Chapter 6 Flashcards
Employee relations
refers to the interaction that between an employer) and the employee (and their representatives) in regard to the establishment of conditions of employment.
An employer, for legal purposes:
exercises control over employees
has responsibility for payment of wages
holds the power to dismiss employees
An employee is a
worker under an employer’s control. Control may involve:
the location of the workplace
the way in which the work is performed
the degree of supervision involved.
Industrial relations refers
to the resolution of conflict between employees and employers.
Employee Relations is an approach
that incorporates all the issues in the employer-employee relationship in the workplace, including recruitment, equal opportunity, training and development and organisational structure.
A log of claims is a
list of demands made by workers (often through their union) against their employers. These demands cover specific wages and conditions. Employers may also serve a counter-log of claims on the union.
Fair Work Australia’s role is to:
provide information, advice and assistance on workplace issues.
resolve industrial disputes between an employer and employees when no agreement can be reached.
Approve agreements between employers and employees.
An Award is a
legally binding agreement that sets out minimum wages and conditions for a group of employees.
Collective Bargaining involves
determining the terms and conditions of employment through direct negotiation between unions and employers.
Wage Indexation is a process
whereby wage increases are given by a tribunal in national wake cases, in line with increases in the cost of living (prices).
Enterprise Bargaining is the process
of directly negotiating wages and employment conditions between employers and employees at the enterprise level.
A centralised approach is where the
government and their tribunals set the wages and working conditions for an entire industry. They were formalised in using awards.
A decentralised approach
is where agreements are negotiated directly between employer and employees at workplace level. These negotiations were conducted using enterprise bargaining, which is where the employer and employees are able to negotiate their wages and conditions.
A collective/enterprise agreement is a
Legally enforceable agreement about terms and conditions of employment between an employer and a group of employees or between an employer and one or more unions.
Collective agreements must include:
A nominal expiry date
Procedures for settling any disputes that might arise in the implementation of the agreement
Terms that allow for individual flexibility
Provisions for consultation with employees on major workplace change
Individual contracts of employment are made
Under common law between the employer and employee, and are therefore enforceable through the courts.
In a decentralised employee relations environment,Human Resource Managers are required to:
Negotiate
Train
Implement
Dealing
Benefits of Effective Employee Relations:
- Superior overall organisational performance (sales,market share, customer satisfaction etc)
- Success in international studies
- Fewer industrial disputes
- High productivity
Conflict refers to
Disputes, disagreements or dissatisfaction between individuals and/or groups.
The Australian Bureau of Statistics defines an industrial dispute as a
Withdrawal from work by a group of employees, or refusal by a employer or number of employers to permit some or all of their members to work.
Common forms of industrial action include:
Strike Lockout Picketing lines Work bans Work-to-rule Absenteeism, vandalism and sabotage
A strike occurs
when employees withdraw their labour for a period of time in pursuit of improvements in their employment conditions
A lockout occurs
When employers close the workplace for a period of time as a means of applying pressure to employees during a period of industrial conflict.
Picketing lines are protests
That take place outside the workplace, generally associated with a strike. Unionists stop the delivery of goods and try to stop the entry of non-union labour into the workplace.
Work bans is a
Refusal to work overtime, handle a product, piece of equipment, process or even a refusal to work with particular individuals.
Work-to-rule, in this action
employees refuse to perform any duties that are additional to the work they normally are required to perform.
Absenteeism, vandalism and sabotage,
These concealed (convert), unofficial expressions of conflict may be vine more costly to organisations than open (overt) official industrial disputes.
Protected Industrial Action refers to
action taken by either party to a dispute that has been approved by Fair Work Australia.
Unprotected Civil Action refers to
action that has not been approved by the Fair Work Commission.
This action is considered to be unlawful and images can be sought.
Negotiation is a method of resolving disputes
whereby discussions between the parties result in a compromise and a formal or informal agreement about a dispute. There is no 3rd party involved and two-way communication is paramount.
Grievance Procedures are a
formalised set of steps whereby the employee and the employer can resolve matters relating to complaints about wages, hours, working conditions or disciplinary action.
Employer associations are
Organisations that represent and assist employer groups.
Trade unions are
Organisation formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their members. For example the CEPU.
National Employment Standards are
10 minimum standards that cover essential conditions of employment. They include maximum weekly hours of regular work, long service leave and public holidays.
Fair Work Ombudsman’s role is to
Educate employees and employers and promote legislative compliance. It investigates workplace complaints and enforces compliance with Australia’s workplace laws. It appoints Fair Work Inspectors, whose role is to ensure that employers comply with federal workplace laws including the NES.
Advantages of a Centralized Approach
- Enhanced Stability & Flexibility as one set of rules and procedures are applied to all industries and organizations.
- Governments have greater control over wage outcomes through policies such as wage indexation, and can better manage the economy.
- Workers lacking bargaining power, such as the unskilled or migrants, are better off.
- Industrial disputes within individual businesses can be reduced because awards cover an entire industry.
Disadvantages of a Centralized Approach
- System is inflexible as it does not consider an individual’s business size or capacity to pay.
- Doesn’t provide enough opportunities for individual businesses to provide improvements in employment conditions in return for productivity gains.
- There is less incentive for a participative approach to management, because decisions on wages and conditions are not made within the organisation
Advantages of a Decentralised Approach
- More flexibility for organisations, as they can take into consideration the characteristics of an individuals of each workplace.
- Productivity improvements by the employees can be rewarded with higher pay and better working conditions as wages can be tied to productivity.
- Enhanced communication between the employer and employees, as employees have more of a say in determine wages and conditions (negotiation).
Disadvantages of a Decentralised Approach
- Greater equality of wages of between skilled and unskilled workers, as unskilled workers have less bargaining powers.
- Government has less control over wages and therefore has less control over the economy.
- Greater inequities in pay between management and workers.
Similarities of a Centralised and Decentralised Approach
- Both systems make use of awards, which are legally binding agreements that sets out wages and conditions.
- Unions play a vital role in both systems.
Differences between a Centralised and Decentralised Approach
- In a centralised approach, awards are used as the primary form of wages and conditions. In a decentralised approach, the awards are essentially a safety net, acting as a minimum standard.
- In a centralised approach, unions were the cause of change in working conditions of wages. In a decentralised approach, unions are key players in enterprise bargaining, however, their power has diminished to a degree due to contracts now being made on a enterprise level.
Similarities of Industry Wide Awards and Collective Agreements
- Both must abide by the National Employment Standards (NES); which provides minimum working conditions for all employees.
- Industry-wide awards and collective agreements set out the minimum wages and conditions for groups of people.
Differences between Industry Wide Awards and Collective Agreements
- Industry-wide awards set out the wages and working conditions for an industry as a whole, while collective agreements set out the wages and working conditions for a particular workplace.
- Collective agreements involve direct negotiations that occur between employees and employers at an enterprising level, however, industry-wide awards arise from submissions made by employers, unions and other peak bodies and are made by Fair Work Australia, which results in a legally binding agreement that covers the whole of the respective industry.
Similarities of Industry Wide Awards and Individual Contracts
- Both set out the minimum wages and conditions
- Both must abide by the NES; which provides minimum working conditions for all employees.
Differences between Industry Wide Awards and Individual Contracts
- Individual contracts set out the minimum wages and conditions for a single individual, Industry-wide awards set out minimum wages and conditions for a group of people.
- Individual contracts involve direct negotiations that occur between an individual and their workplace when they agree to an individual contract, however, industry-wide awards arise from submissions made by employers, unions and other peak bodies and are made by Fair Work Australia, which results in a legally binding agreement that covers the whole of the respective industry.
Differences between Collective Agreements and Individual Contracts
Individual contracts set out the minimum wages and conditions for a single individual, Industry-wide awards set out minimum wages and conditions for a group of people.
Similarities of Collective Agreements and Individual Contracts
- A collective agreement determines the terms and conditions of employment through direct negotiation between unions and/or a collective group of employees with employers relying to a particular workplace or industry. This is similar to the direct negotiations that occur between an individual and their workplace when they agree to an individual contract.
- Both must abide by the NES; which provides minimum working conditions for all employees.
Communication skills
the ability to transform information effectively from a sender (such as Telstra management) to a receiver (unions). The HR manager at Telstra needs highly developed communication skills to effectively clarify issues between the parties and resolve issues peacefully.
Problem-Solving Skills
This involves finding and then implementing a course of action to correct an unworkable situation. The unions and Telstra have an unworkable situation, which has led to stonework action being taken by the unions. The HR manager at Telstra will need to use PS skills to facilitate a resolution to the dispute and reach an agreement.
