Industrial Relations in Australia - Term Paper Example

Industrial relations in Australia (Work choice legislation) Introduction The federal parliament in Australia is empowered by the constitution to make laws concerning conciliation and arbitration for the settlement and prevention of industrial disputes extending beyond the limit of any one state. The laws made with respect to trading and financial corporations fall within the limits of the commonwealth and foreign corporations. Industrial relations systems and wages setting have been enhanced by this system also known as work choice, which came into operation in 2006. Industrial relation society of Australia which was formed in 1965 is a federation of the State and Territory Relation Society it brings together the representative of management, trade unionists, government services and professional together with the special lists in the various academic disciplines considered with industrial relation and seeks to develop an integrated approach to industrial relations. Strong economic performance and high standards of living in the life of Australia have owed their tribute to the significant legislative reforms of the work place legislation in the work place relation system. The reforms within the workplace relation has helped to achieve high productivity and a positive growth in wage. Lower rates of industrial disputation has also been an effect of work place relations act. More reforms to increase flexibility and choice for employers and employees in the workplace is a subject of current target. This is due to the fact that other work place relations reform are being preserved by the government as being vital to come up with a legislative frame work relevant to Australia modern work place and the changing nature of work. (Reams, 1994, 101-104). Essentially, this is aimed at increasing Australia economic growth and international competitiveness relative to other regions in the world. The governing role of workplace in Australia is an effort of both the federal and the state legislation. The government of Australia has been fully empowered to make laws about workplace relations governing a range of circumstances including in-relations to Saccos such as; preventing and settling interstate industrial disputes, foreign corporations and trading, alternatively described as financial corporations within Australia, commonwealth employees, interstate and commerce employees in Australian Capital Territory and the Northern Territory. (Irwin, 2001, 106-109). Federal legislations is liable to prevail without inconsistence incase of a situation where the inconsistence is sited between federal and the state legislation in the past disputes between the employers and employees in Australia was a common occurrence requiring the intervention of the federal and state government. This situation at the current has been surmounted by the formation of the Australia Industrial Relation Commission. The positive contribution of this legislation and commission is immensely out spoken. It is at current automatic that Australia work force relation is no longer relying on external intervention in their deliberations but rather to the other side of encouraging employers and employees to reach agreements at the workplace level or at the business enterprise level, which is the principle target of the government. (Lengwwa, Flinterman, 1988, 22-25). The workplace relations' act (1996) played substantial role towards this target: there has been less reliance on wide ranging (Awards) by industrial tribunals for determining pay and conditions of employment. It has also encouraged agreements making at the work place level or business enterprise level and therefore it has become the main way to follow in deliberation towards the determination of the and conditions for the employees within the federal workplace relation systems. (Bischoff, 1985, 93-95). The effectiveness of workplace relations' act of 1996 as rendered Awards merely a sieve of minimum wages and employees' conditions rather than its initial role of determination and prescription of employees' wages and the employees' condition given by their employers. The federal systems exhibit various features towards industrial relation in Australia. These features have been discussed here below. (Williams, 1998, 75-78). Decentralized agreement making meaning that agreements may be negotiated between employers and employees on one hand or between employers and unions on the other hand. The act also allows for Australia Workplace Agreements it allows for the employee to request for a bargaining agent. This mode of agreement stipulates the need to meet the minimum employees' wages and employees' conditions and its content is largely up to employees and employers. A wide range of flexibility in work organizations and practice out of these agreements have resulted to the following positive attributes: hours of work has been better balanced to allow for work and personal life, allowances have been rationalized, remunerations arrangements have been made more flexible an productivity has been boasted through a number of measures. Through Work choice Relation Act employees' may lodge a claim of dismissal or discrimination against their employer in condition of the dismissal on discrimination is seen as harsh, unjust or unreasonable. The grounds upon which an employee can claim for unlawful dismissal are more narrowly restricted that the grounds for unfair dismissals; these includes grounds such as racial discrimination, family commitment and where the dismissal arose as a retaliation against a complaint from an employee. Further unlawful dismissal, can only be remedied through a hearing in the court, with corresponding delays and costs to the employee and the employer. Unfair, dismissal claims were able to be adjudicated by the Australian industrial Relations Commission without the requirements of trained lawyers and more expeditiously than a legal process. (McCarry, Smith, 1997, 116-118). Work choices legislation act in Australia The most comprehensive shakeups of industrial relations since federation were the results of the successful introduction and passing of work choices legislation in Australia in December 2005 (Bennett, 1994, William, 2004, 55-58). The industrial and employment circulars underwent permanent and long-term changes. These changes are explained in the following dimension: federal systems of industrial relations were successful and completely replaced with the unitary system of industrial relations: an emphasis on Australian economy away from the wages and conditions; transitional arrangement and changes to Awards and Agreements; awards were reduced drastically, Australia Fair Pay Commission was set up with the main aim of determination of minimum wages and conditions of employees, the powers of Australian Industrial Relation Commission were greatly reduced to an extent of being rendered redundant, flexible work practices were introduced and the ability to cash out some benefits such as annual leave. (Punch, 1995, 34-37). The consequences were some problems with work place health and safety application; new dismissal provision which were less straightforward as they may have been trumpeted. New transmission of business rules that is buying and selling business plus all the people incorporated in the business. Union restriction and the scrapping the no disadvantage test. All these changes brought about complexity and consequently bearing some effects on businesses along the following orientations. (Coleman, Hayness, 1997, 45-49). Small business holders were subjected to the understanding of the broader concepts of employer obligations to the employees applicable to their unique business situation. The employers take great care before taking a step towards termination of an employee's service. Great care, advice and consultation became a prerequisite since the work place legislations empowered the employees to claim compensation against unlawful dismissal and discrimination. These laws applied to the especially small business with as less as a hundred employees and therefore constitutes the retail in Australia. The workforce legislation in Australia further favoured this minority employees in the retail industry in a sense that the cost of defending discrimination and dismissal claim by the employer is dramatically higher than the unfair dismissal itself. (Asante, 1997, 64-68). The changing of the awards and agreements provided for by the work choice legislation added a layer of complexity to the businesses which extended upto the end of the transitional face which extended up to five years. An investor intending to buy a business was supposed to be ready for the transmission of business changes and the business owner had to grapple to the new layer of complexity. Conclusion The importance of the workplace relations and other Legislation Amendments Acts 1996 such as the Work choice Relations Act is immensely overwhelming. This is highlighted in their ability to displace the Industrial Relations Court of Australia, which was transferred to other courts mainly the federal courts of Australia. The earlier legislations such as the industrial laws were quite detrimental to employees at the advantage of the employer since the employers could fire workers and slash wages at will without any serious action taken on the part of the employer. The negligence on the part of the employer could not be overlooked since the negligence also bear some negative impact on the part of the employer. This arises from the fact that the employee dissatisfaction has a direct relationship with the ultimate potential output of the employee. References Bennett, L. (1994) James, William, 2004. Making Labour Law in Australia: Industrial Relations Politics and Law, Sydney, Law Book Co. Bernard, D. Reams (1994). Federal Legislative Histories. Greenwood Press. ISBN-13:978-0313230929. Bischoff, R. (1985). Australian Labour Law. Melbourne, University of Melbourne. Charles, J. Coleman, Theodora T. Hayness (1997). Labour and Employment Arbitration. ISBN-13:978-0801434402. Clement, E. Asante (1997). Press Freedom and Development. Greenwood Press. ISBN-13:978-0313299940. G. Williams (1998). Labour Laws and the Constitution. Federation Press. ISBN (1862873089). M. Hama Lengwwa, C. Flinterman (1988). The International Law of Human Rights in Africa: Basic Documents and Annotated Bibliography (Handcover). Kluwer Law International. ISBN-13:978-9024735877. Punch, P. (1995). Australian Industrial Law, North Ryde, NSW. CCH Australia. Raymond D. Irwin (2001). Books on Early American History and Culture, 1986-1990. Greenwood Press. ISBN-13:978-0313314308. Riley, J. McCarry, G & Smith M. (1997). Workplace Relations. A Guide to the 1996 Changes. Sydney, LBC Information Services. Read More