Manufacturing businesses in southeast Melbourne have welcomed the Victorian Government’s decision to pause proposed work-from-home legislation, with the South East Melbourne Manufacturers Alliance (SEMMA) calling for further consultation with businesses before any changes are progressed.
In a LinkedIn post, SEMMA CEO Honi Walker said the pause was a positive development but argued that work-from-home arrangements should continue to be negotiated between employers and employees.
“Work from home arrangements should be negotiated between the employer and the employee,” Walker said. “The government need not dictate the terms of employment in private businesses.”
SEMMA represents manufacturers in southeast Melbourne and said the sector contributes $89 billion annually to the economy and employs 75,400 people across 3,800 manufacturing businesses.
Walker said the proposed legislation could affect business investment and employment in Victoria, particularly among small and medium-sized enterprises.
“This legislation will repel investment in Victoria. It will not encourage SME businesses to invest or hire more people,” she said. “It will have the opposite effect to growth.”
SEMMA also noted that industrial relations laws, including workplace flexibility arrangements, are primarily governed at the federal level.
The group said the proposed Victorian framework would retain provisions for disputes to be taken to the Victorian Equal Opportunity and Human Rights Commission and, if unresolved, the Victorian Civil and Administrative Tribunal.
Walker said businesses should continue to monitor the proposal despite the pause, particularly with the Victorian state election scheduled for November 28, 2026.
“Businesses should treat the policy as delayed, not shelved,” SEMMA said, while encouraging businesses to review which roles could reasonably support remote work under the proposed legislation.
SEMMA said southeast Melbourne had been recognised by Deloitte in 2025 as “Australia’s Manufacturing Powerhouse” and argued that maintaining a supportive business environment would be important to the region’s future.
“As manufacturers, we respectfully request that the government continue to allow private industry to negotiate directly with employees, as is currently practiced,” Walker said. “What is required is common sense, clarity and consultation with business.”
