Principles of Employment Relations in Australia - Essay Example

Principles of Employment Relations in Australia Introduction Industrial relationships are impoverished in terms of theories that try to explain them.Regardless of the efforts employed by scholars like Brahma Dadscheck to provide an insight on the factors affecting the industrial relations theory, there is still deficiency in explaining the real situation on the ground. The study of the industrial relations also referred to as labour relations seeks to identify the relationships that exist between management teams and the workforce especially a group of employee that are represented by an organization like a union. Employment reactions have been identified to be a critical aspect in analysing the varieties of economic theories as well for instance various types of capitalism like corporatism, liberalism, social democracy and neo-corporatism. Over the past about twenty years, many nations have experienced a wide spread change and as such, the current theories are not a clear conceptual lens of understanding these changes. Australia has also experienced these changes since 1983. Theories of Industrial Relations Industrial relations researchers have been doing a wonderful job in this sector, making critical observation like the transformation that has been experienced over the past 20 years or so. The theories of the Industrial relations are connected to the real world as they attempt to find logic from the natural human social behaviour and help to comprehend the consistent human real life activities (Allan et al 2008). Each human activity is identified in terms of theory, social context, experience and practice. Theories are perceived differently in the real life situation implying that these could be very different circumstances for instance the work of a shop Stewart and a human resource manager. Basically there are five main theories of industrial relations that have been explained by Industrial relations researchers (Allan et al 2008). These theories include Unitary, Conflict, Systems, and social action. The Unitary Theory Under this theory, an organization or a firm is visualized as a system which is integrated in harmony to bring out the idea of belonging to a single united family. This means that the workforce complies with the management. The organizations management team and the workforce work together to meet the same goals and mutual respect and cooperation are emphasized here (Allan et al 2008). The main feature of this theory is the common purpose that the management and staff work to meet and the mutual cooperation that is emphasised in meeting these objectives. The stronghold of this theory is the fact that the trade union can be rendered useless as the organization has already established loyalty between workers and itself and this relationship is mutually exclusive. The whole industry is visualised as one and not as two sides where any conflict is treated as a disruptive and a consequence of agitators, poor communication and interpersonal problems. The organization is integrated in one harmonious firm and each worker identifies with the common organizational goal. There is not conflict of interest as the owners of capital are partners for effective production, good salaries and wages and good profits as well (Alexander et al 2008) Such kinds of operations have weaknesses in that, the workforce cannot challenge the managers' decision and trade unions are perceived as intruders to the existing unity and organizational structure. The existing trade unions become competitors to the workers loyalty. Unitary theory does not appreciate conflict as this is perceived as interpersonal friction, incitation, failure to understand communality and faulty communication (Allan et al 2008). Neo unitarism is a variant of the unitary theory (unitarism); this theory gets the workers to provide better production by human resource management tactics. Conflict Theory Many scholars believe that the theory of conflict bases its roots on the beliefs of Karl Marx and his Marxism theory. This theory addresses the fact that each person or a group of individual can exercise their own power over others, theory influence and also try to control others. The theory of conflict is hence a power struggle and it posits that, groups of workers of individuals will struggle to increased their benefits an the then can elicit social changes like revolutions and change in politics. There is a struggle between the management and the workforces though in most cases the struggle may not be involved, each group seeks to maximize benefits. The tussle between the management and the workforce over power is the main feature of this theory (Teicher et al 2006). The strength of this theory is the fact that the workers are able to challenge the decision reached by the management. The power conflict among the workers is usually organized in a collection of people such as unions. There is collective bargaining in the organization and the conflict can be contained and return to normalcy achieved. The only weakness of this theory is that when concession and compromise cannot be achieved and attain a fair balance for both parties, the consequences could be devastating. Conflict has always been a theoretical system in the industrial relations approach. During the 1980s era of renaissance, the emergence of the neo-unitarism lead to the loss of the unions power to offer collective bargains (Teicher et al 2006). Conflict theory in industrial relations is addressed in two ways namely the conflict cantered bargain and the problem cantered consultations. Social Action Theory This theory addresses an individual as a subject and that social action in this context is the ways some things purposively changed a person in context implied. This theory is also believed to have evolved from the interpretive sociology as discussed by Max Webber where the need to know the subjective intent and objective of an individual before one can comprehend the social action implied or expressed. The main feature of this theory is the social actor where the management and the union or some individuals are described as social actors in reaction to certain social circumstances (Teicher et al 2006). This theory aims to understand certain activities in the industrial situation rather than analyzing the explicit industrial relations actions. The strength of this type of theory in an organization is that when the intent and subjectivity is correctly linked to the consequence, then it would be very easy to tackle this before dangerous outcomes follow. The major weakness is the fact that under such an approach the individual actors in an organization do not share similar values and they attach different meanings to their activities. Systems Theory The main feature of this theory is the system itself as a component of several elements. This was originally defined by Ludwig Von Bertalanffy who was a biologist in 1928. A system can be dismantled in individual elements and analyzed singly. Interaction of individual functions of these elements brings out the whole function. In 1958, Dunlop improved on this postulation and identified a system as comprised of particular actors, principles that bind industrial system together, contexts and body of regulations that administrate the workers at the place of work and work community (Alexander et al 2008). The strength include addressing hierarchy of the system from managers to non managerial, indicating the technology, market, budget, distribution among others and building up on ideologies. It's also open and flexible. Weaknesses of this system theory are that it's too broad to base a theory on and has not yielded enough explanatory evidence. Marxist theory This theory was postulated by Karl Marx to explain the propaganda used by the ruling class. Marx however did not write also of literature on industrial relations since during his time the collective bargains of trade unions were not well established. Scholars who came later on are the ones who indicated the works of Karl Marx in industrial relations. Social stratification is the main feature of this theory. The conflict in class is the one that elicits changes in the capitalist economist. Competition among these social class groups is rooted in the fact that the rich own productions means and can manipulate authorities. A weakness of this strategy is that there is class and political conflict and the need to earn a living by selling labour keeps this feature permanent. Trade unions are as a consequence of this exploitation of labourers and it it's their tool for fighting the capitalist economists (Teicher et al 2006). Hawke and Keating Governments The kind of struggles that have been observed in Australia during the rule of Whitlam to Rudd is very critical. Several theories can be defined to have faced the wrath of the labour government one such theory is the systems theory, Marxist theory, conflict theory and social action. During the rule of Hawke-Keating, the unions that were in existence faced resistance from the labour government and many unions also fought had not to loose changes as they had done during the preceding Whitlam's time. Marxism theory is manifested as the working class are actively involved having drawn lessons from previous labour party and through this, the union managed to lay down prices and income accord during the Hawke-Keating throughout the 13 years it was in power (Teicher et al 2006). The Australian Council of Trade Unions (ACTU) faxed a lot of obstacles during the early 1980 as most of the wage rates had fallen amid a growing or rather an increasing resource boom. Marxism is indicated here as it's clear that the people who own the production means were using them to exploit the working class. Transport workers lodged a claim in 1981 about arbitration commission which was to be increased by 20 dollars. Hawke was a preferred candidate because of his stance on the trade unions and support for the working class. Following how victory in 1983, the Australian Council of Trade Unions (ACPU) adopted the new prices and accord as their new and official policy. Five weeks after he won the labour government, Hawke called a meeting on economy where over three hundred ACTU delegates, Governments, welfare organization and businesses. During the economic summit, wage demand suppression was addressed. Howard Government Social action, Marxism, and conflict theories best explains the economic and industrial relations that existed during the Howard government. Labour government under Howard did not address the needs of the working class and the government was never present for criticism. The kind or rule that was in existence was characterised by cartels, ruling circles plus union leadership and labour leadership who had self interest vested in them and they ensured that no change would be initiated(Alexander et al 2008). The working class remained manacled in the face of the increasing militarism and assault on the social aspects that would have reformed the government. Howard has been known for bursting trade unions. Having ensured that the house of parliament was under control, the government embarked to implementing even anti union laws. By this, Howard was able to ensure that secret ballot were being used, cooling down the strikes before actual beginning, industrial actions were banned, declared the whole industry as health an industrial action and allowing third party right to ask for striking to be suspended (Alexander et al 2008) Rudd Government When Kevin Rudd got to power he proposed to maintain the rules that his predecessor had been using claiming that they still effective. In his statement to the press, Rudd claimed that the government should not fall victim or be controlled by the labour unions as they were not captives (Alexander et al 2008). This statement drew a lot of resistances from the unions; it seem like Rudd wanted to promote the culture of having unitary policy but the unions already in existence had to push the government (unitary theory) demanding that the government tightens the ALPs. In this case, the unions are applying conflict theory to the government by resisting the changes. Rudd did not draft description about unions, in depth analyses and prescription about the rights of workers and the protection employees were enjoying. Rudd initiated strategies to do away with the principles left by Howard's regime. Unlike other regimes, Rudd methods addressed the broader issues of trade unions (Alexander et al 2008). However trade union official were always positive that the government would initiate policy to that was complete, legal standards, collective bargain among others. Conclusion According to Rudd, the government should not be a captive to the trades unions while at the same time the government should not oppress the efforts of unions. The history of the Australia's union and governance under labour is interesting and the big question to as one self is whether the name lives up to its originality in 1890's. References Allan, C., McPhail, R. & Wilkinson, A. (2008) Introduction to employment relations, Pearson Education Australia, Frenchs Forest Alexander, R., Lewer, J. & Gahan, P. (2008) Understanding Australian industrial relations, 7th ed, Thomson, South Melbourne Victoria. Teacher, J, Holland, P & Gough, R (2006) Employment relations management: Australia in a global context, Pearson Education Australia. Read More