Enterprise Bargaining and Terms – what do they mean!
In our last Enterprise Agreement (EA) bargaining update, we promised to demystify the terms you might encounter during EA bargaining. To do that, we will also briefly overview the EA bargaining process so that you can understand why different stages occur when they do.
Key Terms at a glance
- Enterprise Bargaining (EB): The process through which a new enterprise agreement specifying salaries and working conditions is negotiated.
- Log of Claims: A union document outlining desired conditions for Enterprise Bargaining negotiations.
- Enterprise Agreement: A legally binding document enforcing agreed-upon conditions.
- NES (National Employment Standards): Eleven minimum entitlements that employers must provide to employees.
- Modern award: is a legal document that specifies the minimum employment conditions for employees. It covers various aspects, including Pay, Hours of Work, Rosters, Breaks, Allowances Penalty Rates and Overtim
- NERR (Notice of Employee Representational Rights): Informs employees of their representational rights. When an employer initiates the creation of an enterprise agreement, they must provide employees with the NERR. The NERR informs employees of their rights during the bargaining process, including their right to have the union represent them at bargaining.
- Good Faith Bargaining: Bargaining representatives must act fairly and efficiently during negotiations.
- Scope of Bargaining: Enterprise bargaining can address a wide range of employment terms and conditions. However, certain matters cannot be included in an enterprise agreement, such as unlawful terms or discriminatory clauses.
- BOOT (Better Off Overall Test): before an EA can be approved by the Fair Work Commission it must meet the Better Off Overall Test, which ensures that employees are better off under the agreement than the relevant award, and to ensure that the are no errors in terms and conditions.
- Access Period: a period of time that allows employees to review the agreement before casting their votes.
- Voting and approval: An Enterprise Agreement requires majority approval from covered employees. Before accepting an agreement, the IEU consults with members and a ballot/vote will be conducted.
- Organised, United and Strong: what leads to successful outcomes in bargaining for better salaries and conditions. Your engagement matters!
What is the Enterprise Bargaining Process?
Enterprise Bargaining is the process through which a new agreement – specifying salaries and working conditions – is negotiated and then approved by the Fair Work Commission (FWC).
The FWC is a federal government department, and they are Australia’s workplace relations tribunal and registered organisations regulator. The FWC make awards, approve enterprise agreements and help resolve issues at work.
EA bargaining is a defined process
The FWC has a specific process with timeframes that must be followed. The IEU, on behalf of IEU members, will ensure that employers follow this process as tabled by the FWC:
As noted, this is a simplified timeline of the EA process. Members can read more about the full process here: https://www.fwc.gov.au/agreements-awards/enterprise-agreements/make-enterprise-agreement/process-make-agreement and here: https://www.fwc.gov.au/documents/benchbooks/enterprise-agreements-benchbook.pdf
Of course, members can discuss their EA, EA negotiations or any questions they may have about the process with their IEU Organiser – 8410 0122 or enquiries@ieusa.org.au
Your engagement matters!
Feel free to share this article with your colleagues and stay informed about the ongoing negotiations in your school. If you have any further questions, don’t hesitate to reach out.
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