Enterprise bargaining is an Australian term for a form of collective bargaining in which wages and working conditions are negotiated at the level of different organizations, unlike interprofessional collective bargaining in all sectors. After their creation, they are legally binding on employers and workers covered by the collective agreement of companies. An enterprise contract (EA) consists of a collective agreement between an employer and a union that acts on behalf of workers or an employer and workers acting for themselves. Under Australia`s labour law, the 2005-2006 industrial reform, known as "WorkChoices" (with the corresponding amendments to the Workplace Relations Act (1996), changed the name of these contractual documents to a "collective agreement." State industrial legislation may also impose collective agreements, but the adoption of the WorkChoices reform will reduce the likelihood of such agreements occurring. There are no employees who vote on a Greenfields agreement. This type of agreement must be signed by each employer and any relevant workers` organization it covers. However, it is not enough to simply offer, answer questions and explain the agreement to workers on demand, especially if the proposed agreement removes the important rights that workers would otherwise have enjoyed. Organizations that are negotiators (employers, employers` organizations and trade unions) for a proposed enterprise agreement must disclose certain financial benefits that they (or certain related parties) may obtain (or could obtain) because of the length of the proposed agreement. There is no simple solution when an employer submits the incorrect version of an enterprise agreement and the FWC agrees1.
The employer must appeal the decision to approve the enterprise agreement, submit the agreement to another vote and re-request that the agreement be approved. The application of the BOOT has been an obstacle to many agreements approved by the Commission. To succeed in the BOOT, the Commission must be convinced that any worker to beat (and any potential worker covered for the bonus) would be in a better position overall if the agreement applies to the worker than if the corresponding modern bonus were applicable. This requires the Commission to determine the terms of the agreement, which are more advantageous, as well as the terms that are less advantageous, and then to make an overall assessment of whether each worker would be better off under the agreement than under the award of arbitration. The High Court of Australia`s decision in Electrolux v. the Australian Workers` Union has given rise to a major legal issue in the case of enterprise agreements.