Workplace law changes flagged by the Productivity Commission could have the same outcome as WorkChoices, federal Labor warns.
Opposition workplace spokesman Brendan O'Connor has urged the Turnbull government to come clean on where it stands on workplace relations system changes the commission recommended in a report released on Monday.
The commission has recommended one weekend penalty rate for hospitality and retail workers, ending the higher Sunday shift rate, a change the government insists is a job for the independent workplace umpire.
"If they don't rule out these recommendations to cut penalty rates, we have to assume they support them," Mr O'Connor told reporters in Canberra on Tuesday.
Another recommendation, that would allow companies to cut employment conditions through outsourcing, demonstrated a lack of understanding by the Productivity Commission of the way in which companies could restructure to shirk responsibility.
Creating a new body to deal with awards and the minimum wage would allow the government to interfere with the independence of the Fair Work Commission, Mr O'Connor said.
Employment Minister Michaelia Cash denied she was reluctant or hesitant to act on the commission's report.
While the government would take a workplace relations policy to the next election and seek a mandate for "fair and sensible" changes, penalty rates were up to the Fair Work Commission.
The minister plans to hold round-table discussions on its recommendations in the new year.
"We are not ducking a fight on industrial relations," she said.
Dumped employment minister Eric Abetz said it was not for government to "get onto the sticky paper" of trying to determine penalty rates.
"I trust that armed with the information that has now come forward courtesy of the Productivity Commission, the Fair Work Commission will give due consideration to those findings," Senator Abetz said.
"As soon as government gets involved in that I think you would find government legislating only in relation to workplace relations."
Industry warns the report could be an "opportunity lost", arguing if the commission doesn't act on penalty rates then the government should.
Australian Chamber of Commerce and Industry chief executive Kate Carnell said aligning weekend rates in the hospitality and retail sectors would deliver significant jobs, especially for young people.
"That's got to be in everyone's best interest," she said.
