Proposed Amendments On The Fair Work Amendment Bill 2014

Synopsis This document investigates the proposed amendments in the Fair Work Amendment Bill 2014 (Cth) as approved by the Senate’s Education and Employment Legislation Committee in June 2014 (EELC 2014). Specifically, it investigates four key amendments relating to Greenfields Agreements: 1. Implementation of good faith bargaining principles 2. Three-month negotiation timeframe 3. Optional notification of unions 4. Additional approval criteria After considering insights from several conflicting viewpoints, it is recommended that the first two changes are approved, that the third is altered and that the fourth is rejected. Introduction The Fair Work Amendment Bill 2014 (Cth) addresses 10 key issues that will lead to improvement of the†¦show more content†¦Greenfields Agreements Greenfields are an unique type of enterprise agreement which is usually made before any employees have been engaged at a new enterprise (FWC 2014). This is particularly useful for firms as it provides certainty about their labour costs which is often essential to secure finance and approval for projects (EELC 2014). Over two thirds of Greenfields agreements occur in the construction industry, with a further 5.2 per cent occurring in the mining industry (EM 2014). Current Situation Currently they must be formed between the employer and the union(s) that are best able to represent a majority of the employees that will be covered by the agreement (EM 2014). Additionally, they are not subject to good faith bargaining principles. The Liberal Party (2013) highlight the dire state that certain employers are in. At the moment, Greenfields negotiations are vulnerable to disruption by unions and firms are often forced into agreeing to unions exorbitant demands for wages and conditions, to minimise delays (FWRP 2012). It means that many employees are idle or caught up in lengthy bargaining processes, where as they could be more efficiently utilised engaging in formal work. This creates added costs for employers. However the alternative to start a project without a greenfield agreement in place leaves even less protection. Under this alternative businesses are vulnerable to protected industrial action as