1. Chapter 5 Industrial relations
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2. 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.)
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3. 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.
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4. 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.
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5. 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.
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6. 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.
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7. 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
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8. Table 5.2  Changes in dispute-resolving mechanisms between 1990 and 1995
Specialist IR manager
Joint consultative committee
Disciplinary procedure
Grievance procedure
Formal monitoring
Training of supervisors in IR
OHS committee
EEO/AA policy
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.
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9. Table 5.3 Parties involved in workplace dispute resolution clauses
External party involved
in dispute resolution (n = 1000) (n = 1000)
Mediator
AIRC
Board of reference
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
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10. 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)
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11. 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
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12. 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
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13. Union responses to the decline of unionisation
‘Damage control’
Recruitment of new members
ACTU campaigns:
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.
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14. Growth of employer prerogative
Example: Mudginberri dispute in 1985
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15. 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.)
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16. 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
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17. 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.
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