Synopsis
The Australian Industrial policy has put in place measures to ensure a harmonious working relationship between the workers and the management. The State has played a major role to shape the industrial relations in Australia. This paper will discuss three outstanding functions derived from Offe’s works in 1984.
In addition to the functions, it will be important to analyze the key arenas in industrial relations that the State is involved in to conduct its functions as discussed by Hymen. The contribution by both writers helps in understanding the role of different types of States in shaping employment relations in Australia.
Brief Overview Of Australian Industrial Relations Policy
Australia’s modern culture offers streamlined flexible working conditions in the workplaces. This ensures that the plights of the workers and the employers are well represented hence leading to a productive and innovative culture.
The culture has not only contributed to a stable economy but also put in place structures to react to any global challenges (Hunt 1995). The Australia’s industrial relations ensure that both the employers and employees have the negotiation ability to handle matters that affect their workplaces hence promoting efficiency in human power.
Functions Of State Activities In Employment Relations
Hyman (2008) attempts to define the role played by the state in setting up industrial relations policies. He identifies three outstanding functions of the state activities that were forwarded by a renowned writer, Offe, in 1984 (Hyman 2008). Offe identifies accumulation as one of the state activity that corresponds to employment relations.
He explains that by accumulation, the state plays a vital role to promote productivity and competitiveness that lead to an increased economic performance. The other function is the Pacification. Offe argues that it is the role of the state to ensure that social order and integrity of national boundary is maintained. This is with an aim of suppressing any conflict that may arise between both the industrial and social -political arena.
In most countries, it should be noted that the relationship between the industrial and social-political arena has remained uncertain. It is therefore the duty of the state to ensure diffusion of this boundary conflicts. The last function of the state is Legimitation. It is the role of the state to ensure that social equity is pursued hence leading to a fostered citizenship and freedom to be heard at work.
In addition to the state functions discussed by Offe, Hyman goes on to describe the key arenas in industrial relations that the state is involved in. He argues that these arenas of state action are operational in almost all the states. The first arena is the State itself as an employer. Most citizens work for the state in different areas such as the military, police force and other public offices.
He states that State employment applies its industrial relations regimes differently from private sectors. The rules that pertain to the public regime are stricter and restrictive as opposed to the private regime. A good example is the right to collective bargaining power by public employees which is more constrained as compared to private workers.
The other arena is through procedural regulation, whether voluntarily or involuntarily. This action gives the state an outstanding role of getting involved in the players’ activities in the workplaces. The state finds itself laying down procedural rules and regulations to govern both the employees and employers to protect the rights of each key player. The state is also involved in ensuring employment rights as indicated in any performance contract. In this arena, the state defines the applicable terms in a contract to avoid ambiguity.
The other arena that the state has a key function is managing the macroeconomics in the labour market. This is through fiscal and monetary policy regulations. The other arena is in the supply and demand management necessary to balance the employment and unemployment ratio. The other arena is its involvement in the state of welfare as observed in the industrial relations. The state is also involved in taking such actions as it deems fit that shapes the economy and industrial relations.
Understanding The Role Of Australia’s Types Of States In Shaping Industrial Relations By Comparing Offe and Hyman’s Arguments
Hymen has come up with a stylized model that explains the kinds of states and the role that they play. These states are the laissez-faire state that applies to individualism, the social state that modifies the labour relations and the developmental state that discusses industrialisation. Offe’s three outstanding functions of state correlate with the arenas of state action claimed by Hymen. This relation plays a key role to help the reader understand the role of the above kinds of states.
Hyman and Offe are both in agreement that the state should ensure freedom of expression in the work place and to uphold each player’s rights. This brings to light the role of laissez-faire state. The constitution upholds the freedom of expression which has been backed by the industrial unions allowing workers to speak out against oppression in their work places through the Workplace Relations Act.
This allows both employees from private and public sector to be accorded protection in such instances. The other arena to which it is applied is through its laid down procedures that govern the industry players (Howell 2007).
Further, both arguments describe the state as a protector and custodian which brings to light the role of the social state as discussed by Hymen. This means that the pacification role can be applied in macroeconomic management, balancing the demand and supply chain and maintaining the state of welfare in the industry.
This means that the state has the role to ensure that peace prevails between the political-social arena on one hand and the industries on the other. The Australian’s government gives priority to industrial relations by allowing the bargaining power at the enterprise level. The bargaining power has opened the industrial sector to global competition hence strengthening the Australian dollar. Unemployment rate has drastically reduced and the economy is more stable. This reduces tension among the citizens.
The last function of legimitation is applied in the arena of shaping the industrial relations and economy by the developmental state. This is aimed at promoting working relation policy. The policy in Australia has put in place a system that ensures a fair pay and standard working conditions, minimum pay payable to employees as per the basic pay scale and binding agreements that protects the rights of both parties.
It also guarantees freedom of association that ensures that all employees are protected by virtue of being a member of a union. What this mean is that the employees can take part in legal industrial actions without facing dismissal or termination by the employer. The policy is currently in the process of setting down a modernised and flexible award system to further protect the employees (Colling and Terry 2010)
Conclusion
All states should be involved in industrial relations for the sake of the country’s economy. The industrial relations policy in Australia is highly regarded and protected by the state. The government is still in the process of developing the industrial relations system aimed at making the system even more flexible. The industrial relations policies are aimed at promoting productive and competitive working conditions so as to maintain a strong economic growth in Australia.
Reference List
Colling, T and Terry, M (2010) Industrial Relations: Theory and Practice. New York, Wiley Publishers.
Howell, C (2007) Trade Unions and the State: The Construction of Industrial Relations. New Jersey, Princeton University Press.
Hunt, I (1995) The New Industrial Relations in Australia. Sydney, The Federation Press.
Hyman, R (2008) The State in Industrial Relations. London, Sage.