1.43 For the purposes of this report, the Committee therefore assumes that the number of AAAs currently in force is uncertain, but that government procurement and collective agreements still set wages and conditions for the majority of workers. 1.38 In his argument, Professor Peetz argued that working hours were the dominant topic covered by AWA, and he relied on ACIRRT studies to argue that the ESAs tend to provide for longer annual working hours than other agreements. These „annualized hours“ can significantly penalize workers, since they are usually paid at normal working time and not at overtime rates.  This results in a devaluation of wages over time. This was the general experience in Western Australia under its former system of individual company agreements (AIIs). In the Western Australian government`s proposal, it was found that although many BAEs contained very open working hours under the guise of flexibility: „. an analysis of the heavy wage rates for these workers did not seem to compensate for the increasing openness and flexibility of working time arrangements.  1.10 After the coalition elections in March 1996, the government introduced the Workplace Relations and Other Legislation Amendment Act 1996, which renamed the Industrial Relations Act in 1988 and was substantially reformed. The changes focused on wage increases related to productivity in the workplace. The new name of the law reflected this as well as new provisions relating to the negotiation and certification of agreements. The Act also introduced a new form of agreement, Australian Workplace Agreements (AWA), which could be concluded between an employer and a single employee. The decision whether or not to enter into a company agreement depends on the impact of each reward on your company`s employment needs.
Since company agreements that have been formally filed replace bonuses, employers can change certain conditions of the bonus that do not meet the needs of their business, provided that employees are no less well off financially than the price. This can be especially useful for dairy farmers due to the non-standard working time of this work. 1.56 The paramount importance of employers` demands is the need to increase productivity. The error in this argument is that the cost of labor and hours worked are only two elements in the productivity equation. Chapter 3 argues that the filth of labor is much less effective in increasing productivity than better management, improved technology, and capital injection. The evidence we have shows that productivity is generally highest in companies where collective and non-individual agreements are the norm and where safety and therefore employee satisfaction are manifested in good work performance. 1.28 The Committee does not know how many ESAs are currently in operation. Data on ESAs and, more importantly, individual non-AWA agreements are best described as estimates. These are individual agreements and confidential documents of varying duration. .