Collective Bargaining Under The Fair Work Act To Begin In Australia

Source: Government of Australia
Posted on: 25th October 2009

The Minister for Employment and Workplace Relations, Julia Gillard, today announced approval of the first four groups of employers who can negotiate collectively with their employees under the flexible bargaining provisions contained in the new Fair Work Act.

The declarations were made under a provision of the Fair Work laws which allows two or more closely connected employers to seek ministerial approval to bargain as one unit for a single enterprise agreement covering all their employees.

Victorian kindergarten employers, Lutheran and Catholic schools in Queensland and two New South Wales hospitals all successfully applied for ministerial approval to be declared single interest employers under the Fair Work Act.

These four groups of employers have demonstrated that it is practical for them to continue bargaining collaboratively, given their structures, shared funding sources and regulatory arrangements.

The single interest bargaining provision allows Victorian kindergarten employers and employees to bargain collectively for a single agreement across the sector, rather than asking volunteers on management committees to negotiate with employees at each individual centre.

In the case of both the Catholic schools and the Lutheran schools, a single agreement provides advantages such as the ability to negotiate portable leave entitlements across all the schools. This helps attract and retain staff and would not be possible if each school had to bargain separately.

Catholic Health Care and Hawkesbury District Health Service already operate in a highly integrated way and a single agreement is the most effective and efficient bargaining approach for them.

The Act sets out strict criteria in section 247 that the Minister must take into account in deciding whether to make a declaration.

These criteria include:

  • the history of bargaining of each of the relevant employers, including whether they have previously bargained together;
  • the interests the relevant employers have in common and whether they are relevant to bargaining together;
  • whether the employers operate collaboratively rather than competitively; and
  • whether the employers are substantially funded by Commonwealth or State funding.

These criteria mean that single interest employer bargaining will be limited to employers who rely on government funding and have traditionally bargained together, such as independent schools and publicly funded health care facilities.

Employers granted a ministerial declaration can apply to Fair Work Australia for a single interest employer authorisation in relation to their proposed enterprise agreements. FWA must be satisfied that it is a genuine voluntary decision of employers to bargain in this way and they have not been coerced in any way to do so.

In a related development, Fair Work Australia has granted the first single interest employer authorisation under the new system to 49 KFC franchisee operators. The authorisation enables the 49 outlets to bargain together for a single agreement.

Franchisees that carry on similar business activities under the same franchise can apply for a single interest employer authorisation from Fair Work Australia without first having to get a ministerial declaration.

For more information on ministerial declarations visit: www.fairwork.gov.au

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