Could Canadian-style interest arbitration work in Australia?

The collective bargaining framework in Australia's Fair Work Act 2009 provides only limited options for mandatory arbitration of collective bargaining disputes (also known as interest disputes). Experience in the first six years of the legislation's operation shows that these avenues for arbitration are rarely utilised, because the statutory tests to activate them are so difficult to meet. Eight federal and provincial Canadian labour law statutes contain provisions for first contract arbitration (FCA), enabling the relevant labour relations board to determine a first collective agreement. This article concludes that FCA in Canada works as a vehicle to promote collective bargaining; and therefore has considerable potential to address the failure of the Fair Work Act effectively to address employer "surface bargaining" tactics and long-running agreement disputes. A variation of British Columbia's extended mediation model of FCA is recommended as the most suitable for adaptation, with Australia's Fair Work Commission given discretion to assess whether bargaining disputes should move from conciliation to interest arbitration. This reform would assist in the attainment of the FW Act's stated objective to encourage collective bargaining, and give more workers access to above-award wages and employment conditions through collective agreements.