1. Workforce Conference - Park Hyatt Good Faith Bargaining Stuart Wood, Henry Skene, Chris Gardner www.stuartwood.com.au hskene@abl.com.au chris.gardner@freehills.com 22 nd September 2009

2. Good Faith Bargaining

3. Part 1: Stuart Wood The key section The key section International will be relevant International will be relevant Part 2: Henry Skene Context and Control Context and Control Part 3: Chris Gardner Negotiating Tactics Negotiating Tactics

4. Part 2 Henry Skene – Partner, Arnold Bloch Leibler Context and Control

5. Good Faith Bargaining GFB in context GFB in context Shift in leverage: lower employer control Shift in leverage: lower employer control

6. Good Faith Bargaining in Context Shifting the balance - engagement situations: Entering the workplace Deciding who to negotiate with Participating in negotiations Exchanging information Deciding the scope of any agreement Making an agreement Deciding the parties to an agreement Consulting about change Shift in control Key Lesson:

7. Good Faith Bargaining in Context Eligible member One memberFWA Majority of employees MSO Scope Order GFBRight of Entry Default Status Industrial Action Agreement reached Bargaining breaks down FWA Secret ballot Majority of employees and employer FWA

8. Good Faith Bargaining in Context Key areas of change: Increased union access to workplaces Expanded obligations to consult and provide information Increased union and employee control in bargaining Expanded capacity for compulsory arbitration Expanded adverse action grounds

9. Shift in leverage GFB in action: Justification of position: request for information No bypass of bargaining representatives Other unilateral options reduced

10. Justification and information Fair Work Act 2009: s228 (1) The following are the good faith bargaining requirements that a bargaining representative for a proposed enterprise agreement must meet: …. (b) disclosing relevant information (other than confidential or commercially sensitive information) in a timely manner; … (d) giving genuine consideration to the proposals of other bargaining representatives for the agreement, and giving reasons for the bargaining representative’s responses to those proposals; …

11. Justification and information

13. No Bypass Fair Work Act 2009: s228 (1) The following are the good faith bargaining requirements that a bargaining representative for a proposed enterprise agreement must meet: … (f) recognising and bargaining with the other bargaining representatives for the agreement.

14. No Bypass “The employers in this case appear to have been under the misapprehension that they could be both bargaining with the union, through their bargaining representative and seeking to make an agreement as they described it ‘directly with their employees’ on the other.” “In my view, where the employer is aware that there are employees who are union members and the union is therefore their bargaining representative, it would be a breach of good faith bargaining to put an agreement to a vote without notifying the union of its intention to do so.” Commissioner Whelan, 17 September 2009, Applications to approve Alphington Aged Care Employee Enterprise Agreement 2009-2012 and Sisters of St Joseph Health Care Services (Vic) Employee Enterprise Agreement 2009-2012 under section 185 of Fair Work Act 2009 (Cth)

15. No Bypass April – July 2009: QTAC seeks to negotiate agreement with its employees. Bulk of proposed agreement content present at 30 June 2009, but continuing discussions re introduction of RDO 6 May 2009: ASU serves log on claims on QTAC re proposed agreement 7 July 2009: Brief ad hoc meeting between QTAC and ASU 22 July 2009: final agreement offer communicated by QTAC to employees “QTAC excluded the ASU from meetings and discussions about the proposed enterprise agreement at a time when the agreement content was not fixed or immutable. By so doing, QTAC contravened s. 228(1)(e) of the Act…” Richards SDP, ASU v QTAC, 29 July 2009

16. Other measures… Fair Work Act 2009: s228 (1) The following are the good faith bargaining requirements that a bargaining representative for a proposed enterprise agreement must meet: … (e) refraining from capricious or unfair conduct that undermines freedom of association or collective bargaining; …

17. Other Measures “Unfair or capricious” conduct? Unilateral increases Restructure of operations Replacement labour Strike preparations Review existing bargaining strategies

18. Good Faith Bargaining