Negotiating Your Enterprise Agreement

Enterprise agreement bargaining table
Image courtesy of suphakit73 / FreeDigitalPhotos.net

After giving is some serious thought and more than a little bit of prior planning, you have decided that an Enterprise Agreement will be a good thing for the future growth of your business.

What’s got you confused is how you make it happen.

Do you just give your staff an agreement that you prepared earlier and wait for a yay or nay from them? Or, do you give them a blank sheet of paper and get them to write down their wish list, picking and choosing what you want to put into it?

Whilst the process of negotiating an enterprise agreement is relatively easy, there are certain things that need to be done, and in the right order, otherwise you may have some explaining to do when you seek approval from the Fair Work Commission.

Notice Of Employee Representational Rights.

Before you can start bargaining for the enterprise agreement, you need to let your staff know that it is happening. This is where the Notice of Employee Representational Rights comes in.

Schedule 2.1 of the Fair Work Regulations 2009 specifies the content that the notice should have.
It is also worth noting that the notice of employee representational rights should be just that, and not have anything else attached to it, either in the email notification or when/if the notice is placed on a notice board.[GARD]

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An Enterprise Agreement’s Most Dangerous Clause

Photo Credit: Olivier Hill via Compfight cc
Photo Credit: Olivier Hill via Compfight cc

What do you think the most dangerous clause in an Enterprise Agreement is?

A ‘restrictive’ clause on wage increases?

Nope.

A clause on productivity improvements, if it makes it into the agreement?

Nope. Not even close.

How about the clause classifying the positions?

Once again, no.

All of these are fairly innocuous when compared to what has to be the most dangerous clause ever to find its way into an enterprise agreement.

“The Charter of Union Workplace Delegate Rights”

This clause is hardly as benign as most would lead you to believe and looks something like this.

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Planning Your First Enterprise Agreement

Your First Enterprise Agreement | IRSimplified.com.auYou’ve made the decision to start negotiating your first Enterprise Agreement. Before you send off your Notice of employee representational rights, there are a few things you need to think about first.

Do You Really Need One?

This is probably the most important part of the whole Enterprise Agreement porcess. If you aren’t 100% sure that your business needs one, then don’t start the process.
Having an enterprise agreement in place will lock you into the terms and conditions that are in that agreement until another one takes its place or it is terminated.
An enterprise agreement is ideal if you business is going to experience growth during the agreement’s lifetime. Having one will simplify the the process of paying your staff by taking away the confusion that exist with the Modern Award system.

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Enterprise Agreements. What Are They?

Enterprise Agreements. What Are They? | IRSimplified.com.auWith regards to the Fair Work Act 2009, an enterprise agreement is an agreement on certain employment conditions between an employer and their employee(s).

Enterprise Agreements can be between a) An employer and group of employees; b) More than one employer and group of employees; c) One of more employers and one of more unions for a genuine new enterprise (Greenfields Agreement)

Modern Awards v Enterprise Agreements

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What Is Industrial Relations

What Is Industrial Relations?Merriam Webster defines Industrial Relations as the dealings or relationships of a usually large business or industrial enterprise with its own workers, with labor in general, with governmental agencies, or with the public.

If you have picked up a paper any time in the past 6 – 12 months, you could be forgiven for thinking that industrial relation is the trade off between wage increases and the mythical productivity increase.

Yet industrial relations is both more and less complex than that.

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