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Enterprise bargaining; don’t dive in headfirst!

09 November 2021

Enterprise bargaining can be an intimidating and tiring task. Make sure you invest time in planning and developing your bargaining strategy before you begin the process.

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Getting the most out of bargaining starts with planning. This includes assessing whether the business actually should or needs to bargain. It can be a long process which often results in complex and cumbersome documents.  

The Victorian Chamber’s expert Workplace Relations Consultants have a raft of experience negotiating, reviewing and lodging enterprise agreements across a variety of industries. Experience tells us that planning and carefully crafted drafting is key to a successful process. Thinking about bargaining? Here are our top five tips: 

#1: Never had an enterprise agreement? Don’t rush into it. 

If your business hasn’t had an enterprise agreement in place before, ask yourself, does it really need one? What is it you are hoping to accomplish? Don’t assume having an enterprise agreement is going to be a solution. 

Some businesses think enterprise agreements are a necessity as they can help foster a better workplace culture and increase engagement and productivity. Yes, these may be outcomes, but there is no guarantee. Indeed, a poor bargaining process can damage the relationship you have with your staff, tie you into pay increases you may not be able to afford or sustain, and add unnecessary layers of complexity. 

Still thinking about it? Seek advice, understand your options, and know what you are getting into with help from the Victorian Chamber’s expert Workplace Relations Consultants. 

#2: Plan ahead 

If you are going to bargain, you need a strategy. Develop your strategy well in advance. Go back to basics and challenge the current model. We shouldn’t approach bargaining as simply rehashing the last agreement. For many businesses bargaining means readdressing the current agreement and thinking about any updates that need to be made. This approach isn’t going to get the best results. It will mean you gradually give more and more away.  

Developing your bargaining strategy should involve forward-planning. Invest time in the planning process.  The bargaining process can take time so it’s vital you have a clear strategy and don’t lose sight of your goals. 

#3: Learn from you mistakes 

Reflect on past issues that have arisen in the business. Have there been complaints about how meal breaks operate, when overtime is paid, or when an employee classification increases? Use the bargaining process to iron these issues out. It doesn’t mean everything needs to be in the agreement; it may be some issues are better contained in a policy. 

#4: Be clear  

When drafting an enterprise agreement ask yourself, is there more than one meaning to this clause? If the answer is yes, you need to redraft it. It’s vital the language used is clear and unambiguous. If there is any doubt, use scenarios and examples in the body of the agreement.   

Once an agreement is approved, there is little wriggle room. If the agreement contains a mistake, you may have to live with it or apply to vary the agreement.   

As a practical tip, keep notes and copies of any communications sent regarding the clauses as these may help if there is a dispute in relation to the interpretation of a clause. However, be mindful, if the language is clear, this is the interpretation that will be applied, even if it isn’t what you intended.  

If you lodge an agreement and then notice a mistake, or notice you accidentally filed a draft, it’s too late.   

Take time to carefully consider each clause – even if you are adopting a clause from a  previous agreement, read it and re-read it. Don’t gloss over any parts or change a word  without thinking about how that may impact the clause and the agreement as a whole.   

#5: Don’t get caught in the red tape; and don’t forget it! 

Bargaining can be a technical process. There are strict timelines and processes that apply.  There are clauses which must be in an agreement and others that are prohibited. If clauses are missing, the Fair Work Commission may reject the agreement or request undertakings.   

If you haven’t been involved in the bargaining process, or haven’t lodged an agreement, don’t go it alone. Seek advice. Getting an expert on board to guide you through the process or to help you complete the documents you need to lodge the agreement is a great investment and may be the difference between a successful and failed bargaining process.  

Bargaining can be an opportunity to shape your business, however, it can also be a challenge.  Engage an expert to make sure you are on the right track. The Victorian Chamber’s Workplace Relations Consultants can be on hand to assist with any stage of the bargaining process, including: the planning stage; the bargaining table (including the virtual table); in the background helping with drafting; or preparing your agreement for lodgment. 

Considering bargaining? Get in touch with the Workplace Relations Advice Line on 03 8662 5222 to learn more about how we can help.  

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