How to Negotiates an Enterprise Agreement in Australia - Research Paper Example

?How to Negotiate an Enterprise Agreement in Australia Table of Contents Table of Contents 2 Introduction 3 Ways to Negotiate an Enterprise Agreementin Australia 3 Commencing Bargaining 4 Low-Paid Bargaining 4 Good Faith Bargaining 5 Representational Rights 5 Permitted content  6 Mandatory Content 6 Voting on the Agreement 7 Conclusion 7 7 References 8 Introduction An enterprise agreement, in general, refers to a contract between an employer and its employees got through a collective barraging process. Through an enterprise agreement, employees, employers as well as bargaining representatives (including unions) negotiate to create a set of employee entitlements bridging the gaps between organizational aims and employee interests. Accordingly, an enterprise agreement can have terms that are added to the National Employment Standards in Australia (Aged & Community Services, n.d.). This paper highlights the process of negotiation of enterprise agreement generally followed in Australia. Ways to Negotiate an Enterprise Agreement in Australia An enterprise agreement in Australia is regulated by the New Fair Work System, which was enacted during the year 2009. This agreement works as a tool that allows employers and employees to bridge the misalignment and develop an agreement based on mutual interests concerning the rights that may better suit the needs of the individual in the respective workplace. There are basically three types of enterprise agreements available in Australia, viz., Single-enterprise agreements, Multi-enterprise agreements and Greenfields agreements. Single- enterprise agreements take place between the employees and a single employer emphasizing a particular interest, rather than taking into account multiple interests. Correspondingly, a multi-enterprise agreement is signed between employees and employers involving more than one interest. Unlike the single and multi-enterprises agreements, the Greenfields agreements are made between an employer and an employee in the organization and can be formed both in the manner of a single?enterprise or a multi?enterprise agreement (Fair Work Australian Government, 2013). Commencing Bargaining The first step of negotiation in signing an enterprise agreement in Australia is to commence bargaining between the employee and the employer. There are the two ways through which a bargaining may start in enterprise agreements in Australia. Initially, the employees and employer need to agree to negotiate, following which, employee bargaining process shall instigate. Correspondingly, the union may approach the employer with a proposed agreement or a list of demands, often regarded as a ‘log of claims’, conveying those attributes they would like to see in the proposed agreement, or the changes they wish to make to an existing agreement. In broader terms, if approached by the union or the employees, the employer must negotiate and must do so in good faith. If the employer refuses to negotiate, the other party may apply to fair work provisions in Australian Fair Work Commission to obtain a majority support determination, mandatory to obtain statutory approval for the negotiated changes (Australian Fair Work Commission, 2013). Low-Paid Bargaining The recently followed negotiating process of enterprise agreements in Australia provides a new scheme of bargaining for industrial development of low paid employees. To facilitate the entry of this particular group of employees, rendering equal significance to the interests of their respective organizational employers, the provision in Australia provides with a special low?paid bargaining benefit. In precise, the provision dictates that Fair Work Australia may convene and chair conferences and guide the parties through the negotiating process in order to secure the interests of low-wage earners within the economy (Teicher & et. al., 2013). Good Faith Bargaining The Fair Work Commission of Australia is also regarded as a determinant and noteworthy aspect in constructing enterprises agreement in Australian workplace. Correspondingly, the act postulates that the involved parties need to bargain in good faith. In some cases, the good faith bargaining do not require a negotiating councils to make concessions and hence, can be deemed non-mandatory as the mentioned statute in Australia (Fair Work Ombudsman, 2013). The good faith bargaining of the enterprise agreements are needed to be constructed on the basis of the following requirements. Identification of and bargaining with the other negotiating representatives involved in the enterprise agreement proposal Reflection of the proposals made by other negotiating representatives and providing reasons for the responses through the agreement Representational Rights The Fair Work Commission in Australia has made substantial changes to the way people may be represented while making enterprise agreements in Australia. When the negotiating process begins in an enterprise agreement in Australia, the employer involved in the process must give a notice to each employee regarding the negotiation. This notice is also referred as the ‘Notice of employee representational rights’. This right must be provided to the employees within 14 days from the commencement of the negotiation as per the mentions provision (Fair Work Australian Government, 2013). Permitted content  As per the Fair Work Act in Australia, not everything can be regulated by enterprise agreements. The Fair Work Commission Australia, under permitted content, limits the proposals of enterprise agreements. The intention behind such bindings is to protect the mutual relationship between workers and an organization so as to maintain a productive and healthy working environment with the aid of government and regulatory interventions to the conflicting negotiations (Fair Work Ombudsman, 2013). Mandatory Content The other process of negotiating enterprise agreements in Australia is through the obtainment of mandatory content. It needs approving by fair work Australia. This content helps to individual employee for participating negotiation process. Moreover, the dispute settlement process are also required to involve either Fair Work Commission in Australia or any other relevant statutory body in the negotiation of the content that can aid with the illustration of an unbiased judgment for both the parties involved, i.e. the employer and union/employees in the process (Fair Work Ombudsman, 2013). Voting on the Agreement After the employer and employees have finished negotiating an enterprise agreement, a vote must be conducted. In this process, all the employees who will be participating in the negotiation can vote either in favor or against the proposed changes/additions. The vote cannot be held until at least 21 days after the final notice is provided to employees (Fair Work Ombudsman, 2013). This vote can be arranged for the support of the employees to the agreement and is mandatory in obtaining an unbiased judgment. Conclusion Through the discussion, it was observed that an enterprise agreement refers to a contractual negotiation between the employer and employee, often involving union bodies and other regulatory commissions in Australia, responsible for the working environment health in the nation. Conceptually, an employment agreement takes place through a collective bargaining process. Notably, there are various factors, which need to be considered by the involved parties in an employment agreement in Australia that clearly exhibits the intervention of governmental norms in such negotiations. To a substantial extent, such interventions have been quite effective in maintaining transparency in such dealings and therefore contribute towards the health of the workforce in Australia. References Aged & Community Services, No Date. Enterprise Agreements. Documents. [Online] Available at: https://www.agedcommunity.asn.au/members_only/documents/RK_EnterpriseAgreements.pdf [Accessed October 30, 2013]. Australian Fair Work Commission, 2013. Making an enterprise agreement. Guide. [Online] Available at: http://www.fwc.gov.au/documents/factsheets/making_agreements_guide.pdf [Accessed October 30, 2013]. Fair Work Australian Government, 2013. Enterprise bargaining fact sheet. Workplace rights. [Online] Available at: http://www.fairwork.gov.au/resources/fact-sheets/workplace-rights/pages/enterprise-bargaining-fact-sheet.aspx#what-is-an-enterprise-agreement [Accessed October 30, 2013]. Fair Work Ombudsman, 2013. Enterprise bargaining. Factsheets. [Online] Available at: http://www.fairwork.gov.au/factsheets/FWO-Fact-sheet-Enterprise-Bargaining.pdf [Accessed October 30, 2013]. Teicher, J. & et. al., 2013. Australian Workplace Relations. Cambridge University Press. Read More