Understanding the Latest Changes to Enterprise Bargaining

Understanding the Latest Changes to Enterprise Bargaining

Understanding the Latest Changes to Enterprise Bargaining
Understanding the Latest Changes to Enterprise Bargaining

Previously, we shed light on the pivotal amendments made to enterprise bargaining under the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022. A standout feature of this reform was the introduction of the ‘multi-enterprise’ agreements. Fast forward to now, and we’re diving deeper into understanding the Latest Changes to Enterprise Bargaining, including: Supported Bargaining and Single Interest Employer Agreements. If you’re wondering what these are and how they might impact you, keep reading!

Key Features of the New Bargaining Streams

Before we unpack each stream, it’s important to understand their shared characteristics:

  • Single interest agreements, in the past, could only be pursued post the nominal expiry date. The recent amendment, however, allows any involved party to approach the commission to initiate bargaining for a single interest or supported agreement whenever they see fit. But, it’s crucial to remember that simply applying doesn’t guarantee the commission’s nod.
  • If there’s a hiccup in the bargaining process, the involved parties must first seek conciliation with the commission before heading to arbitration.
  • A note for those in the building and construction industry: Certain types of construction work won’t be accessible via these streams.
  • All agreements under these streams will undergo the Boot test to ensure fairness and transparency.

Diving into the Supported Bargaining Stream

This stream mainly caters to those who may find challenges in the single interest stream. Here’s a breakdown of its salient features:

  • It takes over the existing low-paid bargaining mechanisms.
  • The commission’s authorization is based on several factors:
    • Employers should have shared interests – this could be a common primary business, similar employment conditions, or even geographical proximity.
    • Certain construction work in the building industry isn’t eligible.
    • Greenfield agreements are a no-go.
    • Industries or sectors with typically lower-wage roles are usually eligible.
    • The bargaining party size shouldn’t be overwhelmingly large, hampering the process.
    • Existing agreements and their expiry dates play a role too.
  • The commission plays a proactive role in facilitating the bargaining process. They can intervene in cases of deadlocks, aid in the inclusion or exclusion of parties, and even assist in resolving standstills.

Unraveling the Single Interest Employer Agreements Stream

This is a fresh addition and is tailored for employers who either operate under the same franchise or share common interests and are keen to negotiate a unified agreement. Here’s what to know:

  • An authorization from the Fair Work Commission is a must-have to engage in this stream.
  • Criteria for authorization include:
    • Representation of some employees by a union.
    • Employers being under the same franchise or having shared interests.
    • A majority of employees wanting to be part of the agreement.
    • Employee representatives represent a sizable workforce (20 or more).
    • Existing agreements and their stages influence eligibility.
  • Shared interests here mirror those in the Supported Bargaining Stream, centering on business type, employment conditions, location, and regulatory requisites.
  • Parties can approach the commission for modifications in the authorization based on the unique needs and dynamics of their bargaining stream.

Final Thoughts

The introduction of these new multi-enterprise bargaining streams marks a significant shift in the enterprise bargaining landscape. Whether you’re an employer, an employee, or simply someone trying to navigate the complex world of enterprise agreements, it’s essential to stay informed and adapt to these changes. Stay tuned for more updates and insights on the world of employment and bargaining!

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With offices in Melbourne, Sydney and Brisbane, we work with businesses across Australia.

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Updated on 1 July 2024

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