Changes in Australian Employment Relations - Essay Example

Employment Relations Employment relationship is a key concept in the present world used in each and every field of human existence; the employment relationship is a legal notion widely used in countries around the world to refer to the relationship between a person called an “employee” (frequently referred to as a “worker”) and an “employer” for whom the “employee” performs work under certain conditions in return for remuneration (The Employment Relationship: Fifth Item on the Agenda 2005, p. 3). The interference of the Australian government in the employment relationship has been the result of increasing role of State and affected the right of organizations or firms to operate freely. This essay consists of four sections which sheds light on the interference of the Australian government in the employment relationship. The first section will observe the prevalence of employment relations in Australia. The second section analyzes the past trends in the Australian government interference in employment relations. The next section discusses the changes in employment relationship. The final section provides an overall evaluation of the interference of the Australian government in the employment relations. The employment relationship is described within many contexts, including economic, political, social, cultural, technological and global arenas. “The employment relationship is the legal link between employers and employees. It exists when a person performs work or services under certain conditions in return for remuneration. It is through the employment relationship, however defined, that reciprocal rights and obligations are created between the employee and the employer” (Employment Relationship 1996, par. 1). Political parties played a major role in the interference of the government in employment relations. “The State influences the employment relationship directly through laws on wages (e.g. minimum wages), working conditions (e.g. on hours of work) and many other issues, and through its role as the employer of public sector workers. It also has a series of indirect influences” (Edwards 1995, p. 10). The laws made by the State are effectively implemented by the government. The term State and government are often used interchangeably. In Australia laws have been implemented by the State regarding the employment relation. The employment relationship in Australia has an old history in which political parties played a major role. The employment relation is often associated with industries and is sometimes known as industrial relations. The relationship between employers and employees has been one of the most hotly debated issues in Australia in recent times. “In Australia, the past century has witnessed various methods of wage-setting, ranging from centralised wage determination affecting all workers to individual wage agreements between the worker and organization” (Lee-Ross & Pryce 2010, p. 175). The interference of the government in the employment relation was high during the centralised regulation of the employment relation. The State intervention in early Australian employment relations is the extensive statutory regulation of the employment contract, which indicates a preference for legislative control rather than reliance on the common law (Gardner & Palmer 1992, p. 21). The earlier laws were characterised by the existence of awards and jointly negotiated agreements which thereby guaranteed full-time and permanent jobs. While there has been considerable workplace change and innovation in Australia in recent years, there has been less collaboration between employers and unions on these matters since the change of government in the mid 1990’s, which marked the end of Accord years (Lansbury 2000, p. 41). The employee had greater influence over the employer under the centralised regulation. The centralised regulation gave more influential power to the government over the employment relations. “Since 1904 federal industrial relations in Australia has been characterised by a centralised and highly regulated system designed and structured around a culture of conflict and adversarial behaviours. As a consequence, efforts to foster enterprise based productivity and innovation have been severely hampered” (Industrial Relations for Modern Enterprises 2011, p. 3). Until 1990’s the employment relationship was characterised by the centralised regulation under the federal government control. The centralised regulation resulted in a close relation between the employee and the employer. The relationship between the employee and the employer was based on awards or mutual agreements which were based on the respective laws. There existed a pure pluralist system of employment relations under which employees enjoyed bargaining powers. Australia has a deep history of centralised regulation of employment relations which included wages, working condition and other related issues. The central government played a major role in implementing the centralised regulations on employment relations. The centralised regulations on employment relation resulted in an increased interference of the government in the employment relations of the country. Over the last decade the legislations regarding the employment relations has witnessed a number of significant changes due to changing government. The interference of the government in the employment relations also underwent changes during the change in the regulatory system of the employment relations. The changes witnessed in the employment relationship include changes from centralized to decentralized work regulation and employee relationship, changes from awards and jointly negotiated agreements to individual contract of employment, changes from full time permanent jobs to contingent workers, and changes from a pure pluralist employment system of employment relation to unitary approach where collective bargaining powers of employees are diminished. The trend towards greater decentralisation of employment relations processes intensified during the 1990s in response to economic recession and growing political pressures. (Bamber et al. 2004, 132). From 1983-1996, there was a transition from a highly centralised system of industrial relations, based on compulsory arbitration administered by the Australian Industrial Relations Commission (AIRC) and State tribunals, to a more decentralised approach of bargaining at the enterprise level. (Lansbury and Bamber, 1998). Decentralisation of employment relations through successive legislative reforms has shifted much decision making, including conflict resolution, away from tribunals towards work places. (Burgess et al. 2008, p. 245). The Employee Relations Act abolished the Industrial Relations Commission, brought an end to all state awards with effect from 1 March, 1993, provided for individual and collective employment agreements and for future awards to be made by a new Employee Relations Commission if and only if the parties agreed to arbitration by the Commission. (Tracey n.d., para. 1). Change was also witnessed in terms of employment status. The federal regulation changed the work type from full-time permanent work to contingent work. This reduced the job security of the employees. The bargaining power of the employees were curtailed in the new employment relation system as under the unitary system the bargaining power of the employees were reduced in contradictory to that of plural system. To conclude, an employment relation can be burden to both employee and employer. In Australia, the government interference in the employment relations has a long history. The employment relation had witnessed drastic changes during the past years. The change from centralised to federal system of employment relationship has changed the relation between the employee and the employer. Under the centralised regulation the room for further development of the organization was limited. The federal regulation implemented during 1990’s boosted the industrial sector of the country. The interference of the government in the employment relations lessened after the change of centralized regulation to federal. The federal regulation gave more importance to individuals rather than to unions. The federal regulations proved more advantageous to the employers than employees. The role of employee diminished in the new system. The power of the employers increased over the employees since the laws restricted the right of employees. The country witnessed growth in the industrial sector after the change from centralised to federal regulation. In short the interference of the government in the employment relations lessened which adversely affected the employees and positively impacted the industrial sector. Reference List Bamber et al. 2004. International and Comparative Employment Relations: Globalisation and the Developed Market Economies. 4th Edn. Allen & Unwin. Available at [Accessed 21 Sep. 2011]. Burgess, et al. 2008. New Employment Actors: Developments from Australia. Peter Lang. Available at [Accessed 21 Sep. 2011]. Edwards, P. 1995. Industrial Relations: Theory and Practice. Second Edn. Blackwell Publishing Ltd. Available at [Accessed 21 Sep. 2011]. Employment Relationship. 1996. International Labour Organization. Available at [Accessed 21 Sep. 2011]. Gardner, M & Palmer, G. 1992. Employment Relations: Industrial Relations and Human Resource Management in Australia. 2nd Edn. Macmillan Education Australia. Available at [Accessed 21 Sep. 2011]. Industrial Relations for Modern Enterprises. 2011. Chamber of Commerce and Industry. Western Australia. Available at [Accessed 21 Sep. 2011]. Lansbury, RD. 2000. Workplace Change and Employment Relations Reform in Australia: Prospects for a New Social Partnership? University of Sydney. Available at [Accessed 21 Sep. 2011]. Lansbury, RD. and Bamber, G.J. 1998. “The End of Institutionalized Industrial Relations in Australia?” Perspectives on Work, 2 (1) 26-30. Lee-Ross, D & Pryce, J. 2010. Human Resources and Tourism: Skills, Culture and Industry. Channel View Publications. Available at [Accessed 21 Sep. 2011]. Tracey, R. Standing Fast: Federal Relation of Industrial Relations in Victoria. The HR Nicholls Society Inc. Available at [Accessed 21 Sep. 2011]. The Employment Relationship: Fifth Item on the Agenda. 2005. International Labour Conference, 95th Session. Available at [Accessed 21 Sep. 2011]. Read More