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ARTICLE · 23 NOVEMBER 2022

Is this the end of enterprise bargaining?

McCullough Robertson
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Bill flips emphasis of the setting of conditions at the level of the industry or sector, not at the level of individual enterprises.

AustraliaEmployment and HR
Michael Moy
Michael Moy
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For 30 years, the industrial relations regulatory environment in Australia has entrusted employers and their employees to negotiate the most suitable terms and conditions to suit their collective circumstances.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 fundamentally alters this dynamic and flips the emphasis of the system onto the setting of conditions, not at the level of individual enterprises, but at the level of the industry or sector.

Removing the 'bargaining' from enterprise bargaining

It is true that 'enterprise bargaining' (that is, bargaining at the level of the individual enterprise) will remain a part of the Fair Work Act. However, many of the changes made to the single employer bargaining stream will disincentivise employers from bargaining, rather than encourage them to bargain where they may have avoided doing so over the last few years. Those changes include:

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