NECA believes a recent judgement involving the Maritime Union of Australia (MUA), which resulted in a trio of good faith bargaining orders being imposed on the union, demonstrates the need for the good faith provisions of the Fair Work Act to be reviewed, and updated.

Acting Fair Work commissioner Danny Cloghan found the MUA misled its own members and the media in relation to its negotiations with the Australian Mines and Metals Association (AMMA), representing offshore oil and gas vessel operators.

“In the acting commissioner’s words, the MUA played ‘fast and loose’ with the truth,” said NECA chief executive Suresh Manickam.

“The MUA misrepresented the nature of the negotiations to its own members, thus making the reaching of agreement less likely.

“The acting commissioner, also made reference to the lengthy impasse in negotiations – nearly four years – as disadvantaging MUA members and employers, with the timeframe not being envisaged by those drafting the Fair Work legislation.”

NECA believes unproductive bargaining often delays or makes it difficult for new projects to get off the ground. The fact that the Fair Work Commission has itself drawn attention to these concerns highlights the need for action.

In a tougher economic environment, it’s critical that economic growth continues to deliver jobs and prosperity. The bargaining “wheel of death”, as referred to by the Fair Work Commission, where negotiations grind on without achieving anything, needs to end.

“NECA calls for greater scrutiny and accountability in relation to the communications bargaining representatives are providing to those they represent, with good faith bargaining orders being imposed as required,” Suresh says.

“Consideration should also be given to ensuring unions are not inappropriately hindering employers from directly taking proposals to union members, as is their right under the Fair Work Act, in order to actively prevent agreements that run counter to the union’s wider agenda.”