Collective Bargaining by Independent Contractors: Challenges from Labour Law

By Shae McCrystal

In Australia, the need to provide countervailing power for small business actors that can be lawfully exercised has recently achieved political legitimacy.

At a time when regulation of the employee-employer relationship in labour relations have moved away from recognizing the inherent inequality of bargaining power, regulatory policy in the small business sphere has increasingly embraced interventionist legislation designed to protect small business actors. This incongruity has been discussed by Joellen Riley, amongst others. She has pointed to the "incoherence" in contemporary workplace law: a commitment to fair dealing has been abandoned for many subordinate employee, but adopted and enforced to protect the entrepreneurial small businees owner/worker.

These changes have come through the Trade Practices Act following the Dawson review. Collective bargaining for small business has been promoted by the government in recent press releases and newspaper ads.

The Treasurer's press release stated "Collective bargaining arrangements can create a public benefit by allowing small business to negotiate more effectively with big business and address imbalances in bargaining power". The complete opposite of the aims of the Workchoices legislation.

(Australian Journal of Labour Law; vol 20, no.1, April 2007: pp1-28)