Employee Relations Management - Literature review Example

Employee Relations Management Name Institution Instructor Date of submission Introduction Employment relations refer to the nature of association that exists between the worker and the proprietor, especially at the workplace. The term may be used in reference to psychosocial, economic, and legal contexts of workplace relationships between the management and workers (Kaplan Business School, 2014). Out of the 21 million people in Australia, about 10 million are in the labour force either working in the manufacturing and construction (20%) or in the services industry (75%). The remaining 5% work in the agriculture and mining industries (Ashurst Australia, 2013). With this distribution of workforce, Australia has witnessed decline in full time employment, reduction in union density, and increase in number of persons working in part time/temporary jobs. According to Kaplan Business School (2014), issues to with industrial relations and human resource management all come into play when the matters of employment relations are subject of discussion. Thus, when one aspect is affected, then all of the aspects of employment and human resource are also affected. Besides, conflicts are resolved through concerted efforts that focus on strategic choices and decisions, collective bargaining, and development of common points of understanding (Bamber, Lansbury, and Wailes, 2011). The relationship between proprietor and worker (employment relations) has legal connotations that grant the worker some rights at the place of work. Similarly, the employer is also legally obliged to adhere to the labour laws and not to infringe the rights of his/her workers. The nature of workplace relationships plays a crucial role in determining the socio-economic benefits to be enjoyed by the employee and continued workforce to be enjoyed by the employer. Employment relations in a deeper outlook covers working hours, wages and salaries, number of off days and leave, right to union membership, equality, fairness, and working conditions as agreed between the employer and employee. This manuscript aims to explore and evaluate the causes, and manifestations of industrial conflicts in Australia, the duty and consequences of Australian governments in employment relations. This paper further looks at the context for change in the Australian employment relations system. Causes, nature, and manifestations of industrial conflicts Human resource decisions and industrial relations choices affect employment relations in one way or another. According to Balnave (2007), conflicts in workplace issues are inevitable. However, prevention and resolution can effectively be achieved through collaborative efforts. There are many sources of industrial conflicts in any work setting. Economic differences, legal and statutory obligations, and psychosocial welfare all play a role in causing conflicts between employer and employees. Employment relationship may exist because of the economic exchange. That is, employer rewards the employee’s time and effort with some form of pay. Failure to honour the terms of service, or payment agreements may yield conflict. Conflict can also brew in a situation where the employer has failed to follow the legal obligations in hiring, retrenching, and/or promoting employees. The collective bargain agreement is also a legal document that is usually binding in industrial relations (Bamber, Lansbury, and Wailes, 2011). Friction and conflict often arises when such an agreement is ignored, especially by the employer. According to Waring and Lewer (2013), industrial conflicts can also be due to poor or unfavourable employment conditions, and harsh terms of employment from the prerogative of management. Thus, manifestations of industrial conflicts may either be covert or overt. Covert conflicts are often unorganized and individual based. For example, absenteeism, lack of cooperation, and sabotage. The public may not recognize the existence of the conflict. On the other hand, overt conflicts are more organized, attract a huge number of participants, and the public is often aware of the conflict. Examples of over conflicts include go slow, strikes, and threats of closure of the institution or company. Some schools of thoughts have been established to explain that nature of employment relations. Some of them include pluralist, unitaris, and Marxist perspectives among others (Tan and Lester, 2011). The unitarist point of view claims that employment relations are based on mutual agreement, trust, and cooperation between the workers and their boss (es). However, this school of thought fails to take into consideration the interests inherent between labour and the management (Snell, 2003). It also tends to neglect power and control in the decision-making process. On the other hand, a pluralist perspective is that which considers conflicts as unavoidable events in any workplace setting. Such conflicts and disagreements are usually brought by the competing interests of both the workers and employer. One of the demerits of pluralist point of view is the assumption that social power is distributed in equal measures among the competing interests. Thus, it tends to promote the political status quo. Moreover, pluralists are more focused on conflict resolution than propagation of the same. The other perspective is the Marxist point of view. This school of thought views conflicts in the workplace as conflict that arises because of differences in the socio-economic class (O'donnell, O’brien, and Junor, 2011). Marxists believe workers unions are the products of power imbalance between the employers and employees. Thus, there is more emphasis on the disagreements between labour and the state/capital. Dixon (2007) argues that employee relations and conflicts can also be looked from a gender perspective (male or females dominated society), individual employees or a collectively (group of employees with a common interest). Thus, the human resource department should provide the needed leadership and management approaches that can serve the interests of all stakeholders in the workplace relationships. Sound choices and decisions also need to be made within the confines of the law, labour requirements, and provisions of employment relations to prevent occurrence of conflicts and to aptly resolve impending disagreements. Role of unions on employment relations In the Australia, workers federations and union play an important part in labour relations. Several legislations have been established to allow for union activities. For example, The Trade Union Act (1881) allowed for registration of trade unions. The Industrial Arbitration Act (1901) and The Commonwealth Conciliation and Arbitration Act (1904) allow for compulsory arbitration during conflicts related to employment and industrial relations. According to Sappey (2009), trade unions are organized movements for workers with main focus on employment relations, workplace conditions, workers welfare, and taking part in collective bargain agreements. Trade Unions play a significant role in influencing legislation from both federal and state governments. For example, in 1930 the duration for working per week was set at 44 hours and maternity leave of up to 12 months was approved in 1979. These legislations among others are the results of the efforts of workers movements and unions. Workers federations and unions support and represent their members in during ligations. They fight for better working conditions and condemn workplace discriminations of their members. Despite good avenues for sharing solidarity and sharing workplace issues, still a significant proportion of workers fail to join unions. One of the reasons is knowledge deficiency especially on availability and activities of a union in the respective work setting. Other workers may fail to join a union because of discouragement from their employers. This dissuasion may be forceful or peaceful. Those people who join trade unions most of them have both social and economic goals. However, others have political and leadership interests at heart and therefore, take up union roles and responsibilities as a way to achieve their ambitions (Balnave, 2007).  According to reports by Kaplan Business School (2014) and Sappey (2009), the density and activities of trade unions in Australia have declined over the last two decades. According to International Labour Organization (2006), the current trade union membership is 18% compared with 60% in the 1960s. This is a clear indicator that union membership has significantly decreased. As a result, there has been increased replacement of trade unions with workplace management and individual bargaining. However, some sectors like water and gas supply, electricity, and education still have high union memberships compared with the business and property industries. Several theories and possible reasons have been associated with this decline in trade union memberships and activities. Dixon (2007) argues that there has been increase in jobs that do not conventionally attract the need for union. Furthermore, most people have resigned from full time employment and engaged in private activities like self employment. Employees in unionised industries have also complained of increased prerogative from the management. To add insult to injury, the unions were aware of such declines in membership but were too slow to react or follow up. What we currently have is a large population of workers with no subscription to any trade union. Workers who are not in unions tend to have a lot of workplace issues and industrial conflicts than union members. According to O'donnell, O'brien, and Junor (2011), members of unions tend to have higher job satisfaction, higher remuneration rates, longer job tenure, and better social welfare coverage than non members. Thus, lack of union membership and declined union activities would imply increased industrial disagreements, reduced wages and salaries, reduced job satisfaction, and increased workers’ grievances (Snell, 2003; Waring and Lewer, 2013). Role of the government in employment relations According to Bamber, Lansbury, and Wailes (2011), the Australian government plays a significant role in workplace issues. For example, the government is responsible for establishment of the legislations relation to employment, labour, and industrial relations. According to the Australian constitution, federation’s sole responsibility is that of legislation. In this context, the federation plays a role in advocating for arbitration and conciliation as one way of settling industrial disputes. The government influences the activities of companies and institutions with respect to employment, wages, welfare, and workplace relations. Any socio-economic decision in terms of policy or legislation that the government makes affects the employer and employee. Balnave (2007) argues that the government can exercise both political and economic power to resolve conflicts or influence employment and remuneration trends in the job sector. According to the constitution of Australia, the federal parliament cannot have a direct role and intervention in matters to do with employment relations, except special circumstances, for example, employees of federation and those in the shipping and airline industries (Ashurst Australia, 2013). However, the state parliament can at any time enact workplace and labour legislations. A number of these acts that were endorsed by the governments include the Industrial Relations Act (1988), Industrial Relations Reform Act (1993), Workplace Relations Act (1996), and the most recent, Fair Work Act (2009). Federal government usually intervenes when industrial disputes are interstate in nature. It may recommend arbitration and conciliation in such circumstances. The constitution has also bestowed federal with powers to represent the country in international treaties that have provisions for workers protection, termination requirements, anti-discrimination, and minimum remuneration. The referral by State Power in Section 51 makes the federal government recipient of powers transferred from other states. The Fair Work Act 2009 was one of the fundamental legislative frameworks by the government. This act serves as a guide to the labour and employment relations matters in Australia. According to Ashurst Australia (2013), about 3 million Australian employees are covered by enterprise agreements. These agreements cover issues like employment relationships, salary deductions, and the relationship between the union and the employer. Usually the Fair Work Commission is the government body that reviews and approves the agreements. Kaplan Business School (2014) indicates that the Australian government has always played an intervention role in employment relations. It has intervened in negotiations between employers and labour unions. It also regulates industrial relations through legislation and policy making. According to Balnave (2007) and International Labour Organization (2006), the government may take part in international conventions and agreements as a representative of the citizens of Australia. In such meetings and conferences, the government may adopt international laws approved by international labour organization or other treaties that have an impact on employment relations. Context for change in the Australian employment relations system According to Sappey (2009), the Australia has undergone numerous changes in its industrial relations system since early 1990s. These changes have been witnessed in legislation, employment policies, union density, and forms of employment. In 2006, federal government ordered the centralization of the Australian employment relations system. The employment relations system is a collaboration of employers, employees and the present trade unions. All of them agree on negotiation and power of bargaining to reach an agreement that can resolve an industrial impasse. The need for change was sparked by constitutional rights for trade unions, international labour laws, the impact of globalization and global job market, the demand for workers with advanced academic qualifications and expertise, and more so, the ability to remunerate the workers to their level of satisfaction. The membership of trade unions started declining from the last two decades and currently it stands at 18%. Thus, workers have established means of representation including increasing professionalism, and individual bargaining (O'donnell, O'brien, and Junor, 2011; Snell 2003). Advanced human resource management techniques have led to empowerment of individual workers to seek negotiation and individual bargains with their employers. The industrial relations system has also undergone changes. That is, from a centralised system to a decentralised system that is more interested in workers negotiation and bargaining. Strategic human resource management dictates the kind of performance management expected of employees. Thus, making strategic choices and decisions in human resource management affects employee’s performance/productivity. Although, this is moderated by the fact that Australia has a national system of distribution of productivity from the individual to the level of the enterprise. There is therefore need to have a reward system for employees. Such a system should ensure fairness, and equality in distributing or awarding employees. According to Tan and Lester (2011), the Howard government proposed to introduce changes to the industrial relations in Australia. Some of the changes in the employment relations were doing away with the unfair dismissal rules and regulations. Enterprises have been advised to follow procedural fairness when it comes to terminating one’s employment status. Bibliography Ashurst Australia (2013). Navigating Employment and Labour Relations in Australia: A guide for employers. Australia: Design AU Balnave, N. (2007). Employment relations in Australia. Milton, Qld: John Wiley & Sons. Bamber, G., Lansbury, R., and Wailes, N. (Ed). (2011). International and Comparative: Employment relations, globalization and change. Australia: Allen & Unwin Dixon, R. (2007). Changes over Time in Male and Female Employment Ratios in Australia. The Economic and Labour Relations Review, 17(2), 69-75. International Labour Organization (2006). International Labour Conference, 95th Session. Geneva: ILO Kaplan Business School (2014). Employee Relations Management. Australia: Commonwealth of Australia O'donnell, M., O'brien, J., and Junor, A. (2011). New public management and employment relations in the public services of Australia and New Zealand. The International Journal of Human Resource Management, 22(11), 2367-2383. Sappey, R. (2009). Industrial relations in Australia: work and workplaces (2nd Ed.). Frenchs Forest: Pearson Education. Snell, D. (2003). Book Review: Working Futures: The Changing Nature of Work and Employment Relations in Australia, Journal of Industrial Relations. 45(1), 113-115. Tan, Y., and Lester, L. (2011). Labour Market and Economic Impacts of International Working Holiday Temporary Migrants to Australia. Population, Space and Place, 13(8) Waring, P., and Lewer, J. (2013). The global financial crisis, employment relations and the labour market in Singapore and Australia, Asia Pacific Business Review. 19 (2), 217-229. Read More