Chapter 5 Industrial relations Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Industrial relations (IR) Objectives Discuss the role of HRM and the Commonwealth Government's pursuit of a neo-liberal IR agenda in bringing about the decentralisation of Australian IR. Describe the emergence of workplace bargaining and changes to dispute resolution processes which have led to a move away from industrial tribunals. Analyse the changing nature of employment relationships, including the emergence of individual agreements, non-standard employment arrangements, contracting-out and privatisation. (cont.) Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Industrial relations (IR) (cont.) Objectives Explain the reasons for declining membership of Australian unions. Discuss the industrial relations challenges for the HR professional of the future. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Industrial relations (IR) Employees and their unions, employers and their associations, and governments and industrial tribunals are all actors involved in regulation of the employment relationship. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Decentralisation of industrial relations Lowering of the centre of industrial relations activity from the Australian Industrial Relations Commission (AIRC) to the level of the individual workplace. The AIRC is the federal industrial tribunal established to implement section 51(xxxv) of the Australian Constitution, which empowers the Australian Government to legislate for the prevention and settlement of interstate industrial disputes. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Enterprise bargaining (also workplace bargaining) Direct negotiations between an employer (or enterprise) and employees (or their representatives) with a view to deciding terms and conditions of employment. Enterprise agreements Agreements negotiated between an employer and employees, in conjunction with awards, as the primary instruments to regulate employment conditions. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Workplace Relations Act (WRA) 1996 The WRA provides for four forms of employment regulation: Awards Written determinations created by federal or state industrial tribunals, specifying the minimum terms and conditions of employment, such as hours of work, minimum pay and types of leave allowable. Collective union agreements Collective non-union agreements Individual agreements Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Table 5.2  Changes in dispute-resolving mechanisms between 1990 and 1995 1990 1995 Specialist IR manager 34 46 Joint consultative committee 14 33 Disciplinary procedure 73 92 Grievance procedure 49 71 Formal monitoring 42 46 Training of supervisors in IR 39 72 OHS committee 41 43 EEO/AA policy 58 67 Note: This table shows the changes in workplaces with 20 or more employees. Source: Compiled from A. Morehead, M. Steele, M. Alexander, K. Stephen & L. Duffin, 1997, Changes At Work: The 1995 Australian Workplace Industrial Relations Survey, Longman, Sydney. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Table 5.3 Parties involved in workplace dispute resolution clauses External party involved 1999 2001 in dispute resolution (n = 1000) (n = 1000) Mediator 45 101 AIRC 978 989 Board of reference 4 5 Source: B. van Gramberg, Exploring Avenues for the Growth of Private Alternative Dispute Resolution in Australian Workplaces, in I. McAndrew & A. Geare (eds), 2002, Proceedings of the 16th AIRAANZ Conference, Association of Industrial Relations Academics of Australia and New Zealand, Queenstown, 6–8 February, pp. 525–35 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

The changing nature of employment Emergence of non-standard forms of employment Casualisation of the workforce Outsourcing and contracting Australian workplace agreements (AWAs) Agreements negotiated directly between an employer and employee(s), and introduced under the Workplace Relations Act 1996 (Cwlth) Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Declining unionisation rates in Australia Unions Collections of workers who have joined together in order to better their terms and conditions of employment 1986: 46 per cent unionisation 2003: 23 per cent unionisation 2005: 22.4 per cent unionisation Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Factors in the decline of unionisation Legislative changes Decentralisation of IR Introduction of HRM practices Downsizing of the public service Restructuring of industry Increased participation of women in workforce Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Union responses to the decline of unionisation ‘Damage control’ Recruitment of new members ACTU campaigns: unions@work launched in 1996 Three themes: Issues for unions in the wider society The challenge of organising heartland workplaces The challenge of organising new members In 2003, the ACTU launched Future Strategies: Unions Working Together for a Fairer Australia. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Growth of employer prerogative Example: Mudginberri dispute in 1985 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

IR challenges for the future Decentralisation, deregulation, neo-liberalism HR challenge: strong analytical skills Flexible work practices HR challenge: strategic decisions about appropriate forms of employment contracts Non-unionised environment Extent of engagement with unions (cont.) Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

IR challenges for the future (cont.) Unitarist management policies HR challenge: manage employee recruitment and retention Market-based IR HR challenges: Targeting and developing employees with relevant skills Skill formation Managing employee turnover Employment contract management Mentoring and coaching of a diverse and highly skilled workforce Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.

Summary Since the 1980s, there have been three interrelated developments in Australian IR: Decentralisation Deregulation Neo-liberal policies The changing IR context creates an array of new challenges for HR professionals. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri et al.