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Enterprise Agreements &
Collective Bargaining
Workplace Relations and Employment
Team of the Year
©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Everything you need to know about
©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Presenters
2
Michal Roucek
Senior Associate
Nigel Ward
CEO + Director
Key Insights
• Why – before you start
• Bargaining environment
• Communication and voting
• Bargaining path and key tactical issues
• Negotiation basics
3©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Why- before you start
4©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Never forget why you
are bargaining
5©2017 Australian Business Lawyers & Advisors. All Rights Reserved
• Need to legalise something
• Union compulsion
• Always done it – culturally hard to
stop
• Locking-in directly with employees to
defend how you work
• Must have rights settled for a period
of time (e.g. project, major
commercial exposure etc)
• Create a common employment
platform (rather than rely on
different modern awards)
Some poor justifications
• The HR Manager wants it on their CV
• It will make the life of Payroll easier
• Administrative convenience
6©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Why is this important?
1. Moving to collectively bargain can impact an
employees understanding of the
individual/personal nature of their employment
relationship
2. Once started it is hard to stop
3. Once something is in an EA it is hard to change
4. Bargaining increases potential for union (and
third party) involvement in your business
7©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Industrialising the
employment relationship
8©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Vs
1. Money before agility to change
2. Agility to change before right to manage
3. Never right to manage
Polices, WHS, Discrimination, Internal procedures, recruitment,
perfromance management
Discovering the
problem is outside the EA
9©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Step 1
• (Assuming no compliance issues) introduce
change culturally through engagement and
consultation
Step 2
• If culture is not supportive direct change if
you have the legal right
Step 3
• If culture is not supportive and you do not
have the legal right then bargain / negotiate
You need to understand the
environment you bargain in!
1 0©2017 Australian Business Lawyers & Advisors. All Rights Reserved
1 1©2017 Australian Business Lawyers & Advisors. All Rights Reserved
• Pattern Bargaining
• Transactional Bargaining
• Relational Bargaining
• Process Driven Bargaining
Types of bargaining
The negative Bargaining Cycle
1 2©2017 Australian Business Lawyers & Advisors. All Rights Reserved
0
20
40
60
80
100
120
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
Entering
Bargaining
Period
Entering
Bargaining
Period
Bargaining
Period
Rebuilding
After
Bargaining
Period
Rebuilding
After
Bargaining
Period
Bargaining
Period
Stabilisation
Stabilisation
The big six
• Inclusive values based leadership in senior management
• Effective direct supervision (style and structure) –
managers confident to manage
• Open and direct communication ensuring clear and
unfiltered transfer of information up and down
• Employee development, skills, communication, problem
solving etc
• Effective internal welfare issues resolution processes
• Sound performance management (the good and the bad)
1 3©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Communication and voting
1 4©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Communication
1 5©2017 Australian Business Lawyers & Advisors. All Rights Reserved
• Long lead
communication
• Bargaining process
education
• Key messages
• Effective employee
communication during
the bargaining process
It’s that time again we best get
started
1 6©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Tell the employees we are poor Tell the employees we love them
The game is about 1 thing –
winning a vote
1 7©2017 Australian Business Lawyers & Advisors. All Rights Reserved
What are Enterprise Agreements
‘voted up’?
• Outcome culturally accepted as a ‘given’
• Bought (rented)
• Forced (economic pressure or crisis)
• Rationally debated and reasoned
• The voters are told to (union says “yes”)
• Arbitration
1 8©2017 Australian Business Lawyers & Advisors. All Rights Reserved
What or Who can influence a
“no” or “yes”
• Better information
• Directly engaging with employees to ensure they
understand the proposal
• More time to reach acceptance
• Changing the proposal
• Defending against a period of industrial action to allow
employees to understand your commitment to the
proposal
• Third party recommendation – union or industrial tribunal
• The personal endorsement of a trusted manager
1 9©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Bargaining path
2 0©2017 Australian Business Lawyers & Advisors. All Rights Reserved
The Bargaining Path
2 1©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Employer
agrees to
bargain
or
initiates
Employer
refuses
to
bargain
Majority
Support
Determinati
on
Protected
Action
Ballot
Employer
issues
bargaining
rights
notice
Bargaining
Representatives
Appointed
Good faith
bargaining
Agreement
made
GFB
orders
Serious
breach
order
Arbitrated
Workplace
determination
Negotiations
stall
Scope
orders
Vote to
approve
Agreement
Expires
FWC
approval
FWC or third
party
assistance
Protected
Industrial
Action
Applications
to Suspend
or
Terminate
Arbitrated
Workplace
determination
Bargaining Representatives
2 2©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Admin or
Key
Tactical
Issue?
Good Faith Bargaining
2 3©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Process based
Not about reasonableness of
claims
Making an Agreement –
Tactical?
1. Do the Bargaining Representatives need to
make an agreement in principle?
2. When can we ask for a vote?
3. Who determines how we vote?
4. What is the best method of voting?
2 4©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Negotiation basics
2 5©2017 Australian Business Lawyers & Advisors. All Rights Reserved
Like Chess – opening, middle
and an end
2 6©2017 Australian Business Lawyers & Advisors. All Rights Reserved
•Setting
Parameters
•Tone/messages
•Document Control
•Winning the Vote
•Losing
•Tribunal
Assistance
•Giving up on an
EA
•High Ground
•Pressure
•Communication
•Fatigue
Tempo Tempo Tempo
Building a
sound
opening
Seeing the
moment to
move to
close
The Basics
2 7©2017 Australian Business Lawyers & Advisors. All Rights Reserved
• Who is going to negotiate
• Bargaining meeting rules
• Preparing for each meeting
• Debriefing
• Controlling the paper work
• Corporate Rules
• Corporate Stakeholders
Contact us
2 9©2017 Australian Business Lawyers & Advisors. All Rights Reserved
NEWCASTLE
Suite 402, Level 4
Watt St Commercial Centre
Newcastle NSW 2300
Phone : 02 9458 7005
www.ablawyers.com.au
BRISBANE
10 Felix St
Brisbane QLD 4000
Phone : 02 9458 7005
www.ablawyers.com.au
SYDNEY
10/140 Arthur St,
North Sydney
NSW 2060
Phone : 02 9458 7005
www.ablawyers.com.au
Nigel Ward,
CEO + Director
Nigel.ward@ablawyers.com.au
Michal Roucek
Senior Associate
Michal.roucek@ablawyers.com.au

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Why have Enterprise Agreements?

  • 1. Enterprise Agreements & Collective Bargaining Workplace Relations and Employment Team of the Year ©2017 Australian Business Lawyers & Advisors. All Rights Reserved Everything you need to know about
  • 2. ©2017 Australian Business Lawyers & Advisors. All Rights Reserved Presenters 2 Michal Roucek Senior Associate Nigel Ward CEO + Director
  • 3. Key Insights • Why – before you start • Bargaining environment • Communication and voting • Bargaining path and key tactical issues • Negotiation basics 3©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 4. Why- before you start 4©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 5. Never forget why you are bargaining 5©2017 Australian Business Lawyers & Advisors. All Rights Reserved • Need to legalise something • Union compulsion • Always done it – culturally hard to stop • Locking-in directly with employees to defend how you work • Must have rights settled for a period of time (e.g. project, major commercial exposure etc) • Create a common employment platform (rather than rely on different modern awards)
  • 6. Some poor justifications • The HR Manager wants it on their CV • It will make the life of Payroll easier • Administrative convenience 6©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 7. Why is this important? 1. Moving to collectively bargain can impact an employees understanding of the individual/personal nature of their employment relationship 2. Once started it is hard to stop 3. Once something is in an EA it is hard to change 4. Bargaining increases potential for union (and third party) involvement in your business 7©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 8. Industrialising the employment relationship 8©2017 Australian Business Lawyers & Advisors. All Rights Reserved Vs 1. Money before agility to change 2. Agility to change before right to manage 3. Never right to manage Polices, WHS, Discrimination, Internal procedures, recruitment, perfromance management
  • 9. Discovering the problem is outside the EA 9©2017 Australian Business Lawyers & Advisors. All Rights Reserved Step 1 • (Assuming no compliance issues) introduce change culturally through engagement and consultation Step 2 • If culture is not supportive direct change if you have the legal right Step 3 • If culture is not supportive and you do not have the legal right then bargain / negotiate
  • 10. You need to understand the environment you bargain in! 1 0©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 11. 1 1©2017 Australian Business Lawyers & Advisors. All Rights Reserved • Pattern Bargaining • Transactional Bargaining • Relational Bargaining • Process Driven Bargaining Types of bargaining
  • 12. The negative Bargaining Cycle 1 2©2017 Australian Business Lawyers & Advisors. All Rights Reserved 0 20 40 60 80 100 120 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Entering Bargaining Period Entering Bargaining Period Bargaining Period Rebuilding After Bargaining Period Rebuilding After Bargaining Period Bargaining Period Stabilisation Stabilisation
  • 13. The big six • Inclusive values based leadership in senior management • Effective direct supervision (style and structure) – managers confident to manage • Open and direct communication ensuring clear and unfiltered transfer of information up and down • Employee development, skills, communication, problem solving etc • Effective internal welfare issues resolution processes • Sound performance management (the good and the bad) 1 3©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 14. Communication and voting 1 4©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 15. Communication 1 5©2017 Australian Business Lawyers & Advisors. All Rights Reserved • Long lead communication • Bargaining process education • Key messages • Effective employee communication during the bargaining process
  • 16. It’s that time again we best get started 1 6©2017 Australian Business Lawyers & Advisors. All Rights Reserved Tell the employees we are poor Tell the employees we love them
  • 17. The game is about 1 thing – winning a vote 1 7©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 18. What are Enterprise Agreements ‘voted up’? • Outcome culturally accepted as a ‘given’ • Bought (rented) • Forced (economic pressure or crisis) • Rationally debated and reasoned • The voters are told to (union says “yes”) • Arbitration 1 8©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 19. What or Who can influence a “no” or “yes” • Better information • Directly engaging with employees to ensure they understand the proposal • More time to reach acceptance • Changing the proposal • Defending against a period of industrial action to allow employees to understand your commitment to the proposal • Third party recommendation – union or industrial tribunal • The personal endorsement of a trusted manager 1 9©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 20. Bargaining path 2 0©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 21. The Bargaining Path 2 1©2017 Australian Business Lawyers & Advisors. All Rights Reserved Employer agrees to bargain or initiates Employer refuses to bargain Majority Support Determinati on Protected Action Ballot Employer issues bargaining rights notice Bargaining Representatives Appointed Good faith bargaining Agreement made GFB orders Serious breach order Arbitrated Workplace determination Negotiations stall Scope orders Vote to approve Agreement Expires FWC approval FWC or third party assistance Protected Industrial Action Applications to Suspend or Terminate Arbitrated Workplace determination
  • 22. Bargaining Representatives 2 2©2017 Australian Business Lawyers & Advisors. All Rights Reserved Admin or Key Tactical Issue?
  • 23. Good Faith Bargaining 2 3©2017 Australian Business Lawyers & Advisors. All Rights Reserved Process based Not about reasonableness of claims
  • 24. Making an Agreement – Tactical? 1. Do the Bargaining Representatives need to make an agreement in principle? 2. When can we ask for a vote? 3. Who determines how we vote? 4. What is the best method of voting? 2 4©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 25. Negotiation basics 2 5©2017 Australian Business Lawyers & Advisors. All Rights Reserved
  • 26. Like Chess – opening, middle and an end 2 6©2017 Australian Business Lawyers & Advisors. All Rights Reserved •Setting Parameters •Tone/messages •Document Control •Winning the Vote •Losing •Tribunal Assistance •Giving up on an EA •High Ground •Pressure •Communication •Fatigue Tempo Tempo Tempo Building a sound opening Seeing the moment to move to close
  • 27. The Basics 2 7©2017 Australian Business Lawyers & Advisors. All Rights Reserved • Who is going to negotiate • Bargaining meeting rules • Preparing for each meeting • Debriefing • Controlling the paper work • Corporate Rules • Corporate Stakeholders
  • 28.
  • 29. Contact us 2 9©2017 Australian Business Lawyers & Advisors. All Rights Reserved NEWCASTLE Suite 402, Level 4 Watt St Commercial Centre Newcastle NSW 2300 Phone : 02 9458 7005 www.ablawyers.com.au BRISBANE 10 Felix St Brisbane QLD 4000 Phone : 02 9458 7005 www.ablawyers.com.au SYDNEY 10/140 Arthur St, North Sydney NSW 2060 Phone : 02 9458 7005 www.ablawyers.com.au Nigel Ward, CEO + Director Nigel.ward@ablawyers.com.au Michal Roucek Senior Associate Michal.roucek@ablawyers.com.au