Wage demands, working conditions, management policy, political goals and social issues.

An industrial conflict or dispute is defined as a withdrawal from work by a group of employees, or a refusal by an employer to allow workers to work.Conflict refers to disputes, disagreements or dissatisfaction between individuals and/or groups. A dispute is a disagreement.

The common causes of industrial conflict are:

Wage Demands

The level of wage and salaries is often the major cause of disputes between an employee and employer. It also refers to a demand by employees for an increase in their wage rate or changes to the way in which their wages are calculated or determined. As well, wage demands may relate to pay rates may need to be adjusted to compensate employees in times of inflationary pressures such as GST and interest rates. Employees are more likely to seek wage increases to maintain their standards of living. Australian unions and workers fight for improved wages.

Working Conditions

Disputes often arise over issues of working conditions and safety at the workplace. Include disputes concerning issues such as leave entitlements, pensions, compensation, hours of work. Employers will need to monitor physical working conditions and provide adequate protective clothing and equipment, first aid facilities, quality working equipment and amenities such as lunch rooms, change rooms and toilet facilities.

Employees will take action if there is a risk to either their or others health and safety.

Management Policy

Disputes are often the result of inadequate consultation by management with their employees. Disputes over changes that management wishes to implement will often cause industrial conflict. Matters include terms and conditions of employment, new awards and agreements, award restructuring, outsourcing and technology acquisitions and structural change.

Political Goals and Social Issues

This usually refers to non-industrial issues, but rather involves wider issues directed at persons or situations rather than those relating to the employer-employee relationship. Employee unions, federations and associations will often undertake actions that are unrelated to the basic wages and conditions of their members.

Perspectives on conflict - unitary, pluralist, radical

• The different stakeholders in employment relations view the relationship between employers and employees from a range of different perspectives.

Unitary Perspective

In unitary perspective employees and employers work together as a team to achieve common goals. The unitary approach in ER assumes stakeholders such as employees and their employers work "hand in hand" to achieve shared goals. It sees the business as a unified entity in which everyone shares the same purpose and is part of the same team. If conflict does arise, it is seen as the fault of poor employee management or communication problems. Unions are rarely needed.

Pluralist Perspective

The pluralist perspective believes that conflict between employers and employees given their different aims and interests is expected at times. It also recognizes that some interests are shared and that decision making should be shared between the competing parties. Both parties need to accept that the differing views can be considered for successful industrial relations to occur. So managers must develop an effective system of communications that allows employees to express their views and to resolve them without damaging the organisation and its performance.

Radical Perspective

Radical approach believes that there are such fundamental differences between employer and employee that it's almost certain that conflict will always occur. Sees conflict in the workplace and reflects the traditional view of "us employees VS those employers". It believes that employers and employees are too opposed to work together.

 

 

• Roles of stakeholders in resolving disputes

 

• Employers: Use grievance procedures and negotiate agreements directly with employees to resolve disputes. Line managers are playing a much greater role today in resolving disputes.

 

• Employees: Use grievance procedures and negotiate agreements with employers with or without unions, on a collective or individual basis.

 

• Employer associations: Provide information and support to employers, assist in negotiations with unions, represent employers in tribunals.

 

• Unions: Represent employees in disputes from the shop floor to the national level, negotiate with management, employers and associations, represent employees in tribunals.

 

• Government organisations: Through their legislation can resolve or even prevent disputes. Government has also established the rules under which the parties negotiate, whether in individual contracts, collective bargaining or in the conciliation and arbitration system. Government also has the responsibility of ensuring that these rules are followed, and stands ready to intervene if an agreement cannot be reached.

 

• Types of industrial action

 

• There are two main forms of industrial action that can be taken by employees or employers; overt action (physical response, highly visible) and covert action (silent and unseen response)

 

 

Overt

Lockouts, pickets, strikes, bans, work-to-rule

 

Overt industrial action is highly visible, direct and aimed at gaining max awareness and well organised by unions.

 

Lockouts

 

Action taken by employers where employees aren't permitted to enter the workplace and are locked out from the workplace unless they agree to follow management order or work as directed

 

Pickets

 

Pickets is where striking workers or a union attempt to gather outside the workplace forming a line to prevent entry of other employees, contract labour or suppliers from entering the workplace.

 

Strikes

 

A strike is a withdrawal of labour from production. Strikes are the most overt form of industrial action and aim to attract publicity and support for the employees case. Strikes occur when employees withdraw their labour in order to enforce a demand or express a grievance.

 

Bans

 

 

Is when employees refuse to form a task that is usually not specified in their employment contract, such as overtime.

 

Work-to-Rule

 

Working to rule is similar to a work ban and involves workers only performing what is contained in their employment contract or award and following the strict terms of their employment contract or award.

 

Covert

Absenteeism, sabotage, turnover, exclusion from decision-making in business

 

Covert action is not openly acknowledged or displayed with no organisation.

 

Absenteeism

 

Usually refers to when employees are unhappy, usually when employees are not being considered by employers in times of dispute, the employees may undertake a system where they do not show up to work, and absent themselves. Employees may undertake mass absenteeism with many being off at the same time, or rotational absenteeism where they almost roster who will be taking time off. Action of this sort disrupts the business but does not stop the employee's income (sick leave), so it is favored by some employees

 

Sabotage

 

 

Employees may take industrial action in the form of deliberately damaging physical items and causing vandalism in the workplace. Damage is done by employees to either the product or in the production of the product. Employees usually take such action to harm or destroy the image of a firm.

 

Staff Turnover

 

 

High voluntary labour turnover (resignation) rates are often linked with absenteeism rates as indicators of conflict and dissatisfaction among employees.

 

Exclusion from Decision-Making in Business

 

Conflict can arise when employees believe that they haven't been given the opportunity to have their say for e.g. not inviting employees to meetings. It occurs when an employer does not involve employees in decisions that affect them.

 

Dispute resolution processes - conciliation, arbitration, grievance procedures, negotiation, mediation, common law action, business/division closure

 

Many firms now try to develop a corporate climate in which disputes are minimised through collaborative working relationships, and by training staff in procedures, policies and guidelines for managing disputes.

 

Grievance Procedures

 

The very first step of negotiating any industrial relations issue starts in the workplace. A grievance procedure is a formal series of steps which are meant to be followed when a dispute arises.They usually start with the first point of contact, such as a supervisor and then to senior levels of management.

 

Negotiation

 

This involves a formal or informal discussion between the employee and employer level in which both parties agree to a mutual agreement to resolve the dispute. Under the process of negotiation parties do not require the assistance of unions or other assistance.

 

Mediation

 

Mediation follows if negotiation is unsuccessful. Mediation occurs when a neutral third person is introduced who helps the parties to find a basis for an agreement that is acceptable to the disputing parties to reach a final agreement.

 

Conciliation

 

Conciliation is the formal means of settling a dispute when it cannot be resolved and may be referred to a third party, such as the AIRC, usually an industrial commissioner with the necessary qualification and skillswho encourages the parties to negotiate their own agreement and brings the parties together.

 

Arbitration

 

If conciliation fails, the matter may be referred to arbitration, arbitration is very similar to the procedures of conciliation, where the independent third party again comes from the Industrial Relations Commission.

 

The main difference here is that the arbitrator considers the arguments of both sides and makes the final decision, which is legally binding on the parties involved.

 

Common Law Action

 

This is where a dispute goes beyond the boundaries of a quick resolution such as conciliation, arbitration; grievance procedures, negotiation and mediation, and needs to be settled in court, where common law applies. Here the Australian legal system will be used if the party believes that the dispute or action has broken the law. This could be a breach in tort law or contract law.

 

Business/Division Closure

 

If the dispute is impossible to resolve it may result in the closure of that division or business.Closure of a division or a business permanently or temporarily may also be a resolution or outcome of a dispute.

 

 

• Costs and benefits of industrial conflict

 

• Industrial conflicts have both costs and benefits although in many cases they are difficult to measure.

 

• The costs and benefits may be financial, personal, social, political and international.

 

 

Financial

 

Costs

 

Cost could include loss of production and reduced productivity due to bans, and loss of wages for the employee if the dispute results in cutting production and work. Firm's reputation may be damaged. The cost associated with legal representation is a financial burden upon the firm.

 

Benefits

 

Benefits could mean better work practices and increased productivity, and for employees through higher wages. It could result with fewer disputes and less absenteeism and labour turnover.

 

Personal

 

Costs

 

Could include a high level of stress for employer and employee and reduced job satisfaction and could result with an increase in absenteeism.

 

Benefits

 

Could mean improved working conditions for employees, including better occupational health and safety, and better more efficient production processes for employers. Greater employee involvement and motivation.

 

Social

 

Costs

 

Tensions and dissatisfaction at work can lead to breakdowns at home, even domestic violence. Employers could suffer from vandalism of the workplace and conflict in the community.

 

Benefits

 

For both employers and employees could be that the conflict clears the air and leads to improved communications systems.

 

Political

 

Costs

 

Cost could include damaged reputations for some politicians and political parties associated with industrial conflicts. Bitterness between unions and government can lead to political conflict

 

Benefits

Could flow to politicians and political parties who present policies that reduce industrial conflict

 

International

 

Costs

 

Nations reputation for stability can be lost and Gain a reputation as being an unreliable supplier. Productivity levels drop increasing costs and making Australian business less competitive against overseas efficient businesses. Furthermore a loss of export income could occur after periods of disruption.

 

Benefits

 

Conflict improves business's international competitiveness presenting opportunities for international expansion and improved production.