The encouragement of bargaining in good faith – A behavioural approach

Abstract

The Fair Work Act, 2009 has provisions that require the parties to bargain in good faith. ‘Good faith’ is difficult to codify, and analysis of whether those who bargain comply with the provisions is typically conducted using a legal perspective. This article adopts a behavioural perspective by conducting negotiation simulations and shows that priming negotiators with good faith requirements has a positive impact on the way they negotiated. The article contributes to understanding the efficacy of the good faith bargaining provision in fostering productive enterprise bargaining outcomes. Thus, the article will be of interest to policy makers and practitioners including those in the Australian Government’s Fair Work Commission, as well as those interested in workplace bargaining.