Differences between enterprise agreements & modern awards
Enterprise agreements can potentially include a broader range of matters than modern awards which, together with the National Employment Standards (NES), are intended only as a safety net of minimum terms and employment conditions. Enterprise agreements can also contain entitlements (or terms and conditions) specific to the workplace.
When an enterprise agreement is in operation, a modern award that covers the employment does not apply. However the pay rate in the enterprise agreement cannot be less than the pay rate in the modern award. Any outworker terms in the relevant modern award also continue to apply.
Bargaining representatives
Bargaining is the process by which one or more employers and employees negotiate the terms and conditions which make an agreement.
The following are bargaining representatives:
- an employer who would be covered by the agreement
- any union who has a member that would be covered by the agreement (unless the member has specified in writing that he or she does not wish to be represented by the union)
- any person specified in writing as a bargaining representative by either an employer or employee who would be covered by the agreement.
- any union that has applied for a low paid authorisation that relates to a multi enterprise agreement (subject to number of exceptions).
Help for low-paid employees
Fair Work Australia (FWA) can help certain low-paid employees and their employers negotiate a multi-enterprise agreement.
A bargaining representative or a union who is entitled to represent an employee in relation to work performed under the agreement can apply to FWA to get a low-paid bargaining authorisation. FWA can then give their assistance in helping the agreement bargaining process.
For a low-paid bargaining authorisation to apply, FWA must decide that it's in the public interest. In deciding this, FWA looks at factors including:
- whether the employers and their employees are bargaining for the first time, or if they face substantial difficulties in bargaining
- the current terms and conditions of employment of the employees
- the likelihood of success of collective bargaining including whether it will help identify productivity and service delivery improvements
- the relative bargaining strength of the employers and employees involved.