Whilst collective agreements may, on the other hand, benefit some workers by providing higher pay, bonuses, additional leave and enhanced entitlements (such as redundancy pay) than an award does[citation needed], they also may reduce employees' bargaining power against their employers, impacting their ability to successfully obtain such benefits.
)[2] Enterprise Bargaining Agreements were first introduced in Australia under the Prices and Incomes Accord in 1991 (Mark VII).
EAs had one unique feature in Australia: whilst negotiating a federal enterprise bargaining agreement, a group of employees or a trade union could, without legal penalties, undertake industrial action (including strikes) in pursuit of their claims .
A major legal question associated with enterprise agreements stemmed from the High Court of Australia's decision in the case of Electrolux v The Australian Workers' Union.
The Australian Industrial Relations Commission determined the matter in 2005 in the three certified agreements case.