Australian System of Employment Relations

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Table of Contents

Introduction
Acts and Accords
Australian Fair Pay Commission
Australian commission on Industrial and Relations
Australian Council of Trade and Union
Conclusion
References

Introduction

The industrial and economic growth of any country depends solely on the contribution from the government of the time. In this case, Australia is not exceptional. Any industrial establishment works based on the Human Resource Management theories, which can be divided into three: cultural theory, environmental theory, and leadership management theory.

It is from the three theories that the governing laws of most business establishment are drawn. The cultural theory encompasses the cultural change of the people at the time. The environmental theory looks vividly at the organizational domain. Does the company offer the best atmosphere for the betterment of its workers?

The leadership management theory is the most important since it gives an outlook of interaction between the management and the workers. It is on leadership and management theory that the government’s contribution is highly recognised. The laws and by-laws set by the sitting government depend primarily on this theory.

This paper discusses the role the governments have played in the establishment of the Australian systems of employment relations since 1980. The government has actively participated in the establishment of laws and bylaws that impose checks on the impeachments on the workers.

The government has been on the forefront in setting up the laws that allow the establishment of acts of parliament, commissions, unions and associations among other obligations taken by the government to ensure industrial expansion for economic growth.

Acts and Accords

The government regulatory policy on the fair working condition between the employer and the employee relies on the Acts established and passed by the parliament. The acts define the relationship between the two parties, the employee and the employer. It outlines the rights and obligations of each party.

The Australian government did this through the establishment of acts such as the work place relations act, fair work act, work choices act, and prices and income accord amongst other statutory acts of parliament.

With the establishment of the working relations laws, there was a need to come up with an office that would ensure the compliance of the established law hence the establishment of the Fair Work Ombudsman. As Sloan (2011) states, “employees can arrange their workplace relations” (p. 19).

The office of the Fair Work Ombudsman was established on July 2009 to promote production, harmony, and promoting cooperative work place relations. Nevertheless, “Australian wage equation comes…in terms of nominal wages” (Lewis & Kirby 1987, p. 157).

The establishment of Fair Work Ombudsman provided a ground for the employee, employer, and the organization to comply with the Australian Government’s newly established workplace relations laws. The office ensured that the law set by the government is communicated to both employees and the employer. The office provides vital information to the employee.

This information includes payment structure, awards depending on the output, employment opportunities, rules and guidance concerning the same, information on the rights pertaining leaves, information on termination of the contract and any further complaints.

The Australian Fair work system came into effect on July 1 2009 following the passing of the Fair work act. This system came in to override the work place relations act. In addition, “the purpose of a minimum wage is to reduce household poverty” (Kaufman 2010, p 430). Concisely the law brought out the balance to needs of both the employee and the employer.

By the year 2010, the Fair work system was fully in operational. In regard, “the panel reached its first decision in June 2010, increasing the minimum wage” (Sloan 2011, p. 22). The system provided a better ground for the special low paid bargaining for the low income workers such those working for the child care, security, community service and even those attending to the old age people.

The law provided for protection against unfair dismissal from work thus eliminating the chances of the employer relinquishing an employee the duties without following the set regulations. The law further provided for good and fair negotiating table for the agreement of the employee and the employer.

The “ombudsman needs to be, and not to be seen to be, independent of the executive” (Kirkham 2011, p 72). The streamlined general protection for the workers was enshrined in this law with the freedom to be represented in workplaces. The law still paved way for the implementation of a new national workplace tribunal to listen to complaints from both the employee and the employers.

With the changing times, there was a need for the amendment of the Workplace relations act, this came in 2005 as the work choices. The work choices came into effect in March 2006. Howard Government passed it in 2005. It is regarded as an industrial relations act in Australia. This particular act sets out the laws for the relations between the industrial management and workers in that company.

As stated, “the job satisfaction is a person’s perception” (Holland, Pyman, Cooper, & Telcher 2011, p.97). The act set a stage for the improved employment levels and the national economic performance. The laws were to serve the public, “Ombudsman reports enhanced legal authority by making their findings legally binding on public bodies” (Kirkham 2011, p. 71).

This was reached by simply dispensing with unfair dismissal laws for a company hence removing no disadvantage test. The law further enhanced individual self-efficiency through freedom of choice and negotiation. The law further required workers to submit their certified agreements directly to workplace authorities.

Initially these agreements were being submitted through the Australia Industrial relations commission. This further enhanced the freedom of the workers. In support of this, “a call for employee involvement practices to promote organizational commitment and performance” (Holland, Pyman, Cooper, & Telcher 2011, p. 96). The law still compromised work force’s ability to go on legal strikes.

Instead, it provided the grounds and opportunities requiring the workers to bargain for the previously guaranteed conditions without collectively moving to the streets in the name of striking.

The strikes came as a great cost to the economy of the country and thus worth avoiding. This opened up the opportunity for the workers to present their grievances. The law still restricted the activities of the trade unions and consequential recruitment on the work site. It required the unions to recruit their members through a legalised process.

The agreement between the Australian council of trade union and the Australian labour party government of Prime Minister Bob Hawke and Paul Keating came up with the establishment of prices and income accord. The union agreed to restrict wage demands. The dubious increase in wages affects substantially the economy of the country thus has to be checked at all cost to combat this situation.

Through the agreement, the government pledged to minimise inflation and thus it became as a claver decision not to allow any means that could injure the economic stability of the country by causing inflation. The government still pledged to increase spending on education and welfare. The achievements accrued from this included the establishment of the economic Planning Advisory Council.

This advisory ensured the protection of the economic situation of the country through legal economic processes. With the introduction of the Tripartite Australian Manufacturing Council together with other industrial councils, the Australian government was able to all the industrial performances and practices. Through this process, it became easier to detect any evasion of the laws governing the industrial activities.

To the workers advantage, the law initiated the introduction of the National Occupation Health and Safety Commission. This commission ensured that each worker enjoyed adequate health provision. The law still provided for the increase in family income supplement for low-income workers. The government ensured targeted tax cuts for the fore mentioned group and the middle-income workers.

This helped in reducing the gap between the high-income earners and the low-income earners. Through the law, the government established scheme that ensured increased pensions and non-employment benefits. To ensure increased employment, the government introduced various steel and vehicle industry plans that were established with time.

Australian Fair Pay Commission

Australian fair pay commission was established under the Workplace relations act of 1996. As an independent body, the commissions mandate involved the responsibility for adjusting federal minimum and classification of wages. Taxation as Atkinson and Leigh (2007), states is “in Australia the tax unit is the individual” (p. 249). This ensured promotion of the economic success of the people of Australia.

The commission ensured that the working environment of the workers was well catered for in every industry. Among its functions, the commission ensured wage setting and promotion of the public understanding of their rights and obligations as industrial workers. The commission is supported by the Australian Fair Pay commission secretariat.

The secretariat supports research, manages communications, and coordinates consultations. The commission before reaching any laws goes a long way in carrying out research to establish the needs of both the employer and the employees. “Minimum wage set below the poverty line would not provide a safety net for low paid” (Harper & McKibbin 2010, p 317).

The Australian fair pay commission sets out the limits of wages paid to the Australian workers. This goes a long way in combating inflation and exploitation on the workers part. At the same time, the commission ensures that the industries do not suffer in return. The commission still ensures that the tax paid by the low and medium earners is checked.

Australian commission on Industrial and Relations

The Austrian commission on Industrial and Relations was set up to provide services as the Central Institution of Australian labour law. It acts as the industrial tribunal in Australia with powers under the Workplace Relations Acts 1996. Its mandate is to hear and arbitrate industrial disputes commissioned by either the workers or the employer.

The commission is mandated to determine the awards to individuals. The commission bears “…judicial responsibilities of interpreting and enforcing the law relating to the industrial relations and workers problems” (Dixon, Madden, & Rimmer 2010, p. 1371).

Still the commission is mandated to “hear and determine other criminal and civil cases relating to the industrial relations and disputes” (Dixon, Madden, & Rimmer 2010, p. 1370). The commission settles disputes arising from the differing industries and even between the industry management and the workers of the fore said industry.

Australian Council of Trade and Union

The Australian Council of Trade and Union represents workers. The body is a national trade union centre made up of more than forty affiliated unions. The unions comprise of association of professional engineers, scientists and managers, Australian, Australian meat industry employees union, and Australian education union among many other unions.

The unions’ objectives include the socialization of the industry, organization of the wage and salary earners especially those from the industrial workplace, and the utilization of the Austrian resources to maintain full employment. The employment standards ensured the equitable living standards, which increase with the output. The union enhanced the development of talent.

After the elections in 2007, “…the unions focus turned onto the campaign to restore the workers’ rights” (Dixon, Madden, & Rimmer 2010, p. 1370). This agenda was driven under your Right at work campaign banner.

The union took upon itself to ensure the implementation of the rights of the workers. The union running the workplace health and security did this. This also involved the establishment of a plan with other unions under your Right at Tesla campaign, and the supporting the rights on site campaign. The union fought for the workers and their rights.

Conclusion

In conclusion, the Australian government has played a major role in the improvement and development of the working relations system in Australia. The government through the parliament came up with laws governing the operations in the industries. The government was able to provide workers with the health needs and even propagated for the gender equality at work.

In addition, “the Australian council of trade union requested a flat increase for the workers” (Dixon, Madden, & Rimmer 2010, p. 1370). The system made it possible for the workers to participate in the wage determination and further provided for the avoidance of strikes, which imposed greater implications on the economy of the country.

References

Atkinson, A & Leigh, A 2007, ‘The Distribution of Top Income in Australia’, Economic Record, vol. 83 no. 262, pp-247-261.

Harper, I & McKibbin, R 2010, ‘Minimum Wage Setting under Fair Work Australia: Back to the Future’, Australian Bulletin of labour, vol. 36 no.3, pp-314-320.

Holland, P, Pyman, A, Cooper, B, Brian, K, & Teicher, J. 2011, ‘Employee voice and job satisfaction in Australia: The centrality of direct voice’, Human Resource Management, vol. 50 no. 1, pp-95-111.

Kaufman, B 2010, ‘Institution Economic and the Minimum Wage: Broadening the Theoretical and Policy Debate’, Industrial & Labor Relations Review, vol. 63 no. 3, pp-427-453.

Kirkham, R 2011, ‘Implementing the recommendations of an ombudsman again’, Journal of social welfare & family law, vol. 33 no. 1, pp-71-83.

Lewis, P & Kirby, M 1987, ‘The Impact of Income Policy on Aggregate wage Determination in Australia’, Economic Record, vol. 63 no.181, pp-156-162.

Madden, J & Rimmer, M 2010, ‘Linking National and Multi-regional Computable General Equilibrium (CGE) Models: The Effects of an Increase in Awards Wage Rates in Australia’, Regional Studies, vol. 44 no.10, pp-1369-1385.

Sloan, J 2011, ‘Evaluating the Fair Work Act’, Policy, vol. 26 no. 4, pp-19-24.

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