June 2004

Nursing, enterprise bargaining and the Workplace Relations Act

Public sector nurses in most states have embarked on negotiations over their terms and conditions of employment with their respective governments. Debbie Richards answers some common questions on the process.

Most nurses employed in public sector hospitals have experienced first hand the often confusing and complex process of negotiating an enterprise agreement under the federal Workplace Relations Act 1996 (WRA).

Public sector nurses in NSW are the only nurses employed in public hospitals whose wages and conditions are determined under a state industrial relations system.

With six of the eight state public sector agreements expiring during 2004, enterprise bargaining is well underway in most states and territories.

Members of the ANF Victorian and Tasmanian branch have recently reached agreement after a successful industrial campaigns.

At the time of writing, ANF branches in South Australia and ACT are well into their negotiations, while the Western Australian Branch has recently commenced negotiations for their new agreement.

Since its inception in 1996, the focus of the WRA has been on the making of agreements. In most cases, ANF members in the public sector have been covered by at least two sequential agreements, with each agreement covering a period of up to three years.

The WRA requires that the parties seeking to make an agreement comply with a number of steps in order to obtain the protections provided by the Act. The information below addresses some of the questions often asked by nurses about the enterprise bargaining process.

What is a bargaining period?
When an agreement is about to expire or a new agreement is to be negotiated, the WRA provides for the initiation of a bargaining period by either a union, an employer or an employee. This provides written notice to the parties and the Australian Industrial Relations Commission (AIRC) of the intention to commence negotiations. The bargaining period commences seven days after the notice has been given.

Why have a bargaining period?
The WRA prohibits industrial action during the term of an agreement. However during a bargaining period, the parties may engage in protected industrial action which protects the parties from any civil prosecution arising from industrial activity.

During this period, the Act prohibits an employer from dismissing, threatening to dismiss, or taking any action to the detriment of the employee because the employee is involved in industrial action.

Similarly, during a bargaining period, the Act provides for an employer to take protected industrial action. While not commonly used by employers in the health industry, industrial action by the employer may include locking employees out of the workplace and replacing them with alternative labour.

What is the role of the AIRC?
The AIRC may suspend or terminate a bargaining period if it is satisfied that a party is not genuinely trying to reach an agreement, or is not complying with any directions given.

The AIRC can also suspend or terminate a bargaining period if it forms the view that the industrial action is threatening to endanger the life, safety, health or welfare of the community or causing significant damage to the Australian economy.

If the bargaining period is terminated, the AIRC may decide to exercise its conciliation powers under the Act to resolve the matters in dispute. If this is unsuccessful, the AIRC can refer the dispute to a Full Bench of the Commission for arbitration.

What steps are required to certify an agreement?
An enterprise bargaining agreement comes into effect when it is certified by the AIRC. Before the AIRC approves and certifies the agreement, it must be satisfied that the parties to the agreement have fulfilled a number of requirements under the Act including the following:

  • That the employer has taken reasonable steps to notify all persons who will be covered by the agreement that the agreement is to take effect;
  • That the employer has explained the terms of the agreement to all the employees;
  • That the employees have been given at least 14 days to view the proposed agreement;
  • That a valid majority of the employees to be covered by the agreement have voted in favour of the agreement.

The AIRC must also be satisfied that the agreement passes the 'no disadvantage test'. The 'no disadvantage test' is applied to ensure that the terms and conditions of employment under the agreement are no less than those under the relevant award. The Commission examines the content of the agreement to determine whether employees will, on the whole, be better or worse off.

Once the agreement is certified it is a legally binding instrument.

Note:
This article provides and overview of the agreement making process and does not seek to provide legal or industrial advice. ANJ readers are urged to contact their ANF representative to obtain advice on such matters.

Debbie Richards
ANF Federal Industrial Research Officer