enterprise agreements in a cdc environment? damien ryan executive manager, workforce & safety

Enterprise Agreementsin a CDC Environment?

Damien Ryan

Executive Manager, Workforce & Safety

©Leading Age Services Australia - Victoria

Australian IR Framework

• National Employment Standards (NES)• Modern Awards• Enterprise Agreements

– Mandatory content– Unlawful content– Better off overall test (the BOOT)

Approx 59% of community aged care employees are covered by an enterprise agreement (based on a 33% survey response rate in 2012)

Source: Fair Work Australia 19 October 2012


Benefits of enterprise agreements

• Standard and stable conditions– No extra claims– Formal process to resolve disagreements and build trust– Avoids bargaining multiple individual arrangements

• Adapt award conditions to suit the workplace– Increased flexibility (e.g. hours of work)– Increased wages & conditions – Increased productivity & competitiveness


Are these benefits under CDC?

• Is there a risk in stable conditions?– Ability to adapt to changing environment– Collective negotiations can create an adversarial

environment and impact morale

• There are limits to how much award conditions can be changed by an EA– NES– Modern Award– BOOT

• Can award conditions be changed outside an EA?– Which is the greater burden on resources?


Majority Support Determinations

• If more than 50% of employees want to bargain for an EA and the employer refuses, they can apply to the FWC for a majority support determination

• This requires the employer to bargain in good faith, but does not require the employer to reach agreement


Current bargaining claims

• Unions– Wage increases of 4-5% pa– Increased penalty rates– Increased minimum engagement– 3-4 year agreement– Additional leave– Extend travel allowance application– Extend client cancellation notice period– Roster change restrictions


Current bargaining claims

• Employers– 2 year agreement– Minimum shift lengths– Notice of shift changes– Classification structures– Span of working hours– Flexible ordinary hours– Personal leave requirements


The enterprise bargaining process

• Fair Work Commission Draft Enterprise Agreements Benchbook

https://www.fwc.gov.au/about-us/consultation/draft-enterprise-agreements-benchbook




The enterprise bargaining process

• Notice of Employee Representation Rights• Bargaining representatives• Good faith bargaining requirements• How long can bargaining take?• Role of the FWC• Voting on proposed EA• Approval process (incl BOOT)


Summary of EA bargaining preparation

Business Strategy & Employer Proposals

Negotiation Strategy & Employee

Communications

Negotiation Team & Resources

Align EA objectives to overall business strategy

Stakeholder analysis & internal consultation

Industry research, trends & contraints

Brainstorm, cost and confirm employer

proposals

Identify challenges, risks and mitigation strategies

Ensure thorough costings & test assumptions

Determine bargaining approach & best

alternative to a negotiated agreement(BATNA)

Develop a Communications Plan

& draft communication in advance

Determine ‘Project’ Governance Structure

Determine resource requirements of

Negotiation Team & Working Group

(preparation through to implementation)

Are external consultants & legal required?

(don’t underestimate the importance of EA clause

drafting and the FWC approval process)

Don’t under-resource EA implementation



• Business Strategy & Employer Proposals– Align EA objectives to overall business

strategy– Stakeholder analysis & internal consultation– Industry research, trends & constraints– Brainstorm, cost and confirm employer

proposals



• Negotiation Strategy & Employee Communications– Identify challenges, risks and mitigation strategies– Ensure thorough costings& test assumptions– Determine bargaining approach & best alternative

to a negotiated agreement (BATNA)– Develop Communications Plan & draft

communications in advance



• Negotiation Team & Resources– Determine ‘Project’ governance structure– Determine resource requirements of Negotiation

Team & Working Group (preparation through to implementation)

– Are external consultants & legal required? (don’t underestimate the importance of EA clause drafting and the FWC approval process)

– Don’t under-resource EA implementation


Conclusion

• Under CDC there is no ‘best way’ to manage your employee conditions

• The ‘most appropriate way’ will depend upon– Client needs– Organisation size and funding– Strategic plan/objectives– Labour market and bargaining power

enterprise agreements in a cdc environment? damien ryan executive manager, workforce & safety

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