Post-Electrolux uncertainty

THE FEDERAL Court recently ruled that an attempt by union officials to coerce an employer when it took industrial action for matters that did not pertain to the employment relationship was unprotected, based on the High Court’s Electrolux decision

THE FEDERAL Court recently ruled that an attempt by union officials to coerce an employer when it took industrial action for matters that did not pertain to the employment relationship was unprotected, based on the High Court’s Electrolux decision.

The Court also found that industrial action taken prior to the Electrolux decision was unprotected. However, the Federal Government’s Workplace Relations Amendment (Agreement Validation) Act 2004 re-enacted this ruling.

In September 2004, the High Court’s Electrolux decision overturned a Federal Court decision giving unions the right to take industrial action over matters that extend beyond the employment relationship, related to a union claim for non-union members at Electrolux to pay a bargaining fee to the unions involved in the enterprise agreement negotiations.

In July and October 2004, the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU) partook in strike action after certified agreement negotiations with Premier Coal broke down over rostering arrangements.

Premier Coal based its argument on the Electrolux decision, claiming that the proposed agreement that had been partially negotiated contained provisions that did not pertain to the employment relationship, and as such could not be certified and any related industrial action was unprotected.

Employment and Workplace Relations Minister Kevin Andrews said he was concerned that some unions would continue to threaten businesses with industrial action in order to encourage businesses to sign agreements containing union friendly terms.

The Workplace Relations Amendment (Agreement Validation) Act 2004 validates all collective agreements and Australian Workplace Agreements (AWAs), certified, approved or varied prior to Electrolux, and the terms which do not relate to the employment relationship will be void.

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