Australian Industry Group reveals list of Fair Work trouble spots

Australian Industry Group chief executive Heather Ridout says the Rudd Government must be prepared to make amendments to its Fair Work industrial relations regime if the system does not turn out to be “fair, flexible and productive”.

In a speech to the World Congress of the International Industrial Relations Association, held this week in Sydney, Ridout said the new Fair Work laws are yet to be properly tested but flagged growing concerns about the good faith bargaining provisions that the laws have introduced.

“It is too early to say whether the new good faith bargaining laws will be interpreted in a practical way, or whether they will be used by unions to frustrate agreements which are supported by the majority of employees but not by them.”

Two weeks ago, the Australian Industry Group was given leave to make a submission in a case between the Construction, Forestry, Mining and Energy Union and Australian Precast Solution and Abigroup Contractors, where the union successfully applied for and received a “bargaining order” from workplace umpire Fair Work Australia that effectively delayed a vote on new enterprise agreement.

The AIG said it was concerned that unions were using the good faith bargaining process to delay legitimate workplace votes.

Ridout’s speech outlined 10 areas that the AIG will be watching closely:

• The good faith bargaining requirement to “disclose relevant information (other than confidential or commercially sensitive information) in a timely manner”.
• The obligation to refrain from “capricious or unfair conduct that undermines freedom of association or collective bargaining”.
• The obligation to recognise and bargain with the other bargaining representatives for an agreement.
• The use by unions of bargaining orders to frustrate or delay ballots to approve agreements.
• The requirement that enterprise agreements, majority support determinations and scope orders apply to a “fairly chosen” group of employees and the principles that will apply to determining such a group.
• The means by which FWA establishes whether there is majority support for collective bargaining.
• “Permitted matters” and “unlawful terms” in agreements.
• The requirement to genuinely try to reach agreement before industrial action can lawfully be taken.
• The low paid bargaining provisions.
• The arbitration powers of Fair Work Australia.

“Over the months ahead, decisions of Fair Work Australia and the Fair Work Division of the Federal Court will shape the new workplace relations system.” Ridout says.

“The jury is still out on whether the new system will prove to be fair, flexible and productive.”