Important amendments to the Fair Work Act – what you need to know

Home | Blog |  | Important amendments to the Fair Work Act – what you need to know

Some significant amendments to the Fair Work Act are in motion.
These changes were brought about by the new Labor government and their focus on wage growth for Aussie workers. For the construction industry, an important change to be aware of is the introduction of multi-employer bargaining.

Multi-employer bargaining

Multi-employer bargaining is a form of collective bargaining with other employers. It means that workers from different workplaces in the same industry can bargain as a group and strike an agreement that applies to all workplaces.
It basically means that workplace bargaining is shifting to industry-wide arrangements. With one of the main focuses on industry-wide wage growth.
For example, a plumber who has attempted to negotiate a wage increase with his boss attends an industry-wide meeting and raises the issue of wage growth. At this meeting there are plumbers of different sizes serving vastly different clients but all from the same industry. Everyone agrees to the proposition of increasing wages, and affected businesses must comply.

Carve out

Many construction businesses are exempt from multi-employer bargaining, including small businesses with under 20 employees.
However, wage growth for suppliers and other subcontractors is likely to put pressure on the construction industry. This added pressure could lead to higher inflation, which could lead to increased insolvency if businesses do not adjust how they trade.
We recommend adjusting your pricing notes/conditions regarding rise and fall. For fixed price, lump sum contracts, consider negotiating these clauses.

Key takeaways

An increase in wages and other industry-wide costs could lead to higher inflation and an increased risk of insolvency.
We can assist you with managing these risks.

RELATED POSTS

KIND WORDS FROM OUR CLIENTS

Schedule a Call with Our Team.