A peak business group has accused the new workplace regulator Fair Work Australia of overstepping its power, claiming it is allowing unions to “frustrate democratic processes”.
A series of decisions by Fair Work Australia to block or delay votes on workplace agreements, and order companies to meet with unions, prompted the Australian Industry Group to yesterday intervene in a case to argue the regulator could not do this under the new laws.
The AI Group said the issue was relevant to thousands of employers with enterprise agreements under negotiation, and if Fair Work had the power to issue an order whenever unions alleged new “good faith bargaining” provisions had been breached, the system would soon become unworkable.
“Bargaining orders must not be allowed to stop employees exercising their democratic right to approve proposed agreements,” said Australian Industry Group chief executive Heather Ridout.
The AI Group said it would push for the law to be amended if its interpretation of the law was not upheld.
On Monday, Fair Work Australia ordered medical supplies company Defries Australia to stop a ballot of mostly female and migrant staff scheduled for the next day and to instead schedule four meetings with the National Union of Workers over a fortnight. A similar order was made for the Queensland Tertiary Admissions Centre to delay a ballot and meet with the Australian Municipal, Administrative, Clerical and Services Union.
National Union of Workers Victorian Secretary Antony Thow said Fair Work Australia was doing what it needed to do. “Those orders were vital because the company weren’t conducting themselves with any good faith. They had two meetings of 25 minutes of no substance. The company did not want to bargain collectively with the union. It is the exact circumstance where good faith orders are needed,” Mr Thow said.
The union had around 40 per cent membership at Defries, he said, and a deal was put to workers by the company to cut overtime rates and Saturday penalties without sufficient time for the union to respond. “They have just paid lip service to good faith bargaining,” he said.
Last week Fair Work Australia stopped a vote by Abigroup staff on a collective agreement after an application by the CFMEU. The AI Group made its submissions yesterday in a hearing on this case.
Mrs Ridout said: “The Act gives very substantial rights and protections to employees to ensure that they are able to make an informed decision about whether they genuinely agree to a proposed agreement. Unions also have substantial rights but they should not be permitted to obtain a bargaining order to frustrate the rights of employers and employees to enter into agreements of their choosing.”
