Components of Enterprise Agreements

Discuss About The Trade Unions Economic Reform In Australia.

The enterprise agreements are very important for the employment relations for Australia. The organizations have to abide by certain rules that have been under the employment relations acts underpinned in the Fair Work Act 2009. The enterprise agreements have been made for the betterment of the working conditions among the employees of different organizations  (Fwc.gov.au 2018). This question focuses on the difference between the enterprise agreements and the modern awards related to the employment relations. The employees have to be given certain entitlements as they can be able to work smoothly in the challenging conditions in their respective workplaces. In the previous years, many things have been seen like the disputes in the workplaces between the higher authority and the employees regarding the wages, working hours and so many things (Fwc.gov.au 2018). The organizations are compelled to work under certain enterprise agreements so their employees can be able to work under those legislative issues. The labor contracts are very important for the employees as the organizations will not be able to pressurize their employees to do something that is not under the labor contracts.

In this scenario, the details of the enterprise agreements should be given properly. It has been estimated that around 30.2% of the Australian workforce have been working under these enterprise agreements. The regulations under the Fair Work Act 2009 have been much important for the understanding of the whole matter (Fwc.gov.au 2018). This labor contract is being used all over Australia. The employment conditions in Australia are mainly stressed here. It has also been said that some of the employees also do not fall under these enterprise agreements and those employees are covered under the schemes for the national minimum wage order. The Australian Federal Government has issued some minimum standards that will be helpful for the employees that has to kep constant irrespective of the awards and enterprise agreements (Gahan and Pekarek 2012).

There are some specific components for the enterprise agreements in the Fair Work Act 2009. These components are the wage rates, the different conditions for employment such as working hours, overtime conditions and breaks for taking the meals. These issues have to be dealt with utmost care (Stewart 2013). The consultation process is also an important component for the enterprise agreements. Another element is the process by which the organizations will be able to resolve the disputes and the deductions of the wages of the authorized employees, no matter whatever the cause is. The enterprise agreements in the enterprise agreements will not include the illegal or unlawful contents (Berg et al. 2013). There are some awards associated with the enterprise agreements. These awards are the minimum wage rates, annual leaves and loading of the annual leaves, various other leaves, the working hours for the employees, the rates of penalty, doing overtime and casual rates, the various allowances and consultation processes, and the other minimum conditions. 

Importance of Modern Awards

The modern awards in the employment relations are very important from the perspective of the employees. These are the minimum employment standards that the employees based on the particular industry and occupation of the employees (Wright and Lansbury 2014). It has to be mentioned that most of the organizations follow the modern awards under which they cover all the things for all the employees in that particular industry. The modern awards are the legal papers or documents that could be helpful for the organizations to make an outline for the minimum wage rates and employment conditions. It has been studied and found that there are almost 122 modern occupation awards that is responsible for the people working under these employment relations. Some of the awards are the Building and Construction Award and Clerks Award (Charlesworth and Macdonald 2015).

On the other hand, the enterprise agreements are also very important segments of the employment relations in Australia. These agreements are the employment conditions for a proper group of the employees in the more than one workplace. Enterprise agreements will have to be implemented instead of the modern awards. It has to be mentioned as well that the wage rates in the enterprise agreements will never be less than the modern awards (Creighton and Forsyth 2012). The various agreements in the employment relations like the enterprise agreements and others should be followed in all the organizations. The employment conditions for the enterprise agreements can be applied to a specific business or number of businesses or to an individual employee (Fwc.gov.au 2018). However, these types of enterprise agreements for the individual employees are not in practice anymore. The basic difference between the two is the fact when an organization or a workplace has a particular registered enterprise agreement, the modern awards will not apply to it. The basic pay for the registered agreement cannot be less than the basic pay in the modern award. The registered enterprise agreements will be there only until the employees are replaced or terminated (Sutherland 2013).

The enterprise bargaining in context of the fair Work is a very important fact indeed. The enterprise bargaining is considered to be the procedure of negotiating between the employee and the employers (Fwc.gov.au 2018). The bargaining agreement will include the bargaining representatives as well. All these three members should work together in order to make the enterprise agreement in a proper way. In the Fair Work Act 2009, it can be said that the rules and regulations have been made to discuss about the enterprise agreement properly (Fwc.gov.au 2018). The rules have been made in the case of the rules related to bargaining process, the agreements related to the contents of enterprise and the way an agreement should be made and getting the approval. The national workplace systems have showed two categories of the agreements (Pekarek and Gahan 2016). These two categories are enterprise agreements and traditional instruments based on the agreements. There are many traditional instruments that are based on enterprise agreements. These agreements are the collective agreements, certified agreements that are pre-reform, Australian Workplace Agreements, Individual Transitional Employment Agreements and others. There are generally three types of enterprise agreements like the single-enterprise agreements, multi-enterprise agreement and Greenfields agreement (Fwc.gov.au 2018)

Role of Bargaining Representatives in the Enterprise Bargaining Process

The main activists in the enterprise bargaining process are the bargaining representatives. They work as the middle men in the entire process and they look after all the issues that arise in this context. The foremost thing in this context is the fact that the bargaining representatives have to act with much faith so they can ensure the smooth going of the enterprise bargaining practice. There are some requirements in the enterprise bargaining process that should be maintained properly (Fwc.gov.au 2018). The bargaining representatives must be able to abide by these things properly. The bargaining representatives should always be present in all the meetings whenever they take place. They have to be present and they must participate in these meetings with much activeness. If they do not voice their opinions at the right hour, the enterprise bargaining cannot be processed properly (Peetz 2012).

They should be responsible for bringing out the important information at the right time (Bishop and Cassidy 2017) However, they should not disclose any information i.e. very confidential or sensitive from the commercial perspectives. They should also give the responses to the people who make important proposals for the enterprise agreements (Townsend, Wilkinson and Burgess 2013). It is only after the time they give the proper response, whether it is positive or negative, the process can carry on smoothly. They should be able to consider all the issues very genuinely so they can show their concern about the entire matter and provide their opinions about it. The bargaining representatives should also show the reasons for the consideration they have shown in this context. The accusations of collective bargaining should always be avoided by the bargaining representatives. They should always behave in a fair way and avoid all the unfair means (Peetz 2012) 

In some cases some disputes can arise in terms of the bargaining process. If one bargaining representative is not able to solve the disputes, more than one representative should be appointed by the Fair Work Commission to solve the disputes properly. The enterprise bargaining conditions should be the discussions over one workplace (Townsend, Wilkinson and Burgess 2013). It is assumed that the duration or tenure of an enterprise bargaining should be around three years. The group of employees is allowed to show any kind of industrial actions like strikes when the enterprise bargaining action will take place (Peetz 2012) The notification time for the enterprise bargaining agreement should be around two weeks only. These notifications should be covering all the present employees who should be covered by the enterprise agreement. The trade unions in the country should also participate in the strikes called hy the certain group of employees. The legal issue that has arisen in this context is about the industrial instruments to be covered in the enterprise agreements (Bishop and Cassidy 2017).

These various issues regarding the employment relations in Australia are mainly dealt By the Australian Labor Law. A relevant example in the enterprise bargaining dispute can be the dispute between the Australian workers’ union and Electrolux. The enterprise agreement has to cover around 2 million employees all around the country. It might happen that some of the things might not go in the way as expected and the results could turn out to be negative (Bishop and Cassidy 2017). It has also been studied from some of the recent incidents that the enterprise agreements have been removed by the companies as per the orders of the Fair Work Commission. The rise of the payments for the employees will remain unclear. This is why the trade unions are very much worried (Bailey and Peetz 2013). It is a matter of grave concern that the number of the enterprise bargaining has been decreasing. This decrease in the new certified agreements should be a concerning factor indeed. Another important thing should be taken under consideration that the growing number of participation in the modern awards. In the last few years, the number of the people under the coverage of modern awards has been on the increase (Hancock 2012).

As the people under the coverage of modern awards cannot come under the coverage of enterprise agreement, these people will not be included in the enterprise bargaining at all. This is why this growth in the modern awards has been alarming (Townsend, Wilkinson and Burgess 2013). However, it has been said that the matter of modern awards could become an irrelevant fact because the Fair work commission would be focusing on the achievement of the productivity and fairness in work through the aspects of enterprise-level bargaining. The employment system should be made transparent. The equal wages should be distributed among the employees in the workplace to avoid any kind of discrimination (Peetz 2012). The individual agreements of the employees are very much important for maintaining the equality in the workplaces. The minimum wages should always be provided to the employees and they should get the proper working environment. This should be very effective for the employees. The research is saying that around 40% of the employees are covered by the individual agreements. These agreements are very often not approved by the Fair Work Commission. The employers, the employees and the bargaining representatives should be very much cautious about their work and they should consolidate all the things with much activity (Peetz 2012). The trade unions have taken a major role in contributing to this fact of the enterprise bargaining issue. The trade union can be very active in this context as they will look to get the best benefits from the enterprise agreements. However, the bargaining representatives must adhere to this fact positively and meet all the requirements properly as well. Thus they should mitigate all the risks in this bargaining process.

Within a workplace, the employees and employers are bound within certain rules and regulations. Agreements are part of business activities, enhancing the scope and arena of the business. While entering into an agreement, both the employees and the employer possesses certain rights and obligations. These rights assist the personnel in terms of executing the contracts and agreements in a fair manner. The following are some of the rights and legal obligations, which the employers and the employees need to comply:

One of the basic rights of the employees is to ask for remuneration for the collective agreement. This is inclusive of all the provisions related to the agreement. Along with this, the employee is liable for a safe and comfortable workplace. Within this, security is a main issue, which is an area to be dealt by the unions (Fairwork.gov.au 2018). National Employment Standards (NES) is referred for establishing the rights of the employees. Apart from this, the employees are liable for getting help from the lawyers regarding the issues within the employment contracts. The employees are entitled to receive a copy of the Notice of Employee Representation Rights. Here, there is an allowance of 14 days for nominating the bargaining representatives.

The main obligation of the employee is to perform the allocated duties and responsibilities diligently. Completion of the work within the shift timings is one of the other obligatory duties of the employees. Complying with the orders of the managers is accounted as an obligatory duty of the employees. The employees need to maintain the secrecy of the organizational data, in order to cater to the interest of the stakeholders and shareholders (Fairwork.gov.au 2018).

Ministry of Economic Affairs and Employment is entrusted with the charge of introducing legislations for employment. Employment legislations govern the performance of the employees and employers. These legislations are effective in terms of ensuring that negotiation prevails in the relationship of the employer and employees in the contracts and agreements. Typical examples in this direction can be Minimum Wage Act, Fair Work Act (2009), Health and Safety at Workplace Act among others. However, one of the main legislations is the Equality Act (2010), which helps the employers in the provision of equal treatment to the employees (Fairwork.gov.au 2018). Anti-Discrimination Act is also important in terms of mitigating the social malice within the workplace environment.

Along with this, Workplace Relations Act (1996) is also important in terms of maintaining the fairness in the relationship between the employer and the employees. This fairness is necessary in terms of maintaining the ethical approach within the contracts and agreements.

One of the basic rights of the employers is to cater to the interest of the employees. This is in terms of adhering to the terms and conditions of the agreements. The employers are liable for indulging in partnership with the trade union members for averting the instances of financial instabilities (Fairwork.gov.au 2018). Along with this, the employers possess the right to get information regarding the terms and conditions, which they are to adhere for entering into a mutual agreement with the partners. Right to speech is one of the other basic right in case off the employers in terms of voicing out the issues, which they are facing in the duration of the contracts and agreements. The employers possess the right not to disseminate the information until the request comes from either of the parties.

Notifying the employees of their representational rights is the basic obligatory duty of the employers in an agreement. This notification is in accordance with the terms and conditions of the Fair Work Act (2009). Bargaining is accounted as one of the other obligatory duties of the employers’ in terms of negotiating in an agreement. Along with this, one of the other obligatory duties of the employers is preparing the employees for the votes. This is according to the Employee Representational Rights, which has time limitations (Fairwork.gov.au 2018). Apart from this, the employers possess the obligation towards lodging the enterprise agreement. Intimating the trade union members with the relevant information is also an obligatory duty of the employers. This is in terms of discharging the duties to the statutory bodies.

The employers are also to assess whether the type of agreements is suitable for the employees. Checking the consideration of the pre-approval steps is obligatory for the employers in terms of making enterprise agreement. Ensuring that the presence of Fair Work Australia into the formation of the enterprise agreement, falls within the obligatory duties of the employers (Fairwork.gov.au 2018).

Both the employees and the employers possess the legal obligation towards complying with the code of conduct. This is mostly applicable in terms of the mutual agreements and contracts. As these contracts involve the third party intervention, therefore security becomes the main issue of concern. In order to ensure privacy and security of the organizational data, ethical code of conduct is an essential document. As a matter of specification, ethical code of conduct regulates the behaviour, which the employers and employees are to expose in the workplace environment. In terms of the contracts and agreements, the ethical code of conduct relates to the obligation towards catering to the interest of the other parties (Fairwork.gov.au 2018).

The employers possess the sole right towards getting the support of the statutory bodies of law in terms of regulating the performance of the employees. The employees also have the right to consult the statutory bodies if they feel that unfair means have been adopted for completing the contracts and the agreements. Bargaining falls within the ethical approach. The employees and employers have the obligatory duty to cater to the interest of the stakeholders while bargaining. This is in terms of averting the instances of hurting the individual sentiments of the opposite party (Fairwork.gov.au 2018).

 Enterprise Business Agreement reflects the relationship between the employer and the employees. Approval of the Fair Work Australia determines the validity and reliability of the agreement. There is a time limitation of four years for completion of this agreement. This agreement has certain advantages and disadvantages for both the employers and the employees.

Enterprise agreements prove much beneficial for the employers in terms of the appraising the performance of the employees. The employers rely on this agreement, as it simplifies the process of valuing the performance of the employees according to their skills, expertise and abilities (Oliver 2016). Handing over a copy of the enterprise agreement nullifies the need of individual employment contracts in case of the new joinees. This agreement assists the employees to cater to the specific areas of business, which needs change. One of the main advantages of enterprise agreement is that it reflects the transparency, which is the main element within the agreements and contracts between the employer and employee. Receiving protection from the industries makes the agreement beneficial for the employers. An enterprise agreement can be of assistance to the employees in terms of carrying out the documentation (Bishop and Cassidy 2017). 

The employees are entrusted with the responsibility to execute the operation according to the enterprise agreement cycle. This limits their expertise and authority in terms of regulating the employees. This limitation aggravates the complexities of the employers in terms of appraising the performance of the employees.

Through the enterprise agreements, the employees get the assurance that their workplace position would be secured. Along with this, they are assured that their gross basic pay is duly catered and offered according to the employment standards. Until the Better of Overall Test results are satisfactory, enterprise agreements are not approved (Sutherland and Riley 2016). This reflects that the employees are in a better position. According to the bargaining process, the employees possess the right to indulge in partnership with the trade union. This proves advantageous than the contracts between the employer and an employee. In return of the labor extracted from the employers, the employees are financially rewarded. This is in accordance with the terms and conditions of the mutual agreements. Even if there is no action from the employees, upon the expiry of the agreement, consistency is maintained irrespective of the standards (Pekarek and Gahan 2016).  

Time and financial constraints are the major disadvantages for the employers regarding the enterprise agreement. The approval process from the Fair Work Australia is time consuming. Strict process and framework aggravates the complexities of the employers in terms of complying with the terms and conditions of the agreements. Negative results leads to the cancellation of the agreement, resulting in severe loss.

For the employees, enterprise agreement does not have any disadvantages for the employees. Representation through the trade unions needs the payment of fees within the stipulated time. This can be a huge amount, which can be a problem, if there is no advanced planning. Majority of the votes need to be in favour of the employees for getting the approval of enterprise agreement (Nicholson, Pekarek and Gahan 2017). Disobeying the conditions of the union members compels the employees to follow the terms and conditions of the agreement. In such a condition, the employees cannot exert their power and authority to the opposition party.

One of the other disadvantages is that the employers withhold the payment of the employees, who resign without serving the notice period. This acts as a violation of the rules and regulations of the agreement. This is according to the protocols of Fair Work Australia. Along with this, enterprise agreement increases the intensity of the works, which results in employee turnover. This contradicts the aim of the enterprise agreement, that is, to improve and upgrade the standards of employment (Barry 2016). With the increase in the wage specifications, the workers lose access upon their workplace position.

Until the approval of the enterprise agreement, none of the employees can opt out of the cycle. This is applicable even if they did not cast their vote in favour of the motion. The new joinees are entrapped within the cycle of the enterprise agreement. During this, the employees are obliged to follow every rules and regulations of the contracts and agreement, irrespective of their likes and dislikes.

Enterprise agreements need lot of time and effort for its formation. However, it is a beneficial tool for both the employer and the employees in terms of entering into a negotiation. As a matter of specification, enterprise agreement is more advantageous for the employers in terms of regulating the employee performance (Forsyth 2016). This is applicable only if the employment standards are followed. Some of the business critiques are of the view that enterprise agreements provide little benefit to the employees and the employers. This is because of the removal of bargaining benefits. This removal has added to the complexities, as the costs have been imposed on those who bargain with the terms and conditions. One of the striking result is the making bargaining an inferior option for the workplace productivity. Comparison of the bargaining to the common law arrangement reflects the compromise with the needs and interest of the stakeholders. This is against the rules and regulations (Pekarek et al. 2017).

Obtaining approvals for the agreements is difficult for both the employees and the employers. Unless and until the financial conditions are changed, the employer cannot afford to avail the benefits of the agreements. If the employers seek negotiation out of the time framework, they may face difficulties regarding consideration of the further changes, which can enhance the efficiency. Violation of the terms and conditions can be disastrous for both the employees and the employees. The Fair Work Act compels the culprit party to pay civil penalties. It can also lead to the prosecution of the employer (Fairwork.gov.au 2018).

References

Bailey, J. and Peetz, D., 2013. Unions and collective bargaining in Australia in 2012. Journal of Industrial Relations, 55(3), pp.403-420.

Baird, M., McFerran, L. and Wright, I., 2014. An equality bargaining breakthrough: Paid domestic violence leave. Journal of Industrial Relations, 56(2), pp.190-207.

Barry, M., 2016. Employer and employer association matters in Australia in 2015. Journal of Industrial Relations, 58(3), pp.340-355.

Berg, P., Kossek, E.E., Baird, M. and Block, R.N., 2013. Collective bargaining and public policy: Pathways to work-family policy adoption in Australia and the United States. European Management Journal, 31(5), pp.495-504.

Bishop, J. and Cassidy, N., 2017. Insights into Low Wage Growth in Australia. RBA Bulletin, March, pp.13-20.

Charlesworth, S. and Macdonald, F., 2015. Women, work and industrial relations in Australia in 2014. Journal of Industrial Relations, 57(3), pp.366-382.

Creighton, B. and Forsyth, A. eds., 2012. Rediscovering Collective Bargaining: Australia’s Fair Work Act in International Perspective. Routledge.

Fairwork.gov.au (2018). Employee entitlements. Available at: https://www.fairwork.gov.au/employee-entitlements [Accessed on 25th May 2018]

Fairwork.gov.au (2018). Employment contract. Available at: https://www.fairwork.gov.au/awards-and-agreements/employment-contracts [Accessed on 25th May 2018]

Fairwork.gov.au (2018). Rights and obligations for enterprise bargaining. Available at: https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/rights-and-obligations/enterprise-bargaining [Accessed on 25th May 2018]

Forsyth, A., 2016. Industrial legislation in Australia in 2015. Journal of Industrial Relations, 58(3), pp.372-387.

Fwc.gov.au (2018). Agreements. [online] FWC Main Site. Available at: https://www.fwc.gov.au/awards-and-agreements/agreements [Accessed 25 May 2018].

Fwc.gov.au (2018). Enterprise bargaining. [online] FWC Main Site. Available at: https://www.fwc.gov.au/awards-and-agreements/agreements/about-agreements/enterprise-bargaining [Accessed 25 May 2018].

Gahan, P. and Pekarek, A., 2012. The rise and rise of enterprise bargaining in Australia, 1991–2011. Labour & Industry: a journal of the social and economic relations of work, 22(3), pp.195-222.

Hancock, K., 2012. Enterprise bargaining and productivity. Labour & Industry: a journal of the social and economic relations of work, 22(3), pp.289-301.

Jenkins, C., 2017. NTEU fights for rights at Murdoch Uni. Green Left Weekly, (1144), p.8.

Nicholson, D., Pekarek, A. and Gahan, P., 2017. Unions and collective bargaining in Australia in 2016. Journal of Industrial Relations, 59(3), pp.305-322.

Oliver, D., 2016. Wage determination in Australia: The impact of qualifications, awards and enterprise agreements. Journal of Industrial Relations, 58(1), pp.69-92.

Peetz, D., 2012. The impacts and non-impacts on unions of enterprise bargaining. Labour & Industry: a journal of the social and economic relations of work, 22(3), pp.237-254.

Peetz, D., 2016. The Productivity Commission and industrial relations reform. The Economic and Labour Relations Review, 27(2), pp.164-180.

Pekarek, A. and Gahan, P., 2016. Unions and collective bargaining in Australia in 2015. Journal of Industrial Relations, 58(3), pp.356-371.

Pekarek, A., Landau, I., Gahan, P., Forsyth, A. and Howe, J., 2017. Old game, new rules? The dynamics of enterprise bargaining under the Fair Work Act. Journal of Industrial Relations, 59(1), pp.44-64.

Stewart, A., 2013. Stewart’s guide to employment law (Vol. 3). Sydney: Federation Press.

Sutherland, C. and Riley, J., 2016. Major court and tribunal decisions in Australia in 2015. Journal of Industrial Relations, 58(3), pp.388-401.

Sutherland, C., 2013. The elusive quest for simplicity: Measuring and assessing the readability of enterprise agreements, 1993 to 2011. Sydney L. Rev., 35, p.349.

Townsend, K., Wilkinson, A. and Burgess, J., 2013. Is enterprise bargaining still a better way of working?. Journal of Industrial Relations, 55(1), pp.100-117.

Wright, C.F. and Lansbury, R.D., 2014. Trade unions and economic reform in Australia, 1983–2013. The Singapore Economic Review, 59(04), p.1450033.

Wright, C.F., 2016. Australian industrial relations in 2015. Journal of Industrial Relations, 58(3), pp.297-307.