There were cheers from union members and childcare workers cried just after the controversial Secure Jobs Better Pay Bill passed the Lower House with 80 votes to 56.
The Fair Work Legislation Amendment is yet to pass in the Senate, but Labor is celebrating the result nevertheless.
Workplace Relations Minister Tony Burke declared outside parliament, “Today is a big milestone”.
“It’s been a long time coming and I know how much it’s going to mean.”
Labor says the legislation will lift wages by giving workers more power when negotiating for a pay rise.
The legislation includes controversial elements, including multi-employer bargaining, which allows unions to bring workplaces of all sizes to the bargaining table.
The idea has put business groups offside and is one of the concerns held by crucial crossbench Senator David Pocock.
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But Burke has said the concerns are not surprising.
“The concept of getting everybody on board for anything about workplace relations is a remote possibility,” he said.
“You can negotiate forever and what happens during that time? We continue with wages being kept low.”
Before the bill passed, many of the teal Independents raised their objections to the speed at which the government is trying to get the legislation though, as well as concerns about the potential consequences of the changes.
“It is misleading to the Australian public to claim that this will get wages moving when there is going to be months of delay and negotiation, complex processes and the winners will be the unions and the winners will be the unions and the lawyers. It will not be the workers,” Independent MP Zali Steggall told parliament before the bill passed.