Greenfield agreements expected to boost Australian businesses and jobs
The extension of greenfield agreements from the current 4 years to 6 years in Australia is believed to play a key role in workplace reform that will stimulate business investment and create new employment opportunities.
The greenfield agreement is an agreement between a newly set-up business and an employee association, such as trade unions, before a company begins employing any worker. The agreement offers employers flexibility with the circumstances of their workers, covering conditions like pay, for instance.
“Extending greenfield agreements to last six years will protect major projects from the risk of delay, disruption and cost blowouts resulting from uncertainty and unnecessary disputation,” said Australian Chamber of Commerce and Industry (ACCI) chief executive Andrew McKellar, according to Mirage news.
“Currently, greenfield agreements cannot be extended beyond four years after the date of approval by the Fair Work Commission. As industrial action may be taken after an agreement has expired, businesses may face significant uncertainty and onerous additional costs when they can least afford it,” said McKellar.
“Investors, employers and employees alike are set to benefit from this commitment that will encourage investment and create jobs across the country,” he added.