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BSBWRK510AMANAGE EMPLOYEE RELATIONSPRESENTATION 1

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PRESENTATION OBJECTIVES

At the end of this presentation you will be able to work with:

• Workplace relations

• Strategic and operational plans

• Cost benefit analysis

• Risk management

• Legislation

• Awards

• Agreements

• Contracts of employment

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EMPLOYEE/ WORKPLACE RELATIONS

• The employment relationship describes the operation between

employers and employees within the legal environment and

encompasses employee motivation and satisfaction

• Workplace Relations (WR) focuses on relationships between

management and workers, especially those workers represented

by a union

• It is concerned with

• workplace conflict, managing grievances and disputes,

industrial awards, work conditions, and job regulation.

• The aim of WR is to create a safe work environment of trust,

cooperation and respect in which employees feel that they are

treated fairly

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WORKPLACE RELATIONS AREAS

Agreement makingWorkplace Relations audits

Terminations/ redundancies

Health and safety

Including

Contingency planning

Duty of care obligations

Worker’s compensation

Rehabilitation and return to work schemes

Industrial awardsWorkplace Relations prosecutions

Equal Employment Opportunity (EEO)

Enterprise agreementsPerformance management

Sexual harassment, discrimination and workplace bullying

Workplace Relations claims

Disciplinary issues Training and development

Preparation of employment contracts

Grievance and dispute resolution

People management

Pay/remuneration issues

Managing workplace/ employee conflicts

Working with unions

Workplace Relations professionals might be involved in such areas as:

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MAJOR STAKEHOLDERS IN WR

•Groups of employees with similar interests. •A pressure group able to influence business activityTrade unions

•Also called federations/ trade associations. •Made up of businesses and employers who all pay annual fees for benefits. Advantages include:•Negotiate with trade unions on behalf of members•Advice on laws employment, health and safety, taxation. Strength in numbers, can influence government decisions

•Share ideas and research facilities. Bulk buying for members discounts

Employer Associations

•Framework for WR set by government through legislation and regulation•e.g. Employment law deals with minimum wages and wrongful dismissal•Responsible for national workplace relations system; to promote safe, flexible and productive workplaces; maintenance of clear and enforceable minimum national employment standards

Government

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RELATED AGENCIES

• Comcare

• Fair Work Commission

• Fair Work Ombudsman

• Fair Work Building and Construction

• Office of the Federal Safety Commissioner

• Seafarers Safety, Rehabilitation and Compensation Authority

• Safe Work Australia

• The Safety, Rehabilitation and Compensation Commission

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ORGANISATIONAL PLANS

•Organisation’s goals over specific time, usually 3-5 years, long-term plans •Future targets; identify resources needed to achieve objectives•Identify skills to achieve goals-good employees need to be attracted, maintained and managed effectively•Analysis of external factors -economy, industry trends competitors •Organisation’s value and principles•Moves the organisation towards goal achievement

Strategic Plans

•Strategic plans broken into operational plans – shorter time frames usually a year•More detailed than strategic plans•Outline exactly what each work unit needs to achieve in any given year. •They set out:

•targets•budget allocations of finance to resource target achievement•specific strategies that each area of the business will use to achieve these targets.

Operational Plans

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WORKPLACE RELATIONS OBJECTIVESRelevant Workplace Relations objectives vary depending organisation goals. There are some though that are

common to many organisations, including objectives that aim to work within these general areas:

Industrial issues

• Avoid industrial conflict, develop harmonious relations: eliminate/minimise industrial actions (e.g. strikes) by

reasonable wages and good working conditions

• Establish consultative systems such as work councils or committees to deal with important industrial issues

• Ensure compliance with industrial awards and collective or enterprise agreements

Unions

• Provide employees and unions with information about strategic, operational and business plans

• Give employees and unions information about the organisation’s performance

• Establish constructive relationships with unions

Employee relations

• Develop and implement procedures that enable the early detection of grievances, conflicts and disputes,

resolve disputes quickly and efficiently

• Raise productivity by increasing employee retention and reducing absenteeism, promote open and effective

communication between employees at all levels

• Make labour costs predictable and keep them under control, introduce performance based rewards

• Provide a work environment that is conducive to keeping employees content and achieving operational goals

• Introduce ongoing workplace reform, secure and maintain employee commitment to workplace reform

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LONG TERM EMPLOYEE RELATIONS OBJECTIVESOrganisations will analyse their strategic plans and operational plans and

determine appropriate long-term employee relations objectives. Some

examples are:

• Employee satisfaction

• Employee training and development

• Known as an employer of choice

• Leader with employee welfare and health programs

• Organisational Succession planning

• Employee remuneration and benefits

• Employee engagement and retention

It is important to analyse existing employee relations performance and

programs to ensure they are meeting with workplace objectives.

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WORKPLACE RELATIONSPERFORMANCE GAPS

Performance gaps can take many forms, including:

• Productivity levels that fall below targets

• Lost time due to disputes

• Work bans

• Go slow actions

• Conflict that is disruptive

• High employee turnover rates

• Costs that exceed budgets

• Health and safety incidents

• High employee absenteeism

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Why do performance gaps occur?

A lack of commitment to Workplace Relations objectives

A lack of understanding about Workplace Relations objectives

A lack of resources for implementation and management of WR strategies

Inadequate training for employees and managers involved in implementation of WR strategies

Failure to consult all stakeholders when designing and implementing WR strategies

Union resistance to changes in work practices / conditions

Initial commitment to WR strategies weakening over time

Abandonment of WR strategies and objectives at the first challenge or crisis

Cynicism about WR strategies and objectives

Failure to communicate WR strategies and objectives to workers

Failure to collect, consider and act on feedback about WR initiatives and performance

Failure to integrate WR strategies with work practices, business objectives and other human resource strategies

Attempts to introduce one-off “magic bullets”

Failure to identify most needed changes or implementing unnecessary changes

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Workplace Relations objectives are likely to be met when:

Managers and employees work together to achieve goals

Employees are committed to the achievement of goals and objectives

Employees at all levels are given a chance to contribute to decision-making process

The views and opinions of employees are actively sought and taken seriously

Employee feedback is formally obtained and taken into account

Employees understand the organisation’s business strategy and objectives

Employees understand how their work contributes to achieving goals

Employees agree with an organisation’s values

Employees given all relevant information- organisation operates as an “open book”

Information is communicated effectively

Grievances, disputes and conflicts are identified and dealt with promptly

Grievance procedures emphasise conciliation

All policies are implemented in a fair and just manner

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TARGETS TO MEASURE WRSet targets to analyse WR performance they:

• Should be measurable - pre-defined measurements ensure that performance

standards are objective

• Based on objective, quantitative measures: dollars, numbers, percentages,

budget, costs

• Relate to specific periods of time (e.g. annually, quarterly, or weekly

• Have achievable end dates

• Not too many, can create loss of focus on main WR objectives

• Clear and communicated to all employees –to ensure understanding and

contribution

• Written in plain English without ambiguities

• Written targets reminders us and help with understanding and commitment

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TARGETS - AN EXAMPLE

Measurable

Achieve zero injuries

Achieve average of 4days sick leave or less per employee/year

Achieve employee turnover rates of 3% or less/year

Achieve zero strikes

Ensure labour costs don't exceed budgets each financial year

Ensure all employees complete 15 training hours this year

Ensure at least 2employees or union reps on board of management

Not Measurable

Work in a safe manner

Reduce absenteeism rates

Limit employee turnover rates

Limit industrial actions

Ensure labour costs are low

Ensure all employees actively particpipate in training

Include employees and union representatives in management processes

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EVALUATE OPTIONS

Which WR initiatives should be introduced? It is important to work

with the management team to develop the most effective industrial

relations policies and procedures.

How to determine which services are most needed and relevant?

• Evaluate each option in terms of:

• Cost benefit

• Risk analysis

• Current legislative requirements

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COST BENEFITHow cost-effective will a service be financially, and determine success of particular service options

• Involves identifying and adding up positive factors/benefits and subtracting negative factors/costs for a

net result

• The difference between the two reveals whether or not the option is advisable

• Accurate analysis relies upon correctly identifying, quantifying and including all benefits and costs

Example An organisation considers introducing work-life balance policies, such as working from home. They

need to can carry out a cost benefit analysis to determine whether benefits of such policies would

outweigh the costs. They need to identify costs associated with the initiative - purchase of

computers to be installed in employees” homes or technology for video or web conferences so that

employees who work from home can participate in meetings.

Organisations need to offset costs against savings in:

• increased productivity of employees, reduced absenteeism/ sick leave and reduced worker turnover

Calculate savings associated with reduced turnover such as:

• advertising, selection and recruitment costs associated with the need to replace employees who resign;

induction and training costs of new employees

To do this, organisations need to use calculation tools/software to determine whether benefits outweigh the

costs

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RISK ANALYSIS • To identify and analyse risks and manage their consequences, allows for early

identification of Workplace Relations issues

• Types of risk analysis:

• Should a Workplace Relations expert deliver services? They might not fully

understand department needs and irrelevant services may be implemented

• Line managers delivering the service might include lack of knowledge about

relevant legislation leading to non-compliance with legislative obligations

• Avoidance of risk is a critical part of a WR professionals role

• Succession planning, recruitment strategies, worker selection, remuneration,

coaching and development, performance management, inductions,

harassment policies, health and safety and other HR services minimise

potential areas of risk - employee turnover, low morale, potential litigation,

workplace accidents and an inappropriately or unskilled workforce.

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RISK ANALYSIS Having appropriate WR services is an imperative part of an organisation’s risk

management strategy. Determine the level of risk by assessing the relationship

between:

• likelihood (frequency or probability)

• impact (or size of the effect) if the risk occurs

Screen all identified risks and exclude the extremely low impact risks from

further analysis.

• For the remaining risks, identify factors that may affect the impact and

likelihood of the risk occurring, consider:

• The value or attractiveness to potential attack

• Processes/stakeholders that depend on the deliverable and that you

depend on

• How easy the vulnerabilities are to exploit

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RISK ANALYSIS

• Risks are usually minor, moderate or major

Minor risks Unlikely to occur or risks have little impact

Accept or ignore these risks

Moderate risksEither likely to occur or likely to have high impacts, but not both

Eliminate or minimise these risks is preferable

Major risks Have a high likelihood of arising and a high impact

These risks require close attention and a Workplace Relations risk action plan

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RISK MANAGEMENT PROCESS

Identify Risk

Analysis & Assess

Risk

Eliminate & Control

Risk

Monitor & Review

Risk

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LEGISLATIVE REQUIREMENTS• Current legislation - The Fair Work Act 2009

• Outlines expectations to work conditions for employers and employees

• An objective of industrial relations legislation - ensure a guaranteed

safety net of fair, relevant and enforceable minimum terms and

conditions through the National Employment Standards, modern

awards and national minimum wage orders

• Industrial relations legislation sets out the Workplace Relations

framework by detailing enterprise agreements and covering the

mediation of dispute settlement, unfair dismissals and terms and

conditions provided under awards

• Workplace Relations tribunals, Fair Work Commission, provide a

mechanism for mediating disputes and has some power to make

rulings on disputes and order unlawful industrial action to stop

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OTHER LEGAL REQUIREMENTS

When managing employee relations you will need to give

consideration to relevant legislations, standards and codes of

practice. These will include:

• Workplace Health and Safety Act 2011

• Fair Work Act 2009

• Anti-discrimination Act

• Equal Opportunity Employment Act

• Industry standards and best practices

Research the relevant legislations, standards and code of practice on

the internet.

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AWARDS

• A legal document setting out minimum wages and conditions for

an industry or occupation

• Award conditions apply on top of minimum conditions in the

National Employment Standards

• An important part of Workplace Relations system

• Many Workplace Relations issues affecting employment

relationships are covered in industrial awards

• Majority of awards are created for particular occupations, not

industries or organisations and are legally enforceable

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AWARDSModern awards cover key terms + conditions of employment. They can include: Minimum rates of pay and allowances Skill-based classifications and career structures

Incentive-based payments, piece rates and bonuses Employment type: full-time, casual, regular part-time and shift work

Flexible working arrangements, particularly for employees with family responsibilities

Hours of work Rostering

Notice periods

Rest breaks Variations to working hours

Overtime rates

Penalty rates Annualised wage arrangements which have regard to patterns of work

Allowances Leave

Leave loading

Superannuation Consultation procedures

Redundancy arrangements

Dispute resolution procedures

Workers covered by industrial relations legislation are covered by modern awards. These awards commenced 1 Jan 2010 -122 awards replace thousands of old ones.Modern awards were created to establish one set of minimum conditions for employers and employees across Australia who work in the same industries or occupations

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AGREEMENTSWorkplace Agreements

• In the past, employees and employers could enter into Australian Workplace Agreements which

outlined terms and conditions of employment These agreements are now outlawed. Existing AWA’s

will run until expiry. No new AWA’s can be developed

Enterprise Agreements

• Outline terms and conditions of employment and are developed in consultation with unions. They

override the terms and conditions in a relevant award, to the extent that they are covered by the

agreement

• Might include matters relating to: Rates of pay, Conditions of employment, Methods of

consultation, Dispute resolution procedures

• Can be made between one or more employers and their employees

• Single-enterprise agreement - cover a single employer or more than one employer cooperating in

what is essentially a single enterprise. E.g. where two employers are working together to develop a

new retail centre

• Multi-enterprise agreement - cover two or more employers who are not single interest employers.

E.g. could cover the employment relationship between employers and employees within a

particular occupational group

• For more information refer to the EBook

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CONTRACTS OF EMPLOYMENTA contract of employment is an agreement between an employer and employee on terms and conditions

of employment that are not covered by an award or enterprise agreement.

• Employment contracts are legal contracts that generally include provisions relating to:

The employee’s duties and responsibilities

Codes of conduct that employees must comply with

Organisational policies that employees must observe

The grounds upon which an employer can terminate without notice

The period of notice an employee must be given when employment is terminated with notice

How and when an employee’s performance will be appraised or reviewed

How the employee will be remunerated for their work

• They can be verbal and an offer and acceptance of employment or lengthy documents covering all

terms and conditions of employment

• Contracts under common law carry same entitlements for leave, superannuation and work

conditions as employees covered by an award. Minimum conditions of employment apply

• Common law contracts are legal and enforceable employees have the same right to grievance

and/or termination resolution as if employed under an award

• A contract of employment ends when an employee resigns, is dismissed or the contract expires

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PRESENTATION SUMMARY

Now that you have completed this presentation you should be able to

understand and work with:

• Workplace relations

• Strategic and operational plans

• Cost benefit

• Risk management

• Legislation

• Awards

• Agreements

• Contracts of employment