Changes to the country’s enterprise bargaining system would allow people to better deal with the rising cost of living, according to the prime minister.

In a speech to business leaders on Thursday, Anthony Albanese said improvements to the system would also help to close the gender pay gap.

The government is looking to legislate multi-employer agreements following its jobs and skill summit last week.

However, the plan has come under fire from business groups, who have said the proposal could lead to further industrial action.

Mr Albanese told the Committee for Economic Development of Australia function in Canberra all employers would gain from the changes.

“Industry, small business and big employers will all benefit from a bargaining framework that’s more flexible, more straightforward and more attuned to the realities of Australia in the 2020s,” he said.

“Better bargaining will mean stronger wages growth, helping people with rising living costs.”

The prime minister said working women would be some of the biggest winners from the bargaining overhaul, which would allow for higher pay in sectors such as aged care and childcare.

“If we want to attract and indeed retain the people who do this vital work we need to pay them properly, and we need to treat them with respect,” Mr Albanese said.

Mr Albanese moved to dismiss concerns such changes to bargaining would lead to further strikes, saying there would be benefits for both workers and employers.

“There are advantages for business in having simplification of the bargaining process, but there are also advantages for workers as well in those outcomes,” he said.

– AAP