In its draft report on Tuesday the Australian Productivity Commission recommended increasing the maximum term of enterprise bargaining agreements (EBAs) from four years to five years.
The Commission said greenfield agreements should cover the duration of the construction of a particular project, adding any agreement running for less than the expected duration of the project exposed business to substantial risks.
“Delays in negotiating a greenfields agreement can lead to underutilised capital and may cause the contractor to incur a penalty for delay in the delivery of the project,” the draft report stated.
“This
