Industrial Relation System in Australia and the Factors That Affect It

Awards:

Includes a minimum of 20 conditions including:

• Hours of work.
• Pay.
• Leave.
• Grievance procedures.

Workplace Agreements:

Is an agreement directly between the employer and employee. The employee can have anyone negotiate on their behalf. They are confidential. The Employee Advocate who uses the “no disadvantage test” examines them.

Certified Agreements

Employees and unions negotiate matters concerned with the contract at the enterprise. These are certified by AIRC.

The employment contract is a legally binding, formal agreement between employer and employee. They include: Duties, Supervision, Hours, Location, and Promotion policy procedures, O/T, Leave, and Super etc.

The contact is legally enforceable when:

• One party offers and the other accepts
• Consent is genuine and not pressured

Employment Relations in the workplace is governed by:

• Common Law.
• Statutes - Federal and state legislation.
• Awards and agreements determined through, or ratified by, industrial tribunals.

Common Law is developed by courts and tribunals. Under common law, judges made decisions based on the facts of a case, guided by precedent (decisions made in the past).

Employer responsibilities include the following:

1. Providing work - Employers are not allowed to "stand down" employees if here is no work.
2. Payment of income and expenses - required to pay the income stipulated in the award, enterprise agreement or contract.
3. Meeting requirements of industrial relations legislation.
4. Duty of care - OH&S.

Equity in the workplace is the provision of equal opportunities for all employees to gain access to jobs, training and career paths in the workplace.

All employees are to observe the following:

1. Obey lawful and reasonable commands.
2. Use care and skill.
3. Act in good faith.

Statutes are laws made by federal and state parliaments, for example, laws relating to employment conditions, wage and salary determinations and dispute resolution. These statutes require employers to:

1. Meet occupational health and safety requirements
2. Maintain workers' compensation insurance
3. Provide all employees with superannuation, annual leave and long service leave
4. All practices free from discrimination

Awards are legally binding agreements which set out minimum wages and conditions of employees.

The main difference between state and federal awards is in the way they apply to employees. State awards apply by "common rule" to employers employing someone. At the federal level awards are one of three streams of agreements available to businesses and employees. They are made by the AIRC following lodgment of a dispute by a union.

Agreements

• At federal level, employees must be covered by Certified Enterprise Agreements (CA's) or Australian Workplace Agreement (AWA's). AWA's co-exist with awards to remain as a safety net and agreement made must not disadvantage the worker overall in relation to the relevant award.
• Certified agreements are between an employer and a union(s), or between an employer and a group of employees.
• AWA's operate only at federal level. They exclude union involvement.

Individual contracts exist when an employer and an individual employee negotiate a contract covering pay and conditions. They are more common in the private sector and professional and managerial level. One third of Australia's employees are now covered by individual employment contracts.

Types of Employment Contracts

Part Time Employment - defined as work that is performed by an employee who is engaged for a number of hours that are either fixed or variable but are fewer than the standard hours in the relevant award for that industry. They are entitled to holiday and other leave entitlements on a pro rata basis.

Casual Employment - Refers to those employed for short term irregular or seasonal work and who are paid by the hour or day with no entitlements to sick or annual leave

Apprenticeships and Traineeships - Covers employees who contract to work for an employer in return for the opportunity to learn a trade or vocation.

Flexible - Employment which introduces flexibility to normal work practices such as starting and finishing times, standard hours and meal breaks.

Permanent Employment - Refers to employment for standard hours continuing unless terminated by the employer or employee, with payment by salary or wage.

Laws and Regulations which Govern Workplaces

Occupational Health and Safety

Occupational Health and Safety is important as it can be a significant workplace issue due to its high cost to society (injury and death), high cost to business and its role as a cause of industrial disputes. In NSW the Occupational Health and Safety Act 2000 and Occupational Health and Safety Regulation 2001 set out the guidelines that employers must follow to ensure the health and safety of their employees. The states work place safety legislation is administered by WorkCover NSW.

WorkCovers six step approach:

1. Develop appropriate OHS policies and programs
2. Set up a mechanism to consult about OHS matter with employees
3. Establish a training strategy
4. Establish a hazard identification and workplace assessment process
5. Develop and implement risk control strategies
6. Promote, maintain and improve these strategies

Workers Compensation:

Workers compensation provides injured workers with weekly payments to cover loss of earning capacity and payment of medical expenses and training expenses to assist their return to work. Under the Workers Compensation Act 1987 and NSW Workplace Injury Management and Workers Compensation Act 1998 all employers are required to have a workers compensation policy to protect them from financial claims when a worker suffers from a work related injury.