Enterprise Bargaining: Why It’s Time to Step In, Not Step Away
There’s been a sharp increase in the number of Australian employees now covered by enterprise agreements, and yet, many employers are still hesitant to engage early when it comes to preparing for enterprise bargaining.
At Humanify HR, we believe enterprise bargaining isn’t something to be afraid of, it’s something to strategically embrace.
“Bad news doesn’t get better with time. Bargaining is one of those things that, the longer you leave it, the more it can creep up on you,” says Humanify HR Managing Director, Sarah Queenan.
The Numbers Tell the Story
According to the Trends in Federal Enterprise Bargaining Report (DEWR, June Quarter 2025):
2.80 million employees were covered by enterprise agreements as at 30 June 2025.
This represents an increase of 1.06 million from the 1.74 million employees covered as at March 2024, a 61 percent rise in just over a year.
The average annualised wage increase (AAWI) for approved agreements in the June 2025 quarter was 4.2 percent, up from 3.8 percent in March 2024.
For current agreements (i.e. not expired or terminated), the AAWI was 3.8 percent.
That’s an additional one million Australians now covered by enterprise agreements in just 12 months, the equivalent of adding more than the population of Adelaide to the bargaining system.
“Clearly, the Government’s reforms are having the intended effect, expanding coverage and driving wage growth,” says Queenan. “Employers need to be ready for this shift, not reacting to it.”
The Risk of Waiting Too Long
Many organisations still feel uneasy about bargaining, especially given the complexity of new legislation and the growing influence of multi-enterprise agreements. But delaying preparation can be costly.
“If you haven’t started thinking about bargaining before representatives come knocking, you’re already behind,” Queenan warns. “Poorly-managed processes lead to disengagement, disruption, and sometimes outcomes that don’t align with your business strategy.”
At Humanify HR, we’ve seen first-hand how proactive, well-planned bargaining can strengthen engagement, improve trust, and deliver mutually beneficial results. You can explore some of our case studies of organisations we’ve worked as a trusted partner with to manage the enterprise bargaining process from start to finish here.
Turning Bargaining into a Strategic Opportunity
Enterprise bargaining doesn’t have to be just a compliance exercise; it can be a powerful way to build connection and trust with employees.
“Taking a strategic approach means looking at how bargaining intersects with your business and people strategy,” says Queenan. “If engagement is a priority, this process can actually help you strengthen it.”
Our Enterprise Bargaining Representative Workshops are designed to help HR teams, executives and negotiators navigate this process with confidence, from strategy and stakeholder management through to communication and compliance.
Leadership at the Table Matters
Too often, organisations underestimate the importance of who leads negotiations.
“We still see employers sending in junior HR people to manage a process that requires leadership, influence and political nous,” says Queenan.
The most successful outcomes occur when the lead negotiator is a senior, respected leader, someone who can read the room, manage tension and uphold the organisation’s values throughout.
At Humanify HR, we provide coaching and advisory support to prepare senior leaders to take on this critical role effectively.
Clarity and Conduct: Setting the Tone Early
From the outset, employers should be clear about what they want to achieve, the behaviours they expect at the table, and the principles guiding negotiations.
“Explaining the ‘why’ behind your position is key,” says Queenan. “If people understand your constraints, whether they’re financial or operational, they’re far more likely to buy in.”
More information
Enterprise bargaining doesn’t have to be complex, conflict-ridden or reactive. With the right preparation, it can become a constructive tool for alignment and engagement.
If your organisation is preparing for an upcoming round of bargaining, or wants to upskill HR and leadership teams, Humanify HR offers a suite of resources to support you:
Tailored Bargaining Strategy Sessions
End-to-end management of Enterprise Bargaining
Contact us at hello@humanifyhr.com.au to see how we can help. To be the first to know about our useful workplace relations, leadership and culture insights and complementary HR resources, you can subscribe to our mailing list here.