Flashcards in 12 BUS Ch 6 Employee relations Deck (64):
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
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.
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
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
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.
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?
-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
-Penalty and overtime rates
-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
Determining the terms and conditions of employment through direct negotiation between unions and employers
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
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.
~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?
- harmonious and positive work relationships
What management skills are important in employee relations?
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
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.
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?
~Absenteesim, vandalism, sabotage
What are some causes of conflict?
~Managerial policy 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
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.