As Enterprise Agreements (EBAs) near their expiry, organisations must prepare for potential industrial action. In Australia, managing key stakeholders—particularly executive management—is crucial in navigating these complex negotiations. With Protected Action Ballot Orders (PABOs) and employer lockouts becoming more common, strategic engagement with senior leaders is more critical than ever.
The Role of Executive Management in EBA Negotiations
Executive teams, especially those based offshore, often have limited exposure to Australian industrial relations (IR) laws. Many global companies find the concept of industrial action confronting, as the regulatory environment in Australia is unique compared to other jurisdictions. Fear of bad press and reputational damage frequently drives decision-making at the executive level, sometimes leading to a reluctance to engage effectively with unions and employee representatives.
Key Considerations for Executive Leadership in Enterprise Bargaining
- Understanding Australian IR Laws – The Fair Work Act and National Employment Standards (NES) significantly influence bargaining and industrial action outcomes.
- Media Strategy and Reputation Management – Negative press can impact business operations and shareholder confidence, making strategic communication essential.
- Legal and Strategic Implications of Industrial Action – Executive teams must balance short-term operational needs with long-term employee relations.
The Rise of Employer Lockouts as a Response to Industrial Action
Over the past decade, employer responses to industrial action have evolved significantly. When the Fair Work Act 2009 introduced Protected Action Ballot Orders (PABOs), lockouts were initially rare. However, in recent years, employer lockouts have become a far more common tool in response to industrial action. While unions initiate strikes to exert pressure, employers have increasingly turned to lockouts as a countermeasure, aiming to shift the balance of power in negotiations.
Lockouts, while legally permissible, carry significant risks, including operational disruptions, reputational harm, and potential legal challenges. Executive teams must understand both the legal framework and the broader implications of deploying such measures.
The Importance of Proactive Stakeholder Engagement
To navigate EBA negotiations successfully, HR professionals and industrial relations specialists must proactively manage executive expectations. Key strategies include:
- Educating Offshore Executives on Australian IR Laws – Many offshore leaders have experience in employment relations frameworks that differ significantly from Australia’s. Providing tailored briefings on the Fair Work Act, PABOs, and employer response options (including lockouts) is essential.
- Mitigating Fear Through Communication – The fear of negative media coverage often results in executive hesitancy. A clear media and stakeholder management strategy can help alleviate concerns and ensure a well-structured response to industrial action.
- Developing a Comprehensive Industrial Relations Strategy – Planning for potential industrial action should start well before an agreement expires. Engaging early with executive management, workforce representatives, and legal advisors can help organisations position themselves effectively.
- Balancing Legal and Strategic Considerations – While employer lockouts may be a legitimate response, they should be carefully weighed against long-term business and employee relations goals.
Conclusion
As EBA negotiations grow increasingly complex, effective stakeholder management—particularly at the executive level—is vital. Ensuring that senior leaders understand Australian IR laws, the implications of industrial action, and the strategic use of employer responses like lockouts will help businesses navigate the bargaining process successfully. With industrial action becoming more frequent, proactive preparation and informed decision-making will be the key to maintaining stability and achieving sustainable agreements.
Next Steps for Employers
- Conduct industrial relations training for executive teams to bridge knowledge gaps.
- Develop a crisis communication plan to manage potential media scrutiny.
- Engage with specialist industrial relations advisors to ensure compliance and strategic preparedness.
- Implement a stakeholder engagement framework to enhance internal and external communication.
By prioritising proactive stakeholder management, organisations can strengthen their position in enterprise bargaining and mitigate risks associated with industrial action.
Need workplace EBA advice?
For employers facing an EBA or Protected Industrial Action (PIA), engaging a Independant ER Consultant can make a significant difference. Ensuring an objective advice and risk management reduces legal risks, protects your reputation, and strengthens workplace culture.
I David is an employment relations specialist, EBA expert and independent HR consultant. He works with clients Australia-wide.
David Haydon
Employment Relations Specialist, Workplace Investigator and HR Consultant