Collective bargaining occurs when a group of employees, usually represented by a labor union, negotiate with their employer for improved working conditions. Generally, employees who collectively bargain aim to improve their wages, employment benefits, working conditions and job security. Employers also have their own representatives who negotiate on their behalf against employees seeking better working conditions. The collective bargaining process helps to maintain a power balance between employees and employers, in particular, to ensure workers have a voice in the decision-making process in their workplace. Negotiating conditions as a large group benefits employees as they have much more power than if they acted alone. Continue reading this Legal Kitz blog to learn more.
Collective bargaining rights in Australia
Collective bargaining has a rich history in Australia and is legislated under the Fair Work Act 2009 (Cth) (FW Act). This legislation sets out the legal framework for how and when bargaining can occur between employers and employees; some of the act’s most important provisions will be discussed below. Under the FW Act, employees may collectively bargain directly or with the help of their union; in return, employers are obligated to bargain in good faith.
The FW Act sets out specific requirements for the bargaining process, such as:
- The need for employers and employees to negotiate in good faith
- The requirement for both parties to attend meetings and respond to proposals promptly
- Parties must provide relevant information and disclose their interests in the bargaining process
- Parties must notify the Fair Work Commission (FWC) before bargaining begins and provide updates throughout the process.
In addition to the FW Act, several other laws and regulations apply to collective bargaining in specific industries or sectors. For example, some industries have their own industrial awards or enterprise agreements that govern the terms and conditions of employment. Overall, the legal framework for collective bargaining in Australia exists to ensure a balance between employer and employee interests and to make sure workers can negotiate for fair and reasonable working conditions.
How should employers approach the collective bargaining process?
Employers faced with collective bargaining should ensure the process is smooth and mutually beneficial for the company and its employees; this can be done by adherence to the following tips.
- Understand the process: Employers must deeply understand the legalities involved with collective bargaining so they are not surprised when it occurs in their business. They must understand their rights and obligations as an employer to be well informed of what is expected of them.
- Prepare for negotiations: Employers must meet with their leadership team to brainstorm their negotiation approach. They might plan things like their goals and decide what compromises they are willing to make to ensure a mutually beneficial agreement can be made. Employers should also try to agree upon their priorities, objectives, strengths and potential weaknesses in negotiation so a cohesive and effective plan can be decided upon.
- Communicate effectively: Employers must maintain an open, honest and straightforward dialogue with their employees and their union during the bargaining process, as losing goodwill might be detrimental to the business in the short and long term.
- Seek professional advice: Employers should seek legal guidance from a labor or corporate lawyer to ensure they are utilising the most effective strategy and their actions comply with obligations under the law.
Overall, employers who take these steps will raise their chances of achieving favourable results in the collective bargaining process.
Strategies to effectively bargain as an employee
Employees who intend to engage in collective bargaining with their employer should implement the following strategies to achieve optimal results.
- Be clear on the priorities: Employees must work with their union to develop a list of priorities for the bargaining process; they should rank their needs from most important to least and then act per this ranking. For example, the employees might decide that a wage rise is an undisputable priority while additional time off is negotiable.
- Stay informed: Employees must constantly stay informed on the negotiation’s most recent developments, maintain solidarity and know when to be flexible in their priorities.
Legal advice
Collective bargaining periods are stressful for employers and employees alike; if you are a party involved in collective bargaining and are confused about your rights, obligations or goals, feel free to contact Legal Kitz to assist. You can request a FREE consultation with one of our highly experienced solicitors here today or contact us at [email protected] or 1300 988 954. Furthermore, check out Business Kitz Subscription Service today to access our full range of legal, commercial and employment documents to ensure your business has a solid foundation of legally compliant documents.