As the COVID-19 pandemic continues to disrupt businesses across the globe, another issue is rapidly emerging: the decline of enterprise agreements.

Enterprise agreements are legal instruments that establish the terms and conditions of employment for a whole workforce or groups within it. They are negotiated by unions and employers, and must be approved by the Fair Work Commission before they become legally binding.

However, recent data shows a significant decline in the number of enterprise agreements being negotiated and approved. In the first quarter of 2021, only 19 new agreements were approved, compared to 82 in the same period in 2020.

This decline in enterprise agreements is particularly concerning, as they play a crucial role in ensuring fair and equitable working conditions for employees. Without adequate agreements in place, workers may be subject to unfair and inconsistent treatment, and may not have access to important benefits like parental leave or flexible working arrangements.

So why are enterprise agreements declining? There are several factors at play. Firstly, the pandemic has made negotiating and approving agreements more difficult, as face-to-face meetings are often not possible. This has led to delays and cancellations of negotiations, and a backlog of agreements waiting to be approved.

Secondly, there has been a general decline in the number of union members in recent years, which has reduced their bargaining power in negotiations. Many employers are now choosing to negotiate individual contracts with employees, rather than collective agreements with unions.

Finally, changes to the industrial relations landscape in Australia have also contributed to the decline in enterprise agreements. In March 2021, the Morrison government introduced a new industrial relations bill that proposed changes to a range of workplace laws, including those governing enterprise agreements. The bill has not yet been passed, but its introduction has created uncertainty and confusion for employers and unions alike.

So what can be done to address the decline in enterprise agreements? Firstly, it is important for the Fair Work Commission to streamline the negotiation and approval process, to reduce delay and improve efficiency. Secondly, efforts should be made to strengthen the bargaining power of unions, to ensure they can negotiate fair and equitable agreements on behalf of their members. Finally, the industrial relations bill should be revised to address concerns from all parties and ensure that workers are protected and their rights maintained.

In conclusion, the decline in enterprise agreements is a worrying trend that must be addressed. Without these agreements in place, workers are at risk of being treated unfairly and may not have access to important benefits and protections. It is vital that employers, unions, and the government work together to ensure that enterprise agreements continue to be a cornerstone of fair and equitable working conditions in Australia.