chapter 11 – employee relations employee relations: the overseeing of employee relations is a key...

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 relationshipsDisputes – 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 regulationsIndustrial relations – as per employee relations

SCSC Year 12 Business Management . Weebly . com

Chapter 11 – EMPLOYEE RELATIONSRelationship 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.


Chapter 11 – EMPLOYEE RELATIONSParticipants 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 workplaceSCSC Year 12 Business Management . Weebly . com


Employees and Trade Unions In victoria there are 2 key union organisations

ACTU – The Australian Council of Trade Unionsis the national peak body of the Australian union movement

(page 242)

VTHC – The Victorian Trades Hall Councilis responsible for implementing ACTU policy within Victoria

RESEARCH OTHER UNIONS in Victoria & Australiathis will be useful when answering questions on this topic



Employers and Employers Associationsare 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:

1. Industry Associations – made up of employers from the same industry

2. Professional Associations – made up of members of professions (AMA) Australian Medical Assoc.

3. Peak Bodies – comprise large numbers of employers from varied industry types



Employers and Employers Associationsare 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



GovernmentThe 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



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.


Chapter 11 – EMPLOYEE RELATIONSCentralised 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


Chapter 11 – EMPLOYEE RELATIONSCentralised Approach to Employee RelationsAdvantages- 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


Chapter 11 – EMPLOYEE RELATIONSDecentralised 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 1993Saw 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)



*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

conditions2. Abolishing Australian Workplace Agreements (AWAs) and restoring collective bargaining3. Restoring to all employees protection against unfair

dismissal

Refer to page 250 Table 11.3Characteristics of modern award, collective agreement and

individual contract.



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.


Chapter 11 – EMPLOYEE RELATIONSConflict 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 procedurea formal, systematic process that permits employees to

complain about matters that affect them and their work.

Grievance Procedure StepsRefer to page 252 Figure 11.12

**Forms of Industrial Action**Employee & Employer

Refer to Page 252-3 Table 11.4


Chapter 11 – EMPLOYEE RELATIONSEmployee relations and HRM under a decentralised approach

Employee relations specialists in HR liase closely with other departments to create a harmonious and productive workplace staffed by motivated, skilled and fulfilled employees. Employers are now days 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


Chapter 11 – EMPLOYEE RELATIONSWhat does good employee relations require of management?

Management should aim to facilitate positive, 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 organisational survivial


Chapter 11 – EMPLOYEE RELATIONSWhat 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


Chapter 11 – EMPLOYEE RELATIONSAssessment of workplace relationsWorkplace 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 actionSCSC Year 12 Business Management . Weebly . com

chapter 11 – employee relations employee relations: the overseeing of employee relations is a key...

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