The Fair Work Act requires employers to collectively bargain with employees where a majority of employees want this, and to do so in “good faith”.

When a bargaining process commences (which can happen at any time) an employer is required, within 14 days, to provide each employee with a notice of the right to be represented by a bargaining representative. This may be anyone (including a union, provided they are entitled to represent the employee in that particular role). Employers cannot refuse or deny to recognise a valid bargaining representative.

If an employer isn’t prepared to bargain, a bargaining representative can apply to Fair Work Australia for a determination that a majority of “employees” wish to bargain with the employer. FWA may then make orders to this effect.

“Good faith” bargaining, includes:

• Attending and participating in meetings at reasonable times;
• Disclosing all relevant and non-confidential information in a timely manner;
• Responding and giving genuine consideration to proposals and reasons for responses to those proposals; and
• Refraining from “capricious and unfair” conduct that undermines freedom of association or collective bargaining.

Any agreement reached in a collective bargain must meet the BOOT (Better Off Overall Test) according to FWA, and comes into effect seven days after its approval is received.

Langes has experience dealing with the Finance Sector Union and can assist with negotiations.