Death of enterprise bargaining agreements a good result

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Domino’s Pizza Enterprises has ruled out returning its employees to the enterprise bargaining system after the Senate rejected key elements of the federal government’s industrial relations omnibus bill.

Rival fast-food group McDonald’s has also indicated that its workforce will remain on the industry award after it abandoned the enterprise agreement system in 2020.

Business Council of Australia (BCA) CEO, Jennifer Westacott, claims the enterprise bargaining system faces a “slow and inevitable death” due to the rejection of the government’s reforms. In turn, the BCA argues that this will worsen wage growth:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.