Non-Union Bargaining: Enterprise Flexibility Agreements

Abstract

One of the key objectives of the Industrial Relations Reform Act 1993 (Cwlth) is to develop an industrial relations system in Australia based on enterprise bargaining. To make enterprise bargaining accessible to the non-union sector the legislative framework provides for the making of enterprise flexibility agreements. These agreements can be made directly between employer and employees without union involvement where the workforce is not unionized. It has thus been popularly referred to as the 'non-union' bargaining stream. This article examines the extent to which the legislation on enterprise flexibility agreements does provide for nonunion workplace bargaining. It does so by examining the way in which the legislation provides for union involvement at the various stages in the process of negotiating and formalizing an enterprise flexibility agreement. The provision in the legislation of a formal system of non-union bargaining has been criticized as posing a threat to the traditional representational role played by unions in Australian industrial relations. In this context, the role of the Bargaining Division of the Australian Industrial Relations Commission in facilitating bargaining and its decisions concerning the rights of a union to represent employees in their negotiations with the employer are also considered. Finally, some conclusions are offered as to why only a relatively small number of enterprise flexibility agreements have been approved.

‘We have the values’: customers, control and corporate ideology in call centre operations

“…Given Servo's negative view of trade unions, it is perhaps not surprising that the organisation opted for an Enterprise Flexibility Agreement (EFA) after the legislation became available in 1994. This form of bargaining, which allowed non-union bargaining for non managerial staff in Australia, did in theory allow unions to influence negotiations however in practice, as in this case study, unions are often marginalised throughout the negotiation process (Coulthard, 1996). Although three open forum seminars were organised by management to inform staff about the proposed terms of the agreement, no formal representational mechanisms or consultative committees were established at the workplace.…”

Unions and collective bargaining in Australia in 2018

“…Among the more remarkable aspects of Australian employment relations are the legislative provisions allowing the making and approval of collective agreements without unions involved. These provisions were first inserted into the Act in 1993 (see Coulthard, 1996) and continued in the Fair Work Act (see Coulthard, 2012). Despite their longevity, non-union collective agreements get remarkably little attention from scholars or those engaged in policy debates.…”

The Howard Government: The Extent to which Public Attitudes Influenced Australia's Federal Policy Mix

“…Given Australia's ongoing and increasing interaction with the international economy, the Howard government, like previous Labor governments (1983–96), has given greater attention to labour market reform and taxation levels in response to the reality that many companies and corporations have increasingly made locational decisions based on such considerations. Though Labor reduced the company taxation rate from 40% to 36%, and introduced non‐union enterprise bargaining via ‘enterprise flexibility agreements’ from 1993 (Coulthard 1996), the Howard government further reduced the company taxation rate from 36% to 30% and introduced legislation which, after being passed in the Senate in 1997 following compromise with the Australian Democrats, promoted individual Australian Workplace Agreements (AWAs) between employers and employees without scrutiny by trade unions and /or the Industrial Relations Commission. In addition, the government's production of eight budget surpluses in a ten year period not only reduced Commonwealth government debt from $96 billion in July 1996 to $16 billion by July 2005, but also provided greater opportunity to the private sector through the privatisation of a number of public assets and government services.…”