Enterprise Bargaining Agreement

Enterprise Bargaining Agreement

Enterprise bargaining is wage and working conditions being negotiated at the level of the individual organisations. Once established, they are legally binding on employers and employees. An Enterprise Bargaining Agreement (EBA) consists of a collective industrial agreement between either an employer and a trade union acting on behalf of employees or an employer and employees acting for themselves.

On the one hand collective agreements, at least in principle, benefit employers, as they allow for improved "flexibility" in such areas as ordinary hours, flat rates of hourly pay, and performance-related conditions. On the other hand collective agreements benefit workers, as they usually provide higher pay, bonuses, additional leave and enhanced entitlements (such as redundancy pay) than an award does.