Workplace Agreement-Making: Legal Rules and Institutional Processes

The changes to the agreement-making rules were at the heart of the former Coalition Government's Work Choices reforms. The key stated objective of these changes was to 'simplify' agreement-making - by removing the no-disadvantage test (NDT) and introducing an administrative process of automatic approval of agreements on lodgement - with a view to encouraging the spread of agreements. According to the government, an increase in the use of statutory agreements would, in turn, increase productivity. These aims were reflected in the objectives of the legislation which stated that the system should encourage the parties to set their own conditions at the workplace level (through statutory agreements). However, the objective of supporting fair agreement-making was removed from the legislation, suggesting that the protection of employees was of secondary importance in the new system.