Multi-employer bargaining under Closing Loopholes: the three streams explained

What changed

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 introduced significant changes to multi-employer bargaining arrangements within the Fair Work Act 2009. These changes substantially broadened the scope for bargaining across multiple employers.

Further adjustments to the multi-employer bargaining regime were implemented through reforms introduced in 2023-2024. These reforms built upon the changes made in 2022.

As a result of these legislative changes, the Act now formally recognises three distinct streams for multi-employer bargaining: the single-interest stream, the supported bargaining stream and the cooperative workplaces stream.

The single-interest stream

The single-interest stream allows for multi-employer bargaining where employers share clearly identifiable common interests. These interests may be based on industry, regional factors, or other specified bases. This stream provides a pathway for groups of employers with shared concerns to bargain collectively.

Either the employer group or the union can apply to the Fair Work Commission for an employer authorisation. The Commission will assess the application against fairness, public-interest, and common-interest tests before making a determination.

If authorisation is granted, bargaining proceeds under the rules applicable to a single-employer agreement. The resulting agreement will then cover all authorised employers and their respective workforces. It is important to recognise that existing single-employer agreements will influence the agreement-making rules in this context.

The supported bargaining stream

This stream is designed to facilitate multi-employer bargaining in sectors where outcomes have historically been low. Examples of sectors identified for this purpose include early-childhood education and care, aged care, and some disability supports. The intention is to enable bargaining that can improve conditions and pay across these industries.

The Fair Work Commission has the power to make a supported bargaining authorisation. An application for this authorisation must be made by a bargaining representative. This authorisation allows bargaining to proceed with the Commission’s support.

The Fair Work Commission and the Fair Work Ombudsman both have roles in supporting bargaining within this stream. Their involvement is intended to assist parties in reaching an agreement.

The cooperative workplaces stream

This stream provides a voluntary pathway for multi-employer bargaining. Employers and employee bargaining representatives can agree to bargain collectively across multiple enterprises.

Unlike other multi-employer bargaining models, this stream does not require approval or oversight from the Fair Work Commission. Participation is based on the consent of the employers and bargaining representatives involved.

The cooperative workplaces stream is designed as a streamlined option, intended for circumstances where parties are already committed to collaborative bargaining arrangements.