Government and unions call out 'bad employers' who misuse it as a 'bargaining tactic'
Unions across the country expressed relief over the government’s recent announcement that it would end employers utilising terminations of an enterprise bargaining agreement (EBA) to slash their employees’ pay.
The practice has been considered controversial and notorious among businesses and unions alike since “bad employers” reportedly take advantage of this “loophole” and present it as a “bargaining tactic.”
How does an employer abuse EBA termination?
Some employers threaten to terminate existing agreements if employees refuse to sign a new EBA. Unions have long expressed their objection against the said practice because it gives “employers immense power in the bargaining process,” the Australian Council of Trade Unions (ACTU) said in a media release.
Different workplaces have already seen this tactic used by upper management, including universities, railways, factories, ports, airlines and other workplaces.
According to ACTU, the country’s largest tug boat operator Svitzer is “currently threatening to terminate its existing EBA,”
The group describes it as “a move which would cut pay for workers – including the crews involved in the recent rescue of a bulk carrier stranded off Sydney – by up to 40 percent.”
The government’s commitment
Workplace Relations Minister Tony Burke spoke before the Australian Industry Group recently expressed against the conduct of employers who abuse the practice and said such moves “could not be justified,” The Canberra Times reported.
“The minister says he has no issue with the Fair Work Commission, rather he wants to see the wages umpire become more fit for purpose,” the report stated.
“I see this as a way to get out of freely bargained obligations - something we would never accept in the world of commercial or consumer contracts,” Burke said.
“This appears to be more than a loophole, it’s a rort, and I’m disgusted that it’s even being tried,” he added.
On the other hand, Burke acknowledged that exceptions may be allowed concerning EBA terminations, including if there was “exceptional business distress.”
Burke looks to discuss the resolution of industrial issues at the upcoming Jobs and Skills summit in September, and HRD adds another reason as to why it is “much anticipated.”
Meanwhile, as a reaction to Burke’s comments, Nationals leader David Littleproud said “the Fair Work Commission needed to remain independent,” The Canberra Times reported.
“(The minister) just needs to be careful about making sure that he’s not forcing the commission, and, in fact, putting pressure on the commission to bend to his thinking,” Littleproud told Sky News.
“If Tony Burke after the job summit wants to bring forward legislation, you’ll have to get both houses of parliament to agree to that, but the letter of the law is important,” he added.
The unions’ call
In a media release, ACTU Secretary Sally McManus called on the country’s leaders to urgently fix the bargaining system.
“The law was never intended to operate this way, and this loophole is being used and abused by bad employers,” she said.
“Allowing employers to threaten massive cuts to pay and conditions unless workers sign on to a new EBA is not a fair process,” McManus added.
“After a decade of inaction and neglect under the previous government, it’s encouraging to see a government standing up for working people and doing what is needed to get wage growth moving again,” she said.
