Awards and Enterprise BargainingAwardsA primary function of unions in Australia since the 1950's has been to secure a state or federal award that lays down the pay and conditions for workers in a particular job.
Generally, awards deal with matters such as:
These awards have become very complex and detailed. Some, such as the old Metals and Engineering Award, had over 300 classifications, each with different rates of pay and conditions of work. On page 2 is an extract from the Professional, Administrative, Computing, Clerical and Technical Award (the PACCT award). This award was finalised in 1988 and it covers administrative staff such secretaries, office managers and accountants. The extract provided here (clause 8) covers overtime, and it illustrates the complexity and law-like nature of awards. Many people complain that they're impossible for ordinary workers to read: judge for yourself. Awards are registered with the various federal and state Industrial Relations Commissions and employers are required to keep accurate records of employee's pay, days worked, deductions, sick leave entitlements and so on. State Departments of Labour police these requirements under the law, and penalties are applied for those in breach of it. Both the federal and state governments play a role in industrial relations matters such as industrial awards. This is a legacy of the problems that had to be worked through between the states at the time of federation, and it creates astonishingly difficult legal problems. For example, industrial disputes may be put before either a federal or state tribunal. That is, there is a choice of jurisdiction. In Australia about 90 per cent of workers are covered by awards. Of these, about 60 per cent are covered by federal awards and 40 per cent by state awards. Most workers in New South Wales and Queensland are covered by state awards, but federal awards apply more widely in the other states and territories. In Victoria, of course, the government has recently abolished state awards. Employers are now required to operate under contracts of employment. These generally retain the award pay and conditions, but vary penalty rates, starting and finishing times, holidays and so forth. Many unions are afraid of a fall in the standards under contracts, and are attempting to switch to federal awards. Generally, Awards can be downloaded from the Internet at by visiting WageNet. |
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Enterprise Bargaining
Normally, employers must provide employees with remuneration and working conditions as set dow by relevant Awards. This is law.
However, employers and employees can enter into a process of direct negotiation known as Enterprise Bargaining whereby the rates of pay and other conditions of employment can be "varied" from that which is prescribed in an Award.
In the negotiation process, employees may call upon the expertise of a 3rd party to assist with negotiation and to represent the interests of the workers. Usually this party will be a Union. The employer is also free to hire a consultant to bring expertise to the bargaining table.
A successful negotiation process will result in parties making an application to the Industrial Relations Commission to set up a "Certified Agreement". If the application is successful, employees may receive remuneration and/or working conditions that are different from the Award on one proviso - the "No Disadvantage Test".
The No Disadvantage Test is applied by the Industrial Relations Commission and it means that the newly bargained terms and conditions of employment must not make the workers worse off than the Award.
That's the theory anyway. However, in reality, the outcome of Enterprise Bargaining is that there is often greater benefit for employers than for employees. Although, employees are often paid more, they are caused to work longer hours, undertake more complex work, and work harder.
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