Why employees join unions
Employees join unions in order to secure better pay conditions and wages for themselves. These workers can get better entitlements (paid leave and better overtime rates) when in unions. They also do this in order to protect themselves from poor safety at work as they can negotiate workplace conditions. Unions assist workers in protecting their rights as it may be undermined through discrimination or harassment.
The significance of “neo-liberalism’ in the last 20 years
Neoliberalism is the belief that individuals’ personal interests will be best served when people are separated from coercive governments and are autonomous. It is also coupled with the belief that free markets are the best platform for proficient economic outcomes and individual autonomy. In the past 20 years, it has become relevant because work policies focus on employers’ profitability.
The difference between “unfair” termination of employment and “unlawful” termination of employment
Unfair termination of employment occurs when an employee’s dismissal is done unreasonably, harshly or unjustly. For a termination to qualify as an unfair one, it must be done with 14 days of the termination. Conversely, unlawful termination refers to the dismissal of employees owing to invalid reasons such as discrimination, trade union membership, absence from work, or temporary illness.
The difference between the needs principle and the capacity to pay principle in wage determination
The needs principle refers to the provision of wages in a manner that will accord workers a decent standard of living by meeting their personal needs. In such an approach, the wage should also reflect fair compensation for one’s work. On the other hand, the capacity to pay refers to the economic viability of an enterprise, and the ability of an employer to meet his wage obligations without undermining profitability.
The causes of the shift in employee relations to an enterprise focus
Employment relations has attained an enterprise focus because of increased emphasis on efficient production, the better quality of goods, cost minimisation and greater motivation; all are neoliberal principles. Furthermore, the role of the government as an employer has been reduced. Values such as communication, consultation and negotiation have become common, and are better served by enterprise-based relations.
The difference between a collective workplace agreement and an award
Collective workplace agreements can be understood as individualised agreements between employers and employees. They contain agreements on conditions and terms of employment between the two entities and can supersede employment laws of a state (except safety conditions). An award is a decision made by Fair Work Australia to grant equal wages and conditions in an industry.
Accounting for the increasing interest in teamwork
This is because of advances in human resource management. There has been increased interest in heightening individual employee commitment to an organisation through organic entities; this has perpetuated the use of teamwork. The need to have strong corporate cultures has also necessitated the need for teamwork. The individualistic values of high productivity are best served by teams
Freedom of association
Freedom of association refers to the right of an employee to either join a union or refuse to join one. An employer is obligated by the Workplace Relations Act not to terminate a worker’s employment because of this fact. Furthermore, employees are allowed to participate in industrial actions in order to get better work conditions or pay without being fired.
Constitutional powers for federal government intervention in employee relations
The Australian Fair Pay and Conditions standard allows the federal governments to guarantee minimum entitlements in pay, work hours, annual leave, carer’s leave and unpaid parental leave. Awards are set out in the Workplace Relations and Amendment Act to bind employers in certain industries concerning workplace conditions. It can also intervene in freedom of association cases, unlawful termination, and unfair dismissals.
The conflict from a unitarist and a pluralist perspectives
The unitary perspective looks at conflict as a disruption and may assume that agitators were responsible for it. Employees and employers are expected to be loyal to one another, so conflict is caused by perceived disloyalty. The pluralist perspective thinks of conflict as a phenomenon that is neither good nor bad. It stems from the assumption that people are divergent and different from one another.
Collective bargaining as the most appropriate way to establish pay rates
The Australian history of wage determination
Prior to the 1980s, collective bargaining was viewed as an appropriate method of pay rate determination because it worked well for a closed economy. When wage increases occurred in one part of an industry, they quickly translated into other parts of the industry. Capacity to pay and differential performances between firms in the same industry were not considered. After 1980, deregulation occurred, and this method is now being questioned. Its high level of inflexibility made Australian firms uncompetitive.
Decentralisation of bargaining
Since the 1990s, decentralisation has taken place in order to increase flexibility, so collective bargaining may not be the best method based on these developments. Decentralisation of bargaining must be considered as well. The implementation of awards has ensured that certain conditions can be overridden. Other mechanisms for decentralisation of pay rates continue to reduce the popularity or need for collective bargaining (Weller, 2007).
The changes driven the shift in Australian employee relations from a national to an enterprise level
The shift of industrial relations in Australia from the national to enterprise level has been created by increased globalisation. Neoliberal thinking has become an important part of the Australian landscape, and thus necessitated the need to move away from the national level to specific organisations. Corporations are currently regarded as the centre of power, so it is only appropriate to transfer power from the state to the enterprise and the workplace. Enterprise bargaining has allowed companies to undercut awards in order to meet their objectives.
Reference
Weller, S. (2007). Power and scale: the shifting geography of industrial relations law in Australia. Centre for strategic economic studies report, 28, 1-15.