Showdown looming at key summit hosted by Anthony Albanese affecting millions of Australian workers
Business groups and unions are on a collision course over priorities for a planned productivity summit despite the prime minister's optimism they can find common ground.
Anthony Albanese has dismissed suggestions the roundtable, which will take place in August and is aimed at finding ways to lift the nation's economic output, would amount to little more than a Canberra talkfest.
'It is not unreasonable to bring people together ... business and unions have common interests, we have a national interest in boosting productivity,' he told ABC Radio on Wednesday.
But Australian Industry Group chief executive Innes Willox said it was disappointing the union movement had taken the view that 'there's nothing to see here and that is all about cutting jobs and cutting wages and it demonstrably isn't'.
'One of the frustrating conversations to have with unions is to hear them say: 'Yes, of course there'll be AI but everyone's job will stay the same,' he told Sky News.
'Unfortunately it won't but we have to prepare people for that - and that will be a massive exercise in reskilling and retraining ... that's where this productivity summit is going to be so important.'
Experts are concerned about Australia's lagging growth in productivity - a key economic measure of efficiency and long-term driver of improved living standards.
Working Australians must be at the centre of the summit, ACTU secretary Sally McManus said.
'We need to leave behind the idea that productivity is equated with cutting pay and making people work harder for less,' she said.
Australian Chamber of Commerce and Industry chief executive Andrew McKellar said he was realistic about the potential for tangible outcomes at the roundtable.
'If it was easy, it would have been done already,' he told AAP.
The scope of the Fair Work Act had grown significantly in recent years, which had a 'significant impact' on small businesses trying to hire staff, Mr McKellar said.
Planned payday superannuation reforms also needed to be implemented in a way that didn't 'create a significant additional burden for small business', he added.
'We don't expect (the government) to revisit all of the industrial relations changes, but ... let's make some practical changes that make it easier for small business to create jobs and employ more people to promote productivity,' Mr McKellar said.
Tax changes, cutting the regulatory burden and encouraging the uptake of digital technology would all be priorities for the business lobby, which singled out AI as a field that could make a big difference to productivity.
Productivity Commission chair Danielle Wood said it was important to be clear the target was 'not about working longer hours'.
'When we're talking about labour productivity, all it means is producing more for each hour worked,' she told ABC TV.
'This is about making sure Australians have the skills, that they have access to the technology, that we have great business processes that allow all of us to get more out of each hour that we put in.'
Higher productivity was ultimately what drove improvements in incomes and living standards, and technological change was the most important driver of growth, Ms Wood said.
'Australia is lagging in the adoption of AI ... so that's certainly one of the areas of opportunity that we will be looking to,' she said.
The commission's most recent report showed labour productivity fell 0.1 per cent in the December quarter and dropped 1.2 per cent in the past year.
Shadow treasurer Ted O'Brien said the opposition gave the government some credit for calling the summit.
'A round table. Yay!' Mr O'Brien joked during an interview on Nine's Today program.
'But look ... to be fair, at least they're recognising the problem ... so let's take that as a partial tick.'
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