Why Enter Into An Enterprise Bargaining Agreement

Why should your business enter into an EBA Agreement? Many businesses think that it may simpify their payroll processes as they will not havee to deal with multiple Modern Awards. But is it as simple as that? Like most things, the devil is in the detail!

Please see below for a full transcript of the video.

Facing a HR or WR Challenge and need a Free Strategic Action Plan?

Want to access our free online training courses to build your skills?

Share the HR or workplace relations challenge facing your business and one of our experienced consultants will be in touch within 24 hours with a strategic action plan or discover the best strategy yourself by accessing out free online training library.

Transcript

0:00
Excellent. And I think I think you make a very good point about, and it was sort of going to the other gentleman’s point over there about you certainly can achieve in an enterprise agreement, flexibilities, uniform terms and conditions. And you can take yourself, obviously, out of, you know, two or three or four different modern awards in that process.

And if you’re in a situation where you’re already paying above award levels, well, then I suppose you can make the argument that, yes, entering into an enterprise agreement, you know, achieves flexibilities and maintains similar REM levels.

My probably slightly more what I try and look at first, when I look at an organization that’s going down the path for an enterprise agreement, I sort of go through a process of really, do they need it? Or can they achieve the same result through changing contractual provisions? And sometimes the answer to that is yes, sometimes the answer to that is no. So I remember going through a Enterprise Agreement process a little bit of a probably different environment. But a fireworks business was looking at implementing an enterprise agreement and looked at a competitor that done the same and they were talking about certain loadings, things like that. And we worked through it and we thought, well, we could we could get on the path for an enterprise agreement. But these are the longer term risks associated with that. And then in the end, we came to the realization that they could have quite easily achieved what they wanted to achieve through through contractual change and things like that.

So I think, look, I’m probably being a little negative on terms of the organization’s enterprise agreements, being a necessity, rather than a nice to have. I think that yes, you can achieve flexibilities, yes, you can achieve uniformity through those things. And when you compare them to, you know, various model awards you might be operating under.

On your point in relation to the bargaining agent, I think, I think you’re also right on that, because what that enables you to do is it also enables you to have one person at the table who’s, who’s not emotionally invested in the outcome as well. Correct. And the day after the enterprise agreements is approved, you’re you’re dealing with the people who are in the organization who may have grievances about whatever it is that they have at work. But I guess, you know, what was very good about this recent one I did for the childcare facilities, and they had an enterprise agreement, they had a negotiation last time went by eight months. And this time we did we finished it two and a half months.

And, you know, a lot of the proposals, we were able to kind of, you know, I was being used as kind of a negotiating frontman in that situation. And we were able to provide answers and provide, you know, guidance through the process that just move the move the outcome quicker to conclusion, rather than getting into, you know, emotional arguments about well, you know, I’ll do this, and I’ll do that you should see this. And so and those sorts of arguments. So look allvery good points.

And yeah, look, I think that it’s going to be interesting to see whether what I’d like to see in these reforms is the ability and what what the disappointing thing about the way that the Commission is dealt with enterprise agreements in the last few years is that it in theory, it’s supposed to be better off overall, when you look at the overall agreement, but over the last few years, what we’ve seen is a very line by line approach to the approval. So is this condition better than that? Is this condition better than that? Is this condition better than that? And it’s not supposed to be that way. It’s supposed to be a holistic look at the agreement versus the art that versus the relevant award. So all very, very good comments. And thank you both for your contribution. Thank you all for your contributions on that. Any questions on the zoom? Does anyone have any more sources? It shows that the teams meeting has anyone got any questions that they would like to ask about enterprise agreements before we move on to something else? No, great.