In the current economic environment characterised by cost pressures, fluctuating markets and ongoing workforce shortages, many employers are already offering wages, allowances and conditions that exceed the minimum requirements of the applicable award.
One mechanism available to formalise and secure these arrangements is an enterprise agreement. Made under the Fair Work Act 2009 (Cth), an enterprise agreement allows employers to lock in tailored terms and conditions of employment, including agreed wage increases and workplace flexibilities.
Importantly, the Act provides multiple pathways for bargaining to be initiated, not only by employers, but also by employee organisations such as employee unions. For some employers, this can result in being drawn into a bargaining process at a time when they are unprepared, or on terms that may not align with the long-term sustainability of the business.
We are aware of increasing engagement from employee representative organisations, particularly to commence bargaining. It is important to note that bargaining is not automatic in these circumstances. There are specific legal thresholds and procedural requirements that must be satisfied before an employer is compelled to participate.
Given the increased engagement, now may be the ideal time for employer to assess their current position and consider what would be most beneficial for their company, rather than responding to external pressure.
If you have questions about your rights and obligations in relation to enterprise bargaining or Award entitlements, particularly where the process may be initiated by a third party, please contact the Workplace Relations Team
📞 (02) 6175 5900
📧 workplace@mba.org.au
