Industrial Disputes in Australia - Essay Example

?Report on Industrial dispute in Australian Industries Introduction For the past decades, the staff and the employers in the public sector have been engage in prolonged industrial conflicts due to several issues, which include poor wages and service conditions in the workplace. These issues represent the primary causes of dispute and there are other minor but equally important sources of industrial relations. Most of these disputes have now escalated into a wider struggle with political connotations hence leading to possible emergence of anti-imperialist bodies. When employees continue to press for their demands, they are sometimes considered greedy by the management who expect more work from them with little complaints. The employees are thus sometimes considered acquisitive, selfish and a union that has a tendency to consider itself as a political watchdog of the management and abandoning their primary goal of work. This paper reports about origins, development, primary causes and the effects of industrial disputes between the employees and the employers in state corporations. The wider aspects of these industrial disputes go to wage disputes, which most managers cannot justify especially after the global economic crisis. The consumers of goods and services, which results from these state corporations, have suffered a great deal. The quality of goods and services that results from these state corporations have also been greatly compromised since the employees have not devoted a good quality of their time to service. Industrial disputes in Australia Strikes are shaped on many levels that range from the macro to the mundane, as such, attempts to understand strikes must include broadest implications of industrial relations landscape. This includes the basic right of an individual in society and the rights of the employers as well; the country and its troubled social and political history must work to forge an understanding of social welfare and how to respond to them. Since the realization of industrialization, various social groups have been contributing to the democratic process in the work organizations (Bray Warring and Cooper, 2004). There is a considerable tradition and demonstration and campaign for change in most parts of the world. In the university level, students repeatedly mobilize and demonstrate against government measures and core of the union activists agitating from within the political system, causing a lot of disruptions in the learning system. Neoliberalism and labour Neoliberalism reforms, macro stabilization and structural adjustments programs promoted by international financial institutions, state reform, trade and investment liberalization seen in most parts of the world has enlightened the work operations. These reforms have led to creation of free market economies of all types followed by liberalization regimes resulting into protective labour standards. The reduction of employer’s contribution to social security and the dismal of workers with good jobs increased subcontracting of production resulting into increased employment based on low wages and low job security (Price, 2007). These developments weakened the capacity of labour relations to represent the workers hence leading to several disputes arising from workers. The establishment of entrepreneurial society dominates moat organizations leading to unexpected labour relations (Alexander and Lewer, 2004). Key developments in Australian employment relations The political and employment relations process at the national level led to the creation of new rules to take care of employment interest and to increase the cooperation between the employer and the employee. The swearing in of Rudd Labour Government and the appointment of Julia Gillard as deputy prime minister saw a number of changes in employment relations but the path to change seemed slower and complicated than anticipated (Burgess and McDonald, 2003). The government has been subjected to a lot of pressure on employment and increase in wage demands from the workers in the public sector. The developments in the economy is creating serious challenges for the government most of which rise from domestic economy due to price rise of basic commodities. Mr Rudd’s government wanted government to promote social democratic ideals and policies as a solution to most of the industrial problems in Australia. The consultations between both the unions and employers over the shape of the proposed transition began in 2007 with the aim of coming up with a legislation that reflects the true picture of workers in the dynamic world. This resulted into workforce amendment Act that contained several amendments relating to employment issues (Dabscheck, 1995). This involved a huge task that aimed at avoiding increases in labour costs and result into no disadvantage to employees. The workers also had the right to a requirement for minimum termination notice and redundancy hence it relieved workers a lot of stress. Australian fair pay commission and minimum wages The Rudd government established the Australian fair play and returned the determination of minimum wage and this motivated the workers. The government continued its role in annually reviewing the minimum wage by consulting stakeholders and the community involved (CCH, 2009). The government suggested an increase in minimum wages to assist the low paid worker cope with the tough economy. The fair work Act made public during 2008 had features of legislation subject to private consultation only. Deputy Prime Minister Gillard spoke about a government decisions to return to compulsory arbitration and establishment of special bargaining hence arbitration arrangements in newly established industries. These decisions represented the controversial part of the bill thus the rest of the bill was not made public until the sitting of the house of representative later that year Industrial disputes Industrial dispute is the disagreements that arise from two disputants mainly the labour and the management of a particular industry. These disagreements are usually of any kind concerning an individual or collectedly through a group hence, it is a matter of employer verses the employee. Industrial disputes mainly result due to lack of cooperative nature of the management and the workers on simple issues leading to disruption of the production process (Easson and Shaw, 1990). The prolonged industrial unrest leads to negative consequences to both the management and the employees and it is also likely to affect the economy negatively due to the interference with the production process. Economically, industrial disputes leads to increase in average cost of production since fixed expenses continue to be incurred hence the management may experience many losses if the dispute last for long. It also leads to fall in sales due to lack of workers in production and sales departments leading to low rate of turn over hence a fall in profits. The employer may be liable to par his customers whom he has contracted for that period hence giving him extra losses (Price, 2007). The loss of prestige and credit that result from negative image created by disputing workers may also damage the good relationship the company has with the public. The psychological and social consequences are likely to arise due continued unrest, which is likely to damage the image of a protesting worker. Some arrogant workers may resort into destruction spree leading to loss of property leading to closure of the company. During the dispute process, some of the employees and even the employers may incur injuries resulting from pressure exerted by both sides of the disputing teams. Some injuries may be so severe that they may even occur to loss of lives of the workers and employers. Cases of intimidation are also likely to arise during the dispute process mainly from the police officers who may attempt to calm the situation leading to a lot of inconveniences of various forms. The employee is also a victim of industrial disputes and as such, he should try to avoid it as soon as possible. The regular income usually enjoyed by working employees may be terminated by the employer during the unrest period leading to a lot of financial problems in the long run. This may result into family hardships because the source of income shall have been greatly interfered with. This may further results into family disputes due to financial stress and additional health deprivations such as malnutrition and even starvation in the long run. Most trade unions never provide for workers who are on strike; hence, worker should carefully plan their lives in order to escape the negative consequences of the strike. Employees are also likely to suffer from personal injuries which results from continued fight with people like the police who in most cases are brutal to striking workers. The psychological and physical stress may also result from forced idleness leading to hopelessness in life for lack of stable income for the employees. Sometimes the employees are threatened with loss of employment, which also results into a lot of personal discomfort (Alexander and Lewer, 2004). The country also faced negative consequences, which arise from prolonged strikes due to lack of economic development in terms of national productivity and national income. Goods produced by industries, which results from strikes, are greatly reduced. Reduction in productivity affects the foreign exchange earnings of a country due to lack of enough goods to export. Weapons used by labour during industrial disputes Whenever a dispute between the employer and the employee arises, workers usually opt for strike, boycott, picketing and gherao to show their disappointment with their employer (Price, 2007). This is the most powerful weapon by trade unionists enforcing the management to accept their demands in the course of dispute before they resume work. Strikes can be primary or secondary strikes; primary strike is further divided into economic, general and stay in strike. In economic strike, the labourers demand increase in wage levels, traveling allowance, and house rent allowance and dearness allowance in the pay and this is the most common type of strike due to harsh economic times. The general strikes are composed of members of all or most of the unions in an area or an organisation to force demands for all common workers. In the stay-in-strike, workers do not absent themselves from their place of work during the striking period but they control the production facilities. Such strikes are also known as pen down or tools down since the workers are always present in their working environment but they do not involve themselves in the actual production process. In the slowdown strike, the employees remain on their jobs but they restrict the rate of output in an organized manner by adopting a go-slow tactics to put pressure on employers to yield to their demands (Bray, Warring and Cooper, 2011). In the secondary strikes, there are four types of strikes namely; the sympathetic strike, boycott, picketing and Gherao. Sympathetic strike occurs due to sympathy witnessed by another department who join forces with the striking department to increase their bargaining power and chances of success. It begins as a primary strike before graduating into secondary strike hence it is a coercive method thereby the management is always forced into yielding to their demands. In picketing, the workers are dissuaded from work by stationing certain men at eh factory gates and it is always deemed legal if it involves no violence against other workers or people. Boycott is also another worst form of strike since the worker decides not to consume the company’s products and they try to persuade the public not to use the products of that company hence jeopardizing the company’s efforts. Gherao is a Hindu word meaning to surround hence the workers may block the members of the management by blocking their exit or entrance thus tampering with their operations of the company. Weapons used by management against disputes The employers may form their unions to collectively oppose the working class and put pressure on trade unions hence hampering their success to cause industrial disputes, which may interfere with the smooth operation of the company. The trade unions formed by the employer are more likely to be effective due to the support it gains from the management in their operations. Lock out is also another form of weapon used by the management whereby an employer close down the place of employment temporarily to avoid interference with the company. Such step usually acts as the reverse of strike and is a very powerful weapon in dealing with prolonged strikes since it pressurizes the workers to return to their jobs. Lock outs involves the closure of workplace by the employer in order to frustrate the employees by their temporary refusal to recognize them as employees until the dispute is finally solved. The employer may also terminate the service of those workers who are on strike by blacklisting them and circulating their list to other employers in the same field hence restricting their chances of getting another job. Causes of industrial dispute There are several causes of industrial disputes in today’s work environment, the demand for wage increase is the greatest cause of industrial unrest in the recent past by most employees who feel the pinch of tough economic times (Burgess and McDonald, 2003). This is always associated with the demand for higher gratuity and other retirement benefits, demands for bonuses and the demands allowances. The allowances may include house allowances, medical allowances, night shift allowances and conveyance allowances among other depending on the work environment. Politics are also sometimes associated with industrial disputes since various political parties are known to influence the behaviour of trade unions in their attempts to please them and use them to appeal to the general population. Politicians in most cases are just concerned with achieving their selfish gains but guise in pretence of addressing the plight of the workers. Industrial disputes can also arise from the manner in which personnel department handles the various raised by the workers. Most workers normally report their grievances to the personnel department so that he can act on them, but sometimes they ignore it altogether thus angering the workers. The manner in which the personnel department handless issues like dismissal, retrenchment, layoff, transfer and promotions is also critical in determining how the workers relate with the company. The personnel should thus be sensitive enough in order to take care of the interest of the workers without fear or favour and thus help in avoiding industrial disputes. Some industrial disputes may also be caused by indiscipline of the workforce who sometimes fails to negotiate with the management and demand unrealistic and unachievable options. Such workers are always very stubborn and are likely to cause great damage to the company in terms of profitability (Easson and Shaw, 1990). Other causes of industrial disputes rise from miscellaneous causes like the resistance of workers to introduction of new machinery and change of place due to non-recognition of trade union and are equally dangerous for the smooth running of a business. Lack of proper communication may lead to rumours being spread by undesirable elements hence igniting industrial dispute. Working conditions and working methods from the behaviour of the supervisor can also cause misunderstanding thus finally resulting into industrial dispute. Trade unions may also have rivalry between them and this may lead to industrial disputes in their attempts to prove their legitimacy to in addressing the plight of workers in order to outsmart the other. Ways of improving industrial relations Progressive management outlook There should be a progressive outlook of the management of each industrial enterprise and it should be conscious in its obligation and responsibilities to both the employees, employers and the whole nation. The management should recognize the rights of workers to organize unions to protect their economic and social interests by enhancing constant communication between them to foster understanding hence minimize conflicts (Gordon, 1975). Strong and stable union A strong and steady union in every industrial initiative is vital for good industrial relations since employees can easily ignore a weak institution and begin an industrial dispute themselves for lack of representation by their union. The employers in return will not recognize such arrangement and this is likely to increase the magnitude of the problem. A strong and stable union in the enterprise represents the plight of workers and is able to negotiate with the management about their demands thus enhancing understanding between them. Atmosphere of mutual trust The management and the workers should help develop an atmosphere of cooperation, confidence and respect in order to remove unnecessary suspicion between them, which may lead to dispute. The management should implement a liberal position and diagnose the workers’ rights and the unions should persuade their members to work for common objectives. Both the management and the unions should embrace the spirit of collective bargaining and other peaceful methods of settling disputes (Sahoo and Pani, 2007). Mutual accommodation The employers must recognize the right of collective bargaining of the trade unions and emphasize on mutual accommodation rather than conflict as this may further the dispute. Conflicting attitudes leads to amicable labour relations hence they should develop the approach of give and take rather than take or leave, leading to situations that are more complex. The management should be willing to cooperate by negotiating with the workers accordingly since blackmailing the workers may lead to more disputes. The management should also implement the initial agreements sincerely in an effort to foster good relationship between them and reduce potential disputes. The agreements should be enforced in both letter and spirit to enable them build an environment of trust thus avoid disputes and create the environment of uncertainty (Gordon, 1975). Workers participation on management The participation of worker in managerial activities should be encouraged by making effective use of workers committees and joint consultation methods thus improving communication between them (Foster and McAndrew, 2003). Improved communication and involvement of workers in management is known to improve the productivity of the enterprise by big margins. The personnel policies should also be accommodative of the workers views and articulated in consultation with the employees and their representatives to avoid misunderstanding. The implementation of the policies should also be uniform to ensure free and fair treatment of all the workers irrespective of their gender or race at the workplace. Government role The government should enact legislation that plays an active role in promoting industrial peace by making recognition of unions as compulsory. The government should also intervene when the disputes become complex in order to minimize the wastage of time and resources during the dispute period. References Alexander, R. and Lewer, J. 2004, Understanding Australian Industrial Relations, Sydney: Harcourt Brace, 5th. Edition. Bray, M., Warring, P. and Cooper, R. 2011. Employment Relations: Theory and Practice, McGraw-Hill, Sydney. Burgess, J. and Macdonald, D. 2003, Developments in Enterprise Bargaining in Australia, Croydon: Tertiary Press. CCH. 2009. Australian Master Human Resource Guide 2009, CCH Australia Ltd, Sydney Dabscheck, B. 1995. The Struggle for Australian Industrial Relations Oxford University Press, Melbourne. Victoria Easson, M. and Shaw, J. 1990, Transforming Industrial Relations, Lloyd Ross Forum, Labour Council of NSW, Pluto Press, Leichardt NSW Foster, B and McAndrew, I. 2003. Growth and Innovation Through Good Faith Collective Bargaining: An Introduction. New Zealand Journal of Industrial Relations. Vol 28. No.2. 118-121.  Gordon, B. 1975. A Ninety-Sector Analysis of Industrial Disputes in Australia, 1968-73. Journal of Industrial Relations, September 1975; vol. 17, 3: pp. 240-254. Price, R. 2007. Employment Law in Principle, Thompson Law Book Company, Sydney. Sahoo, C.K and Pani, D. 2007. Management of Industrial Disputes in Orissa: Emerging ScenarioManagement and Labour Studies; vol. 32, 2: pp. 225-239. Read More