Example: Unions and employers working together to achieve mutually beneficial outcomes

Charmaine works for a union in the healthcare sector.

She is representing members of a private sector allied health care provider who are negotiating a new enterprise agreement.

The employer has offered a 5% per year pay increase but has been unwilling to consider any other key issues the employees have raised.

After discussions break down, employees reject the employer’s pay offer. Some employees start taking protected industrial action, stopping work for a few hours at a time.

Charmaine knows that her colleague, Golsa, was recently involved in the bargaining process for a competing allied health provider’s enterprise agreement. The pay increase offered by the other provider was also 5%, but employees overwhelmingly supported that agreement.

Charmaine meets with Golsa to understand how these similar situations have had such different outcomes.

Golsa explains that, in her case, the employees had a list of additional key issues and entitlements. They asked for:

• additional employer-funded parental leave
• 2 weeks paid study leave
• 3 days paid cultural leave.

Golsa says that at first the employer wouldn’t consider these additional entitlements because of the cost. However, the employer reconsidered after asking open questions and listening to the employees speak about how these entitlements could make a difference to their lives. Once the employer understood the importance of these entitlements to employees, they were more willing to negotiate on them.

Golsa says she explained to the employer that not all employees would be using these additional entitlements, so the cost would not be that high. The employees who did use them, however, were likely to feel more satisfied with their jobs and stay longer. It also showed all employees that the employer was committed to their wellbeing.

Additionally, Golsa noted, when employees can’t get the entitlements that are important to them, they may push for higher pay increases, as they feel this is the only thing they can influence. This can often lead to a much greater cost to the employer overall.

After talking to Golsa, Charmaine plans to propose that the allied health provider she is negotiating with holds an open forum where staff have an opportunity to share feedback directly with their employer. She hopes that this will allow the employer to better understand their employees’ motivations and disprove the assumption that ‘they just want more money’.

Example: Soliciting and receiving a corrupting benefit

Maxwell is the director of a courier company, employing over 100 drivers. The company is in negotiations with the union bargaining representative for a new enterprise agreement. Maxwell and the union have had some productive conversations and have reached agreement on most of the key entitlements. However, neither party is willing to budge on wages. Despite this, Maxwell puts the proposed enterprise agreement to a vote of the employees.

The agreement offers a 3.5% pay increase each year over the life of the agreement. However, the union has made it clear they will be encouraging employees to reject the agreement in an effort to secure a higher pay increase of 5%.

Paul has been employed by the company as a driver for 6 years and has been a union delegate and member of the union’s management committee for most of this time. Maxwell knows that Paul is popular with his colleagues and has proven to be influential in his delegate role. Maxwell invites Paul into his office for an unscheduled meeting.

Maxwell explains to Paul that the company's profit margin has declined in recent years, and a larger pay increase may lead to redundancies. Maxwell proposes that if Paul can convince the majority of employees to approve the new agreement, Maxwell will give Paul a promotion, and a $10,000 bonus. Paul agrees to the offer. He signs a confidentiality agreement so other employees won't find out about the arrangement.

In this scenario, Maxwell and Paul have unlawfully engaged in the giving, receiving and solicitation of corrupting benefits. Both Maxwell and Paul could face significant financial penalties and/or prison time. Even if Paul had not agreed to the arrangement, it is still unlawful for Maxwell to make this offer.

Example: Disclosable benefits

A proposed enterprise agreement includes a clause that requires the employer to purchase an income protection product from a specific insurance company. The insurance company is related to a union that is a bargaining representative for the proposed enterprise agreement.

As the union may benefit financially from these terms, they must prepare a disclosure document that:

• sets out specific details of any disclosable benefits that the union might reasonably be expected to receive under the terms of the proposed enterprise agreement
• includes the commissions paid to the union by the insurance company in relation to the income protection product.

The document must be provided to the employer. The employer must then take all reasonable steps to give the disclosure document to their employees before they vote on the proposed enterprise agreement.