David Pocock, Greens reach deal with Labor to pass industrial relations reform

The reforms will address gender inequality in the workplace and support low-paid workers, but the inclusion of multi-employer bargaining and abolition of the Australian Building and Construction Commission was controversial in the Parliament.

Senator Pocock agreed to provide the final vote to get the measures across the line in the Senate in exchange for a number of changes impacting small business and people on support payments, including one he described as a "game changer for people living below the poverty line".

He sought a guarantee from the Prime Minister to establish a new economic inclusion advisory committee that governments would commission for independent expert advice on how those on support payments are faring, and the advice be made publicly available before each federal budget.

"This is now a substantially different bill to the one introduced in the House of Representatives a month ago. It is better for business, better for workers and makes sure the most vulnerable in our community are no longer left behind," Senator Pocock said.

The deal with Labor does not include any ACT-specific trade off in exchange for the independent senator's vote.

Senator Pocock said he pushed the government as far as they would go in tough negotiations, dropping his opposition to the abolition of the ABCC.

The Greens' support is also needed for the reforms to pass the Senate, which was secured following guarantees parents would have an enforceable right to request unpaid parental leave and protecting the existing Better Off Overall Test coverage of prospective workers.

"This Greens strongly back most of what is in this bill, including abolishing the ABCC and multi-employer bargaining, but we wanted to ensure low paid workers wouldn't go backwards because of some of the changes," Greens leader Adam Bandt said.

The government also agreed to ACT senator Pocock's condition it respond to the 2018 Murray Review in this term of government. The review examined options to enhance protections for subcontractors' incomes.

Civil construction will be exempt from multi-enterprise bargaining, as will any small business with fewer than 20 employees, up from 15 in Labor's bill.

Those with fewer than 50 employees will have an option to exit the bargaining, with the onus on those seeking multi-employer bargaining to prove a common interest of the workers across the employers.

Employment Minister Tony Burke said the employers either opt-in or their workforce votes to opt-in, but the purpose of the reform was not to enable industry-wide bargaining, and it will be up to the Fair Work Commission to decide if there is a common interest among the workers and whether it meets a public interest.

"Where you go sector-wide for sectors that are critical to the national economy, at that point, it is pretty hard to see things passing the public interest test," Mr Burke told Insiders on Sunday.

The minister confirmed the government would accept the amendments of the Senate and federal MPs would briefly return on Saturday to pass the amendments in a final vote in the House.

With only five days remaining for the reforms to pass the Senate before the end of the year, Labor needed to persuade at least one additional crossbench senator such as David Pocock or Jacqui Lambie to get the legislation through the Senate, both of whom were holding out their support in exchange for amendments.

The negotiations with between Labor and Senator Pocock were concluded late on Saturday night while the Victorian state election results were revealed. Both the senator and Mr Burke described the negotiations as not easy, but found a balance between ensuring people start receiving wage rises and maintaining productivity in small business.

The legislation will be reviewed in two years.