Work Place Relations - Media Exercise - Coursework Example

Course: Tutor: Name: Date: Work Place Relations: Media Exercise Introduction On 27th march, 2006, the Workplace Relations Amendment Act 2005 also known as Work Choices was made functional. This piece of legislation created major changes in the industrial relations of the Australian labor federal government. According to (Dabscheck, 2008), there are four major changes in the industrial relations which will be described below. The changes however generated critics and even contributed to the defeat of Howard Liberal National Parties Coalition in the 2007 November elections (Dabscheck, 2008). Change is not an easy concept to accept even at organizational levels. Individual companies undergo a lot of problems and resistance when it comes to implementation of new strategies, ideas, policies, regulations and so many other changes. This is the same with most government policies, ideas and regulations that aim at change. In the government this is vast as there are unions, non-governmental organizations, the people and even international organizations that will offer challenges to proposed changes that any government aims to put through. This is the same case with the Rudd’s government Workplace Relations Amendment proposed to replace Work Choice. Since its formal announcement of it being operational, this amendment has received critics from so many people and organizations especially the domestic organizations and the local people. Change has both positive and negative consequences. Before implementation however, analysis has to be carried out to find out its effects. Howard’s government new changes in the industrial relations also had its effects on the labor industry and a more comprehensive legislation has been proposed by the new government’s Labor Federal Government’s industrial relations. The government of Howard previously defended herself over the new changes in the Australian industrial regulations amid complains from employers, unions and organizations stating that the changes were meant to create freedom of choice to both employees and employers (Blake, 2006). This freedom of choice according to the previous government will come to an end when government’s proposal based on changing the Work Choice sections that affected people as described below will be accepted and implemented. This paper aims to describe the new Labor Government’s proposed industrial relations changes and what the changes mean for tourism and hospitality organizations using issues raised by the media. The “Work Choice” Labor Industrial Relations Work Choice introduced new changes to the minimum wages and conditions determination. The previous legislation which was also passed on the recent years (1996), enabled workplace negotiations of individual employment controls. These Australian Workplace Agreements were subject to a no disadvantage test which also connected them to collective agreements. This was not the case with Work Choice. It on the contrary introduced the Australian Pay Condition Standards which had personal leave, basic rates of casual loadings and pay, annual maximum hours of work and general maximum hours of work and parental leave as the conditions and also allowed workers to be employed under these conditions in the AWA (Dabscheck, 2008). Work Choice also restricted parties’ collective negotiation agreement giving the work place relations minister the authority to intervene in negotiations of that kind. Work Choice also introduced a national system for regulation of industrial relations. The fourth feature is that the Work Choice was not based on the arbitration and conciliation power as the previous but on corporations (Dabscheck, 2008). The Proposed Changes Critics made to the Work Choice generated the following proposals. The ALP proposed the use of individual Transitional Employment Agreements for those employees previously covered in the AWAs and new workers. The employees were either to be converted to these agreements or were to wait until their AWAs agreement times expired. Another proposal was on the development of a new safety net that would consider ten terms in the awards and ten legislated minima (Dabscheck, 2008). Negotiation of individual common law agreements is allowed in this case but must observe the considered minima except for those workers who with guaranteed ordinary earnings of more than $ 100,000 per year. ALP documents also proposed that the Australian Industrial Relations Commission be the commission responsible for mordernising and simplifying awards in the establishment of the new safety net. Anew regulatory body was also to be formed according to the proposals. This body, Fair Work Australia, is to combine all the Australian regulatory bodies’ functions (Dabscheck, 2008) The New Safety net (Transition to Forward with Fairness) will therefore consider the above changes with the following provisions to be included in the modernisation of awards. Overtime rates, Allowances, Superannuation, penalty rates, working arrangements (hours of work), salary arrangements, leave loadings, types of employment (part time, casual, full time), minimum wages, bonus payments/incentives and classification and representation, consultation and dispute settlement procedures (Dabscheck, 2008). Proposed national employment standards items are as follows: flexible working arrangements, long service leave, fair work information statement, public holidays, maximum hours of work in a week, parental leave, notification of redundancy termination, community service leave, annual leave and compassionate and personal leave (Dabscheck, 2008). The proposed Industrial Relations and Tourism Organisations Issue 1-Increased Unemployment/Job Loss As at January, 14th 2009, the Australian Chamber of Commerce Industry had decided on which sections should be amended on the “Fair Work Bill” that is to replace the “Work Choice” legislations. According to the Courier Mail News the ACCI required major amendments to be made for fear of increased job losses in the future. According to the ACCI’s CEO, Australia’s unemployment rate had already gone up to 4.4 and was predicted to rise due to the current global crisis. Implementation of the “Fair Work Bill” would lead to increased business costs, reduced productivity and job losses (The Courier Mail, 2009 b). Australian Chamber of Commerce analyses figures concerning all industries in the Australian economy. This means that the tourism industry will also be affected. With increased unemployment, there will be reduced demand for tourism and hospitality services. Tourism like most businesses, depend on people’s income therefore with reduced income, the organizations in this industry’s revenue are reduced. Reduced organizational revenue and productivity leads to unemployment since companies reduce their work force as a strategy to remain operational (The Courier Mail, 2009 b). Issue 2- Economic Damage Risk by the Laws According to above proposals of the Fair Work Bill, unions are bound to have too much power. This according to the Australian Industry Group CEO as described in the Courier Mail will lead to economic damage. The AIG wanted the following areas amended. Union agreement coverage laws, prescriptive good faith bargaining rules, union right to entry into workplaces laws and dispute settlement procedures. Misuse of such power would lead to economic damage when the unions try to be responsible when there are intense pressures on employment and on businesses. The AIG’s group CEO noted that with the current economic crisis and Australia’s economic environment, the proposed union power increase would lead to reckless use hence instability in the economy and too many improvements in the working conditions would lead to job losses. In addition to these effects, the Mineral’s Council of Australia also indicated in their report that the Fair Work Bill if not changed would lead to proceedings of the past such as drawn-out legal proceedings and union demarcation disputes. The MCA described the Fair Work Bill as a more restrictive workplace relations system that can lead to severe and more continuous economic down turn (The Courier Mail, 2009 a) Issues affecting the economy affect the tourism industry as well. This means that tourism and hospitality organizations suffer the consequences of reduced economic growth and potential. Issue 3- Increased Industrial Unrest/Instability In the Australian News paper dated January 20th, 2009 the Australian resource sector employers complained that with enhanced union rights in the Fair Work Bill, the probability of industrial unrest happening would be very high and would continue with more power to the employee labour unions. According to this article, the AIG indicated that construction projects would always be delayed if amendments are not made on the bill. Certain elements of the proposed bill such as good faith bargaining rules which according to the proposals aim at breaching commercial confidentiality, increasing complexity and linking employees and companies in additional proceedings, pose a major risk on industries as they can incite continuous industrial unrest (The Australian., 2009). Industrial unrest affects companies’ profit making, normal business operations and in turn affects the economy of the country. Industrial unrest in the tourism and hospitality organisations would lead to reduced profits, poor performance and interrupted organizational operations. Conclusion Every change in any organisation receives resistance but if the elements of change can damage the organization, amendments are necessary. The Fair Work Bill proposed by the current Australian government is an example of such a change which is in the industry regulation sector. One section that has proved to be a problem to most industries is the enhancement of union powers which according to most industry analysis would lead to loss of jobs, industrial unrest and economic downturn. The effects of the Fair Work Bill elements affect industries which also includes the tourism and hospitality industry. Organisations in this sector are therefore at risk of suffering from organisational unrest, reduced productivity as a result of reduced working hours that also result from increased disputes and consequences of economic downturn. References Blake, Nick, 2006, Free to agree or not to agree?--Hardly! Australian Nursing Journal http://www.articlearchives.com/labor-employment/labor-relations-labor/1749327-1.html (14th August, 2009). Dabscheck, Braham, 2008, Industrial Relations Under The Rudd Labor Government: Establishing A New Safety Net, The Otemon Journal of Australian Studies, vol. 34, pp. 67−73. http://www.otemon.ac.jp/cas/pdf/34/dabscheck34.pdf (13th August, 2009). The Australian, January 20, 2009, Rudd Mandate 'Exceeded' in Workplace Bill, http://www.theaustralian.news.com.au/business/story/0,,24935556-36418,00.html (14th August, 2009). The Courier Mail, 2009 (a), January 14, 2009, IR Changes will Destroy Jobs – Bosses: Unemployment will Rise unless there are Significant Changes to the Proposed New Industrial Laws, A Key Employer Group has Warned http://www.news.com.au/couriermail/story/0,,24912345-5003402,00.html (14th August, 2009). The Courier Mail (b), January 19, 2009, Rudd IR laws ‘Risk Economic Damage’ http://www.news.com.au/couriermail/story/0,,24932981-5003402,00.html (13th August, 2009). Read More