SAC 1C PRT 2 Flashcards
What are the advantages of a centralised employee relations system?
> Equality for workers in industries
Gov. has greater control over wages which helps manage the economy
A sense of stability and predictability are enhanced as one set of rules applies to all organisations in an industry
Industrial disputes within individual businesses can be reduced as awards cover entire industries.
What are the disadvantages of a centralised employee relations system?
> Less flexibility
Productivity gains at individual workplaces cannot be rewarded with better conditions
Possibility for large industrial disputes as awards cover whole industries rather than individual organisations.
Large unions are favoured because they have the money and resources to support the government against industries
What is a Decentralised employee relations system?
A decentralised system is one where wages and working conditions are negotiated at a workplace level through enterprise bargaining. This means that employees and employers are able to negotiate wages and working conditions to create agreements however these instead of being called awards are called enterprise bargaining agreements. In a D centralised system of employee relations awards still exist however they are used as a safety net for employees within a particular industry and agreements cannot undermine them.
Advantages of a decentralised employee relations system…
> Increased flexibility
Enhanced communication between employer and employee
Productivity gains of individual workplaces can be rewarded
Disadvantages of a decentralised employee relations system…
> Greater inequality of wages between skilled and unskilled workers
Gov. has less control over wages and hence less control on economy
Industrial disputes can last longer due to less involvement of centralised tribunals
What is a Centralised employee relations system?
A centralised system is one where the government and the tribunals (Unions/employer associations) set and control wages and working conditions for an entire industry. Agreements are created by the now known as Fair work commission via a process of conciliation or if that doesn’t work, it’s by arbitration and they’re called awards, they will cover entire industries.
What are individual contracts?
These are agreements that cover those individual employees who aren’t part of collective agreements.
What are awards?
An award is a legally binding agreement that sets out minimum wages and conditions for an entire industry. Awards are set under a centralised system but are used as a safety net in a decentralised system. The fair work commission sets 10 minimum national employment standards which are the minimum awards all organisation must follow. Agreements can’t undermine awards.
What are collective agreements?
Negotiated agreement between an employer and a union or group of employees.
Role of the HR manger in a decentralised employee relations system…
> Negotiating employment agreements
Training other managers and supervisors
Implementing agreements
Dealing with disputes and conflict
