Businesses want the Fair Work Commission (FWC) to be strict on multi-employer bargaining. 

Concerns have been raised by a move by unions to secure sector-wide pay increases for early childhood educators through bargaining efforts.
Australia's new multi-employer bargaining laws, implemented in June, empower the FWC to authorise collective bargaining across various employers. 

One of the prominent applications of this new framework is the United Workers Union's (UWU) pursuit of a 25 per cent pay hike for around 12,000 childhood educators at over 60 centres.

Supporting the union’s endeavour to negotiate at 64 long day-care centres, the Australian Childcare Alliance says it will employ the newly-acquired collective bargaining authority to engage the government and amplify their bargaining power.

However, apprehensions are mounting among industry representatives, such as the Australian Industry Group (AiGroup), who advocate for a cautious approach by the FWC. 

AiGroup has cautioned against an overzealous approval of multi-employer talks, warning that broad agreements could span entire sectors, trigger widespread strikes, hamper competition, and push unprepared businesses toward unfavourable outcomes.

“Given the seriousness of the microeconomic and macroeconomic consequences that can ultimately flow from the making of a supported bargaining authorisation, the commission should not lightly find that it is appropriate to do so,” AiGroup said in submissions.

The multi-employer bargaining authorisation would equip parties to directly engage with third-party funders, which, in the case of childcare, refers to the Commonwealth government. 

The UWU has expressed intentions to extend improved wages and conditions across the sector via the newly established bargaining machinery.

Employers, however, are wary of the potential ripple effects. 

They are concerned that the UWU might use the law's provisions to coerce other childcare centres into union deals, implying that government-funded pay hikes could still happen without the new laws.

A central point of contention is the “roping-in” capability, which empowers unions to extend agreement coverage to additional employers, subject to majority employee support and commission approval. 

AiGroup has urged the FWC to carefully consider its implications, particularly regarding employers not explicitly included in the initial application.