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Enterprise Bargaining in NSW: Step 2

Step 2 - The Negotiations

General Information

This section is designed to give you a basic overview of the bargaining process. If you need more detailed information or training, telephone Workplace Advice on (02) 9020 4611 or 1800 803 836.

Facilitating Change

Enterprise bargaining provides a legal process to help employers and employees and their representatives create improvements in the productivity and efficiency of their enterprises which will benefit everyone. Through enterprise bargaining, rather than thinking that a gain to one party will always mean a loss to the other, employers and employees and their representatives demonstrate that dynamic and responsive enterprises can be achieved by cooperation.

The emphasis of the negotiations should be on:

• establishing an environment of mutual trust within the workplace;
• sharing a commitment to achieving the organisation's objectives;
• open and two-way communication;
• ensuring the involvement of all employees and their representatives to be covered by the agreement in the bargaining process; and,
• co-operative negotiation rather than a conflict/adversarial approach.

In short, assisting with the development of a culture of dynamic change by facilitating equitable, innovative and productive workplace relations.

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The Principles - Negotiation and Consultation

The Principles for approving an enterprise agreement place particular emphasis on the need for consultation in the negotiation process. The following matters must be considered:

Consultative Mechanisms

An enterprise agreement should, where appropriate, facilitate the establishment of consultative committees and procedures appropriate to the size, structure and needs of the enterprise for consultation on matters affecting their efficiency and productivity.

Information sharing processes

During the negotiation of the agreement, consultative processes should be structured such that they encourage participation of all groups and categories of employees. This may include part-time and casual employees, NESB employees, women employees and employees with disabilities.

The negotiation process should therefore ensure that:

1. reasonable steps are taken to consult all employees who are to be covered by the agreement about the agreement;
2. reasonable steps are taken so that employees who are to be covered by the agreement understand the agreement and its effect;
3. employees are informed of the intention to have the agreement approved by the Commission and the consequences of the Commission's approval;
4. employees have access to the proposed agreement and the relevant awards; and
5. employees have had reasonable time to seek advice independent from the employer,including relevant industrial organisations of employees. (extract from the Principles for approving Enterprise Agreements, December 2002).

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A Consultative Committee

A joint consultative committee is a committee comprising management representatives and employees and/or their representatives which meets regularly to discuss issues related to the workplace.

The establishment of a consultative committee is an excellent way of ensuring the involvement and participation of employees in the negotiation process - whether their union is involved or not. Enterprises which have established successful consultative committees report that improved relationships, increased trust and understanding of change has occurred among employees. These improvements have provided a better quality of working life for the employees.

Further information about joint consultative committees can be found in the publication entitled Joint Consultation produced by the NSW Department of Industrial Relations. Enquiries should be directed to Workplace Advice on telephone (02) 9020 4611 or 1800 803 836.

Workplace Advice also provides practical training for consultative committee members focusing on the skills needed to participate effectively in the consultative process. Workplace Advice can be contacted on the above numbers.

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The Five Steps

There are five steps to successful negotiation of an enterprise agreement. The length and complexity of the negotiation process will depend largely on each party adequately preparing for the negotiations and the degree of common ground between the parties.

1. Understand the Process

A good understanding of the enterprise agreements legislation and the steps to be followed in the enterprise bargaining process will help the parties appreciate what can be achieved and why things must be done in a particular way. This step-by-step Guide will help to achieve this.

2. Prepare thoroughly

It is important to obtain an up to date copy of the relevant award/s covering the employees at the enterprise as well employment conditions contained in NSW Acts such as parental leave, annual leave, long service leave, anti-discrimination and occupational health and safety.

The Principles set down by the Commission governing the approval of the agreement should also be fully understood by the parties. Also, consider other issues not covered by the award/s that should be addressed in the negotiations.

3. Understand the Enterprise

All parties to the negotiations need to consider how the enterprise operates. The agreement should really reflect the business processes of the organisation so that the agreement is relevant to the enterprise. Employers and employees should consider such matters as:

• what improvements could be made within the enterprise to achieve greater productivity and efficiency;
• what areas in current jobs may be streamlined to improve efficiency;
• what present work practices could be enhanced;
• how present career paths, skills development and training could be developed.

Ensure that all such relevant information is placed on the agenda for negotiation. It is important to remove all subjective (personal) views from the negotiations; the negotiation process should be kept objective (impartial) and relevant to the future of the enterprise where the parties work.

4. Bargain in good faith

During negotiations, the parties should agree to bargain in good faith. This means where the parties have agreed to negotiate an agreement, they should attend meetings they have agreed to attend, provide documentation they have agreed to provide, and comply with agreed or reasonable negotiating procedures.

In negotiating an enterprise agreement, the parties should consider such issues as workplace reform, productivity and efficiency.

5. Implementation.

Responsibility for an enterprise agreement does not end with its registration. It is important that strategies are put in place to ensure that the measures proposed in the agreement are implemented and that progress is monitored throughout the life of the agreement.

Some issues to be considered are the:

• development of an implementation plan - listing all the measures which are to be introduced in the enterprise agreement and the time-frame for their introduction. The role of the Consultative Committee, or the establishment of a committee can assist in developing implementation strategies for any initiatives contained in the enterprise agreement.
• development of a communications strategy - including the production of regular bulletins to employees about the implementation of the agreement, meetings with employees to discuss particular issues and/or the establishment of avenues by which employees can communicate with the group/s overseeing the implementation of the agreement.
• evaluation of the enterprise agreement - it is suggested that the success of the agreement be evaluated prior to the nominal term to determine whether a new agreement is to be negotiated and what issues it will address. This evaluation should take place three to six months prior to the end of the nominal term.
• implementation of a process for negotiation of the next agreement - if a new agreement is to be negotiated, consideration should be given to when the negotiation process will commence.

All of these issues should be considered before the agreement takes effect to ensure that the implementation phase proceeds smoothly.

Option 1 - the union/s Option 2 - the employees Please proceed to Step 3.