Multi-enterprise bargaining, in a nutshell, is about trying to establish minimum terms and conditions that apply to a bunch of employers who share common interests, like location and regulations. It also helps if these employers have somewhat similar operations. But is it a good thing, a bad thing, or just “meh”? Well, it really depends on your specific business, your industry, the market you’re in, and where you stand in the grand scheme of things.
On the “friend” side of the spectrum, multi-enterprise bargaining can be beneficial for several reasons, including these:
- It’s like a power move if you’re the top dog in your industry and you want to set the standard for employee terms and conditions, maybe even luring your competitors into the same boat (as long as it doesn’t hurt your own business).
- Unions might be more willing to cooperate at the outset, knowing they can potentially add more employers later.
- It has the potential to minimise the potential for, and effects of, industrial action.
- It can ease the administrative burden of negotiating agreements for each enterprise;
- It can also reduce the costs to an individual employer associated with an EA and its negotiation etc.
On the “foe” side of things, multi-enterprise bargaining can be a headache for reasons such as these:
- If your EA is a point of competitive advantage or allows your business to differentiate its employment offering, multi-enterprise bargaining could negatively affect recruitment, operations and related commerciality.
- Sometimes, your EA might offer something different or extra, or something specific which works well for your operation but is unlikely to be voted up where employees employed by different employers will be bargaining in relation to one agreement.
- It takes away some of an individual employer’s control over the negotiation process and removes the ability for business and employers to influence their own independent outcomes.
- You could be forced into negotiations with other employers, whether you want to or not.
- It won’t generally consider the unique needs of your business or your employees. Instead, it’s all about applying generic terms and conditions across multiple employers and potentially particular industries, regardless of the impact to one individual employer’s bottom line.
If you are looking to troubleshoot a multi-employer bargaining concept, or need some specific advice, please contact us.
