The Business Council of Australia has called on the Government to make more information available about how its new good faith bargaining rules should work, claiming that it could take years before employers understand the new system.
The BCA, which represents some of Australia’s biggest companies, wants the Federal Government to produce a code of practise to help employers understand exactly what is required of them under the Fair Work Act’s good faith bargaining provisions.
“It is not clear, for example, how much information must be provided by employers to parties in a negotiation, or what specifically will be regarded as capricious or unfair behaviour,” BCA chief executive Katie Lahey said after launching a report into the good faith arrangements.
“The government should provide more formal guidance on how it expects good faith bargaining to be applied in a way that meets Australian needs and imperatives.”
“Without further clarity, good faith bargaining could easily become leap of faith bargaining. This will do nothing to help our workplaces make the contribution to productivity growth that will be required to meet the Prime Minister’s objectives.”
The BCA report, compiled by BCA adviser and IR expert Professor Breen Creighton, argues that the good faith provisions can only play a limited role in fostering workplace collaboration, as this largely depends on the attitudes of the parties involved.
Without more guidance on how the new good faith provisions should work, the BCA argues the productivity boost the Government is hoping for may not happen.
The office Workplace Relations Minster Julia Gillard says she will consider the reports findings.
Gillard has come under further fire for refusing to intervene in the wildcat strike at Woodside’s $12 billion LNG project in Western Australia.
Almost 2,500 workers are striking over accommodation arrangements, despite being ordered back to work by Fair Work Australia.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
