The Independent Contractors Bill was introduced into the Federal Australian parliament last month amid controversy over its proposals. The law will outlaw collective bargaining on the part of IT contractors, who will be classed as independent businesses and governed by the same rules that cover general client/contractor relationships outside the technology sector.

The bill is designed to promote flexibility within the industry, and encourage independent contracting as a response to the chronic skill shortages that affect parts of it. However, it is not clear as to whether this flexibility will benefit or harm existing contractors.

The ITCRA in general supports the legislation, unions are strongly opposed, and cite the case of FOXTEL technicians who were able to bargain collectively to their advantage although being classed as contractors rather than employees. Such action will not be allowed in future.

A good summary of the debate can be found in The Australian of July 11th 2006

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