The paper "Investigation of Current and Emerging Issues in Hospitality and Tourism" is a perfect example of management coursework. According to the Restaurant and Catering Australia (2012), the hospitality industry comprises hotels, restaurants, cafes, accommodation and conference centres, and registered clubs. The tourism and hospitality industry is essentially labour-intensive, with wages making up the greatest proportion of the production cost. The significance of labour cost has led to the notion that in the tourism and hospitality industry, productivity and labour should be perceived as being inseparable (Peric 2005). Such a relationship shows that any means of reduction of labour cost, efficient management of resources and making the workforce many flexible needs to be adopted.
Indeed, it is based on this premise that tourism enterprises have followed in the current emerging issues of seeking flexibility through de-regulation, using the internet and customer-driven technology to reduce costs, and practising environmental management and sustainability to ensure efficient resource management. Deregulation The quest for labour flexibility continues to be highlighted in Australia’ s tourism and hospitality industry. It has also accelerated the need for deregulation. In particular, deregulation has happened over the last 20 years in the Australian labour market and continues to happen.
In spite of this, concern remains as to whether deregulating the labour market can attain the much-needed flexibility given that empirical evidence carried out over the last two decades has not been conclusive (Buultjens 2001; Buultjens & Cairncross 2009). Some scholars have also argued that a high level of labour flexibility is a crucial component that can meet market demands as well as to attain a more competitive environment. Deregulation has characterised Australia’ s industrial relations system since the 1990s.
It has been typically rationalised by the quest for improved labour flexibility. Such changes have happened at the state and federal level (Restaurant and Catering Australia 2012). Among the significant changes include the introduction of individual bargaining and formalised enterprises. From the outset, the bargaining at the enterprise level became first introduced in the early 1990s by the Hawke and Keating Labour Governments. Afterwards, individual bargaining came up in 1996 after its introduction by the Howard Government under the Workplace Relations Act 1996, before its subsequent reinforcement in the Work Choices law in 2005.
These legislations reflected ideas that a centralised system initially used in the industry to determine wages and working conditions through tribunal had stood in the way of labour flexibility. Subsequently, they had affected the country’ s international and regional competitiveness (Buultjens & Cairncross 2009). Still, proponents to the centralised-wage determination system argued that market deregulation was critical. This is since the introduction of individualised bargaining and formalised enterprise bargaining could significantly enable employers and employees in the hospitality industry to discover and pursue a shared interest.
Such pursuit of common interest, as Buultjens and Cairncross (2009) shows, promoted flexibility of labour as both the employees and employers stand to benefit from outcomes negotiated individually as well as the enterprise. In return, employers and stakeholder in the hospitality industry have strongly supported deregulation due to its capability to ensure flexibility. Besides, the Australia hospitality industry requires much flexibility since it operates efficiently on a flexible basis. For instance, the industry is given to function 24/7 basis, hence the labour market needs to be flexible to avoid the likely penalty rates targeted at workers (Buultjens & Cairncross 2009).
Reduced wages also provide a complexity for the hospitality industry since it is currently aware of the need to promote professionalism and service-level provided to customers. Additionally, the concentrated labour environment in Australia has made the industry less attractive to job-seekers. Hence, to attract employees, and enhance professionalism, the industry needs to increase wages. Still, the introduction of individual bargaining has the potential to exert pressure on wages in the industry.