How the parties bargain the nature and reach
How the parties bargain: the nature and reach of Good Faith Bargaining (GFB) • GFB obligations in s. 228 • Centrepiece of bargaining framework • Bargaining orders (s. 229) & other mechanisms • Important role for FWC in oversight & enforcement of GFB RMIT University 1
июл-09 авг-09 сен-09 окт-09 ноя-09 дек-09 янв-10 фев-10 мар-10 апр-10 май-10 июн-10 июл-10 авг-10 сен-10 окт-10 ноя-10 дек-10 янв-11 фев-11 мар-11 апр-11 май-11 июн-11 июл-11 авг-11 сен-11 окт-11 ноя-11 дек-11 янв-12 фев-12 мар-12 апр-12 май-12 июн-12 Number of applications made Applications for bargaining orders, monthly total 18 16 14 12 10 8 6 4 2 0 RMIT University© 10/09/2021 2
RMIT University© 10/09/2021 Other services Arts and recreation services Health care and social assistance Education & training Public administration & safety Administrative and support services Professional, scientific and technical services Rental, hiring & real estate services Finanical & insurance services Information media & telecommunications Transport, postal and warehousing Wholesale & retail trade Construction Electricity, gas & water Manufacturing Mining Agriculture, forestry & fishing Number of applications made Applications for bargaining orders, by industry 90 80 70 60 50 40 30 20 10 0 3
0 RMIT University© 10/09/2021 Procedural matter Order not made Order made Matter resolved in whole or in part Application adjourned indefinitely Application withdrawn Lodged only Don't know Number of applications made Applications for bargaining orders, by outcome 140 120 100 80 60 40 20 4
Assessing the impact of the GFB obligations • Useful in facilitating bargaining – ‘I suppose the good faith bargaining provisions sort of provided an initial push for the company to get along and actually come to the bargaining table …’ • ‘Shadow effect’, i. e. lodgment of application (or threat) sufficient to alter other party’s bargaining conduct • One employer’s view: – GFB is ‘a tool, [but really] it’s … what people work around. ’ RMIT University© 10/09/2021 5
Assessing the impact of the GFB obligations (2) • Union concerns about the limits of GFB: – ‘At the end of the day the good faith bargaining provisions can be used to bring people to the table, can make them put certain information on the table, but … they don’t seem to assist in any way in terms of actually getting to some sort of outcome. ’ – ‘we really believed we would get a couple of [bargaining] orders that we were seeking … [but] if the bar has to be so incredibly high, then what’s the point? ’ – Particular concerns re 3 rd parties not at the bargaining table; & employer “direct dealing” & “surface bargaining” tactics/conduct RMIT University© 10/09/2021 6
Facilitating bargaining by assisting parties to resolve disputes • Dispute resolution by FWC under s. 240 • Conciliation/mediation – arbitration only if all parties agree • The most utilised of the Part 2 -4 mechanisms (60. 2% of all applications) RMIT University© 10/09/2021 7
0 RMIT University© 10/09/2021 июн-12 май-12 апр-12 мар-12 фев-12 янв-12 дек-11 ноя-11 окт-11 сен-11 авг-11 июл-11 июн-11 май-11 апр-11 мар-11 фев-11 янв-11 дек-10 ноя-10 окт-10 сен-10 авг-10 июл-10 июн-10 май-10 апр-10 мар-10 фев-10 янв-10 дек-09 ноя-09 окт-09 сен-09 авг-09 июл-09 Number of applictaions made Section 240 applications, monthly total 300 250 200 150 100 50 8
RMIT University© 10/09/2021 Other services Arts and recreation services Health care and social assistance Education & training Public administration & safety Administrative and support services Professional, scientific and technical services Rental, hiring & real estate services Finanical & insurance services Information media & telecommunications Transport, postal and warehousing Wholesale & retail trade Construction Electricity, gas & water Manufacturing Mining Agriculture, forestry & fishing Number of applications made Section 240 applications, by industry 450 400 350 300 250 200 150 100 50 0 9
Section 240 applications, by outcome 350 300 Number of applications 250 200 150 100 50 0 Don't know Lodged only RMIT University© 10/09/2021 Application withdrawn Application adjourned indefinitely Matter resolved in whole or in part Procedural matter Dispute not settled Dispute settled 10
Assessing the impact of FWC dispute resolution in bargaining • Mostly used by “repeat players: unions & large, unionised employers • Motivations for using s. 240: – 1. to finalise agreement or overcome impasse – ‘… we had reached a point where we weren’t making any progress in the negotiations, and we were really… seeking to have somebody with, I suppose with some authority and some… knowledge, assist with the process…’ RMIT University© 10/09/2021 11
Assessing the impact of FWC dispute resolution in bargaining (2) • Motivations for using s. 240: – 2. to defuse hostilities – ‘we made [the] application … because we were going through all this, threats and intimidation. But also the meetings were just not at all constructive… so we wanted to get into a forum where we had an independent person sitting there because that tends to make people at least make reasonable … responses. And so we got into that and we went right through the claims. That was the first really civil meeting…’ – 3. as an “exit strategy” & way of “saving face” – ‘There may be times when we say to the employer… there’s an issue where we actually … agree with the employer, but the membership aren’t that keen on it and so, we’re going to take it to [FWC] and take along a posse of members and see if we can get a Commissioner to tell them that it’s not that bad after all and they can accept the offer…’ RMIT University© 10/09/2021 12
Assessing the impact of FWC dispute resolution in bargaining (3) • Motivations for using s. 240: – 4. to demonstrate all efforts are being made – 5. escalate the dispute – 6. no other option! RMIT University© 10/09/2021 13
Assessing the impact of FWC dispute resolution in bargaining (4) • Effectiveness of FWC’s role under s. 240: – depends on willingness of parties to get involved – difficult where high level of hostility – preference for “interventionist” conciliators – limits of conciliation – arbitration needed where employer determined to resist – lack of awareness among less experienced negotiators RMIT University© 10/09/2021 14
Promoting bargaining among historically excluded workers: the Low Paid Bargaining (LPB) Stream • Highly innovative set of provisions (Part 2 -4, Division 9) • Only 3 applications in 3 -year period • Aged Care Case – authorisation granted, but excluded employees on existing agreements • ANF GP clinics – authorisation rejected, “logistical difficulties” • Union concerns that LPB won’t deliver improved wages/conditions for employees (not enough compulsion on e’ers; no industrial action) • Some unions have used alternative strategies, e. g. Equal Remuneration Case RMIT University© 10/09/2021 15
Updated FWC case data (to 30. 09. 13) Year to 30 June 2013 September quarter 2013 78 bargaining order applications 16 74 MSDs 16 15 scope 5 231 section 240 49 RMIT University© 10/09/2021 16
Key findings & conclusions • 1. The extent of FWC’s influence is greater than the case data suggests – the “shadow effect” • 2. FWC’s role & influence in bargaining is largely restricted to unionised workplaces • 3. Part 2 -4 has different effects for “new”, as opposed to “mature”, bargainers RMIT University© 10/09/2021 17
Key findings & conclusions (2) • 4. FWC’s role is facilitative, not determinative • 5. Parties value the FWC’s role highly • 6. A need for greater awareness of the FWC’s dispute resolution services – especially among new bargainers, & individual bargaining reps RMIT University© 10/09/2021 18
- Slides: 18