1. VCE Business Management 3-4
Unit 4 AOS1
Chapter 14
Workplace Relations

2. Introduction
Overseeing workplace relations is a key responsibility of the HR department
HR specializes are in charge of overseeing and implementing workplace relations policy
Australia has a system of state and federal governments to regulate the system of workplace relations
Aim is to achieve optimum working relations between employees and management and create organizational productivity
Australia has undergone significant change

3. What is Workplace Relations?
Also called Employee Relations and Industrial Relations
These terms are used to describe the total relationship and interplay between employees and employers in regards to all aspects of the working relationship either directly or via an intermediary such as a union
Covers wages and conditions and often involves dispute resolution

4. Forms of Workplace Conflict
Strikes
Stop Work Meeting
Work to rule
Boycotts
Picket Lines
Passive Resistance e.g, absenteeism, sabotage

5. Causes of Industrial Dispute
Generally employers and employees have different views on how profits are distributed
Employers want to return funds to shareholders, reinvest in the business and become more efficient and productive
Employees wanted greater flexibility, reward and conditions

6. Stakeholders in the Workplace Relations Process
Employees
Employers
Shareholders
Management
Suppliers
ACTU
Union
Families
Customers
Your thoughts:

7. Trade Union
Trade Union is a group of employees usually from the same or similar industries who combine to protect their interests in all matters relating to their employment
Workers unite for their own protection from employer exploitation
                             

8. History
Unions had their beginnings in Australia in 19thC. Through mobilization and unification of employee unions they have achieved significant improvements in wages and workers conditions
Conditions in 19c were appalling
Now have Annual Leave, Pensions, Superannuation, limits to hours worked, safety, Dismissal Protection

9. Role of Trade Unions
Represent workers and negotiate on their behalf during Enterprise Bargaining
Argue employees’ cases at Industrial Relations Commission that determine awards
Provide support and advice to local officials and workers in the workplace
Provide assistance and support to individual workers
Offer services to members such as credit unions, health insurance
Provide information to workers on matter relevant to workplace situation
Act as official spokesperson to the media on behalf of workers

10. Union Bodies ACTU: Australian Council of Trade Unions
National Peak body of Australian union movement. Formed in Represents the unions movement in dealings with government and in industrial relations commission hearings
VTHC: Victoria Trades Hall Council
Victorian branch of ACTU. Each union elects members to attend monthly meetings. Formed in 1859

11. Union Membership Had declined in recent years
Job growth has been in service industries and in casual work. Traditionally these are low union areas
1990’s lots of amalgamation of unions (joining together). Unions from 295 to 130. Larger unions not as connected
Move toward enterprise bargaining has lessened union role in some workplaces

12. Employers Associations
Industry Associations
Professional Associations
Peak Bodies I.e. Chamber of Commerce
These bodies represent employers in Industrial Relations Commission
During collective bargaining
Advise employers of rights and obligations

13. Role of the AIRC
Please note that this Commission has now finished its duties and is being replaced with a new process under the proposed new IR reforms
Set federal awards determining legally binding wages and conditions across and entire industry
To settle disputes through legally binding decisions
To hold national wage case hearings
To hear important test cases on issues such as leave and holiday loadings
To ratify enterprise agreements

14. Australian Workplace Relations Pre 1991 (centralized)
Main emphasis was on conflict resolution.
Fixing problems after they and occurred through arbitration (adversarial legal) or conciliation

15. Australian Workplace Relations Post 1991 ( starting to decentralize)
Start of Enterprise Bargaining
Move by employers to develop a more individualized system of negotiations with employees – sometimes referred to as enterprise bargaining

16. Australian Workplace Relations 1996 onwards (Decentralized)
Introduction of the “Australian Workplace Act” by the Liberal party when they took power after the 1996 Election
Amended to “The Workplace Relations Amendment (WorkChoices) Act 2005” when Liberal also took control of the Senate, to take effect in 2006

17. Key Terminology Awards
These apply to workers within a particular industry, (eg retail, Hospitality)
Awards are legally enforceable agreements that set out the minimum terms and condition relating to employment such as pay, annual leave etc (max. of 20 matters)
Workers pay and conditions must not fall below these minimum standards

18. Key Terminology Certified Agreements
These are legally binding agreements between an employer and employees (or union)
Certified agreements replace awards in the workplace where a agreement has been reached through enterprise bargaining
Once agreed by the majority of employees, this needs to be approved (called “certified”) by AIRC
Remain in force for set time (3 years now 5 years) then a new agreement needs to be negotiated
Generally used in a range of occupational setting such as nursing and teaching

19. Key Terminology Australian Workplace Agreements (AWA)
These are individual employment contracts between employees and employers
Removal of No-Disadvantage Test and with it the safety net that ensued employees would receive at least the award.
Unfair dismissal laws altered so that it does not effect employers with less than 100 employees

20. HRM and POLC
Planning involves ensuring the best type of agreement for the workplace, achieved within the timeframe and deciding on the best approach for negotiation.
Organizing entails meeting with management, employees and unions and any other stakeholders during negations
Leading by working with other managers to keep employees informed of discussions and development during negotiations – may involve seeking outside help from experts
Controlling by helping to evaluate the success of the agreement. May require development of KPI and discussions with employees to gauge how the new agreement is working