Enterprise agreements can result in many benefits for employers and employees by tailoring terms and conditions of employment to a particular employer, resulting in increased productivity and flexibility.
One of the objects of the Fair Work Act 2009 (Cth) is to achieve productivity and fairness through an emphasis on enterprise-level collective bargaining. However, the process for negotiating, approving and implementing an enterprise agreement can seem daunting and confusing. Statistics show a decline in enterprise agreement coverage: the proportion of employees covered by an enterprise agreement decreased from 43% in 2010 to 35% in 2021.
The Fair Work Commission has published a Bargaining Discovery Research report summarising the findings of research it commissioned to better understand the perceptions, knowledge and information needs of parties in relation to enterprise bargaining and making enterprise agreements.
Summary of recent research on enterprise bargaining
The research, which focused on the experiences, observations and suggestions of employers and employees with either no or limited experience in bargaining, found:
- participants had an appreciation of the benefits of enterprise agreements but expressed having difficulties around the actual process of bargaining and making an enterprise agreement;
- participants had a low understanding of foundational concepts and processes in bargaining, such as the role of bargaining representatives, key steps and procedural rules;
- participants reported a heavy reliance on external support; and
- there is demand for more information and education on bargaining and making enterprise agreements.
The Fair Work Commission has implemented changes to reflect its increased role in facilitating enterprise bargaining, including establishing a specialised bargaining support team, advisory groups and targeted resources for users.
How Australia’s Federal enterprise bargaining framework affects employers
For employers contemplating bargaining, the complexity of Australia’s Federal enterprise bargaining framework has increased as a result of recent legislative changes. Those include:
- changes to how bargaining can be started, including employers being required to commence bargaining in certain circumstances;
- a new regime for multi-employer bargaining;
- amendments to the way the Fair Work Commission applies the Better Off Overall Test;
- changes to the way the Fair Work Commission deals with bargaining disputes; and
- a new requirement for enterprise agreements to have a term providing for the exercise of workplace delegates’ rights.
How we can help?
Our Workplace Relations team can assist employers with all aspects of enterprise bargaining, from the beginning to the end of the process. Our team is well placed to advise and guide employers on this increasingly complex and technical area of industrial relations so they can confidently approach the bargaining process and negotiate enterprise agreements that bring maximum benefits to their organisation.
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Please contact us for more detailed and tailored help.
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Disclaimer: This article provides general information only and is not intended to constitute legal advice. You should seek legal advice regarding the application of the law to you or your organisation.