Labor MPs are pushing back against supporting a new free-trade agreement with Indonesia that is at odds with the party’s official platform, as the unions ramp up pressure to try to block the deal.

While the party has indicated it will support the enabling legislation for the Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA) along with free-trade agreements with Hong Kong and Peru, MPs are bracing for a fierce caucus debate over the issue when parliament resumes next week.

Leftwing Labor senator Kim Carr told Guardian Australia on Wednesday that the proposed agreement with Indonesia was “explicitly at odds” with Labor’s national platform, and warned the party could not defy the “supreme governing body of the Labor party”.

“The Labor party’s platform is very clear on these issues and the principles outlined by the Labor party in the last parliament were put there very consciously and deliberately when we were in opposition,” Carr said.

“There are very good reasons why the positions in the Labor party platform were put there and the deregulation of the labour market is of very deep concern within the Australian community.”

Carr said that if MPs were unhappy with the national platform, then they should call a special meeting of national conference to change it.

He also likened the situation to the recent decision by Labor caucus to support mandatory sentencing of child sex offenders, which was also at odds with the Labor platform.

“There are many issues that are being pursued by this government and the approach that we bend over backwards to accommodate them is not appropriate in this environment,” he said.

Labor MP Josh Wilson, who is the shadow assistant minister for the environment and was also on the joint standing committee on treaties which backed ratifying the agreements, said he had concerns about the new deals.

“While I’m glad the JSCOT has maintained its principled support for independent economic analysis of trade agreements, the government’s unhealthy appetite for undercutting Australian jobs through trade deals goes unchecked,” Wilson said.

“Leaving the door open to walk away from labour market and skills testing is dangerous stuff, but this government seems intent on using trade to chip away at protections the Australian community should be able to take for granted.”

Lisa Chesters, the MP for the seat of Bendigo, said she was looking forward to next week’s caucus meeting that would canvass the broad views of MPs on the issue, which she said was always “challenging” for Labor.

“At the end of the day, we have a democratic process in place, but what annoys me and what I think annoys most Australians is we have a government that rather than just dealing with trade agreements, is having side agreements attached to them that are about importing workers, workers who are then direct competition with Australian workers,” she said.

“It is shocking to think that the government would be thinking of bringing in more workers in when they haven’t even sought to clean up the situation we already have.”

Chesters said it was “alarming” that there was no economic modelling being presented that showed the benefits of the FTAs, and said Labor was limited in its ability to negotiate.

“We are wedged, we are asked ‘Do you support growth in trade opportunities?’ but the kicker is you are going to also bring in all of these extra workers who may be exploited,” she said.

As revealed by Guardian Australia on Wednesday, Labor has told union leaders that it will try to negotiate changes on labour market access and investor dispute clauses before supporting the bill’s passage through parliament.

But the Australian Council of Trade Unions has ramped up its pressure on MPs, writing to Labor members and including for them a copy of the party’s national platform.

ACTU president Michele O’Neil said the agreements would increase the number of short-term foreign workers and undermine Australian jobs.

“This is bad for local workers, will worsen the wage crisis and increase the exploitation for visa workers,” O’Neil said.

“This report from JSCOT waves through agreements which would make the youth unemployment crisis in the regions worse and would allow companies to challenge Australian law when it doesn’t suit their interests or profits.”

“Trade agreements should improve the lives of working people, not put their interests second to multinationals.



Labor’s shadow trade minister Madeleine King said the report from the Joint Standing Committee on Treaties had confirmed “that there is no waiver of labour market testing for contractual service suppliers in either the Indonesia or Hong Kong agreements.”

“The report has found the IA-CEPA would reduce tariffs imposed by Indonesia, facilitate cooperation to address non-tariff barriers, ease restrictions on Australian participation in Indonesia’s services sector and improve protections for Australian investment in Indonesia,” King said in a statement.

“Labor will continue to push for the expertise of industry, unions and community groups in the course of trade negotiations. However, we acknowledge that the report concludes that these agreements are ultimately in Australia’s national interest.”

