Employers will no longer be obligated to automatically deduct fees from union members’ pay if a bill lodged in Parliament’s ballot by ACT MP Dr Parmjeet Parmar is drawn and passes.

“Currently, the Employment Relations Act makes employers responsible for separating union fees from wages and salaries, and passing those fees on to the relevant union. This is an administrative burden, imposed by law, apparently intended to tilt the playing field in favour of unions at the expense of businesses," says Dr Parmar.

“ACT believes union membership is a private agreement between a worker and a union. If a union wants to take fees from workers’ wages, that union should be responsible for the administrative process.

“Of course, a union could still request an employer to manage the fee collection, but under my bill such an outcome would have to be agreed by both sides as part of a negotiation.

“Ultimately, this simple law change will free up more time and resources for employers to dedicate to their business and customers. It’s a small but meaningful step in lifting productivity and economic growth.”

The Employment Relations (Removing Automatic Deduction of Union Fees) Amendment Bill can be read here.

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