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Trade Unions and Employers Associations in Australia

Brief Description of Employees’ and Employers’ Associations

Trade unions form the mainstay of employee representation in Australia. However, their influence and membership has significantly declined over the last three decades. With that said, under the Fair Work Act unions enjoy a powerful role in relation to workplace bargaining even if their capacity to organise strikes has been diminished. The preeminent trade union body in Australia is the Australian Council of Trade Unions (“ACTU”), which represents the interests of many unions that have membership in the ACTU.

There are several other significant union bodies in Australia and unionism has long been an important issue in workplace law. Australia’s major political parties take a diametrically opposed approach to unions. The Labor party is seen as pro-union and is inclined to often legislate in favour of union influence, while the Liberal/National party (the “Coalition”) regularly seek to undermine their role in the workplace.

Firmly pitted against the union movement is an array of employer associations, such as the Business Council of Australia and the Australian Chamber of Commerce and Industry. In the same way that unions have influenced Labor party policy, these bodies often play a prominent part in the formulation of Coalition policy, and typically favour the interests of business over workers’ rights.

Rights and Importance of Trade Unions

Unions currently play a crucial role in Australian employment law. This primarily manifests in the process of enterprise bargaining where an employer will come together with its employees and their chosen union in order to negotiate conditions of employment specific to their company or industry. This can be a somewhat costly process, and unions provide financial backing and often legal services to the body of employees so as to obtain the best possible deal. However, enterprise bargaining is voluntary and depends to a large extent on the level of unionisation in a particular industry and the attitude of a given employer.

Unions also have the capacity to apply to the Fair Work Commission to undertake strike action in the course of bargaining for an enterprise agreement. Unions may not, however, organise and initiate strike action without first following the appropriate procedure set out in the industrial legislation. Unions also have right of entry into workplaces (subject to permit and notice requirements) where they have members, and may use this right to examine working conditions and consult with members.

Unions play a vital role in the discourse regarding employment law in Australia. The campaign by the ACTU against the Coalition’s “WorkChoices” laws is a prime example. During the lead up to the 2007 Federal election, the ACTU ran an advertising campaign against the policy, which arguably became a deciding factor in ousting the Coalition from government. Unions remain a watchdog with regards to the ability of an incumbent government to modify laws governing industrial relations.

As noted, their influence is gradually receding due to rapidly declining membershipand reduced public approval. Public approval of unions has been damaged in recent years as a consequence of a number of scandals involving the misuse of members funds by union officials. However, in June 2020 the Federal Government announced five ‘working groups’ tasked with finding ways to urgently stimulate the economy and regrow jobs as a result of the COVID-19 pandemic, each comprising of a balance of employer organisations and unions. Unions were also key participants in the Labor Government’s Jobs Summit held in 2022.

Types of Representation

A union is a body that represents the interests of workers in a particular industry or occupation. In order to be able to represent members in the Fair Work Commission, conduct elections of officers through the Australian Electoral Commission, become a body corporate or a legal entity, all unions, employee or enterprise associations are required to register under the Fair Work (Registered Organisations) Act 2009 (Cth).

The Fair Work (Registered Organisations) Act 2009 (Cth) dictates that all federally registered organisations have rules, and that various matters must be included in the rules, including but not limited to: the purpose of the organisation, membership eligibility, resignation and termination of membership, powers and duties of officers, keeping of minutes and auditing process, and the process for changing rules.

All employees and independent contractors are free to choose to join or not join a union. Under the Fair Work Act, a union will engage in various key roles, including being able to resolve workplace issues on behalf of employees and acting as a bargaining representative during bargaining negotiations for an enterprise agreement.

Other key features of unions include:

  • working with management to help resolve workplace issues;
  • being an advocate for employees;
  • ensuring employers are meeting their minimum obligations; and
  • looking into suspected breaches of:
    • workplace laws;
    • discrimination laws; and
    • workplace safety laws.

a. Number of Representatives

The number of elected officials and union delegates depends on the size of the union membership and industry.

b. Appointment of Representatives

Union officers and officials are elected democratically by their members. The union’s rules will specify how this is to be done. Delegates and representatives are usually active members who volunteer for the position or are approached by a branch member to consider taking on the role. To be considered, a delegate will often need to have the support and respect of their union colleagues in the workplace.

Tasks and Obligations of Representation

The elected Officer of a Union must perform their duties as required in the prescribed role, and generally advance and protect the interests of the Union and the wages, conditions and welfare of its members.

The job of a Union Delegate is to act as an Officer of a Union, but specifically in the particular workplace or area. This includes duties such as:

  • promoting the union, its activities and the benefits of membership;
  • enrolling persons into the union at the workplace;
  • providing assistance to any member of the union requiring it, including assisting in the resolution of disputes;
  • promoting and campaigning for improved conditions of employment in the workplace and/or industry;
  • negotiating or assisting in negotiating enterprise agreements;
  • dealing with work health and safety issues, including instances of any unguarded or dangerous machinery or hazardous working conditions at the workplace; and
  • dealing with other breaches and industrial action in the workplace.

Employees´ Representation in Management

There is no legal requirement for employee representation at any level of management. However, if an organisation wishes to negotiate an agreement with its employees, it must inform employees of their right to be represented by the union.

Other Types of Employee Representative Bodies

Unions form the primary source of employee representation in Australia. However, given their rapidly declining membership base, isolated but significant examples of alternative employee representation are emerging.

Suncorp Group, which employs over 16,000 individuals with only 4% union membership, is an exponent of a newer approach. Within the organisation is a body called Suncorp Group Employee Council, to which employees elect 25 councillors. These individuals then lobby management for employee rights issues. While its role is limited with regard to decision making within the Group, it has been effective in increasing employee voice and maintaining a more cooperative relationship between employees and management.

Australian medical manufacturer, Cochlear, has employed a similar model. After disagreements with the Australian Manufacturing Workers Union over enterprise bargaining agreements, the primary form of representation for workers became the internal Employee Consultative Committee, which occupied a similar role to the Suncorp Group Employee Council. The body has had limited influence over management and has rather focused on social aspects of life at the company.

Health and Safety Representatives under Work Health and Safety Laws

Under the Work Health and Safety Model Laws, Health and Safety Representatives are elected to represent all workers for three-year terms and have significant powers and responsibilities.

Health and Safety Representatives gather information about what the health and safety issues are for their work group, work out ways to resolve issues in consultation with workers and management, and can direct a worker in the work group to stop unsafe work, if they reasonably believe workers would be exposed to a serious risk to their health and safety. This “stop-work direction” can only be given if the Representative has undertaken the necessary training, and the issue has not been resolved by prior consultation, or if the risk is so serious and immediate or imminent that it is unreasonable to consult first.

A Representative can also issue a “Provisional Improvement Notice” if they reasonably believe that there is a contravention of the Model Laws.

An employer must support the Health and Safety Representatives in their workplace by:

  • giving them time off at normal pay, and any necessary facilities and assistance, to enable them to fulfil their role;
  • talking with them about health and safety issues;
  • giving them access to all information regarding hazards and risks affecting the work group;
  • allowing them to attend interviews about work health and safety, if the worker consents;
  • allowing a person assisting the Representative to enter the workplace, if that assistance is necessary;
  • permitting them to accompany an inspector on an inspection of areas where the workers they represent work; and
  • giving them five days of training and a one-day annual refresher course, if requested.

A Health and Safety Representative can be disqualified if they exercise a power or perform a function for an improper purpose, or use or disclose any information acquired that is not connected with their role.

Any questions

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