12 BUS Ch 6 Employee relations Flashcards Preview

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Flashcards in 12 BUS Ch 6 Employee relations Deck (64):

Employee relations

The total interaction between an employee, employer and their representatives in regard to the establishment of conditions of employment


Employer(for legal purposes)

someone who exercises control over employees, is responsible for payment of wages and holds the power to dismiss employees


Employee(legal purposes)

A worker under an employer's control which may involve: the location of the workplace, the way in which the work is performed and the degree of supervision involved.


Trade unions

Organisation's formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their employees


Employer associations

Organisations that represent and assist employer groups


Log of claims

A list of demands made by workers against their employers.



When a third party participates in the resolution of a dispute and attempts to help resolve the differences through discussion.



When a judge or a panel of judges hears both arguments in a formal setting and then determines the outcome


What are the 5 key roles governments have in the employee relations process

1. Legislator
2. Employer
3. Economic manager
4. Administrator of government policies on employee relations.
5. Representative of Australia in the international arena


What does The Fair Work Commission do?

Promotes compliance with the legislation through education, information and assistance.
Monitors compliance with legislation


What is a centralised system?

Where governments and tribunals control the process of wage determination.


What body determines the minimum wages?

Minimum Wages Panel of the Fair Work Commission


What are the advantages of the centralised system?

1. There's a degree of comparative wage justice and equality for workers employed by a different employer.

2. Gov has greater control over wage outcomes so can maintain between economic management.

3. Industrial disputes can be reduced because awards cover entire industries.

4. One set of rules ensures stability and predictability


What are the disadvantages of the centralised system?

1. Less flexible

2. Only provides limited opportunities for individual businesses to provide improved employment conditions in return for productivity gains.

3. Large unions are favoured due to their wealth.

4. Less incentive for participative approach to management


Advantages of a decentralised system?

1. More flexibility
2. Greater communication---->improved motivation
3. Greater effort and contribution due to reward incentives.


Disadvantages of a decentralised system?

1. Greater inequality between wages of skilled and unskilled workers.

2. Harder to control the economy

3. Industrial disputes can drag out for longer


What is the role of employers in the employee relations process?

~Negotiate terms in line with org objectives.


Role of employees in employee relations process?

~Negotiate their conditions of employment with employer.
~May want more challenging work, higher pay, more decision-making authority.


Collective/enterprise agreement

A negotiated agreement between an employer and a union or group of employees


common law individual contract

Covers employees who are not covered under any Award or collective agreements


What is the role of industry-wide awards?

They provide a set of minimum employment standards for employees working within an industry.


What is award modernisation?

It is where all individual overlapping awards were amalgamated to remove inconsistencies between industries to reduce the number of Awards


What matters are covered by NES?

-Leave entitlements
-Maximum weekly hours of work
-Notice of termination and redundancy pay
-Rights and entitlements of employees


What matters are included in modern awards?

-Types of employment
-Minimum wages
-Penalty and overtime rates
-Superannuation arrangements
-Procedures for disputes etc


What must a collective agreement include?

1. 10 national employment standards
2. Procedures for dispute settlement
3. Terms that allow individual flexibility
4. Provisions for consultation with employees when change occurs


What is good faith bargaining?

Where both parties act ethically in the bargaining process and do not force decisions


What does the Fair Work Commission ensure before approving a collective agreement?

-Both parties agree to the terms
- Employees have been consulted
- Employees will be better off overall
- consistency with the NES
- consistency with legislation.


What are the requirements of individual agreements?

-Must conform to existing awards
- Conditions cannot be reduced if wages are paid above the award.


When can a common law contract exclude award conditions?

When the employee earns above $133 000



A legally binding agreement that sets out minimum wages and conditions for an industry of employees


Collective bargaining

Determining the terms and conditions of employment through direct negotiation between unions and employers


Enterprise bargaining

Process of directly negotiating wages and employment conditions between employer and employees at enterprise level


Who are the key stakeholders in the internal environment and their role in employee relations?

~Employers- Negotiate work conditions, develop programs in accordance with objectives, handle issues.

~Employees- negotiate their working conditions, ask for expectations to be met.


Who are the key stakeholders in the operating environment and their role in ER?

~Trade Unions- represent employees, best possible agreement.

~Employer association- represent interests of employers, assist creating policies and procedures, inform employers of legislation


Who are the key stakeholders in the macro environment and their role in ER?

~Peak Union Bodies- represents union movements in court and in gov dealings, campaigns politically on behalf of unions.

~Peak Employer Bodies- same but for employer associations


Role of Fair Work Commission?

~Promotes compliance with legislation
~ Inspects and monitors workplace


What are the roles of HR managers in ER?

1. Deal with disputes
2. Implement agreements
3. Negotiate agreements
4. Train other managers


Negotiation process

1. Be aware of legislation and Awards.
2. Ensure relevant info is available to employee representatives.
3. Consult widely.
4. Keep an open mind.
5. Keep the big picture in mind.
6. Exercise care with wording of agreement.
7. Lodge agreement


Why do other managers need to be fully informed of agreement details?

~To ensure procedures are put into place.
~Increase productivity
~Track progress of changes


What do HR Managers do when implementing agreements?

-Make changes to wages, work hours, entitlements and flex arrangements.

-Preparing and distributing legal requirements

- seek feedback

- Prepare performance indicators


What management styles result in positive employee relations?

Consultative and participative


Why are participative and consultative management styles encouraged?

-Employee involvement
- harmonious and positive work relationships
- innovation


What management skills are important in employee relations?

1. Communication
2. Delegation
3. Teamwork
4. Problem-solving


What are the benefits of positive employee relations ?

1. Superior overall performance
2. Success in international markets
3. Fewer disputes
4. Higher productivity
5. More effective enterprise agreements
6. Fewer accidents
7. Lower turnover and absenteeism



Disputes, disagreements or dissatisfaction between individuals and groups



Occurs when employees withdraw their labour for a period of time in pursuit of improvements in their employment conditions



Occurs when employers close the workplace for a period of time as a means of applying pressure to employees during a period of industrial conflict


Green bans

Bans imposed by trade unions on any development that is considered harmful to the environment or an area of historical significance


Protected industrial action

Action taken by either party to a dispute that has been approved by the fair work commission


Unprotected industrial action

Action that has not been approved by fair work commission



A method of resolving disputes whereby discussions between the parties result in a compromise and a formal or informal agreement about a dispute



The confidential discussion of issues in a non-threatening environment, in the presence of a neutral third party.


Grievance procedure

Provides an orderly system whereby the employee and employer can resolve matters relating to complaints about wages, hours, working conditions or disciplinary action


What is the typical grievance procedure?

1. Present complaint to supervisor
2. Complaint handled by middle management in a meeting.
3. Meeting with both parties with top management and a grievance committee.
4. Matter referred to external conciliation or abstraction


How can the Fair Work Commission resolve workplace disputes?



Why should a consultative or participative management style avoid going to court?

~Prolong hostility and mistrust in workplace.


What are some forms of industrial action?

~Picket lines
~Work bans
~Absenteesim, vandalism, sabotage


What are some causes of conflict?

~Employment conditions
~Job Security
~Managerial policy issues
~Union issues
~Political or social protests
~Conditions of employment


Under what circumstances is industrial action considered protected?

~majority of union votes in favour
~employer is informed


Under what circumstances is action considered unprotected?

~when it takes place before expiry date of previous agreement
~without proper warning


What is the aim of employee relations?

To reduce conflict through effective procedures and relationships


What are some business objectives that relate to employee relations strategies?

-Profit and profitability
-Customer and staff satisfaction
-Improving product quality
-Acting ethically
-Social responsibility


Similarities between centralised and decentralised?

~Relate to how wages and conditions of employment are determined.

~Use Awards to determine conditions and wages.

~Gov body sets minimum wage.

~FWC can be involved in conciliation and arbitration.


Decentralised system

Where employees are able to negotiate agreements with employers in individual workplaces