners are, in my view, more prone to decisions of the heart whereas big business managers can only be driven by shareholder return.

Small business owners take many factors into consideration in making decisions including their own return. However, other factors such as the impact on the community, impact on employees, lifestyle etc all play a role in day to day decisions. Across at big business it’s more black and white and this is why the workplace reform legislation disadvantages small business.

Sure there will be some small business owners who use the legislative changes to cut labour costs. Many will not as they consider fair pay to be pat of the contract they have with the community at large. Big business is not, in my view, as socially responsible and will therefore achieve more of a labour cut and this will help them price compete more effectively against small business.

Okay so it’s another big business versus small business rant. Be that as it may, the logic of my argument is sound.

Category: Small business

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