• Tiếng Việt
  • English
Productivity Commission Enterprise Agreement

In this article, we consider the idea promoted by this bill and share ideas for employers to negotiate in 2015, especially where there is an appetite to question the contributions that enterprise agreements can make to the overall efficiency and productivity of their business. An obvious initiative to increase productivity is to combine increased production of a product or service with higher compensation, also known as “performance-based compensation.” However, the effectiveness of this method has had mixed results and companies should also strive to find more dynamic ways to increase productivity in the workplace. If a job has a registered contract, the premium does not apply. However, negotiating an enterprise agreement can often lead employers and workers to unique challenges. Some companies might see them as insurmountable obstacles that cannot be overcome and decide not to participate in the negotiations. At CBF, we have learned to turn these potential barriers into small obstacles that can be overcome through practical solutions. We often see companies developing what they see as an ideal or preferred enterprise agreement, simply to drop the enterprise agreement when consulting employees because of a lack of employee assistance. Employee engagement is crucial to any robust EA strategy, but how can you get your employees on the same side? Fair Work Commission publishes enterprise agreements on this website. The Productivity Commission defines productivity as “the measure of the rate of production of goods and services per unit of input (labour, capital, raw materials, etc.). It is calculated in proportion to the volume of production produced in relation to a certain amount of intermediate consumption used. To simplify, an improvement in productivity in the workplace occurs when production increases, without investing more in effort and resources, or, alternatively, to achieve the same level of production from fewer resources and with less effort.

Communication with your employees before the negotiations begin and throughout the negotiation process is essential to maintaining staff commitment to the productivity measures you want to put in place. If not, how will your employees and their representatives know and understand the key issues that weigh on the need to improve productivity? Business agreements can be tailored to the needs of some companies. An agreement should be overall better for an employee when compared to the corresponding bonuses or rewards. The trap for many employers in negotiating enterprise agreements is that they first ask: “What conditions can we include in our enterprise agreement that increase productivity?”, when the questions they should really ask are “what motivates our employees?” or “What can we do to encourage worker engagement?”. In our experience, the following indications and tricks are often helpful: if the bill were ever to pass the Senate, the Fair Work Commission should be convinced that improving productivity in the workplace was discussed during the negotiations of an enterprise agreement for the agreement to be approved.