Large Machines Ltd: Manufacturing Plant in Australia Report

Abstract

This paper will explain the need for Large Machines Ltd to establish a manufacturing plant in Australia. This is intended to enhance business efficiency and effectiveness. This will mean that the company has to employee sufficient number of employees for its manufacturing plant.

Thus the company has to develop fair work policy. The paper will highlight the available terms and conditions for the Australian manufacturing industry employees as well as suggest possible recommendations. Furthermore the report will highlight the possible legal obligation that the company will have towards its employees.

Introduction

Large Machines Pty Ltd is an Australian company wholly owned by American Machines Company. The activities of Large Machines Ltd are restricted to sales and distributions of large industrial machines and equipment in New South Wales and Victoria, Australia.

The machines are imported from the United States of America. In the recent past, Large Machines Ltd has experienced a number of business challenges. Large Machines Pty Ltd faces a number of logistical challenges especially in the importation process. The problem is aggravated by the increasing cost of transportation and freight charges, which is affecting the company’s business efficiency.

To overcome this challenge Large Machine Ltd has developed a number of solutions, which include establishing, with approval from American Machines Company, of a manufacturing plant in New South Wales Australia. The company will therefore need to employ a minimum of ninety manufacturing employees.

Due to the fact that it is a first time venture the company has to develop employment standards manual for its new manufacturing plant. This report will thus highlight the minimum terms and conditions of employment and also suggest the most recommendable fair work policies as well as the legal obligation it will have towards the new employees.

Terms and conditions (Fair Work Standards) for manufacturing employees

The description below is the platform for setting the fair work standards awarded to Australian manufacturing employees.

A. The agreement (contract) is signed between the individual employee and the employer. The terms may be varied in function subject to prevailing needs of the employer or the employee. The variation in application is applicable in areas that cover work schedules and engagements, when employee leave is taken and the conditions for the leave, overtime work compensation rates, work related fines and penalties as well as any allowance payable to employees.

B. The company and the worker will have made contract signing in free will without any coercion. The company understand that all employees must be at least 18 years and above by the time the contract is being signed

C. That the termination of the agreement may be done by either the employer or the employee provided there at least a four week notice prior to termination. Only on special occasions can the termination of the contract be done abruptly provided there is mutual consent between the employee and the employer.

D. The agreements provide for makeshift application but this is not to be used to avoid any liability by the employee or employer in case of a dispute (Commissioner for Public Employment 2010; Fair Work Act 2009).

The following are the minimum terms and conditions available for the Australian manufacturing employees.

E. Types of employment: the Australian manufacturing industry provides employment opportunities to any person if;

1. The persons is 18 years and above
2. Has meet minimum job qualifications
3. Agrees to the job terms and conditions

Employees can apply for either permanent or part time employment upon availability of such jobs. There are also positions for cadets, trainees as well as apprentices (Manufacturing and Associated Industries and Occupations Award 2010).

F. Working hours: the fair work standards provides the maximum working hours for permanent, part time and temporary workers. Permanent workers are expected to work at most 38 hours per week, excluding weekends and public holidays.

This provision may only be varied only when conditions warrant it and if those conditions are fair. Part time and temporary employees will work less than 38 hours per week or as priory agreed.

Employees have a right to refuse additional hours of work if the conditions are not fair, if coerced or if no sufficient prior notice is given. Any form of leave, medical or otherwise endorsed by the employer is treated as hours worked

G. Request for flexibility of working hours: an employee can request in writing for a review of flexible working hours if:

1. Is handicapped;
2. Is a parent and taking care of a school going child or if the child is handicapped.

H. Leave of work: only permanent employees qualify for leave of work, upon completion of a continuous 12 months of work since employment. The following are the leaves available for employees:

1. Parental leave (12 months unpaid)
2. Annual leave (4 to 5 weeks paid),
3. Community service leave (concurrent with the duration of the time for the service).

There is a guarantee of return to work after the leave, if the employee had fulfilled all conditions foe taking the leave before taking the leave. Under very special circumstance the employee may be allowed ten days paid compassionate leave (Fair Work Act 2009).

I. Absence from duty: if an employee is absent from duty without permission, he/she will loose payment equal to the duration of the time absent (Manufacturing and Associated Industries and Occupations Award 2010).

J. Wages and salaries: the average permanent manufacturing employee gets an average of A$1211 per month. Part time workers get varied wages upon consideration of the nature of the job as well as the number of hours worked but must not deviate much from the $14.31 national minimum wage per hour (ILO Department of Statistics 2010).

This translates to about A$ 14000 per annum exclusive of allowances and other financial benefits and payments. Wages and salaries will be reviewed annually.

The following are the legal obligations that the Australian manufacturing companies have over their employees.

Employer should:

1. Provide a working environment for all employees void of any form of bias, prejudices or favoritism
2. Ensure that the health as well as occupational safety of worker is guaranteed at all times
3. Engage all employees according to award of contracts stipulated within the Fair Work Act
4. Submit Pay As You Earn tax installments when necessary.
5. Maintain all records of employees
6. Ensure that all superannuation requirement are met
7. Avoid any form of independent agreement arrangement with any employee
8. Compensate employees according to all compensation schemes available for the industry (Government of South Australia 2011).

The following are the recommended fair work policy for the Large Machines ltd

The company is inclined to meet all obligations towards its employees and as such the following terms and conditions are highly recommended

1. The company should observe the current waging criteria as stipulated by the ILO, while having an emphasis on annual salaries reviews for all employees.
2. The company should also fully enforce all conditions for work leave, but review the conditions under which an employee can take a study leave
3. Ensure that employee contracting process is legal compliant especially in avoiding disguising employment through independent agreement arrangement
4. Other than employing fully qualified personnel the company should also groom its own work force through an apprenticeship internship program
5. Provide opportunities for permanent employment to part time employees who meet the company’s job requirements
6. Provide equal employment opportunities in regard to gender, race and religions provide the candidates:

• Meet minimum qualification. Are 18 years and above.

References

Commissioner for Public Employment. 2010. An overview of the national industrial relations system and the role of the office of the commissioner for public employment. Web.

Fair Work Act. 2009. Manufacturing and Associated Industries and Occupations Award 2010. Web.

Government of Australia. 2011. Workforce Planning and Practice. Web.

ILO Department of Statistics. 2010. Table 19. Average nominal wages in manufacturing employees. Web.

Manufacturing and Associated and Associated Industries and Occupations Award. 2010. Consolidated award including variations made on 2009. Web.