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Enterprise Bargaining in NSW: Introduction

• What is Enterprise Bargaining?
• What is an Enterprise Agreement?
• The Principles for approving an enterprise agreement
• How to use this Guide

What is Enterprise Bargaining?

Enterprise bargaining is about introducing changes in the workplace - with everyone sharing the benefits. It provides the opportunity for an employer and his or her employees, either directly or through their union representatives, to discuss together changes to the way work is done, changes to conditions and productivity improvements that will mutually benefit both employer and employees.

Enterprise bargaining is undertaken cooperatively, as the employer and employees are equal partners in the negotiating process. No-one can be coerced or placed under duress in the negotiations.

Enterprise bargaining is one way of fostering a culture of change in the workplace and can be a valuable tool in the process of continuous improvement. It can assist in the creation of vital, responsive and flexible enterprises and help to improve productivity and efficiency.

Some examples of changes that may be introduced include:

• more flexible hours;
• broader job classifications;
• new training and career opportunities;
• profit sharing, or other forms of performance related pay;
• "family-friendly" features such as child care facilities, job sharing and career breaks;
• better procedures for handling employee grievances.

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What is an Enterprise Agreement?

An enterprise agreement sets out the minimum conditions of employment for employees engaged in particular types of work in an enterprise in the same way as an award does. It has the same legal force as an award and must be approved by the Industrial Relations Commission of New South Wales.

This is important because the Commission will not approve an enterprise agreement unless it is satisfied that the agreement does not, on balance, provide a "net detriment" to the employees. The Commission will do this by comparing the aggregate (or whole) package of conditions of employment under the agreement with the relevant award.

However, unlike most awards, enterprise agreements are specific to a particular enterprise or project and can be tailored to suit the special needs of that enterprise. Enterprise agreements are negotiated voluntarily between an employer and either the employees concerned, or a union on behalf of those employees.

Enterprise agreements generally have a nominal term of up to three years, however, they can continue in effect after this time if the parties to the agreement wish this to happen.

Enterprise agreements may cover some or all of the employment conditions in a NSW award. If the employees are working under a NSW award/s, it is essential that both the employees and their employer are familiar with the conditions of employment contained in the relevant award.

Copies of NSW awards may be purchased from the Publication and Sales Unit of the Office of Industrial Relations, telephone: (02) 9020 4531.

If the enterprise is currently award free, an enterprise agreement will provide the same legal protection as a NSW award.

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The Principles for approving an enterprise agreement

The Industrial Relations Act 1996 requires that the NSW Industrial Relations Commission establish a set of principles to be followed in determining whether to approve an enterprise agreement.

These principles take into account issues such as the objects of the Act, the public interest, whether the employees have had sufficient information regarding the effect of the agreement and whether the negotiation process was appropriate.

The enterprise agreement principles are referred to throughout this book (see Appendix 1 for the full text of the Principles).

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Where to get assistance

Workplace Advice provides detailed information and advice about enterprise bargaining in NSW. Services provided include:

• printed information;
• telephone advice;
• training for employers and employees in the process of enterprise bargaining and co-operative negotiation;

More information is available from:
Workplace Advice: McKell Building, 2-24 Rawson Place, Sydney NSW 2000
Telephone (02) 9020 4612 Fax: (02) 9020 4735 Hotline: 1800 803 836

Other organisations that may be able to assist you in drafting agreements, facilitating negotiations and providing model clauses are:

• employer associations;
• your union;
• your solicitor or accountant;
• Private industrial relations consultants.

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How to use this Guide

This book has been designed to provide a step-by-step guide to employers and employees or their representatives on how to develop and negotiate an enterprise agreement under the Industrial Relations Act 1996.

There are 8 steps, but depending on whether the enterprise agreement is between the employer and his or her individual employees, or a union representing the employees,, it may not be necessary to follow each one.

To start, turn to Step One to find out who can be the parties to a NSW enterprise agreement and what other steps you have to follow.