Voters will decide IR changes: Abetz

The employment minister has refused to spell out the scope of a government review of workplace laws. Source: AAP

THE Abbott government insists voters will decide the extent of changes it wants to make to Australia's workplace laws.

The government won't reveal yet how far it wants the Productivity Commission to go in its planned review of the Fair Work Act, although in a move that will disappoint some business groups, penalty rates are off the review's agenda.

"That's up to the Fair Work Commission," Employment Minister Eric Abetz told reporters in Hobart on Friday, while urging employers to make their own submissions to the independent industrial umpire.

A leaked draft of the review's terms of reference indicates the commission will examine the Act's impact on unemployment and under-employment, productivity, business investment and the ability of the labour market to respond to changing economic conditions.

Industrial action, bargaining flexibility, pressures on small business and the impact of regulation will also be considered.

Labor and the unions believe that's code for a return to elements of Work Choices, the controversial industrial relations regime introduced by the Howard government after the 2005 election.

"They have a plan, a secret plan to change conditions of employment for people in this country," opposition workplace relations spokesman Brendan O'Connor told reporters in Melbourne on Friday.

The government is keen to play down the Productivity Commission's reputation for economic rationalism, reminding voters it was responsible for devising a framework for the national disability insurance scheme.

Senator Abetz described the commission as both economically robust and socially sensitive.

"We are not doing anything more, we're not doing anything less other than undertaking a comprehensive and broad review of the laws," he said.

In any event, any recommendations the government wants to adopt from the review will be taken to the next election, likely to be in 2016.

The commission has been asked to report back to government by April 2015.

Senator Abetz refused to pre-empt the final terms of reference for the review, indicating there would be a phone hook-up of commonwealth and state bureaucracies next week to discuss the draft.

But he did say the ACTU had been part of the consultation process.

ACTU president Ged Kearney said the draft terms indicated the government appeared to be putting the entire workplace relations system on trial.

"Everything is up for grabs: awards, penalty rates, enterprise bargaining, protection from unfair dismissal," she said.

Labor accused the government of deliberately trying to conceal the review's terms of reference until after the West Australian Senate re-run and state elections in South Australia and Tasmania.

The Australian Greens used Tony Abbott's "dead, buried and cremated" reference to Work Choices to accuse the prime minister of using the Productivity Commission as his Dr Frankenstein.

But business is backing the government.

The Australian Chamber of Commerce and Industry argues there are major flaws in the Fair Work Act that were driving up unemployment, harming productivity and undermining growth.

It cited penalty rates as one issue it wants reviewed by the commission.

"It just doesn't make sense that many businesses can't open their doors on weekends, evenings or public holidays," chief operating officer John Osborn said.

The Australian Industry Group wants the review to look at more tightly defining the issues which can be subject to bargaining claims.

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