Influences Flashcards
Stake holders
Unions
U GEESE
Organisations formed by employees in industry to represent them and improve wages and working conditions
- Teachers federation
- Transport workers federation
- Finance sector union
- Australian workers union
Features
- Represent employees in industrial tribunals and courts
- Lobby for better pay and working conditions
- Negotiation of Employment Contracts
- Provide advice
Union membership is declining (Majority now working tertiary sector)
Stakeholders
Unions CASESTUDY
U GEESE
Employees at multiple Apple stores across the U.S. have taken steps to form unions and bargain for higher pay and better benefits.
- Retail workers at an Apple Store in Atlanta on Wednesday became the first group of employees at the technology giant to officially file a petition with the National Labor Relations Board to hold a union election.
- At least 70% of the store’s 107 employees have signed union authorization cards, according to Communications Workers of America, which would represent the workers should they vote to unionize
- Despite discussion of an Apple Employee Union in the US, the relatively minor industrial action against Apple highlights Apple’s overall effectiveness as an employer.
• Apple’s 4,100 Australian and 154,000 global employees are subject to confidentiality clauses alongside other stipulations outlined in Apple’s enterprise agreement
- Apple’s staff in the US currently do not have a union to represent their interest, there has been some discussion regarding the creation of a union in the US retails stores but with limited success (employees are loyal to Apple – indicating Apple is a good employer)
Stakeholders
Government - LEGJI
U GEESE
Government departments, both federal & state levels. Which oversee the legislation directly to employment relations.
- Balance rights and responsibilities of employers and employees.
- Provide legislation, policies and then to enforce compliance
Legislation: Fair Work Act 2009, WHS Act 2011 (NSW), workers compensation insurance, anti-discrimination and equal employment opportunity legislation, unfair dismissal laws
Economic policies: Economic policies implemented by government affect levels of economic growth, demand for labour, inflation and wage growth
Government agencies: Implement and enforce legislation
Judicial system (Courts): Involving industrial action, breaches of industrial relations law and disputes regarding common law employment contracts
Industrial tribunals: Resolve disputes between employees/trade unions and employers/employer associations regarding employment issues - E.g discrimination, unfair dismissal.
Stakeholders
Government LEGJI - CASESTUDY
U GEESE
- H&M
In 2017, the FairWork Commission rejected a new enterprise agreement proposed by Swedish retailer H&M for failing the BOOT test, particularly for weekend and part time staff
Stake holders
Employer Associations
U GEESE
Organisations that respresent the interest of employers
Act on behalf of employers in collective bargaining sessions & before industrial tribunals, Courts and Commitees
- Provide advice regarding awards, unfair dismissal, discrimination and legal advice
- Make submissions to FWC regarding national minimum wage
- Represent employers in industrial tribunals and court
Examples.
- Australian Federation of Employers and Industries (AFEI)
- Australian Industry Group (AIG)
- Australian Chamber of Commerce and Industry (ACCI)
- Business council of australia
Stake holders
Employer Associations CASESTUDY
U GEESE
Apple, being in a strong financial position, is able to pay its employees above the minimum wage and minimum award rates existing in its industry.
- As a result of this, a positive reputation as an employer is percieved.
It’s minimal workplace conflict and extensive provision of non-monetary rewards add to this reputation
Apple is not represented by an employer association.
Stakeholders
Employers
U GEESE
Those who excerise control over the employees and are responsible for payment of wages/salaraies and have the power to dismiss employees
- Recent legislation today encourages them to negoatiate agreements and resolve disputes at the indiviudal workplace.
Obligations
- Resolve disputes
- Manage Employees
- Manage & implement legal regulations
- Negotiate employment agreements
- Influence labour costs and productivity
- Minimise costs and maximise profits
- Increase workforce flexibility
Wants
- Flexibility with HR
- Keep wages low – reduce costs
- Choose when employees work
- Right to hire and dismiss employees
- Increase productivity of workers
Stakeholders
Employers CASESTUDY
U GEESE
Apple is one of the most profitable companies in the world and can afford to pay its’ employees above award
- Apple is known as a good employer, offering above award wages, benefits and good working conditions and thus has a high employee satisfaction
- Apple has minimal workplace conflict- working in teams or individuals to resolve issues
Stakeholders
Society
U GEESE
Environment and social outlook in which a business operates.
- Decisions made by businesses affects society.
- Society has a number of expectations regarding employment conditions.
HOW
- Impacts of recent strikes (Teachers, rail workers, pilots, paramedics) Thus, interruptions to services and production of goods
- Businesses need to consider the views of society in relation to discrimination, equal employment opportunities, harassment, unfair working conditions and diversity
Stake holders
Employees
U GEESE
Employees provide labour in exchange for Wages/Salaries and are under the direct control of the employer
To gain wages, salaries and employment.
Obligations
- Complete work in a timely manner
- Use care, responsibility and skill in he performance of the job
- Facilitate in good customer relations and hold responsibility and accountability for money and property of the business.
Wants
- Want higher wages
- More non-monetary benefits
- Better working conditions
- Job-security, Involvement in decision-making
- Training and development
- Want increased workplace flexibility and work-life balance
Stake holders
Employees CASESTUDY
U GEESE
Apple employs more than 154,000 employees worldwide
- Australia has 4,100 employees
- Apple employees are subject to codes of conduct and confidentiality clauses
- They are paid to help drive the business growth through innovative practice
- Apple’s staff in the US do not have a union to represent their interest, there has been some discussion regarding the creation of a union in the US retail stores but with limited success (employees are loyal to Apple indicating Apple is a good employer)
legal – The current legal framework
The Employment Contract
A legally binding, formal agreement between Employer & Employee.
- Indefinate duration or fixed term duration.
- Hours of work
- Roles and responsibilities
- Remuneration
- Types of leave
- Grevieance procedures
Forms & features of Employment Contracts.
- Set up under the fair works act 2009 and administered by FW Ombudsmen.
- Can be individual or collective.
- All employment contracts must meet 11 national employement standarrds
Employment contracts
Common law
(Employer/ee - Rights/Obligs)
Used by employees and employers in particular types of work.
These Include #3
- Executives and managers in award-free sectors
- Employers with very few employees
- Sole traders, partnerships and state public services
- Employers & employees have certain obligations/duties to each other under common law
- These obligations or duties are regarded as legal standards of behaviour in the employment relationship
Employer Rights
Can dismiss employees if employees are not working with due care and following reasonable instruction
Employer Obligations
Provide a safe working environment and Provide payment of income, expenses as agreed in employment contract
Employee Rights
Paid for work completed, Receive minimum set out in Award and receive
a pay slip. Receive penalty rates and allowances if relevant, and Access to paid and unpaid leave entitlement.
Employee Obligations
Must look out for their employer’s interests and act in good faith. Obey all reasonable and lawful instructions and Use due care when working.
• Must inform employers when taking leave or leaving employment
• Maintain business confidentiality
The Employment Contracts
Minimum employment standards
NES a safety net to protect wages and minimum working conditions for employees
- Guraantees under legislation so that they cannot be changed
- Provide a greater safety net for employees more likley vulnerable and low paid employees
- The basis from which modern awards and entreprise agreements are constructed
- Maximum weekly hours of work
- Flexible working arrangements
- Offers/Requests to convert from casual to permanent employment
- parental leave and related entitlements
- Annual leave
- Personal leave
- Community service leave
- Long service leave
- Public holidays
- Notice of termination and redundancy pay
- Provision of a fair work infomation statement
The Employment Contracts
Minimum wage
An employee’s base rate of pay for the number of ordinary hours that they have worked and is generally determined by a modern award, enterprise agreement or the national minimum wage.
- Reviewed by a specialist Minimum Wage Panel of the FWC
- The National Minimum Wage applies to employees not covered by an award or registered agreement
- Employees and employers cannot agree on a pay rate that is less than the minimum wage.
Australia’s minimum wage in 2021 = $21.38 per hour.
The employment contracts
Awards
An award is a legally binding document that contains the minimum pay and conditions that apply at an industry level.
- Under FWC, the number of existing awards in Australia is being reduced as they become more simplified to reduce overall compliance costs; there are currently 122 awards in Australia.
- Fast Food Industry Award
- General Retail Industry Award
- Vehicle Repair, Services and Retail Award
The Employment contract
Entreprise Agreement
Collective agreements made at a workplace level between an employer and a group of employees about terms and conditions of employment
- Provide broader terms and conditions than modern awards
- Parties engage in ‘enterprise bargaining’
- Must be submitted to the FWC for consideration
Pass the ‘BOOT’ test, meaning employees are better off overall from the proposed enterprise agreement than the relevant award.
Three types of Enterprise agreements.
- Single-enterprise agreement - Between single employer and a group of employees.
- Multi-enterprise agreement - Between two or more employers and groups of their employees.
- Greenfield agreement - Between a trade union and a new employer that does not have any employees yet.
- If conducted successfully, results in greater employee involvement and empowerment.
- Greater flexibility by agreeing on conditions that suit both the employer and employee
- Businesses can determine the remuneration benefit sizes
HOWEVER
- More time consuming due to the need to conduct agreement meetings at the individual workplace level
- Administratively more onerous, especially as the agreement must comply with all existing laws regarding employee rights and entitlements.
Entreprise Agreements CASESTUDY
Apple has a single enterprise agreement (Apple Retail Enterprise Agreement 2014-2018)
- Covers approx. 2,500 employees
- In 2014, the application for the new enterprise agreement was made pursuant to s. 185 of the Fair Work Act 2009 - bargaining representative must apply for FWC approval
- Enterprise agreement exceeded NES, minimum wage rate and the General Retail Industry Award 2010
- Approx. 1,900 employees votes with 1,700 voting in favour of the agreement
- No union involvement in negotiation
- Expired in July 2018
- There is an ongoing renegotiation to renew their EA → is contributing to decreased productivity
- Apple’s EA pays as follows:
- Team Member Level 1 = $43,000 p.a.
- Team Member Level 2 = $52,000 p.a.
- Team Member Level 3 = $75,000 p.a.