Contents
A Collective Bargaining Agreement (or a Collective Agreement) is a contract which makes changes to employment terms and conditions and is between an employer and employee/s.
Put simply, it involves trade unions negotiating with employers on behalf of employees.
Collective Agreements are a type of ‘registered agreement’ which can be negotiated. This type of negotiation is called ‘collective bargaining in good faith.’
Good faith, in this context, means bargaining representatives should:
- reasonably attend meetings
- divulge necessary information
- consider and reply to proposals put forward by others
- back up responses to proposals with reasons
- respond in a timely fashion
- not frustrate collective bargaining process or freedom of association
- not act in an erratic or unreasonable manner
The parties involved in bargaining the agreement are the employer, employees and, if the employee chooses, employee bargaining representatives. These representatives can be an organisation such as a trade union, or a person, such as someone who will be covered by the Collective Agreement or the employee can choose themselves.
After the agreement has been negotiated, a draft Collective Agreement is given to all employees affected. The employees then vote on whether or not they agree to the agreement.
What Are The Types Of Enterprise Bargaining Agreements?
Collective Agreements can be made before or after employment occurs. For example, a Greenfields Agreement is made before employees are employed, between the employer/s and an employee association, such as a trade union.
If an employee or group of employees is already employed, the type of Collective Agreement they would enter into is called either a Single-Enterprise Agreement or a Multi-Enterprise Agreement.
What Is In A Collective Agreement?
Wondering what needs to be included in a Collective Agreement? Well, here’s our breakdown.
- The date of termination of the agreement must be included. This date can’t exceed 4 years from when the Collective Agreement was approved.
- The Collective Agreement must set out how disputes are handled and allow an independent third party to settle disputes regarding employment standards (e.g. minimum wage).
- There must be a term for creating individual flexibility arrangements so that the Collective Agreement can be varied for individual employees who need it.
- Lastly, the Collective Agreement must make scope for consultation between the employer and employees where there are changes in the workplace likely to have a significant effect on staff.
Why Do Employers Have Collective Agreements?
Collective Agreements can boost productivity, while providing more flexibility for both the employer and employee.
Drilling down to finer details, a Collective Agreement can improve flexibility for staff and employers in the following ways:
- Flexible rosters and working hours
- Widening an employee’s job classification
- Job sharing
- Better arrangements for employees who have family/care responsibilities
- Career breaks
Other benefits are new training and thus job opportunities, efficiency goals, better service delivery, and better employee grievance procedures.
Collective Agreements provide a chance to be tailored to the specific needs of your staff, helping you hear and understand how productivity can be increased and what your staff need for a functional workplace. This gives you a valuable insight into your staff, and sets a positive and egalitarian tone for a style of communication that is between equals.
The Takeaway
If you’re looking to encourage innovation, productivity, and happier staff then a Collective Agreement is a great start. Contact our expert employment lawyers for a consult on 08081347754 or [email protected].
Get in touch now!
We'll get back to you within 1 business day.
Top 3 Legal Mistakes
Book in a free consultation with us to discuss your legal needs.
0 Comments on "What Is A Collective Bargaining Agreement?"