Wesfarmers, one of the largest employers in the country, wants the job summit to come up with simple fixes to the “broken” enterprise bargaining system.
Two industrial relations case studies from Wesfarmers are likely to be at the centre of chief executive Rob Scott’s argument at theScott starts from the position that enterprise agreements are “a fantastic way – if they operate appropriately – to really help businesses adjust to the competitive forces they face ... to create value and then share that value with team members”.
The context for this particular EBA negotiation was that Bunnings’ management had worked for many years to lift the number of permanent employees and pay staff above the award rates. Bunnings’ 2019 EBA would have been significant because it would have entrenched total salary payments about $100 million a year higher than the salaries payable under the General Retail Industry Award.
Since the EBA was withdrawn, Bunnings has continued to offer employees pay rises. This distinguishes the company from others, who refuse to pay bonuses or pay rises while an EBA is being negotiated. Wesfarmers has been told by various consulting groups and legal advisers that there are 100 different interpretations of“It’s no surprise that workers can’t even really understand what they should be getting paid. We need to go and get legal advice to understand how these things work.“These are some of the things I think are relatively easy fixes that would really help.”It was negotiating an EBA in 2019 and thought it was close to success until it employed a handful of people.
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