Trade unions have slammed a major business group for preparing a campaign aimed at cutting penalty rates, saying they will fight it every inch of the way.
The Australian Chamber of Commerce and Industry is considering launching a new campaign similar to its successful Small Business - Too Big to Ignore crusade last year.
The chamber's chief operating officer John Osborn said the current regime of penalty rates - as much as double-time and a half in some cases - is particularly costly for small business and preventing young people from getting a job.
"These are not people rolling in it. It is keeping businesses closed," Mr Osborn told AAP.
Mr Osborn acknowledged the federal government went to the election saying it was not planning any major industrial relations reforms in its first term. He's also aware he has a fight on his hands from the unions.
"That is deeply unfortunate that they do not recognise the very real economic and social costs of an unworkable penalty rate regime," he said.
ACTU secretary Dave Oliver said families are already trying to work out how to make ends meet from the cuts in the federal budget.
Now they are being confronted by business wanting to cut wages and conditions across the board.
"If you want to bring it on, bring it on, because we'll be out there fighting you every inch of the way," Mr Oliver told reporters in Melbourne.
He said this was not about productivity or employment but about cutting the pay-packets of workers across the country.
Greens MP Adam Bandt said people should get ready for a government-led attack on wages and conditions.
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