As a business owner, its crucial to stay informed about changes in the current IR landscape, in particular the recent introduction of the Secure Jobs, Better Pay Act 2022. The act brings significant changes to the enterprise bargaining framework, aiming to encourage bargaining and improve pay for employees. By simplifying and explaining the key changes introduced, business owners will not only have a good understanding of the Act, but also be prepared with actionable insights.
Multi-employer bargaining
The Act reduces barriers to multi-employer bargaining and expands the powers of the Fair Work Commission (FWC) to resolve disputes. These changes aim to make it easier for employees and employers to engage in collective bargaining. So, here’s what you need to know.
Supported Bargaining – This stream assists industries with low agreement coverage. The Act replaces the previous low paid bargaining stream and introduces a broader common interest test. This change allows the FWC to consider factors like prevailing industry pay and conditions and common interests among employers. It’s important to note that employee approval for supported bargaining is done by employer cohort, meaning that if employees of one named employer do not vote in favour of the agreement, it won’t apply to them.
Single Interest Employer Authorisations – The Act replaces the term “single interest employers” with “common interest employers.” It enables employers with clearly identifiable common interests to bargain together for a multi-enterprise agreement. The Act also makes it easier for employers to be added to existing agreements or authorisations without their consent, with certain caveats.
Co-operative Workplaces – This refers to multi-enterprise agreements. The co-operative workplaces stream has key differences, including the ability for employers and employees to become covered by an existing multi-enterprise agreement or be added to one.
Fewer Barriers to Commencing Bargaining – The Act reduces barriers for commencing bargaining, making it more difficult for employers to resist bargaining for new agreements.
What else do I need to consider?
Replacement Agreements – The Act removes the requirement for a notice of employee representational rights to initiate bargaining for a replacement enterprise agreement. If an existing agreement has expired within the last five years and covers a similar scope of employees, bargaining can commence upon a written request from an employee bargaining representative.
Enhanced Bargaining Dispute Powers – To complement reduced barriers to bargaining, the Act grants stronger powers to the FWC in resolving disputes. This includes a simpler and faster pathway to arbitration.
Intractable Bargaining Declarations – The Act introduces intractable bargaining declarations as an alternative to the serious breach declaration scheme. If negotiations become “intractable,” the FWC can issue an intractable bargaining declaration and subsequently proceed to issue a workplace determination. Certain time periods must pass before these declarations can be issued.
Fewer Barriers to Arbitration – The Act allows the FWC to arbitrate bargaining disputes without the need for additional steps like obtaining a bargaining order or serious breach declaration. This streamlined process may lead to more arbitration. Additionally, the Act reduces the requirements for all parties to consent to FWC assistance with a bargaining dispute.
No Unreasonable Withholding of Agreement – The Act specifies that no party can unreasonably withhold agreement for a proposed enterprise agreement being put to a vote. The FWC can resolve any associated disputes. This amendment aims to reduce the number of disputes entering the intractable disputes process.
The Secure Jobs, Better Pay Act brings significant changes to the enterprise bargaining framework, requiring business owners to be proactive and stay informed. With the increased emphasis on multi-employer bargaining, reduced barriers to commencing bargaining, and enhanced dispute resolution powers, its crucial to understand how these changes may affect your industry and workforce.
If your current enterprise agreement is expired or due to expire, it’s important to negotiate a replacement agreement as soon as possible before the changes take effect. Employers need to be proactive, assess their individual strategy, and evaluate the potential impact on the business in order to navigate the changes effectively. Get in touch with our team to ensure compliance with the new regulations.
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