Most readers know that in December 2022, amendments to the Fair Work Act 2009 (Cth) (Fair Work Act) ushered in a wave of significant industrial relations (IR) reforms. In assisting our clients come to grips with these new laws, we have come across a number of common ‘myths’ about multi-enterprise agreements (MEA).

Three myths that we encounter are that:

1. an MEA is the only kind of agreement that can be made under the IR reforms;
2. there is no way to avoid being compelled to bargain for (or being joined to an existing) MEA; and
3. Australia’s competition laws impose limits on multi-enterprise bargaining, because this type of bargaining might limit competition by establishing identical wages and employment conditions among competitors.

This article does not address the supported bargaining stream or the cooperative workplaces bargaining stream. It only deals with the single interest bargaining stream, where employers with common interests can choose to – or in some instances be forced to – bargain together for an MEA. It is thought these agreements will be particularly used in industries such as mining, or in certain manufacturing sectors.

More than one kind of agreement

Bargaining for an MEA is not the only way an employer can make an enterprise agreement. Employers who are not named in or bargaining for an MEA will still be able to bargain directly with their own workforce for a single enterprise agreement.

Compulsion to bargain

It’s worth noting that employees and employers...

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