Enterprise Agreements – Productivity handbrake or guardrail?

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The university management’s industrial lobby warns that industrial law is a “handbrake on productivity,” but the beauty of Enterprise Agreements (EA’s) clearly lies in the beholder.

The Australian Higher Education Industrial Association (AHEIA) was responding to Treasurer Jim Chalmers’ call for, “better regulation, cutting red tape without lowering standards.” Presumably excepting cases where the complexity of regulations in enterprise agreements is what keeps standards solid.

AHEIA argues unions in the university system can block needed reforms to enterprise agreements, using a section of the Fair Work Act that forbids any change to a new agreement that is “less favourable” for employees.

“When the union movement goes to the Fair Work Commission, they know they cannot lose,” the Association argues.

But universities will have a go at beating them in the Commission and the courts, when it can, on what agreements mean.

Last week the Federal Court ruled against Monash University in a case against the National Tertiary Education Union that started three years ago. The issue was over the correct pay rate under the university’s enterprise agreement for two sessional academic staff holding student consultation hours. Management said the rate for tutorial rates applied. The NTEU argued a separate higher rate applies. Justice Snaden found for the union, stating that within the meaning of the EA the consultations were not “tutorial work.” Short of the university appealing, this is a big win for sessionals. The union states it means management owes them millions in backpay.

In June, the Fair Work Commission found for the union in a dispute with the University of Melbourne, also over what the enterprise agreement they signed off on meant. The comrades claimed staff had to get first go at applying for continuing positions before they were advertised externally; management said that was not what was agreed. Commissioner Redford found that part-time staff with specified periods of employment should be considered before external applications were called.

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