Role of Stakeholders in Resolving Disputes
After the introduction of enterprise bargaining, resolving conflict is now in the workplace with employers required to include dispute resolution procedures in agreements.
Employers and managers
Use grievance procedures and negotiate agreements with employees to resolve disputes.
Employees
Use grievance procedures and negotiate with employers.
Trade Unions
Represent employees in disputes, represent employees in tribunals, and negotiate.
Employer Associations
Provide information and support to employers, represent employers at tribunals
Governments
Provide the institutions and policy and legislative framework for the resolution of conflict. Investigate breaches.
Industrial Tribunals (AIRC)
Make and supervise awards and agreements. Provide conciliation and arbitration.
Dispute Resolution Process
- Grievance procedures - are mainly used to deal with personality conflicts and disciplinary matters within the workplace. They can help prevent a workplace issue from developing into a serious dispute.
- Negotiation - discussions between the parties compromise a formal or informal agreement.
- Mediation is the confidential discussion of issues in a non-threatening environment, in the presence of a neutral third party. Neither party are bound by the mediator's suggestions.
- Conciliation - a third party such as AIRC is appointed to hear both sides and attempts to reach a mutual agreement.
- Arbitration - if conciliation fails this is the next step. A panel of judges - court room setting. A decision is then imposed on the parties in a legally enforceable decision. A process that is usually avoided as one or both parties may not agree with the outcomes but must enact them.
- Common law action - is open to any party involved in or affected by industrial action. An employer may ask a court to stop interference with the employer's trade or business. E.g. where a nuisance is created by a picket line.
Costs and Benefits of industrial Conflict:
Financial:
Benefits of IC:
- Increased productivity
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Fewer disputes
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Reduced absenteeism
Costs of IC:
- Lost production and sales
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Firms may close
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Legal rep costs
Personal:
Benefits of IC:
- Gains managements attention to major issues
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Better work relationships
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Greater employee involvement
Costs of IC:
- Stress from work changes
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Threats of downsizing cause fear
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Absenteeism and accidents can occur
Social:
Benefits of IC:
- Jobs can be saved.
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Common welfare can be enhanced.
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OH&S problems reduced.
Costs of IC:
- Community bitterness can be directed at unions.
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Abuse can occur.
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Demonstrations can disrupt communities.
Political:
Benefits of IC:
- Gov can change their policies.
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Industries may be restructured to improve the economy.
Costs of IC:
- Disruptive conflict impacts on gov opposition policies.
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Conflict between unions and governments can cause large civil unrest.
International:
Benefits of IC:
Changes to work practices following conflict improve a business's competitiveness.
Costs of IC:
Loss of export income can occur. Nations reputation for stability can be lost as well as overseas customers.
