THE AUSTRALIAN Industrial Relations Commission (AIRC) recently blocked unions from charging employers fees for enterprise bargaining services, after the Office of the Employment Advocate successfully brought seven test cases before the commission.
THE AUSTRALIAN Industrial Relations Commission (AIRC) recently blocked unions from charging employers fees for enterprise bargaining services, after the Office of the Employment Advocate successfully brought seven test cases before the commission.
Employment Advocate, Jonathan Hamberger brought the cases under the Workplace Relations Act 1996, following the introduction of the Workplace Relations Amendment (Prohibition of Compulsory Union Fees) Act 2003. Three other similar cases are pending.
AIRC vice-president Ian Ross ruled that the “bargaining services” fees clauses be removed from certified agreements, and the majority of unions and employers consented to the Employment Advocate’s applications.
“These cases are important because they put into practice laws passed by federal parliament to give employees a real choice when it comes to representation in the workplace,” said Hamberger, who is responsible for providing assistance and advice to employees and employers on the Workplace Relations Act 1996.
Generally the offending certified agreement clauses required union and non union employees to pay 1 per cent of their gross income or $500 annually to the relevant union. One agreement provided for bargaining services fees to be waived if union fees were being paid.
However the ACTU said it was only fair that employees contribute to the cost of agreements negotiated by unions.
“There’s no doubt that where employees are covered by union agreements, their employment conditions are superior to those who aren’t. that’s clearly demonstrable. It really comes down to the issue of freeloading, if you like,” said Linda Rubenstein, senior industrial officer with the ACTU.
“It seems reasonable that those employees who directly benefit should contribute to those costs - it’s as simple as that. The practice is very widespread in the United States and Canada, as well as countries as diverse as Switzerland and Israel.”
The AIRC ruling subscribes to the 9 May 2003 amendment to the Workplace Relations Act 1996, which redefines an objectionable provision to include “a provision (however described) of a certified agreement that requires payment of a bargaining services fee”.
The Workplace Relations Amendment (Prohibition of Compulsory Union Fees) Act 2003 also introduced a range of penalties for dealing with various kinds of conduct associated with bargaining services fees.
