IR-EMB

Industrial Relations ** // __ Employee relations:  __ // ** · ** Employee relations  ** refers to the interaction between employers and employees (or their representatives) in the establishment of working conditions, that meet the needs of employees as well as allowing for the organisation to achieve its strategic objectives. · It incorporates all the ** issues ** in the employee-employer relationship in the workplace; including recruitment, establishing wages, equal opportunity, training and development, and organisational structure. · The ** aim ** is to reduce conflict through effective procedures and relationships. ** // __ Stakeholders in the employee relations process:  __ // ** · ** Employers  ** – Most likely want improved productivity or achievement of specific objectives. ** HR ** managers are involved in developing programs that focus on improving performance. ** ER specialists ** can be employed to take charge of legal responsibilities involving employee relations, which is a complex process. · ** Employees  ** – There is an increasing practise in negotiating employment agreements as employees are more highly educated and demand more challenging, interesting work and involvement in decision making. They may individually negotiate conditions with and employer or vote to approve a new agreement which has been negotiated on behalf of all employees by a representative organisation (e.g. union). Most likely want improved wages or conditions. · ** Trade unions  ** – Organisations formed by employees in an industry/occupation that represent them in efforts to improve wages and working conditions of their members. · ** Employer associations  ** – Created by employers in response to unions to represent employer groups in the making of Awards and assist with negotiating workplace agreements consistent with legislation. ** // __ Historical background in Australia:  __ // ** · An ** Award ** is a legally binding agreement that sets out minimum wages and conditions for a group of employees. · ** Collective agreements (enterprise bargaining) i  ** nvolves determining the terms and conditions of employment through direct negotiation between employee groups and employers, with or without unions. · ** Individual agreements  ** – Individual contracts of employment made under common law, sometimes informally and without much documentation. · Throughout the last 100 years Australia has used a highly centralised employee relations system. · Increasing ** inflations ** caused unions to seek large wage increases to maintain their value of pay. This lead to organisations increasing the cost of products to cover the cost of wage increases, causing further inflation. · The ** breakdown **of a centralised system to a decentralised system was caused by this as well as political debate as follows. · ** Workplace Relations Act  ** 1996 – Introduced the Australian Workplace Agreement (** AWA **) which is an individual employment contract containing 20 allowable matters and minimum conditions. Includes a reduction in the role of the IR and encouraging of non-union bargaining. · ** Work Choices  ** – set out to make AWAs the preferred method of employment arrangements by allowing employers to introduce them at anytime to override collective agreements. Union policies were further reduced, limiting the ability of them to resolve disputes. Cuts were also made to unfair dismissal provisions. · ** Fair work Australia  ** – banned the making of AWAs. The legal safety net guarantees minimum working conditions and forms part of the new legislation. · The ** 10 employment standards ** include – max 38 hours work a week, public holidays protected, 4 weeks paid annual leave, 10 days paid personal or carer leave, 1 year unpaid parental leave, notice of termination and redundancy pay, long service leave, up to 10 days paid jury leave and community service, right to ask for flexible work and a statement on workplace rights. ** // __ The centralised system:  __ // ** · Governments and tribunals control process of wage determination. · All wages and working conditions were set out in Awards. · Awards were first ** determined for ** particular occupations (e.g. plumber, cleaner), then for all employees in a particular industry (e.g. hospitality, automotive). · Awards were ** determined by ** collective bargaining. Agreements were reached by resolving disputes and holding common interests. · The ** major area ** is the determination of the minimum wage. · ** Advantages  ** – Wage fixing creates equity among workers, Govt can have greater control over the economy and there is stability and a reduction in industrial disputes because awards and regulations cover all workplaces. · ** Disadvantages  ** – Less flexible and same wages can be unfair, employers can’t reward individual productivity and there is less incentive for participative management as wages are determined centrally. ** // __ Decentralisation:  __ // ** · Employees are able to negotiate agreements with employers in individual workplaces. · Economics was the driving force for change and centralised wage determination reduced the flexibility of businesses to adapt in an extremely competitive international environment. · ** Involves  ** enterprise bargaining, allowing businesses to chance workplace practises to suit workplace needs and to link productivity improvements with wage increases, and it empowers the parties to resolve disputes themselves. · ** Advantages  ** – Flexibility to have working conditions that suit the individual workplace, greater communication can improve motivation and productivity of employees and greater productivity can be rewarded. · ** Disadvantages  ** – Unskilled employees have less bargaining power, economy is more difficult as Govt has less control over wages, industrial disputes can go on for longer as there are less governing bodies to control the situation. ** // __ The role of the HR manager under a decentralised approach:  __ // ** · When ** negotiating ** employment agreements in order to achieve employee commitment, productivity improvements and flexibility for all, HR managers need to be aware of all relevant Awards and legal requirements, ensure all relevant info is available to employee representatives, consult widely (to provide info on overcoming problems), keep an open mind, keep the big picture in mind and be careful in legal requirements. · HR managers need to ** train ** other managers and supervises by providing with information of details of the agreement to ensure the process towards achieving productivity is put into operation. ** KPIs **should be used to track success of changes in work practises · Changes to wages, hours of work, leave and flexibility arrangements are all ** handled by HRM **. · HR managers are ** central ** to resolving disputes that may arise under an enterprise agreement. ** // __ Management styles and skills in employee relations:  __ // ** · The ** participative ** and ** consultative ** management styles result in positive employee relations as they encourage employee ** involvement ** in the decision making process and allow for negotiations to precede any final decisions. · The ** autocratic style is unsuitable ** as it causes conflict and suspicion between employees and management. · ** Employee branding  ** is concerned with building an image in the minds of employees that work for you, and potential employees, that your business is a great place to work. · ** Good management skills  ** to have include - people skills (communication to build trust and resolve disputes), delegation skills (trusting responsibility to employees to help build a positive attitude towards the organisation), teamwork skills (contributes to level of engagement of employees) and problem solving skills (ability to analyse and interpret cause of problems and provide solutions). · ** Benefits of effective employee relations  ** include – superior overall organisational performance (growth, sales, market share, and customer satisfaction), higher productivity, success in international markets, fewer disputes, more effective agreements and fewer workplace accidents. ** // __ Causes and resolving of conflict:  __ // ** · ** Conflict  ** refers to disputes, refusals, disagreements or dissatisfaction between the employer and employees. · An ** industrial dispute ** is a withdrawal from work by a group of employees (strike) or refusal by and employer to permit some or all of their members to work (lockout). · They are made to enforce a demand, resist a demand or express a grievance. · ** Causes of conflict  ** include management policies (Award reconstructing, promotion, discipline and changing work practises), wage demands and working conditions (leave, pensions, hours and physical e.g. health and safety with provision of protection). · Conflict can be ** resolved **by negotiation (direct discussion between parties), mediation (involves assistance of a neutral third party, more formal) arbitration (either of the parties applies to have the dispute resolved by fair work Australia), legal action involving court or concluding the employment relationship.