1. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–1 Part two The parties CHAPTER SEVEN EMPLOYEE REPRESENTATION: NON-UNION

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–2 Overview  Forms of non-union representation  State-sanctioned non-union representation  Management-initiated non-union representation  Employee representation: efficiency and equity  Final observations  Summary

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–3 Forms of non-union representation  How can non-union representation occur? – ‘State-sponsored’ or ‘management-initiated’. – ‘Direct’ or ‘indirect’ forms of representation. – ‘Consultative’ or ‘decision making’ forms of consultation.

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–4 State-sanctioned non-union representation  The state in European countries has generally promoted a dual system of employee representation: –supporting union representation and –supporting workplace committees elected by all employees.  In some countries, such as Germany, works councils are required under law.  These representation structures are much less common in English-speaking countries.

5. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–5  This section overviews four types of non-union representation structures: 1.occupational health and safety committees 2.non-union collective bargaining and bargaining agents 3.individual contracting 4.works councils for Australia. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–6 1.Occupational health and safety committees: –most widespread of non-union representative structures in Australia:  by 1990, 41% of workplaces with more than 20 employees had a formal OHS committee –established under state OHS legislation:  tripartite workplace structure responsible for management of workplace OHS –OHS committees more likely to exist in unionised workplaces. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–7 2.Non-union collective bargaining and bargaining agents: –non-union bargaining first commenced with the Industrial Relations Act of 1991 in NSW:  permitted collective enterprise agreements without a union respondent  followed soon after by permutations in other states. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–8 2.Non-union collective bargaining and bargaining agents (cont.): –establishment of Enterprise Flexibility Agreements (EFAs) under Industrial Relations Reform Act (Cwth) of 1993:  enabled agreements that were directly negotiated between employers and employees  employer had to be a constitutional corporation. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–9 2.Non-union collective bargaining and bargaining agents (cont.): – Enterprise Flexibility Agreements (EFAs):  expected to enable employers to deunionise workplaces  no evidence—unions typically intervened in registration. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–10 2.Non-union collective bargaining and bargaining agents (cont.): –Workplace Relations Act of 1996 introduced Section 170LK agreements:  replaced EFAs  agreements between constitutional corporations and employees  unions could only intervene if they had members affected by the agreement –ambiguous evidence on whether non-union agreements provide better employee representation. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–11 3.Individual contracting: – Australian system until 1990s focussed on collective employment regulation – first major departure: Employment Relations Act of 1992 (Vic):  created an opportunity for enforceable contracts between employer and employee  collapsed quickly, as many workers were soon covered by federal awards. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–12 3.Individual contracting (cont.): – other states attempted to set up similar schemes:  1993 (WA)—Individual Workplace Agreements  1996 (Qld)—Queensland Workplace Agreements – federal individual contracts: Workplace Relations Act of 1996:  Australian Workplace Agreements (AWAs). State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–13 3.Individual contracting (cont.): – Australian Workplace Agreements (AWAs):  individual agreements, reached between employer and employee  registered with Office of the Employment Advocate, subject to ‘no disadvantage’ test  terms over-ride award or agreement covering the employee. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–14 3.Individual contracting (cont.): – Australian Workplace Agreements (AWAs) (cont):  government’s stated aims: give employees choice free employees from misguided agenda of union officials create the opportunity for new relationships between employers and employees to develop  AWAs have limited coverage—approx. 2% of workforce. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–15 3.Individual contracting (cont.): – Australian Workplace Agreements (AWAs) (cont):  involvement of employees covered by AWAs: 1. Are employee interests recognised when AWAs are negotiated? –Conflicting evidence. 2. Do workplaces with AWAs have better communication, consultation and involvement? –Limited evidence suggests not. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–16 3.Individual contracting (cont.): – Australian Workplace Agreements (AWAs) (cont):  symbolic effect of AWAs:  AWAs used as device to remove union presence  Liberal and National parties see AWAs as central to the future of Australian IR  ALP committed to removing AWAs. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–17 4.Works councils for Australia? – What is a works council?  German model most popular  established by legislation  enables all employees to elect representatives  provides role for trade unions. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–18 4.Works councils for Australia (cont.)? – German works councils have responsibility for:  co-determination rights over ‘social’ matters, such as remuneration, working hours, and ‘personnel’ matters such as recruitment, grading and dismissal  veto rights over transfer of staff  information and consultation rights over personnel planning  information rights over financial matters  strong rights over OHS matters (see main text, p. 237). State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–19 4.Works councils for Australia (cont.)? – increased academic interest in the implementation of works councils in Australia, as a response to a growing problem of employee representation:  decline in union membership  generally poor level of union workplace organisation  dominance of management prerogative  employees unable to participate in workplace decision making  efficiency gains lost due to lack of communication. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–20 4.Works councils for Australia (cont.)? – increased union interest:  Evatt Foundation 1995  ACTU, Unions@Work, in 1999  ACTU 2001 and 2003. State-sanctioned non-union representation (cont.) The Australian experience of state- sanctioned non-union representation (cont.)

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–21 Management-initiated non-union representation  Management has had an intermittent interest in employee participation. – Ramsay (1977, 1993): management interested during times of worker strength and management weakness. Lost interest when threat passes. – Ackers et. al. (1992). Ramsay doesn’t explain the persistence of management interest after the threat had passed. – Lansbury and Wailes (2003): management’s interest is conditional, but it is affected by a wide range of contextual factors.

22. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–22  Performance gains resulting from employee participation have also been influential: – participation as pathway to employee satisfaction and economic success. For example: – Hackman and Oldham’s ‘job characteristics’ theory: worker autonomy key variable in motivation – neo-human relations school—McGregor, etc. – participation central to ‘socio-technical’ systems of work organisation. Management-initiated non-union representation (cont.)

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–23 1.Management interest in teamwork and empowerment as a consequence of the downsizing of the 1990s. 2.Management interest in employee participation as a consequence of changing strategies of production: –employee involvement essential to the ‘new ‘production processes of post-Fordism. Management-initiated non-union representation (cont.)

24. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–24  There is a strong set of criticisms about the plausibility of such schemes: – devolution of responsibility is limited – teamwork is a strategy used to win more effort to achieve management’s goals, not the employees’ goals.  Management’s motives in initiating non-union representation are not clear. Management-initiated non-union representation (cont.)

25. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–25  Overview of the history of Australian management’s approaches to employee representation: – until 1970s, reactive, and uninterested in employee participation. –beginnings of a more sophisticated management approach during the 1980s –the development of employee representation from the 1990s onwards –recent studies about the implementation of management- initiated representation approaches. Management-initiated non-union representation (cont.) Management-initiated employee representation in Australia

26. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–26  No real interest in management in employee representation approaches until the 1970s: – implemented approaches were typically narrow in scope and did not challenge line management’s authority – by end of 1980s, few formal consultative committees. Management-initiated non-union representation (cont.) Management-initiated employee representation in Australia (cont.)

27. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–27  Beginnings of a more sophisticated management approach during the 1980s: –employers more interested in employee participation in the wake of union and government interest in ‘industrial democracy’ –employers had two major concerns:  unions should not be the sole instrument of employee participation  employee participation should be voluntary, rather than legislated –BCA’s interest in ‘new’ management styles based on employee participation. Management-initiated non-union representation (cont.) Management-initiated employee representation in Australia (cont.)

28. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–28  Development of employee representation from the 1990s: –rhetoric of employer associations in this period highlighted the need for more and better employee involvement:  increased professionalism of the HR/IR management function  increased focus on internal activities (less interest in external activities)  implementation of ‘new’ work organisation approaches requiring increased employee involvement. Management-initiated non-union representation (cont.) Management-initiated employee representation in Australia (cont.)

29. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–29  Recent studies of Australian implementation of management-initiated representation approaches: – evidence of increased effort by employers to improve workplace communication (Benson 2000, Kitay and Lansbury 1997) – increased use of employee briefings and other means of communication (Kramar 1999) – increased adoption of methods of employee participation but not increased employee discretion (Harley et al. 2000) – but reduced prioritisation of employee participation and teamwork by HR staff (Fisher et al. 1999). Management-initiated non-union representation (cont.) Management-initiated employee representation in Australia (cont.)

30. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–30 Employee representation: efficiency and equity  Clear theoretical evidence—outlined in Chapter 10—that effective employee participation results in improved organisational efficiency and effectiveness.  Researchers have struggled to establish an effective means of measuring the relationship between participation and efficiency.

31. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–31 Final observations  Non-union representation is a growing issue in Australian public policy, given the decline in union representation.  Increased level of employee involvement has significant implications for improved workplace equity and efficiency.  Australian Federal Government has sought to assist development of collective and individual non-union representation approaches.  Although evidence is limited, there is no clear evidence that employees are having an increased role in workplace decision making.

32. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 7–32 Summary  Widening ‘representation gap’ with adverse implications for workplace efficiency and equity.  Ways of describing non-union employee representation: – state-sanctioned and management-initiated – direct vs indirect forms of representation – consultative vs joint decision making.  Management’s motives for improved employee involvement are unclear.  Although evidence is limited, there is no clear evidence that employees are having an increased role in workplace decision making.