Chapter 11 – EMPLOYEE RELATIONS

1. Chapter 11 – EMPLOYEE RELATIONS EMPLOYEE RELATIONS: The overseeing of employee relations is a key responsibility of a human resources department. Human resource specialists are in charge of overseeing and implementing organisational employee relations policy. In Australia, state and federal governments regulate the Australian system of employee relations. Employee relations – the relationship between employees (or their representitives) and employers (or their representitives) encompassing all aspects of their working lives, including wages and conditions of employment based on optimum working relationships Disputes – a form of industrial disagreement between employees and employers Deregulated labour market – where aspects of the employee-employer relationship are not subject to government control of regulations Industrial relations – as per employee relations SCSC Year 12 Business Management . Weebly . com

2. Chapter 11 – EMPLOYEE RELATIONS Relationship of employee relations to business objectives and strategy. The aim of employee relations is to achieve an optimum working relationship between the employees of an organisation and management. SCSC Year 12 Business Management . Weebly . com

3. Chapter 11 – EMPLOYEE RELATIONS Participants in Australian employee relations In order to gain an understanding of employee relations, it Is important to be aware of the current key participant (stakeholders) and the roles they play Employees and Trade Unions – a trade union is a group of employees, usually from the same or similar industries, combining to protect their interests in all matters relating to their employment. Beginning in the 19th century they arose a a result of poor working conditions experienced by workers at that time. If employees chose to join a union they pay an annual subscription fee. The union then: - represents workers, negotiates and bargains on their behalf during collective bargaining process - Argues the employees case during hearings that determine awards - Provides support and advice to local union shop stewards - Provides assistance and support to individual workers - Offers services & facilities to members(credit unions, health ins) - Provide information to members on relevant matters in workplace SCSC Year 12 Business Management . Weebly . com

4. Chapter 11 – EMPLOYEE RELATIONS Participants in Australian employee relations Employees and Trade Unions In victoria there are 2 key union organisations ACTU – The Australian Council of Trade Unions is the national peak body of the Australian union movement (page 242) VTHC – The Victorian Trades Hall Council is responsible for implementing ACTU policy within Victoria RESEARCH OTHER UNIONS in Victoria & Australia this will be useful when answering questions on this topic SCSC Year 12 Business Management . Weebly . com

5. Chapter 11 – EMPLOYEE RELATIONS Participants in Australian employee relations Employers and Employers Associations are groups of employers who unite to promote their common interest in employee relations as well as to share information and offer mutual support. 3 Types of Employer associations: Industry Associations – made up of employers from the same industry Professional Associations – made up of members of professions (AMA) Australian Medical Assoc. Peak Bodies – comprise large numbers of employers from varied industry types SCSC Year 12 Business Management . Weebly . com

6. Chapter 11 – EMPLOYEE RELATIONS Participants in Australian employee relations Employers and Employers Associations are groups of employers who unite to promote their common interest in employee relations as well as to share information and offer mutual support. The role of employer associations is to: - Represent employers in Industrial Relations Commission Cases - Represent Employers during collective bargaining over wages and conditions Advise employer of their rights and obligations Act as a spokesman for members of their organisations as a bloc SCSC Year 12 Business Management . Weebly . com

7. Chapter 11 – EMPLOYEE RELATIONS Participants in Australian employee relations Government The governments has an enormous influence on Australian employee relations by implementing legislation that controls and influences the conduct of employee relations The Government employees 30% of the Australian workforce Governments strong connection is due to: - Their large workforce, and - Employee relations can heavily impact on the Australian economy and general public so they act to ensure relationships are good between Employees and Employers SCSC Year 12 Business Management . Weebly . com

8. Chapter 11 – EMPLOYEE RELATIONS Participants in Australian employee relations Fair Work Australia (FWA): was established by the Fair work Act 2009 to be a one stop shop for information, advice and assistance on workplace issues. Office of the Fair Work Ombudsman: Promotes legislation complicane while also educating and providing information and assistance to Employers, Employees, and Organisations that must comply with National Employment Standards (NES) awards and agreements Fair Work Divisions of the Federal Court and Federal Magistrates Court: exists to hear matters arising under the new workplace relations laws, the court has the power to make orders considered appropriate to remedy a contravention. SCSC Year 12 Business Management . Weebly . com

9. Chapter 11 – EMPLOYEE RELATIONS Centralised Approach to Employee Relations Australian workplace relations Pre 1991 was a CENTRALISED system with setting of wages and conditions occurring outside the individual workplace. the main emphasis was on conflict resolution using conciliation (negotiation) and arbitration to fix problems after they had occurred. *Arbitration *Centralised System *Conciliation * Industrial Awards *Close shop SCSC Year 12 Business Management . Weebly . com

10. Chapter 11 – EMPLOYEE RELATIONS Centralised Approach to Employee Relations Advantages Provides certainty of pay and working conditions for employees working in the same industry but with different employers Government has tighter control over wages outcomes through a centralised wage determination body Employees have greater opportunities for taking industrial action. Potential for more control for trade unions Employer can refer to a government-determined document to find out pay and working conditions, so saving time and effort Disadvantages Reduces potential for employer and employee to create flexibility relating to both pay and working conditions for employees at their work Does not recognise an individual organsiations circumstances, as the wage outcomes are imposed with no trade off for increased productivity Provides opportunity for unions to mount harmful industrial action As the pay and working conditions are not negotiated at the workplace, it lessens the importance of the participative management approach SCSC Year 12 Business Management . Weebly . com

11. Chapter 11 – EMPLOYEE RELATIONS Decentralised Approach to Employee Relations Where employers and employees at each workplace determine their pay and working conditions and work through their differences without outside interference. Post 1991 saw the freedom to negotiate wages and condition to suit individual circumstances *Federal Industrial Relations Reform Act 1993 Saw movement towards decentralisation *Workplace Relations Act 1996 - Further decentralised workplace relations encouraging employers and employees to negotiate contracts directly - Only 20 allowable matters could be negotiated - Collective / certified Agreements - Collective Bargaining - Australian Workplace Agreements (AWAs) SCSC Year 12 Business Management . Weebly . com

12. Chapter 11 – EMPLOYEE RELATIONS Decentralised Approach to Employee Relations *Workplace Relations Amendment (Workchoices) Act 2005 - further decentralised workplace relations *Fair Work Act 2009 - aimed to restore the balance of power in the relationship between the employers and employees in 3 main areas: 1. strengthening the safety net of minimum wages and conditions 2. Abolishing Australian Workplace Agreements (AWAs) and restoring collective bargaining 3. Restoring to all employees protection against unfair dismissal Refer to page 250 Table 11.3 Characteristics of modern award, collective agreement and individual contract. SCSC Year 12 Business Management . Weebly . com

13. Chapter 11 – EMPLOYEE RELATIONS Decentralised Approach to Employee Relations Advantages: Allows org’s and employees to negotiate pay and conditions relevant to the individual workplace Provides opportunity for employer to negotiate for productivity gains while meeting needs of employees for increased flexibility in their working arrangements Creates a more inclusive working environment, where both parties are working together to achieve agreement Disadvantages: Reduces the level of control of the government in wage determination More time consuming for employers to undertake negotiations. May feel that some of the employees demands are unrealistic Reduces the influence of unions as representitives of the workers. Mat make some workers feel more vulnerable. SCSC Year 12 Business Management . Weebly . com

14. Chapter 11 – EMPLOYEE RELATIONS Conflict in the Workplace and Dispute Resolution This can arise about a number of matters in the workplace, such as, calculation of pay, working hours or personality conflicts Grievance procedure a formal, systematic process that permits employees to complain about matters that affect them and their work. Grievance Procedure Steps Refer to page 252 Figure 11.12 **Forms of Industrial Action** Employee & Employer Refer to Page 252-3 Table 11.4 SCSC Year 12 Business Management . Weebly . com

15. Chapter 11 – EMPLOYEE RELATIONS Employee relations and HRM under a decentralised approach Employee relations specialists in HR liase closely with other departments to create a harmonious and productive workplace stafeed by motivated, skilled and fulfilled employees. Employers are nowdays encouraged to think of themselves as part of a team working with management in order to advance the whole organisaion as a competitive player in a globalised market. The role of the HRM Department is to: Negotiate with employees and/or their representitives on employement relations issues, such as the establishment of collective agreements Act as an intermediatary between employees/unions and senior management SCSC Year 12 Business Management . Weebly . com

16. Chapter 11 – EMPLOYEE RELATIONS What does good employee relations require of management? Management should aim to facilitate psotive, productive relationships with its employees. This will in turn create improved productivity and employee commitment to a organisation as employees feel valued. The following factors will allow for optimal workplace relations: Commitment from both management and employees to achieve the organisational goals and objectives Allowing employees to feel their contributions is valued and part of the decision making process conveys a sense of ownership Treating employees and their complaints seriously Promote the concept that workplace change is both inevitable and essential for organisationalsurvivial SCSC Year 12 Business Management . Weebly . com

17. Chapter 11 – EMPLOYEE RELATIONS What does good employee relations require of management? The following factors will allow for optimal workplace relations: (continued): Effective communication skills and methods will aliviate and avert many industrial disputes Provision of fair pay and working conditions and recognition of employee achievement Maintenance of good working relationships between management and union officials Establishment of fair and accessible grievance procedures to be taken in the resolution of workplace disputes Participative and open management styles will always improve relationships within a workplace SCSC Year 12 Business Management . Weebly . com

18. Chapter 11 – EMPLOYEE RELATIONS Assessment of workplace relations Workplace relations audits are performed to measure the atste of health of workplace relations in specific workplaces. The following indicators are used: Levels of employee participation in decision making The degree of consultation in a workplace demonstrates worker empowerment levels The quality of communication channels within a workplace The values within an organisation indicates the attitudes of employers and employees Productivity levels Staff morale Incidences of strikes and other industrial action SCSC Year 12 Business Management . Weebly . com