Higher wages?

Big companies banding together to rip off employees?

Small companies being bullied by bigger ones?

What does it mean for me?

What does it mean for you?

I, of course, currently work in HR, and my company does have a few enterprise agreements with different classifications. Mostly, they run quite well, but some can take a while to bargain. They are a discussion, and if you ever get the chance to participate, you should. BUT educate yourself, and don’t let anyone promise you something they can’t deliver.

Bargaining across employers hasn’t been done on a significant scale since the 1990s, when the Keating government introduced enterprise bargaining. The government’s bill introduces strike rights across unconnected employers for the first time. The Secure Jobs, Better Pay Bill offers two paths to multi-employer bargaining: revamped low-paid industry bargaining under the new badge of “supported bargaining” and the new multi-employer deal for government-funded sectors.

The real controversy lies with the so-called “single-interest” multi-employer bargaining, which theoretically exposes much of the economy to sector agreements. Small businesses of fewer than 15 employees, commercial construction labourers and those employers with current enterprise agreements are carve-outs.

The union-dominated but increasingly fractured manufacturing sector is likely to be targeted by the laws, as well as rapidly growing sectors like non-university higher education providers and solar farms. The United Workers Union, which represents cleaners, security guards, caterers, childcare and aged care workers and even horticulture workers, is one of the biggest supporters of the bill.

Unions will have to get a majority support before they can even start bargaining, and that’s no easy task in an economy where union membership has declined to less than 11 per cent of the private sector workforce. This will be a real test of the system, as days lost to industrial action in the private sector remain at historic lows, and unions can still command a lot of power and cause significant damage with just a few hundred members in key choke points in the supply chain.

The government is accusing employers of launching a scare campaign on multi-employer bargaining, but the mere threat of multi-employer bargaining may actually encourage employers into enterprise agreements.

Australians’ wages have been stagnant for a decade, and although employment has soared, wages have only crawled upwards. Meanwhile, inflation has wiped out these gains. Multi-employer bargaining would allow unions to negotiate one agreement with many employers, which would allow workers in heavily unionised workplaces to help colleagues in less unionised workplaces win pay rises.

Could it mean higher wages? Maybe… but it could just as easily result in killing jobs.

The Australian Chamber of Commerce and Industry says multi-employer bargaining is not needed to lift wages, and that greater flexibility in pay deals will lead to wage rises. The Australian Council of Trade Unions has asked for more “options” for bargaining, including multi-employer or sector-wide bargaining. This suggests employers could still strike side-deals offering higher conditions than a multi-employer deal.

If you ever find yourself involved in bargaining – educate yourself. The HR person on the other side of the table has already spent hours researching and is usually more prepared than you will be. Thats their job. They want to get the best possible deal for the company that they work for.

As an employee you should also want a good deal for your company, but also a good deal for yourself. Don’t waste time on low hanging fruit (like gym memberships) but instead ask for some useful stuff like profit sharing or performance bonuses. Attend the meetings and be engaged. Research your own company and where its placed in the market. Look into individual flexibility agreements as these may vary terms of agreements.

Don’t just rely on your union rep to educate you on whats possible, stand up for yourself.