Business management AOS 2 CHAP 6

Question 1

Define Wages and Conditions

Answer 1

When an employee begins work at a business they receive pay and other entitlements.

Pay, entitlements and other working conditions can help a business attract and retain quality employees.

Australia has multiple ways of determining what the pay, entitlements and other conditions of work are for the employees.
Minimum Wage & National Employment Standards
Awards
Enterprise Agreements
Individual employment contracts

Question 2

Minimum Wages & NES

Answer 2

Minimum safety net for all employees.

These are set out in the minimum wage and the National Employment Standards.

These minimums are set by the Fair Work Commission and are reviewed annually.

3 to remember
Minimum weekly hours (38 hours)
Parental leave
Public holidays

Question 3

Awards

Answer 3

Awards
Awards set the minimum wages and conditions of employment for those in a specific industry.

Employees cannot legally receive wages or conditions below those in the award for the industry they are working.

The Fair Work Commission sets the wages and conditions in the awards.

Minimum Wages & NES are protected who are not under a specific award .

Advantages
-Cheaper for the business as they are only providing the minimum wages
-No need to spend time negotiating
-Fewer disputes over wages due to no ability to negotiate as a enterprise level
-They provide a safety net for employees, ensuring they cannot receive wages or conditions below

Disadvantages
-May be more challenging to find talented employees
-Less flexibility to tailor the wage conditions to the needs of the business and employees
- Business may need to implement multiple awards

Question 4

Enterprise Agreements

Answer 4

Enterprise agreement is an agreement between the employee and their employer on the wages and conditions of employment.

Agreements are reached via the process of enterprise bargaining
Enterprise bargaining is the negotiation between the employer and the employees (or their representatives.)

Once parties agree to the condition in the agreement, it is submitted to the FWC for approval.

Before approval, the FWC ensures:
-Both parties have agreed to the terms and bargained in good faith
-Employees are better off overall on the new agreement than they would be on the award
-There is no unlawful content in the agreement
-Not exclude the NES
-include an expiry date

Advantages
-Highly flexible the wages and conditions can be tailored to the needs of the employees and the business
-Can attract and retain high quality employees
-Productivity gains can be rewarded with higher wages/improved conditions

Disadvantages
-Time consuming to negotiate and come to an agreement
-Negotiations can break down, increasing the chance of industrial action
-More expensive for the business

Question 5

Disputes in Workplace Relations

Answer 5

Workplace disputes are a result of disagreements between individuals or groups. This can cause strikes, where employees withdraw from their labor, or a lockout where the employers close down the workplace for a period of time. Other examples of industrial action include protests, vandalism and absenteeism.
In general, the majority of disputes are caused by remuneration, employment conditions, job security and union issues.
Protected industrial action are any industrial actions that have been approved by the Fair Work Commission

Question 6

Define Negotiation

Answer 6

Negotiation is the least formal way of resolving a dispute, and involves the direct discussion between both parties until a compromise or agreement has been achieved.

Question 7

Define Mediation Advantages and Disadvantages

Answer 7

Mediation- The involvement of an independent third party to help guide the conversation to resolve the issue

Advantages
-When parties reach decisions together, it promotes positive working relationships for the future.
-both disputing parties have control over the final decision, meaning they are more likely to be satisfied at the end of the resolution process.

Disadvantages
-It may not be effective for resolving all business disputes as a final decision may not always be reached.
-mediation does not always result in a legally binding decision meaning parties could go back on their agreements in the future.

Question 8

Define Arbitration Advantages and Disadvantages

Answer 8

Arbitration- The FWC makes a legally binding decision to resolve the issue

Advantages
-It guarantees that a final decision is made by a third party, enabling a business to move forward from the dispute.

-The final decision is legally binding, which prevents the occurrence of the same dispute between the two parties.

Disadvantages
-This process may harm future workplace relations if one of the disputing parties involved is unhappy with the final decision.

-Employees have reduced control over the final decision and therefore may be unhappy at the end of this process.

Question 9

Compare Mediation and Arbitration

Answer 9

Arbitration more formal

Mediation no legally binding outcome