With all of the recent changes in legislation our clients have over recent months posed many questions to us.  We thought that it maybe helpful to many other clients and associates to know those questions and answers.

SHOULD I MAKE A  COLLECTIVE AGREEMENT NOW?

Yes, we would recommend that you do this now to fix the employment terms and conditions of employment at your workplace for up to 5 years. If you leave it there will be uncertainty  in what future changes may effect your organisations ability to make agreements.

The collective agreement, will however, be subject to the new"no-disadvantage test".  To pass the test, the agreement must not reduce employees' overall terms and conditions of employment when compared with the current AFPCS and the applicable award (or if there isn't any, an appropriate designated award). 

As mentioned earlier in this IR Alert, the award modernisation process is scheduled to be completed by 31 December 2009.  By the end of December 2008, the AIRC is to have at least created modern awards for each of the priority industries or occupations it has identified for award modernisation.  Therefore it is possible that if you delay making a collective agreement until later this year, the award covering your workplace (and used for the no-disadvantage test) may be changed or replaced during this time. 

Alternatively, you may want to consider whether or not to extend the life of your pre-reform collective agreement by making an application to the AIRC.

CAN I MAKE AN AWA - LIKE AGREEMENT?

Yes, if you were using individual employment agreements (such as an AWA, pre-WorkChoices AWA, or an individual preserved State agreement) as at 1 December 2007.  In that case, you can make an Individual Transitional Employment Agreement ("ITEA") with a new employee, or an existing employee employed under an individual employment agreement, at any time until 31 December 2009.   

ITEAs for new employees will operate from the date of lodgement with the Workplace Authority Director.  ITEAs for existing employees will operate when the agreement passes the no-disadvantage test and is approved by the Workplace Authority Director.  The default nominal expiry date of an ITEA is 31 December 2009.

I HAVE PRE-EXISTING AWAs AND A COLLECTIVE AGREEMENT IN OPERATION AT MY WORKPLACE.  ARE THEY AFFECTED BY THE REFORMS?

Pre-existing AWAs and collective agreements will continue to operate for their full terms (and may continue after their nominal expiry date) under many of the pre-reform rules. 

The reforms allow pre-existing collective agreements to be extended and varied on application to the AIRC, however, any variations made after 27 March 2008 will be subject to the new no-disadvantage test. Pre-existing AWAs cannot be varied by employers and employees. 

Please contact Jill Hignett on (07) 3895 8011 if you require advice on how the new reforms will affect your business.