How To Set Up An Enterprise Agreement

There are no employees who vote on a Greenfields agreement. This type of agreement must be signed by each employer and any relevant workers` organization it covers. Workers are able to take industrial action when negotiating a draft enterprise agreement. There are strict rules governing union action under the Fair Work Act 2009, including the rights, duties and obligations of employers, workers and their organizations. For more information, see the Fair Work Ombudsman – Trade Union Actions fact sheet. Unlike bonuses that provide similar standards for all workers in the industry as a whole covered by a specific premium, collective agreements generally apply only to employees for an employer. However, a short-term cooperation agreement (for example. B on a construction site) occasionally results in an agreement with several employers/workers. The law also requires the FWC to authorize an enterprise agreement if certain requirements are met. Such a requirement is that the agreement “must have been truly accepted by the workers covered by the agreement”: section 186, paragraph 2, point a).

In the decision against ALDI, the High Court confirmed that this applies only to current workers who are covered by the employee classifications defined in the agreement. For workers, their negotiator will most likely be a member of a union, but it is not mandatory. When a worker is unionized, his or her union is their standard bargaining representative, unless the worker notifies an alternative representative. An employer covered by the agreement may represent itself or request representation elsewhere. If you agree to an agreement, the employer must send each worker a communication giving them the opportunity to negotiate individually or through a bargaining representative. For workers who are unionized, their union is their default representative if they do not make their own communication. They may designate their union as a bargaining representative, or they may be involved in the negotiations themselves or appoint another person as their representative. The employer must negotiate in good faith with all negotiators (not just the union) when there is no obligation to reach an agreement. This means responding reasonably to the negotiators` proposals, including providing financial information to support the allegations about the financial imperatives of the organization.

For more information on how to negotiate in good faith and in companies that have proven themselves, see the Ombudsman`s Guide to Good Practice for Fair Work – improving productivity at work in negotiations. For more information on agreement-based transitional instruments, including the modification and termination of these agreements, see www.fairwork.gov.au.