Important update for employers: Fair Work Legislation (Secure Jobs, Better Pay) Amendment Bill 2022 proposes multi employer bargaining, union veto power and forced flexible working arrangements

On the 27th October 2022 the Government introduced the Fair Work Legislation Amendment (Secure Jobs, Better Pay) 2022 Bill which proposes significant changes to enterprise bargaining.

If the legislation passes through Parliament it will have a significant effect on employer/employee relationships in Australia.  The following key changes are proposed: 

1. Multi Employer Bargaining: the most significant change is that workers will be able to compel firms to engage in multi employer bargaining where there is a ‘clearly identifiable common interest’ amongst the employers.   Common interest can include a common geographical location or common nature of the enterprise. 

   In the aviation industry common interests may exist amongst industry groups such as regional airlines or helicopter operators, or across geographical locations such as those based at mine sites or airports.  

   The effect of these changes is that Unions will be able to compel employers in a ‘common interest’ group to enter into multi employer bargaining and depending on the size of the other organisations in the bargaining group, may be compelled to enter the agreements.   

2. Union Veto: if passed, the legislation will give unions power to veto multi employer bargains, even where workers and employers have agreed to the deal.  

3. Amending the Boot Test: The bill proposes a ‘reconsideration process’ where the Fair Work Commission can be asked to reconsider whether employees are better off overall where there has been a material change in rostering arrangements or where the circumstances where not properly assessed by the FWC during the approval process.  If passed, these changes will reduce employer certainty and require issues previously be determined to be re argued in the FWC.

4. Recovery of unpaid wages: it is proposed to increase the jurisdiction of the Fair Work Commission to hear claims for unpaid wages from $20,000 to $100,000.

5. Flexible Work: if the legislation passes, employers will be legally required to try to reach agreement with employees who request flexible work hours or arrangements.  Employees with school age children, people with a disability, those experiencing family violence and people over 55 years of age will have a right to roster flexibility and the Fair Work Commission will have power to make a variety of orders to preserve roster flexibility including making changes to rosters to accommodate employee’s circumstances.

6. Removal of Pay Secrecy: If the bill is passed it will prohibit clauses in employment contracts which require employees to keep their pay a secret and will give employees the right to disclose their pay and ask other employees about their pay.

   Employers should look carefully at the suite of changes being proposed.  If passed, the legislation will have far reaching consequences for employment relationships in Australia, and serious effects on smaller employers.