Employment Relations Distinctiveness in Australia - Research Paper Example

Topic: Lecturer: Presentation: The employment relationship begins when the employer and employee enter into anagreement for the worker to provide labour power and the employer to offer rewards commensurate with the work done. This sis often referred as engaging in a psychological contract where both sides expect something in return. The employer seeks returns on the investment while employee seeks benefits for their efforts, good working conditions, fair treatment, job security and health and safety as well as career progression or opportunity for development. An employment relationship is established from the market transaction and production processes involved (Bray, Cooper & McNeil, 2013). In this relationship, rules are created and enforced to ensure smooth running of the organisation and its effectiveness. Different actors are involved in this process including employer, employee, trade unions, and the government or state. Such a relationship may be harmonious, conflictual or antagonistic depending on the context and ideologies. This forms the core of employment relations that this report will focus on. This is a report to the boss of a multinational mining company in Australia seeking to engage the services of skilled immigrant workers under Temporary Work (Skilled) (subclass 457) visas. Bill is a newly appointed ER manager at a multinational mining company in Australia. This is the first time he is working in the mining industry having prior experience in heavy engineering and utilities. The company is about to take over operations of an existing mine on a remote site in WA. However, many mining companies in Australia claim to be facing skill shortages and reduced competitiveness due to rising labour costs thus the problem is how to fill this skill gap. The most reasonable option is to source labour from local market but since this is not forthcoming, the option of immigrants is crucial. For a long time, Australia has been using the services of immigrants to fill skill gaps. These may be filled by permanent skilled immigrants, or temporary immigrants who include: holidaymakers, students and temporary (long stay) immigrants. Jakubowicz (2013) indicates that temporary business (long stay) visas were introduced by the Howard government in 1996. Prior to that Australia was not keen on employing immigrants but permanent skilled immigrants are considered Australian citizens hence appropriate to work in Australia under prevailing working conditions and labour laws. However, the option of temporary (long stay) visas has enabled Australia to meet its insufficient demand for skilled labour instead of only concentrating on nation building efforts. Its initial plan was to train Australians and fill shortage gap until training system was expanded but was later converted to permanence and continues to fill skill gaps. As stated earlier, an employment relationship begins with market transactions and production processes. This relationship may be a result of inside or external pressures or environment (Bray et al 2013; Acker, 2002). For example, an internal pressure if there one employee quits or retires there would be need for a replacement or if the company is restructuring or involved in mergers and acquisitions. This company wants to acquire another company hence the need for more labour power. However, external pressure for employing immigrants results from market shortage of local labour. The company thus wants to enter employment relationship with temporary work (skilled) (Subclass 457) visa employees is inevitable. The company could engage students and holidaymakers under Subclass 417 but these cannot work full-time or for a long time. Subclass 457 visas are more beneficial since holders can work for up to four years (Immigration website, 2014). This is often used as a path to gain permanent stay in Australia by visa holders. Employment relations distinctiveness is that it involves using institutionalist analytical tools focussing on rules creation and enforcement and pluralist ideology (Bray et al 2013, p. 16). In this case there are many rules and regulations that need to be satisfied in order to engage temporary skilled labour. Each party to the employment relationship; in this case, employer, immigrant, government and unions have a role to play. The state sets the laws that govern the engagement of such workers. These include the immigration laws and Fair Work Act 2009. In this taxonomy of laws, there are various regulations such as the migration regulations and national minimum standards among others. These are to ensure that the immigrant workers are not subjected to poor working conditions or exploitation and that their terms and conditions are in line with those of local labourers. The Fair Work Act 2009 stipulates the terms for minimum wages; leave pay; unfair dismissal; unfair termination; general provisions such as freedom from discrimination on bases of race; industrial action; employment status; collective bargaining among other terms and conditions. The role of employer as regards to employment of Subclass 457 visas is set out by the Department of Immigration and Border Protection (DIBP, 2013). The first task of the employer to register as a sponsor. In other words, the employer should be an approved standard business sponsor. In this case, he/she nominates an occupation for a subclass 457 visas. The employer can be a sponsor under Labour Agreement or Gazetted list of eligible occupation. He must certify the department that there are no local labour to fill such a position and also that tasks of position correspond to tasks on occupation eligible under subclass 457 visa program. This involves fulfilling the Temporary Skill Migration Income Threshold (TMSIT) (Department of Immigration, 2014). Majority of tasks by the standard business sponsor must be from Australian and New Zealand Standard Classification of Occupation (ANZSCO) (DIBP 2013). The qualifications and experience must also be the ones specified in ANZSCO. The next stage of the process is nomination whereby the employer nominates an occupation for a prospective or existing subclass 457 visa holder and lastly, applies for a visa for the person(s) nominated to work in the nominated occupation. The employee on the other side needs to apply for the visa for him/her and family members who get a second class visa. However, they must be supported by approved sponsor and an approved nomination (DIBP, 2013). In this case, employment of such workers is on employer demand and this has a lot of consequences for the immigrant worker. Once given visa, they can work for four years and have no limits to travelling in and out of Australia during this time. Minimum requirements to be given visa include: English language literacy, adequate health insurance, and must work in occupation nominated for. Employment relations in such kind of work apply pluralist ideology in that conflicts are inevitable but manageable. There are very diverse interests including those of the state, local employees, immigrant workers, employers, unions, community-based interests and nation of origin. The power in this type of relations lies with the management (Bray et al 2013, p. 61). Rule making in unilateral in that it is the employer who determines rules for workers and imposes them on employees. Although the government through its law agencies sets up labour conditions to be followed, most of the time these are not followed due to the nature of employment relationship involved in Subclass 457 visas. One of the major benefits of this program is that it is based on employer demand. For an immigrant to get a subclass 457 visa, he or she must be sponsored by a standard business sponsor (DIBP, 2013). In this sense, the employees do not have much or equal power with management. The employer is supposed to comply with salary labour market rates or national minimum while remunerating such workers but due to their dependence on the employer, the employer has the prerogative to set lower wages for them. The Immigrant worker though aggrieved cannot complain because if he loses employment then he loses his visa and may be deported. For such employees, the visa is gateway to permanent residence hence would not jeopardize their future. They thus take the conditions given by employer. Though unethical, it is a source of cheap labour for the mine. According to Fair Work Act 2009 they are supposed to work for 38 hours weekly and also have flexible work arrangements but even if there is a breach, the workers would not complain. Another benefit is that there are so many willing immigrants to take on skilled labour although sometimes they may end up doing unskilled work. Having a high talent pool is crucial for the success of the organization. Furthermore, there being many immigrants wanting such jobs, this may push wages down hence cost cutting for the organization. Appendix B (Elliot, 2013) shows salary comparisons between local workers and immigrant temporary killed subclass 457 visas and pattern of migrant visas given over the last 15 years. It shows that almost 2000 visas were issued in financial year 30 April 2013 for program or project administrator. This is good for business as it shows skills for handling the mines are available out there. It also shows only a slight difference in wages when Australian average is compared with subclass 457 visa averages. For example, in mining there was only a difference of annual salary $20 extra for subclass 457. The mining company can thus get skilled workers for only a few extra dollars and have improved efficiency and increased returns. The risk associated with hiring subclass 457 visas is that it is filled with controversy and debate due to the many actors involved. It is often accused as being source of abuse for immigrant workers in terms of poor remuneration and working conditions. Validakis (2013) enumerated a number of complaints being investigated by the immigration department by an Australian mining union. For example, it was alleged they are paying such workers half of what the locals get (Appendix C). This problem has to do with enforcement of immigration laws that prohibit discrimination based on race and also the Fair Work Act 2009 which requires minimum salary level be observed and be in line with market rates. The company thus risks being sued for discrimination and flouting labour laws. Another risk is the perception of the locals. These locals claim the immigrants are taking up their jobs. Furthermore, the labour government is protective of Australian workers in their immigration policy hence may discourage immigrants from taking up such jobs in future (Jakubowicz, 2013). The liberals also complain that the interests of local and migrant workers are neglected at expense of employer’s interests and the fact that only few members are represented by the union makes matters worse (Bisset & Landau, 2008). Such sentiments may affect the business negatively. However those risks are manageable as they are manmade but instituting structures that enable communication and dispute resolution and also adhering to the immigration as well as Fair Work Act laws. Conclusion Employment relationship is established when an employer engages the services of another. The employment relations that follow may be unitaristitic, pluralistic or radical depending on dominant ideology. The Australian mining industry is faced with skilled labour shortage thus the engagement of services of temporary (long stay) skilled subclass 457 visas immigrants. The employment relations are pluralistic due to conflicting interests between different actors such as employers, local employees, immigrant workers, government, unions and local community and politicians. However, it is beneficial since the employer is in a position to set own terms and conditions due to vulnerability of such workers. They depend on employer and have no choice of jobs hence have to stick with same employer despite conditions. However, the risk is interventions by government and immigration authorities as well as sentiments by locals. References Ackers, P (2002) Reframing Employment Relations: The Case for Neo-pluralism. Industrial Relations Journal, Vol 33(1): 2-19. Bisset, M and Landau, I (2008) Australia’s 457 Visa Scheme and the Rights of Migrant Workers. Alternative Law Journal, Vol 33: 142-145. Bray, W., Cooper and Macneil. 2013. Defining and Studying Employment Relations. Ch 1, 2 & 3. Campbell, R., Fincher and Webber, M (1991) Occupational Mobility in Segmented Labour Markets: The experience of Immigrant Workers in Melbourne. Australian and New Zealand Journal of Sociology, Vol 27: 172 Department of Immigration and Border Protection (2013), Fact Sheet 48b –Temporary Work (Skilled) (Subclass 457) Visa, http://www.immi.gov.au/media/fact-sheets/48b-temporary-business-visa.htm Department of Immigration (2014). Temporary Work (Skilled) Visa (Subclass 457). www.immig.gov.au/visas/pages/457.aspx. Elliott, John (2013) At-a-glance: 457 visa holders in Australia, SBS NEWS, 27 June 2013, http://www.sbs.com.au/news/article/2013/06/27/glance-457-visa-holders-australia Validakis, Vicky (2013), Mining firm underpays 457 visa workers: union, Australian Mining, 8 April 2013, http://www.miningaustralia.com.au/news/mining-firm-underpays-457-visa-workers-uninon Jakubowicz Andrew, Professor of Sociology and Co director of Cosmopolitan Civil Societies Research Centre at University of Technology, Sydney Read More