5.35 The creation of common employment conditions, which provide conditions of predictability and stability in labour relations, is an essential element in achieving efficiency gains in the construction industry. This is important to reduce the risks associated with the industrial industry and to give investors confidence. Industry stakeholders are pleased that this is either through standard agreements, project agreements or through a procurement system. The Queensland Council of Unions says project agreements are needed for the industry because they provide stable employment conditions for new projects. This is supported by employers` and trade union organisations.  The CEPU argues that standard negotiations are not a harm to be eradicated by law, as many employers do prefer standard negotiations because they create a level playing field and discourage employers who underestimate each other.  Confirmation of these views comes from the Queensland MBA: 5.30 Several witnesses provided evidence that standard negotiations in national and international labour relations are legitimate in the union and non-union context.  5.53 It can be argued that, although the standard negotiations provide for common wages and conditions, resulting in clearly defined costs for industry, the agreements provide, under the agreements, flexibility for working time and other conditions that must be set by different employers and workers in order to achieve a substantial increase in productivity. This could include skills development, customer orientation and innovative human resource management practices.  In labour relations, the negotiation process is the process in which a collective agreement is used by unions or employers` organizations to demand similar conditions and rights in another bargaining process.
As such, standard negotiations can be seen as an implicit coordination mechanism in collective bargaining and wage setting. Typical negotiations can take place at the company or industry level. 5.31 The ability of employers and workers` organizations to define common wages and conditions for workers engaged in similar activities and offering lower transaction costs than members is both legitimate and necessary for the sector. The industry has established democratic and representative processes, both within employer representatives and workers` representatives, that reflect the political views of its members. Both groups are therefore able to legally represent these interests on behalf of their members as part of the industrial agreement-making process.  Typical negotiations are a process in labour relations in which a union receives a new and higher right from an employer and then uses that agreement as a precedent to require other employers to have the same or higher right. The main means of imposing a ban on this illegitimate application of standard negotiations is an injunction. This mechanism would be unduly costly for a small business, both financially and in terms of the power of constraint that could therefore be directed at the small business concerned.