Lawyers say new IR agreements should face more scrutiny. 

The Australian Manufacturing Workers Union (AMWU) has struck a deal with nine air-conditioning manufacturers and installers, impacting over 200 workers. This arrangement, the first of its kind, introduces a shared labour pool of the companies’ permanent workforce, prioritising their employment for short-term needs before seeking external labour. 

Legal experts argue such collaborative employment agreements might shift significant control over labour supply to unions, raising concerns about potential violations of competition laws.

Critics, including prominent barrister Frank Parry, KC, label the agreement a form of “cartel”, suggesting it could inadvertently raise product prices due to fixed labour costs. 

This criticism comes amid broader discussions on whether current exemptions in competition law adequately address the complexities of multi-employer agreements and their implications for market competition.

While some see the potential for unions to disproportionately influence which workers gain employment opportunities, AMWU acting NSW secretary Brad Pidgeon has defended the agreement. 

He says there are benefits of pooled labour arrangements, including industry-wide job security and retention of skilled workers, dismissing criticisms as unfounded “fearmongering”.

The government’s competition taskforce, in the meantime, is reevaluating legal exemptions concerning non-compete and non-poaching agreements. 

This reassessment coincides with broader inquiries into how such legal frameworks impact wage growth and job mobility.