The paper “ Industrial Relations in Aviation and Creating the Multicultural Organization” is a potent example of a literature review on human resources. The article by Bussell (2010) looks at the industrial relations (IR) in the aviation industry. The article looks at the IR issues in the industry through a practitioner perspective. The article starts by outlining that the cost of getting the IR wrong can be bankruptcy for the industry. The first area that the article looks at is providing adequate information about the airline industry so that it can provide a specific perspective on IR.
The second area that the article looks at is the national debate on IR. The article addresses the issues of IR through Qantas Airlines in Australia (Bussell, 2010). The report outlines that the airline industry is a low margin, low return, highly competitive and needs high investments. The three main important outcomes of the airline industry are cost control, wage control, and industrial relations. This has made airlines such as Qantas to be tough on their industrial relations policy. Competition is high both domestically and internationally with Qantas losing its share of the international market.
The decline of air ticket costs poses a major problem to industrial relations. This is due to the fact labor cost plays a key part in the total cost structure (Baird, 2011). The wages have become competitive and control of wages is fundamental to the airline industry (Morley, Gunnigle & Collings, 2006). The article explains that when an airline loses control of its costs, the results are; aging aircraft, uncompetitive products, and decline as was the case of Ansett.
Qantas has a tough IR to remain profitable and provide employment (Bussell, 2010). The article points out that the safety net was strengthened by the Fair Work Act and the expansion of that Legislated National Employment Standards. This has protected employees from unfair dismissal established awards and special arbitration for low paid employees in the industry. The safety net in the industry has helped the employees to reduce venerability when bargaining with the employer. The article states that Qantas has comprehensive human resource policies that have enhanced employee safety. There is the introduction of the “ good faith bargaining” which requires the employer to be involved in collective bargaining.
This also implies that the parties involved in the IR will not have obligations and responsibilities. The airline experience with the new bargaining rules is limited (Bussell, 2010). Under the Fair Work Act, future agreements in the industry will be carried out directly with the employees as opposed to the unions. This according to the article will compromise individual and collective interests (Kelly, 2002). Under the new flexible arrangements, the employees have a right to walk away from any agreements if they provide 28 days notice.
This makes it hard for unions to manage evolving trends. The article concludes that the current legislation has tension. Fair Work which is seen as a repeal to WorkChoices is an extension of the safety net. The article sees enterprise bargaining as the center of the aviation industry relations. This makes it fundamental to airlines such as Qantas for their success to understand enterprise bargaining (Bussell, 2010).