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Life Of Project Agreements

Instead, the government hopes that agreements covering the entire duration of the project will be seen as part of the discussions, although it deprives workers of bargaining power when economic conditions improve. The threat of trade union action, which can lead to significant delays and increased project costs, gives workers and their representatives considerable leverage to change working conditions and increase wage rates. This power imbalance and considerable uncertainty are seen by many as a deterrent to investing in Australian projects. Investors need only look at Chevron`s Gorgon project in Western Australia to see how the expiring Greenfields agreements can put an end to a project. Discussion paper 2 appears to argue that the denial of fundamental tariffs is justified by the assertion that this is necessary to guarantee investment in major infrastructure projects. Such a justification does not exist and there is no evidence of a significant investment risk caused by the uncertainty of the cost of labour… “… Whether it is an absolute maturity agreement, whether there is a cap or whether or not there are some exceptions to the deadline, that is what we want to talk about. The Greenfields agreements are enterprise agreements negotiated between employers and unions with respect to new projects prior to the inclusion of workers necessary for the normal company`s behaviour.

This creates security in terms of labour costs and industrial regulation for relevant stakeholders, particularly investors. However, this industrial security only applies if the green field agreement is valid for up to four years. Subsequently, workers and trade unions are free to negotiate new conditions and can take anti-work measures in support of their demands. In a speech to the Bundestag, Porter said that one of the issues being considered by the government regarding the mining sector was the issue of the Greenfields agreements. “The latest wave of significant investments in energy resources and projects has been extremely beneficial to the nation, causing hundreds of thousands of jobs, huge economic profits and higher wages and living standards across the country.” The possibility of an enterprise agreement covering the duration of the construction of major projects would provide critical investment security that would support the future development of multi-billion euro mega-projects,” knott said. “AMMA has long advocated for `project life` agreements from the beginning,” says Knott. The national opportunity costs of the current system, which allows the use of projects often worth tens of billions of dollars for industrialists in the middle of the project, have been considerable. Late last year, the federal government announced its intention to introduce project life agreements as part of legislative reform.