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ARTICLE · 18 APRIL 2013

New Fair Work Act Amendments ignore Greenfields Agreements Strife

Corrs Chambers Westgarth
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Bargaining practices and outcomes associated with greenfields agreements could threaten investment in major projects.

AustraliaEmployment and HR
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Major new projects in Australia are often delayed because of lengthy disputes between unions and employers on employment conditions. This was recognised by the Panel that last year reviewed the Fair Work Act.

In a March announcement, the government pledged to amend the Act to do something about this. However, in an about-turn, the government has failed to deliver on this promise in its new Fair Work Amendment Bill 2013.

This is another blow for major new enterprises in this country and does nothing to improve Australia's reputation as an attractive investment destination.

Greenfields agreements are made between a union and a new employer, that doesn't yet have employees.

They determine the terms and conditions of employment that will apply and can only be negotiated with a union or unions that have coverage of a majority of the prospective employees.

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