Ashurst Enterprise Bargaining Survey 2019

The respondents are among Australia's Top 200 ASX listed companies and major government agencies, with the majority employing over 1,000 workers and managing at least one enterprise agreement.

The 12 key findings of the Report cover wage growth, delays in agreement making and an ongoing uncertainty around casual workers and penalty rates, with responses revealing a great deal about the current landscape.

Stephen Woodbury, partner and Ashurst global practice head, employment, commented:

"We've seen a number of unexpected shifts in this year's Report, which highlights the potential degree of change the market expects in the coming months. Industrial relations has been a key focus in the lead up to the Australian federal election, and the employers we surveyed are very much aware of the potential for significant change that lies on the horizon. 

"Perhaps the greatest surprise in our findings was that whilst the majority of private sector respondents opposed the ALP's industrial relations platform elements – prohibiting employer lockouts during bargaining, limiting the ability to terminate expired agreements and requiring compulsory arbitration to settle enterprise agreement disputes – those numbers were not as high as we would have expected.

"One of the big changes we saw was an increase in the number of enterprise agreements operating beyond their expiration. Some 31% of respondents said they were operating with agreements past their nominal expiry, in some cases 4 years past expiration, representing a 10% increase on our 2017 Survey results. This suggests a high level of dissatisfaction with and movement away from the system.

"Responses also suggest a more stable economic and market outlook. In 2019 just 4% of respondents indicated they sought a temporary wage freeze compared to nearly 12% in 2017, and only 1% sought a reduction in wages compared to 10% of respondents in the 2017 survey.

"Time spent negotiating is on the rise. There has been an increase of nearly 10% of respondents saying it is taking more than 12 months to negotiate an individual enterprise agreement. This is most significant in the case of Government respondents, with 78% saying their agreement took more than 12 months to negotiate.

"When coupled with the time taken in getting an agreement approved and the number of expired agreements still operating, the increased timeframes provide evidence to support calls for change, on the basis that the current system does not appear to be working in the interests of either party.

"Interestingly, in 2017 just 36% of respondents indicated that industrial action occurred or that a Protected Action Ballot Order was sought when conducting their most recent bargaining. In 2019, this rose to 55% of respondents who said the same – showing a nearly 20% jump.

"It is clear industrial action remains a key feature of the bargaining framework.

"As to why employers negotiate, a number of respondents commented that bargaining is a historical position and a 'force of habit' rather than something that adds to, or improves, their business performance."