VCE Business Management 3-4

Unit 4 AOS1

Chapter 14

Workplace Relations

Introduction

• Overseeing workplace relations is a key responsibility of the HR department

• HR specializes are in charge of overseeing and implementing workplace relations policy

• Australia has a system of state and federal governments to regulate the system of workplace relations

• Aim is to achieve optimum working relations between employees and management and create organizational productivity

• Australia has undergone significant change

What is Workplace Relations?

• Also called Employee Relations and Industrial Relations

• These terms are used to describe the total relationship and interplay between employees and employers in regards to all aspects of the working relationship either directly or via an intermediary such as a union

• Covers wages and conditions and often involves dispute resolution

Forms of Workplace Conflict

• Strikes

• Stop Work Meeting

• Work to rule

• Boycotts

• Picket Lines

• Passive Resistance e.g, absenteeism, sabotage

Causes of Industrial Dispute

• Generally employers and employees have different views on how profits are distributed

• Employers want to return funds to shareholders, reinvest in the business and become more efficient and productive

• Employees wanted greater flexibility, reward and conditions

Stakeholders in the Workplace Relations Process

• Employees

• Employers

• Shareholders

• Management

• Suppliers

• ACTU

• Union

• Families

• Customers

• Your thoughts:

Trade Union

• Trade Union is a group of employees usually from the same or similar industries who combine to protect their interests in all matters relating to their employment

• Workers unite for their own protection from employer exploitation

                         

    

History

• Unions had their beginnings in Australia in 19thC. Through mobilization and unification of employee unions they have achieved significant improvements in wages and workers conditions

• Conditions in 19c were appalling

• Now have Annual Leave, Pensions, Superannuation, limits to hours worked, safety, Dismissal Protection

Role of Trade Unions• Represent workers and negotiate on their behalf during

Enterprise Bargaining• Argue employees’ cases at Industrial Relations

Commission that determine awards• Provide support and advice to local officials and workers

in the workplace• Provide assistance and support to individual workers• Offer services to members such as credit unions, health

insurance• Provide information to workers on matter relevant to

workplace situation• Act as official spokesperson to the media on behalf of

workers

Union Bodies

• ACTU: Australian Council of Trade Unions• National Peak body of Australian union

movement. Formed in 1927. Represents the unions movement in dealings with government and in industrial relations commission hearings

• VTHC: Victoria Trades Hall Council• Victorian branch of ACTU. Each union elects

members to attend monthly meetings. Formed in 1859

Union Membership

• Had declined in recent years• Job growth has been in service industries and in

casual work. Traditionally these are low union areas

• 1990’s lots of amalgamation of unions (joining together). Unions from 295 to 130. Larger unions not as connected

• Move toward enterprise bargaining has lessened union role in some workplaces

Employers Associations

• Industry Associations

• Professional Associations

• Peak Bodies I.e. Chamber of Commerce• These bodies represent employers in Industrial

Relations Commission

• During collective bargaining

• Advise employers of rights and obligations

Role of the AIRC

• Please note that this Commission has now finished its duties and is being replaced with a new process under the proposed new IR reforms• Set federal awards determining legally binding wages

and conditions across and entire industry• To settle disputes through legally binding decisions• To hold national wage case hearings• To hear important test cases on issues such as leave and

holiday loadings• To ratify enterprise agreements

Australian Workplace Relations Pre 1991 (centralized)

• Main emphasis was on conflict resolution.• Fixing problems after they and occurred

through arbitration (adversarial legal) or conciliation

Australian Workplace Relations Post 1991

( starting to decentralize)

• Start of Enterprise Bargaining • Move by employers to develop a more

individualized system of negotiations with employees – sometimes referred to as enterprise bargaining

Australian Workplace Relations 1996 onwards

(Decentralized)

• Introduction of the “Australian Workplace Act” by the Liberal party when they took power after the 1996 Election• Amended to “The Workplace Relations

Amendment (WorkChoices) Act 2005” when Liberal also took control of the Senate, to take effect in 2006

Key TerminologyAwards

• These apply to workers within a particular industry, (eg retail, Hospitality)

• Awards are legally enforceable agreements that set out the minimum terms and condition relating to employment such as pay, annual leave etc (max. of 20 matters)

• Workers pay and conditions must not fall below these minimum standards

Key TerminologyCertified Agreements

• These are legally binding agreements between an employer and employees (or union)

• Certified agreements replace awards in the workplace where a agreement has been reached through enterprise bargaining

• Once agreed by the majority of employees, this needs to be approved (called “certified”) by AIRC

• Remain in force for set time (3 years now 5 years) then a new agreement needs to be negotiated

• Generally used in a range of occupational setting such as nursing and teaching

Key TerminologyAustralian Workplace Agreements (AWA)

• These are individual employment contracts between employees and employers

• Removal of No-Disadvantage Test and with it the safety net that ensued employees would receive at least the award.

• Unfair dismissal laws altered so that it does not effect employers with less than 100 employees

HRM and POLC• Planning involves ensuring the best type of agreement for

the workplace, achieved within the timeframe and deciding on the best approach for negotiation.

• Organizing entails meeting with management, employees and unions and any other stakeholders during negations

• Leading by working with other managers to keep employees informed of discussions and development during negotiations – may involve seeking outside help from experts

• Controlling by helping to evaluate the success of the agreement. May require development of KPI and discussions with employees to gauge how the new agreement is working