The paper "Enterprise Bargaining, Approach to Productivity and Workplace Reform" is a good example of management coursework. In recent times, various organizations have experienced a significant number of economic challenges. Key among the challenges experienced by these organizations is work-related. In particular, the differences that exist between the employer and the employees often lead to challenges that may adversely affect the operations of the organization. Employees often make frantic efforts to have better remunerations while employers make efforts geared toward ensuring that the organization incurs minimal costs. More often than not, the cost reduction initiative is implemented through reduced wages to the employees.
Consequently, the employer and the employees often disagree openly on the issue of remuneration. Employers seek representatives in the form of unions to fight for their rights while the employees seek legal help to protect the profitability of their enterprises. The stalemate that often occurs between employees adversely affects the operations in various sectors of the economy. For instance, it reduces the total output in the economy thus leading to poor development levels in various countries. However, frantic efforts are often made to deal with the challenges between workers and employers.
The fundamental reason for making efforts to resolve these problems is to ensure that the normal operations of a given enterprise return to normalcy. The differences between employees and employers are often triggered due to changes in some social-economic factors. For instance, a drastic change in economic conditions of a given country often triggers trade unions to champion for appropriate adjustments to the working conditions. In Australia, enterprise bargaining often entails working conditions and wages negotiated at the level of individual organizations and other stakeholders.
The negotiations often lead to an enterprise bargaining agreement that binds the employees and their employer. A critical analysis of the case of Aged Care industry in Australia reveals various factors that contribute to an enterprise bargaining agreement (MORGAN, 1994). The period of the 19th century was characterized by different economic aspects that led to increased disagreements in the labor market. In particular, different sectors of the economy were labour-intensive, and any efforts by the private sector to formulate policies to specific economic goals faced a significant number of challenges.
In particular, the government policy in the 19th century significantly altered the ways in which the private sector delivered health care services. The structural arrangements of the government were geared toward encouraging or compelling the private sector health workers to seek better remunerations through savings at the enterprise level. However, the private hospitals had to make frantic efforts to counter the increasing costs of operation through reduced wages. In particular, they formulated strategies that were geared toward ensuring that all workers’ wage increment was based on the productivity index.
However, after the enactment of the Fair Work Act in 2009 saw a drastic change in the ways of resolving disputes between employers and their workers. The act was geared toward ensuring that the dispute resolution process was based on facts and not assumptions. While workers are justified to seek better wages from their workers, the Act requires them to use a better approach to the issue. The fundamental reason for this argument is the fact that employers pay workers from the profits they get from their businesses.
In particular, the wages of the workers should be based on their productivity in the organizations. Worker’ s productivity often leads to increased profitability of the organizations and thus workers are justified to ask for wage increase only when their productivity increases. On the other hand, the Act requires employers to be fair to their workers. Employers should formulate appropriate strategies to reward the efforts of their workers. The Act stipulates the appropriate measures of rewarding workers in a much better way than satisfies all the stakeholders. An analysis of the enterprise bargaining in the private hospital and aged care sector after the enactment of the Fair Work Act in 2009 will reveal the employer and trade union bargaining strategies (DI MATTEO, 2014).
The basic approaches revealed in the negotiations involve; productivity that is performance-oriented and cost reduction or minimization approach.
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