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.
OTHER EMPLOYMENT CONTRACTS
Individual Employment Contracts
Refers when an employer and an individual employee negotiate a contract covering pay and conditions.
- Common in private sector (Non-unionised)
These include:
- Executives and managers in award-free sectors
- Employers with very few employees
- Sole traders, partnerships and state public services
- Employers requiring various customised arrangements or employees for special projects.
OTHER EMPLOYMENT CONTRACTS
Independent Contractors
Often known as consultants or freelancers, undertake work for
others; However, they do not have the same legal status as an employee
- No leave entitlements, must pay own income tax, superannuation…
- Involves invoicing the client for the work undertaken
- Include a contract outlining the conditions of the contract e.g. duration, responsibilities, renumeration…
Work Health and Safety
Refers to the discipline concerned with protecting the health and safety of all stakeholders in the workplace from exposure to hazards and risks resulting from work activities.
Work Health Safety Act 2011
- Introduced due to Commonwealth concerns about the high levels of injury, accidents and diseases in the workplace.
Safe Work Australia
- Established to conduct research and develop national standards, codes of practice and common approaches to WHS legislation.
- Etablished in 2009 under the Safe Work Australia Act 2008.
- Primary responsibility is to improve WHS and workers’ compensation arrangements across Australia.
SafeWork NSW
- State WHS regulator (With the exception of mines and petroleum sites).
- Focuses on harm prevention and improving the safety culture in NSW workplaces
- Offers advice on improving WHS.
Work Health and Safety
DESCRIBE
Under the WHS Act 2011, businesses must provide employees with:
- Safe premises
- Safe machinery and substances (materials)
- Safe systems of work
- Information, instruction, training and supervision
- Suitable working environment and facilities
- All employees are protected by workers compensation insurance
HOW business respond to WHS?
- WHS Committee - appointed and meet regularly to address issues
- Training and Development - all staff trained periodically and aware of how to report/ respond to a WHS breach/ incident
- Personal Protective Equipment (PPE)
Work Health & Safety
Implications
- Prosecutions - Usually initiated by SafeWork NSW
- Corporations may be fined up to $3.46 million and individuals $347,000 and/or 5 years’ prison sentence for serious breaches, which is where the duty holder exposes a person to the risk of death or serious injury.
- Health and safety committees must be established at workplaces with more than 20 employees if requested by a majority of employees or if directed by SafeWork NSW
- SafeWork NSW inspectors may inspect the workplace, collect information, and issue improvement and prohibition notices under the Factories, Shops and Industries Act 1962 (NSW) - this may mean that work ceases
- SafeWork NSW must be notified of any deaths or serious injuries in the workplace, and any plans to carry out dangerous work.
Work Health & Safety CASESTUDY
Apple complies with the relevant WHS regulations in the countries that it operates in
- Provides training for all staff and for suppliers like Foxconn
- Staff must comply with WHS or risk termination (as per EA)
- However, it has been criticised for the poor record of its outsourcing partners e.g. Foxconn
- There have been reports of inadequate safety provisions - E.g. 137 workers were poisoned and hospitalised while cleaning iPhones (using a cleaning chemical that is banned in Australia)
- As part of its supplier code of conduct hazardous chemicals are now banned from use in its supply chain
Workers Compensation
Provides a range of benefits to an employee suffering from an injury or disease related to their work.
- It is also provided to families of injured employees.
- Administered by SafeWork NSW, SIRA and icare.
Statutory bodies responsible for:
- Achieving safe workplaces
- Liaising with employers, health care specialists and injured
- workers
- Effective return to work plans for injured employees
- Maintaining employer and employee rights
Workers compensation
EMPLOYERS must:
- Take out workers compensation insurance (premiums can increase if there are more claims, so a business should aim for high WH&S standards to minimise this cost)
- Keep time and wage records and register all injuries
- Notify insurers of injuries within 48 hours
- Establish an injury management plan and return-to-work plan for injured employees
EMPLOYEES must:
- Notify their employer as soon as possible of any injuries or work-related illnesses
Workers compensation
Implications
When a worker is injured at work, the employer, injured worker, insurer and treatment provider have responsibilities to ensure that the injured worker is provided with benefits and assistance to recover and return to safe, durable work
Compensation can be for:
- Weekly payments
- Medical expenses
- Loss of wages from time off work
- Payments for permanent injuries/impairments
- Intensive rehabilitation assistance
- Provision of legal assistance to pursue a claim
- Payments to family of an employee if they die due to injury
- Common law action can be taken if an employer or other employee has been negligent and caused serious injury
Anti discrimination
Measures aimed at stopping unjust treatment of groups of people on the basis of race, gender, age, sexual preference, religion, disability.
Australia’s federal anti-discrimination laws are contained in the following legislation:
- Racial discrimination Act 1975 - It is against the law to treat someone unfairly because of their race, colour, descent, national or ethnic origin or immigrant status.
- Age Discrimination Act 2004 - Is when a person is treated less favourable than another person in a similar situation, because of their age
- Sex Discrimination Act 1984 - Prohibits discrimination on the bases of sex, marital or relationship status, actual or potential pregnancy, sexual orientation, gender identity, intersex status or breastfeeding in a range of areas of public life.
- Disability Discrimination Act 1992 - Provides protection for everyone in Australia against discrimination based on disability.
- The Australian Human Rights Commission has the statutory power to receive, investigate and conciliate complaints of unlawful discrimination under Australia’s anti-discrimination legislation.
Anti discrimination CASESTUDY
Legislation requires Apple to report publicly on the number of women in new appointments and promotions.
- Apple prides itself on its diversity of their workforce, and as stated in their 2018 Affirmative Action Report “we are committed to diversity”.
- Further, 36% of Apple’s staff are female, whereby their acquisition process has purposely sought to attract female workers, such as in the Career Mum’s Program, to improve their 8 to 2 gender ratio.
- Specifically, Apple’s Supplier Code of Conduct, which has been dubbed as the strictest in the industry, provides explicit policies to prevent the sexual harassment and unequal treatment of employees with their suppliers.
- In accordance, Apple has a Business Conduct Helpline, whereby employees can put forth a claim of harassment or discrimination for it to be reported and investigated by the HR Department.
• Thus, Apple has been able to successful create a largely unbiased workplace, reducing the
potential for workplace disputes and improving worker satisfaction.
Equal Employment Opportunity
EEO
Refers to implementing equitable policies and practices in recruitment, selection, development and promotion.
- Employers with more than 100 employees are required to develop an affirmative action program and provide progress reports to the Workplace Gender Equity Agency (WGEA)
- Affirmative action - Measures taken to eliminate direct and indirect discrimination and steps implemented to overcome a lack of equal employment opportunity for women.
- Employers need to abide by equal employment opportunity legislation
- Workplace Gender Equality Act 2012
- Human Rights and Equal Opportunity Commission Act 1986 (Cth)
- Affirmative Action (Equal Employment Opportunity for Women) Act 1986 (Cth)
- Employers need to provide equal pay and conditions for men and women performing work of a similar value
Equal Employment Opportunity
EEO CASESTUDY
Apple is committed to promoting diversity as well as being an Equal
Opportunity and Affirmative Action Employer.
- The Company ensures this by participating in the E-verify program (US Program) in certain locations to ensure equal employment opportunities.
- Also, Apple submits an annual EEO report in Australia outlining its compliance and the strategies it has in place to improve equality with respect to women in the workplace.
• Apple has identified that it has a gender disparity in its workforce as
highlighted its submission which shows that 60% of Apple employees are
males and 40% are female.
• Apple is actively seeking to address this issue through promoting employment opportunities for women, especially with regards to paid parental leave and flexible workplace arrangements.
- Hence, Apple can be seen to have developed a positive workplace culture where productivity of employees has increased significantly and contributed to a positive corporate culture as a result of EEO.
Economic
Refers to changes in the level of spending and production in the economy.
- Economic growth affects the demand For labour.
- # HOW - Economic Expansion/Contraction
- # HOW - Structural Changes
- # HOW - Globalisation
Economic
1 # HOW - Expansion/Contraction
- Expansion phase
Implications
- ↑ Demand for goods and services
- ↑ Demand for labour
- → Employers compete for employees
- → Employees have greater bargaining power due to potential labour shortages
- ↑ wages (Maintenance; Strategies – Rewards)
Describe
- ↑ Consumer spending
- ↑ Sales
- ↑ Production and business investment
- Rising inflation
- Increase in interest rates
Contraction phase:
Implications
- ↓ demand for goods and services
- ↓ demand for labour
- ↓ wages
- → Employers may reduce the size of the workforce or decrease employee’s working hours to reduce costs
Describe
- ↓ Consumer spending
- ↓ Sales
- ↓ Production and business investment
- Deflation (Negative inflation)
- Decrease in interest rates
Economic
2 # HOW - Structural Changes
Refers to a change in the nature and pattern of production of goods and services within an economy.
- Growth in services/tertiary sector (86% of total employment)
- Ageing population
- Increased demand for flexible work arrangements (part-time/casual employees)
- Greater reliance on staff retention and mentoring (Links to Processes: Maintenance; Strategies – Rewards)
- Decline in manufacturing due to reduced protection
1. Decreased employment and wage growth in this industry
Economic
3 # HOW - Globalisation
Greater integration of economies has increased the level of competition
- Need to attract and retain effective staff (Links to Processes: Acquisition, Maintenance; Strategies: Recruitment, Rewards)
- Continually increase productivity, product quality and customer service
- Reduce costs
- May outsource HR functions offshore
- Business needs to closely monitor to ensure its external workers have the skills and training needed and they are not exploited (as this will impact on the business’ reputation)
- Provide training in the management of multicultural workforces
Technological influences
Technology and machinery can increase productivity and communication (Software, mobile technology, laptops)
- Staff training needed so they can use new technology (compliance with WHS standards)
- Technology may replace labour (Robotics) → Redundancy payment
- Increased levels of productivity, lower costs and improved profitability
- Telecommuting → HR needs to ensure that work-life balance is maintained
- BUT…working from home (telecommuting) can have negative implications
- Loss of corporate culture
- Difficult to build strong trustworthy working relationships
- Process of monitoring productivity and performance becomes more complex
HOW do technological influences impact the HR process?
Acquisition
- Technology processes, such as AI, used to screen potential candidates, online applications, Zoom used in the selection process
- New technologies may require a business to seek new role
Development
- Technology assists with online learning, induction processes, Zoom to attend training, simulated–training exercises
- Technology may cause some positions to become redundant, as such may require training to upskill or new skill (existing employees move to value- added tasks)
Maintenance
- Performance appraisal systems use technology by gathering data e.g 360 feedback
- Payroll processing (can be outsourced)
Separation
- Technology may result in some positions becoming redundant (involuntary separation)
Technological influence CASESTUDY
Advancements in Apple communication and software technology has allowed for Apple employees to work from home under flexible working arrangements - in certain positions, employees are able to connect to the Apple network offsite in order to undertake work.
- Connecting to the network also allows Apple to monitor employee progress and performance.
- Furthermore, these technological improvements have led to the creation of full-time (often part-time) customer service jobs at the employees’ home, titled ‘At Home Advisor’.
- Foxconn replaced 60,000 factory workers with robots (FoxBots)
Social
Changing work patterns (MICA)
Movement away from fulltime work
- Growth in tertiary/services (86% of workforce) thus an increase in part time and casual employment as businesses want a flexible workforce.
- Many employees also want to balance their work and personal lives
- Employers can also aviod some on costs through casual staff.
Increased participation for women
- Results in an increased avaliability and workforse size for firms.
- Larger pool for potiental applicants.
Career flexibility and Job mobility
- 55% of employees have been employed in their current job for less than 5 years
- Many employees want to work for multiple businesses/industries over their career
- Thus an increasing need for firms to retain effective staff & reduce staff turnover.
Aging Workforce
- Resulting in a shortage of labour
- Govt/businesses are introducing strategies aimed at retaining older workers
- HR needs to offer flexible arrangements for older staff in order to retain them for as long as possible (Maintenance)
Social
Living Standards
HR has significant impact on australias high living standards, such as.
- WHS, regular wage increases, perfromacnce bonuses, superannuation, leave entitlements.
However, there are concerns…
- Loss of weekend for families due to working flexible hours and shifts
- Blurring of work and home due to electronic communications
- Employees expected to be always on
- Increasing income inequality in australia
- Increasing financial rpessure as individuals take on more responsibility for retirement, healthcare and educuation.
How does HRM manage social influences?
Social influences
- Provide flexibility in the workplace
- Provide childcare facilities, flexibility to work from home, discounts on childcare
- Introduction of job sharing
- Mentoring/Coaching
- During acqusition and development consider targeting females
- Career felxibility - Career breaks
- Transition of older workers - Provide training/development
Social influences CASESTUDY
- Changing working Patterns (MICA)
- Living standards
Ethics and CSR
Ethical business practises are those practises that are socialy responsible, morally right, honourable and fair.
- Open and accountable practises that demonstrate respect to employees and society
- Reflects changing societal expectations that businesses act ethically and fairly towards their employeees
- Involves going beyond legal compliance
- Offer flexible working arrangements
- Provide a safe workplace
- Recognise and reward employees fairly for their efforts
- Anti-bully and harrassment campaigns
Ethics and CSR
Implics
- Staff feel motivated and valued - Lowered absenteesim thus lowered staff turnover, lowered costs.
- May encourage more candidates to apply for positions (Acquistions) due to their perception of how staff are supported within the business
- Enhanced reputation and standing of the business within the community
- Enhanced brand image and positive publicity
Ethics and CSR CASESTUDY
In 2020, Apple put Pegatron on probation due to labour violations
- Pegatron had falsified paperwork in order to cover up violations of misclassifying student workers
- Student workers were not allowed to work nights and/or overtime (to ensure that it did not impact on their studies and weren’t being overworked)
- Probation will remain in place until Apple is satisfied that the matter has been resolved
Apple requested all student workers be taken off production lines, return to their homes/schools with proper compensation alongside all necessary support and care
- Demonstrated Apple’s strict and rigorous Code of Ethics that all Apple suppliers and manufacturers are required to comply with
- Illustrates how one of the world’s largest companies can ensure that all businesses within their supply chain are working in an ethical manner
