On 11 November 2015, the Fair Work Amendment Bill 2014
("Bill") passed its final hurdle as the House of
Representatives approved the Senate's amendments to the
greenfields provisions in the Fair Work Act 2009
(Cth). The Bill is intended to ensure that enterprise agreements
are negotiated efficiently. The amendments give employers greater
power to resolve deadlocks and make unilateral deals.
Greenfields agreements, which are often difficult to negotiate, are
enterprise agreements made between an employer and one or more
unions, in circumstances where the employer is establishing a new
enterprise. The amendments allow employers to submit their proposed
greenfields agreements to the FWC for approval if a deal has not
been reached with the union or unions after a six-month
"negotiating period". This is intended to provide
employers with a mechanism though which to resolve deadlocks and
avoid unnecessary delays to project start dates. The FWC's
approval nonetheless remains subject to a number of restrictions,
including the "better off overall test" and good faith
bargaining requirements.
The original Bill allowed employers to seek approval of their
proposed greenfields agreements after a three-month negotiating
period. However, following opposition from crossbenchers, the
amendments agreed in the Senate extended the period to six months.
The new greenfields provisions are subject to a two-year review
period.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.