Workplace Minister Craig Laundy has warned Labor's proposed crackdown on dodgy labour hire companies will cripple the industry and punish employees.
Opposition Leader Bill Shorten promised to introduce legislation, if Labor wins the next federal election, to guarantee labour-hire workers the same pay and conditions as people directly employed by businesses.
But Mr Laundy said the proposal would mean thousands of labour hire workers get no say about their pay and conditions.
"Labor's proposed changes to labour hire laws is yet another half-baked policy that will weaken the economy and end up punishing the very workers Bill Shorten claims to be protecting," Mr Laundy said.
Mr Laundy says labour hire has been stable at two per cent of the workforce for more than a decade.
"Militant unions want to destroy the industry - this is the latest example of unions controlling everything Bill Shorten says and does," Mr Laundy said.
Mr Shorten said the measure would be part of Labor's plan to target "scallywags" in Australian industry.
"If we get elected, we will legislate - same job, same pay," he told reporters in Brisbane.
The policy announcement comes on the opening day of the triennial Australian Council of Trade Unions Congress, which Mr Shorten will address on Tuesday night.
Mr Shorten plans to consult with labour hire companies, host employers, unions and other stakeholders on Labor's scheme and transitional arrangements.
Legislating to guarantee labour hire workers' pay is one of the ambitious demands set out by unions, as part of the ACTU's Change The Rules campaign.
ACTU secretary Sally McManus said rorting of labour hire had been a key factor in driving Australia's "crisis" of insecure work.
"By ensuring that labour hire workers are paid at the same rate as everyone else, the ALP is helping to stop the exploitation, which we have seen again and again," Ms McManus said.
But big business is concerned about the plan.
"Taking away vital flexibility for labour hire businesses and their clients would reduce the competitiveness of Australian firms and potentially have an adverse impact on employment," Australian Industry Group chief Innes Willox said.
Minerals Council of Australia chief executive Tania Constable said Labor's policy would erode competitiveness.
Labor also plans to introduce a national labour-hire licensing scheme to put in place minimum standards allowing them to operate.
Mr Laundy said the government had established the Migrant Workers' Taskforce which would soon recommend new measures to provide further protections for labour-hire workers.
