Employee Relations in Australia - Essay Example

Employee Relations Name Course Name and Code Instructor’s Name Date Introduction Employee Relations is a body of work that is concerned with maintaining employee-employer relationships which is an essential contributor to satisfactory productivity, motivation and morale (Balnave, 2007). Across the globe employment relationships is a legal notion that is widely used to describe the relationship between the employee and the employer for whom the employee perform work under certain defined conditions in return for remuneration. Through employee relations, reciprocal rights and obligations are created between the employee and the employer (Nolan, 1998). Employee relations is a crucial tool that is fundamental to employees; through it workers gain access to the rights and benefits with regard to employment in the areas of labour law and social security. Consequently, it is a key determinant that defines nature and the extent of the employers’ rights and obligations towards their employees. Using Verizon’s 45,000 employee strike enters Day 2, impasse widens article in the Los Angeles Times of August 8, 2011; this paper seeks to discuss how the strike is related to the employment relations, and explaining the extent to which the strike is subject to ER regulations. The roles and responsibilities of the state with regard to the strike, how the strike was affected by employee voice and the approaches that the management should in order to tackle the issue will also be discussed. Relationship between the strike and ER Verizon Communications Inc. management had taken a stand that was compromising the essentials of Employee Relations. Protection of employees from poor working conditions is one of the key objectives of employee relations. Work stoppage is usually taken as the last resort particularly in a labour management dispute with regard to wages and working conditions (Los Angeles Times, 2011). The two labour unions; Communications Workers of America and International Brotherhood of Electrical Workers, had tried to negotiate with Verizon’s management to alleviate the pending employee demands but the management was sceptical always avoiding the workers representatives (Los Angeles Times, 2011). The management never demonstrated their willingness to bargain with regard to the issue of employee benefits and who should pay for them. Employees were in a dilemma, the only option left to them was to strike in order to voice their economic reasons, and for the mutual aid and protection (Nolan, 1998). The Verizon’s workers strike was justified and is wholly related to Employee relations, incentives and motivation makes the working environment conducive to employees and thus increasing their performance and ultimate productivity. With regard to this, Verizon’s Communications Inc. is obligated to pay for the employees’ health insurance premium s as an incentive instead of arguing with the two labour unions. Consequently, the company is obligated to integrate its terms to march today’s economic scales rather than taking a conservative stand. According to the Communication Workers of America, Verizon’s was stripping away the bargaining gains of the middle class that had been worked for, for more than 50 years (Los Angeles Times, 2011). This was unprecedented and unethical at the same time. Furthermore, the International Brotherhood of Electrical Workers noted that Verizon was proposing work contracts that would take unionized workers wage levels and working conditions back to the 1960s. A fair working contract that brings a balance between employees’ demands and overall employer’s expectations was and still is a necessity at the workplace. Accordingly, Employee Relations is entitled to creating harmonious working relationships between the employer and the employees; negotiating disputes as well establishing codes of practices and principles that maintain these principles (Nolan, 1998). Verizon’s management was adamant and only focused on the company’s sustainability notwithstanding employees’ welfare. For instance, the company had reported $3.2 billion profits despite the shrinking landline business and the top five executives were paid a total of $258 million over the last four years (Los Angeles Times, 2011). However, the employees’ status quo was maintained at devastating conditions. This is completely poor employee relations. With regard to the above discussed factors justifies the Verizon’s workers strike in order for the company address and grant the demanded concessions for increasing their wages and paying for their health insurance premiums. ER Regulations Across the world there are collective labour laws that are primarily concerned with the relationship between the employer, the employee and trade/labour unions. In the US labour laws guarantee employees rights to join trade unions that ban employer discriminations. For instance, the National Labour Relations Act of 1935 clearly established the rights of employees to for, join, or aid labour unions. The law also authorizes collective bargaining by unions giving employees the rights to participate in concerted actins such as the right to strike (Keith, et al, 2005). Discrimination of certain classes of employees is highly prohibited by employee relations. In accordance with the Fifth and Fourteenth Amendments of the US constitution limit the power of the federal and state governments to discriminate. Although the private sector is not directly constrained by the constitution, there are several laws that prohibit it from discriminating certain classes in employment. Equal protection in the Fourteenth Amendment limits federal and state governments to discriminate in their employment practices by treating all classes of employees equal. The middle class employees at Verizon Communications Inc. were discriminated through various aspects; poor wages, and no incentives were awarded to them among others (BBC News, 2011). Strike action is a strong weapon legally given to workers particularly those associated with industrial disputes. In many countries the world over, strikes are legalized under set conditions like a strike decided on a prescribed democratic process (Nolan, 1998). With regard to Verizon’s instance, negotiations between unionized workers and the company began in June 2011; however the management was not committed to the initiated talks. According to the Federal labour laws a 60-day notice is required before workers can go on strike to force termination or modification of the existing collective bargaining agreements. Verizon’s middle class workers started their negotiations in June 2011 through their labour unions. On August 1, 2011 they went on strike after they failed to reach an agreement with the employer (Los Angeles Times, 2011). They were within the ER regulations. Notwithstanding the above regulations, Verizon Communications Inc. management team was unwilling to establish work environment that could satisfy employees’ requirements to prevent the occurrence of the strike but instead they blamed the labour unions. They took a hard lining position always evading negotiations with union officials and threatening workers that they will lose their jobs (Keith, et al, 2005). They violated the employee relations regulations. State responsibility The US constitution requires both the federal and state governments to protect employees from discrimination and any other form of mistreatment of any kind. The Civil Rights Act is the principle statute regarding employment discrimination which prohibits illegal employment discrimination by both public and private employers, labour organizations, and employment agencies in relation to race, colour, religion, sex, class, and nationality. Given this facts, the state was entitled to protect Verizon employees by ensuring that the working conditions including pay packages and other related incentives are provided for. Consequently, the state government should have taken legal steps against the company for violating employment discrimination regulations. For example, the middle class employees are entitled to better employment treatment like any other employee at higher levels of employment (Deakin & Gillian, 2005). During economic strikes, employer may continue operating and in fact can hire new employees to replace the striking ones. Currently, in the US; hiring of permanent replacements has become a management tactical weapon against the striking employees. With regard to this, it is obligatory for the state to ensure job security of the striking employees and no individual is to lose his job through the strike (Smith & Scott, 2003). On the same line, the US congress should amend the National Labour Relations Act in order provide immediate job reinstatement to economic strikers. Employee Voice This refers to direct involvement and participation of employees in influencing corporate decision making. In most cases employees are given voice through both formal and informal means in order to reduce conflict while improving communication and encouraging staff retention through motivation and fair treatment (Stone, 2005). Through employee voice, employees are empowered and motivated which eventually culminates into increased productivity. Citing Verizon’s situation, there was no any form of employee voice, the management kept to it and in fact employees’ efforts to be heard through their unions was subordinated by company’s top management. As aforementioned, employee voice is achieved through both formal and informal mechanism. In regard to informal employee voice mechanism, the management could have encouraged general communication through email, employee feedback, social functions, and meetings at the workplace to communicate with the middle level employees. There was no any form of communication from the employer to the employees and vice versa thus making it difficult for employees to understand the company’s real conditions like the shrinking landline business. The employees were forced other avenues unions and the strike to communicate their grievances. The strike was a direct consequence of the absence of the employee voice (Stone, 2005). Management Approach Human resource management is a crucial factor in maintaining conducive working conditions at the workplace. Better remunerations together with incentives to employees play a key role in motivating employees giving them morale to perform their duties productively. Given these facts, the Verizon’s management was not exercising good human resource management practices and it was high time for them to revisit their HR practices in order to establish good working conditions in the long run. With regard to the above discussion, the management should listen to employees concerns and avail them to negotiate with employees in order come to a common and balanced stand where each side’s interests will be advocated for. Furthermore, through negotiations the hard lining stance taken by both sides will be alleviated and hence an agreement will be reached (Stone, 2005). Secondly, the company should improve the wage package for the middle class employees. The health insurance premiums are supposed to be paid by the company as incentives to the employees at least to improve employees’ quality of work life. This will on the other hand, motivate employees, they will feel that they have a purpose and considered in the organization which will consequently culminate into increased company productivity. The management should also initiate workplace culture that will allow for communication between employees and the management either through formal or informal channels (Drago & Hawke, 2000). This will make it easier for the company to understand employees’ needs and vice versa. Lastly, the company should make sure that it observes all Employee relations regulations to avoid there violation and ensuring prolific employee relations in the company. In addition, the company will be able to come up with management practices that are in line with Employee relations regulations thus creating workplace environment that favours both employees and the employer. Conclusion Across the globe employment relationships is a legal notion that is widely used to describe the relationship between the employee and the employer for whom the employee perform work under certain defined conditions in return for remuneration. Employee relations is a crucial tool that is fundamental to employees; through it workers gain access to the rights and benefits with regard to employment in the areas of labour law and social security. Verizon Communications Inc. had poor employee relations that resulted into the unprecedented strike that brought the company’s operations to a stand still. The management at the organization was arrogant and always evasive not taking up their responsibilities as required. Strike is one of the legal actions that employees employ in order to laud their concerns like poor working conditions. In Verizon’s setting poor pay packages and unpaid health insurance premiums to middle class workers were the main points of contention. The sate should be concerned about the employee working conditions both in public and private sector by providing legislations that will protect employees from discrimination of any kind. Employee voice is another crucial factor that employers should foster at the workplace in order to encourage communication between the employer and the workers. And above all, good human resource management practices are essential for companies to create conducive workplace environment. Through good employee relations in organizations is the key to the firm’s ultimate success. Reference Balnave, N. (2007). Employment Relations in Australia. Sydney: John Wiley & Sons. BBC News. (2011). Verizon Communications workers go on strike. Retrieved on 31/10/2011, from: http://www.bbc.co.uk/news/business-14435689 Deakin, S. and Gillian, M. (2005). Labour Law. Sydney: Hart Publishing Drago, R., & Hawke, A. (2000). The transformation of Australian industrial relations. Annandale: Federation Press. Keith, E., McColgan, A., and Hugh C. (2005). Labour Law, Cases, Texts and Materials. London: Hart Publishing Los Angeles Times. (2011). Verizon's 45,000-employee strike enters Day 2, impasse widens. Retrieved on 31/10/2011, from: http://latimesblogs.latimes.com/technology/2011/08/about-45000-verizon-employees-are-on-strike.html Nolan, D. (1998). The Australasian labour law reforms: Australia and New Zealand at the end of the twentieth century. Annandale: Federation Press. Stone, R. (2005). Human Resource Management, 5th Ed. Queensland: John Wiley & Sons. Read More