1. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-1 CHAPTER 9 Industrial relations and HRM

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-2 Learning Outcomes  Understand the effect of contractual and employment law on industrial relations  Distinguish between employee and contractor  Determine the key elements of an employment contract and their implications  Identify and explain key features of the Australian industrial relations system (cont.)

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-3 Learning Outcomes (cont.)  Identify and discuss the various awards and agreements that operate within Australian organisations  Outline the rights and obligations of employees and employers in the employment relationship  Understand the function of industrial organisations  Identify potential industrial relations dispute issues (cont.)

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-4 Learning Outcomes (cont.)  Encourage, support and develop consultation and cooperation processes within teams and/or management  Develop and implement key organisational industrial relations strategies and plans  Identify and discuss methods to manage, resolve or minimise workplace disputes  Develop an understanding of the skills essential for industrial relations practices and management

5. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-5 Industrial Relations Industrial relations is the process of managing the relationship between government, employers and employees.

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-6 Freedom of Contract The concept of freedom of contract in employment is based on the principle that the State will refrain from interfering with any employment agreement between an employer and an employee. It is the ability to enter and leave a contractual relationship without outside influence.

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-7 Master and Servant Relationship The principle of choice by employer and employee to enter and leave employment is embodied in common law principles of ‘master and servant’, protected and upheld by statute law and the legal doctrine of precedence.

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-8 Classification of Workers  Employee—a servant, person who works for an employer.  Contractor—a self-employed worker, independent of an employer.

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-9 Business Test The business test is a legal test of whether or not the worker is operating his or her own business.

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-10 Outworkers Persons who usually work from home for piece- work rates are referred to as outworkers.

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-11 The Contract of Employment The contract of employment is a legal document that binds together employer and employee for commercial reasons.

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-12 Contract of Employment

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-13 Key Clauses of a Contract of Employment  Intention to enter legal relations  Offer  Acceptance  Consideration  Capacity

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-14 Terms of Employment If there is any dispute between an employer and employee over employment conditions, it is generally because some or all of the terms of employment are vague, confusing or non- customary.

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-15 Implied Terms Implied terms are not usually contained within any agreement but may be inferred because they are common terms or are customarily applied by by trade, custom or usage.

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-16 Express Terms Express terms are generally conditions (statements) that are very specific to the agreement in hand. Express terms are vital, since it is important to have the same understanding between the employer and the employee.

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-17 The Constitution—Section 51 (xxxv) The Parliament shall, subject to this Constitution, have the power to make laws for the peace, order and good government of the Commonwealth with respect to … conciliation and arbitration for the prevention and settlement of industrial disputes extending beyond the limits of any one state.

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-18 Federal Parliament The federal parliament has power to make laws. Such laws must take the form of conciliation and arbitration.

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-19 Awards Awards are industrial conditions supported by a court and are binding on various groups of workers.

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-20 Allowable Matters Under the terms of the Workplace Relations Act 1996 (Cwlth), federal government and the courts have restricted the legal coverage of the conditions embodied in awards to twenty ‘allowable matters’. Some of these allowable matters are:  hours of work  rates of pay  long service leave  superannuation  dispute-settling procedures

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-21 Workplace Agreements With the federal government (and some state governments) pushing for a reduced role of unions in negotiating workplace conditions on behalf of employees, greater emphasis has been placed on direct negotiations between employer and employee, with or without the union as an agent of the negotiation process.

22. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-22 The ‘No Disadvantage’ Test The ‘no disadvantage’ test is a test to ensure that no worker will become disadvantaged as to conditions when switching from an award to a workplace agreement.

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-23 Certified Agreements (CAs) Certified agreements are legal agreements between employer and employee that are reviewed and agreed to by a court.

24. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-24 Certified Agreements

25. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-25 The ‘Public Interest’ Test The public interest test is a test of whether an agreement is in the best interest of the public.

26. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-26 Australian Workplace Agreements Australian Workplace Agreements (AWAs) are formal employment agreements on pay and conditions created after negotiations have taken place between employer and employee.

27. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-27 Trade Unions Trade unions are bodies representing the interests of employees, usually to employers and government.

28. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-28 Australian Council of Trade Unions The Australian Council of Trade Unions (ACTU) is an association that represents the interest of combined Australian unions.

29. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-29 Employers’ Associations Employers’ Associations are bodies that represent the interests of employers, usually to employees and government. There are two main types of employer associations:  single industry associations  umbrella organisations

30. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-30 Grievance Procedures Grievances are concerns, complaints or disagreements that occur within the context of the workplace. Grievance procedures in organisations outline the steps to be taken to resolve a conflict when it occurs.

31. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-31 Conflict Conflict is the inability of two or more parties to work in a team.

32. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-32 Advocacy An advocate is someone who assists, defends or pleads for someone else before another person, tribunal or court.

33. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-33 Negotiation Negotiation is a process arising either to represent the interests of others or to seek a compromise.

34. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-34 Steps in effective negotiations  Preparation  Persuasion  Compromising  Closing

35. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-35 Counselling Counselling is a formal process of giving advice to or assisting another, usually by a trained person. The focus of counselling is problem solving.

36. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-36 Chapter 9 Summary  Traditionally, Australia has been a society that has supported the ‘master-servant’ relationship and ‘freedom of contract’ in the workplace.  Australia has a unique industrial relations system, operated at both federal and state levels.  Recent changes to state and federal industrial laws have led to a move away from union-initiated and managed workplace agreements to individual workplace agreements. (cont.)

37. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-37 Chapter 9 Summary (cont.)  Both employers and employees have industrial organisations to represent and manage their needs.  Unions are represented at the workplace, regional, state and federal levels.  The ACTU is the representative body of all unions in Australia. (cont.)

38. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 9-38 Chapter 9 Summary (cont.)  All organisations should have sound grievance procedures in place.  Awards contain standard industrial conditions adapted to a particular industry or skill group.  Workplace agreements take two forms: certified agreements and Australian workplace agreements.