OPINION: HOW ENTERPRISE BARGAINING LIFTS PAY AND CONDITIONS

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Mining and Energy Union

Enterprise Agreements are the foundation for fair pay, safe conditions, and clear workplace entitlements in the coal industry. These legally binding agreements, negotiated between employers and employees – typically represented by the Mining and Energy Union (MEU) and local Lodge delegates – are central to protecting and improving the rights and conditions of coal workers.

Many long-time coal industry workers know that our high wages, allowances, and entitlements are not handed out by employers – they’ve been hard fought for over generations through enterprise bargaining. For well over a century, the MEU and its predecessors have fought to lift wages and conditions for coal workers, establishing benefits many now take for granted, such as substantial allowances and strong redundancy entitlements.

However, with many new workers entering the coal industry – often for the first time encountering an EA or a union – it’s important to understand what enterprise bargaining is and why it matters.

An EA is a contract between employees and employers that spells out conditions of employment, including wages, rosters, shift lengths, training, allowances, bonuses, dispute resolution processes, redundancy provisions and leave entitlements. Often, the conditions outlined in your offer letter or contract are underpinned by the site’s EA – negotiated by your union.

Enterprise bargaining is a key feature of Australia’s industrial relations system, governed by the Fair Work Act. It allows workers to negotiate pay and conditions above the Award minimums. Through bargaining, workers can achieve tailored agreements that reflect the specific needs, values and priorities of their workforce.

Bargaining typically begins when the current EA is nearing expiry, or if there is no EA in place – when a majority of workers vote to initiate the process.

Workers develop a “log of claims” outlining the improvements they seek – whether that’s pay increases, better rosters or improved allowances. Importantly, bargaining is the only legal avenue under the Fair Work Act for taking industrial action to back claims. This can include strikes, work bans or stoppages. Any industrial action requires a protected action ballot to prove majority support.

If an agreement is reached, it goes to a workforce vote. The union may recommend a Yes or No vote depending on whether the deal is a fair negotiation or more could be achieved – but ultimately the company’s offer must win support of the majority of the workforce. After being voted up by workers, agreements must also pass Fair Work Commission scrutiny to ensure they meet legal requirements and would leave workers better off overall (not necessarily on every condition) than the Black Coal Mining Industry Award. The Union may challenge an Agreement if we believe it doesn’t meet legal requirements, but its ultimate approval is in the hands of the Fair Work Commission.

High union density and active participation are the foundation for strong agreements. Workers who are informed, united, and engaged are far better positioned to secure fair outcomes and ensure that mining jobs remain well-paid, safe, and secure.

Recent bargaining at Narrabri Underground Mine showed how strong union organisation delivers results. When Whitehaven proposed a 7-days-on, 7-days-off roster, most of the workforce – deeply connected to their local families and community – saw it as unworkable.

With nearly 95% union density, workers united to overwhelmingly reject the initial offer. By expressing a strong and united view through bargaining, they not only preserved their preferred roster but locked in protections to prevent future erosion. The new three-year EA delivered real wins like improved annual pay increases, shift loading and retention bonuses, and preserved or improved conditions around shift lengths and leave.

Enterprise bargaining isn’t just about conditions today – it builds on hard-won gains over time. So if you want to keep improving conditions at your worksite the message is clear: join your union, get involved, and have your say in the bargaining process.

Robin Williams

District President MEU Northern Mining and NSW Energy

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