South Australian Business News

Multi-employer bargaining and what it could really mean for SA businesses

Elisa Luck
Thursday, November 17th 2022

The impact of the federal government’s contentious changes to industrial relations laws has continued to be a key point of focus and advocacy for the South Australian Business Chamber and the Australian Chamber of Commerce and Industry over the past week.

On 11 November 2022, the House of Representatives passed the Federal Labor Government’s Secure Jobs, Better Pay Bill to amend the Fair Work Act 2009. 

If passed in the Senate next week, this flawed Bill will result in the most significant and regressive industrial relations changes in well over a decade. The South Australian Business Chamber and other leading business groups insist the Bill be rejected in its entirety or have the most contentious sections, including the unjustified expansion of the multi-employer bargaining stream, split off to be examined in a more consultative manner. 

The South Australian Business Chamber is committed to working with the government to ensure that any changes to Australia’s industrial relations system improve productivity and promote sustainable real wages growth through appropriate and reasonable consultation

To be prepared, let’s unpack some of the red flags and what this means for business if the expansion of the multi-employer bargaining stream is enacted.

This approach to enterprise bargaining represents a complete shift from the existing rules. Presently, multi-employer bargaining can only be done where the employers choose to bargain together. 

The new single interest stream is the wrong approach and would force employers and their employees to be made parties to an agreement they have had very little say in.

Businesses are also at risk of being roped into agreements they will have not negotiated at all. Essentially employees’ unions can dictate to employers that they must bargain together.

Unions could reach agreement with a few employers and then extend the agreement to hundreds of other employers. Small businesses would be damaged as they would have costly new conditions and requirements imposed on them for nothing in return. 

Compulsory Arbitration in the Fair Work Commission is possible where an intractable bargaining dispute arises. Employees can also take protected industrial action subject to a Protected Ballot Action Order.

You can find out more when we take a deep dive into multi-employer bargaining at our webinar The Good, the Bad and the Ugly: What the proposed Industrial Relations changes mean for South Australian Businesses at 10:30am on Friday 18 November 2022. The South Australian Business Chamber Members can register here.

Not a member? Not a problem, you can simply join up as a member of the South Australian Business Chamber to get access to this webinar and advice, plus more, call us today on 8300 0000 (select option 2) or join here.

Author

Elisa Luck

General Manager, Programs and Consulting
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