Module 2: INDUSTRIAL RELATIONS:
1 SHRM and the industrial relations
FRAMEWORK AND PRACTICE
Industrial Relation System
- Refers to the rules , regulations and
institutions that govern the employment
relationship and that set the terms and
conditions of work and employment.
Industrial Relation Process
- Includes the negotiating and bargaining
procedures which takes place between
employers ( and employer associations)
and workers ( and their unions) in
accordance with the industrial relations
system in order to achieve outcomes on
such issues as wages, salaries,
benefits, and employment conditions.
INDUSTRIAL RELATIONS ALSO KNOWN
AS:
- Workplace Relations
- Employment Relations
MAJOR PARTIES OR ACTORS IN
INDUSTRIAL RELATIONS:
- Employers and their associations
- Employees or workers
- Trade Unions
Workplace Relations
- The employment relationship as it is
constructed and managed at the workplace ( or
enterprise or organizations)
Unions
- An organizations that provides a
collective voice for employees.
- It is an institution whose purpose is to
represent and defend those who work
for someone else.
GOVERNMENT
- Play a significant role through legislation that
sets employment standards and regulate
the employment relationships
INDUSTRIAL RELATIONS AND SHRM
- HRM is closely aligned with the business
goals and strategic interests of the
organization.
- PM and IR were closely integrated with
business strategies
SHRM changed the relationships:
1. HR AND IR brought together in an
operational sense under the umbrella of HRD
2. Aligning these 2 fields in the business
interest and strategies of the organizations.
Figure 3.
framework
COLLECTIVE BARGAINING
- A method of negotiation between
unions and employers, used to resolve
the terms and conditions of employment
INDUSTRIAL RELATIONS FRAMEWORK
- Describes the arrangement by which the
terms and conditions of work and the
employment relationship are determined,
including legislation, bargaining
representatives, and processes.
Federal Labor Government
- was elected (2007) and mandated to reform
IR Legislation
- Existing policy of “Forward with Fairness” the
government introduce the “Fair Work Act of
2009”
The Fair Work Act
- The main federal legislation regulating
the employment in Australia
- Introduced the 10 national
employment standards and
bargaining rules for employers and
employees
- Hybrid of collective bargaining at the
enterprise level and individual
employment rights and processes.
National Employment Standards
- a revised modern award system
- provide safety net of terms and
conditions for employees
- rules for employer
- employee bargaining system
- union representations
Fair Work Act
- Focus on flexibility options for working
parents
- Right to request flexible work arrangement
and individual flexibility arrangement (IFAs)
- 2013 were expanded to include the right for
victims of domestic violence and their
supporters to request leave
- All parents of school age( and younger )
children
- Carers of adults who need care
- Employees with disability and those aged
55 or older.
Table 3.1 The Australian (federation) NES 10 Areas : Employers must comply
industrial relations framework
2. Minimum hours of work
1. Legislation Fair Work Act 2009 3. Request for flexible working
2. Institutions Fair Work arrangement
Commission (the 4. Parental Leave
Commission) 5. Annual Leave
Fair Work 6. Personal/Carers Leave
Ombudsman 7. Community Service Leave
Courts, which hear 8. Long Service Leave
prosecutions of
9. Public Holiday work
employers for non-
10. Notice of Termination and redundancy
compliance
3. Participants Employers, pay
employers 11. A Fair Work Information Statement
association, Functions of Fair Work Commission
employees, unions,
bargaining agents 1. It facilitates good faith it sets modern
4. Processes Collective bargaining awards, which provide a safety net of
, good faith minimum conditions, including minimum
bargaining , wages , for the industry
determination for low
paid workers in 2. Bargaining and the making of enterprise
special agreements
circumstances
5. Instruments National minimum 3. It determines unfair dismissal claims
wage and remedies
National Employment
4. It deliberates on workplace
Standards
Modern awards determinations, equal remunerations,
Workplace transfer of business, general
agreement ( union protections, right of entry for unions,
and non-union) and stand downs.
5. It regulates the taking of industrial
Table 3.2 Key Aspects of the FWA action

The Fair Work Act 2009 established the
tribunal now called the Fair Work
Commission . It is the successor to the
Australian Industrial Relation
Commission
Minimum wages are set by the Minimum
Wages Panel of the Fair Work Commission
The Fair Work Act legislates for 10 minimum
conditions known as National Employment
Standards (NES)
Modern industry awards include 10
conditions , as well as the minimum wage for
those covered by that award
The NES and 122 modern awards together
constitute the safety net- or minimum
standards –for all employees
There is a requirement on the negotiating
parties to bargain in good faith
There are three forms of registered
agreement between employers and workers :
single-enterprise agreements , multi-
enterprise agreement and green fields
agreement
There is an unfair dismissal regime for all
employees in organizations of 15 or more
employees.
There are general protections for employees
focusing on workplace rights, freedom of
associations, workplace discriminations, and
unfair treatment.
6. It assists employees and employers to
resolve disputes at the workplace
through conciliation and mediation, and
in some cases through the
determination of the arbitration
7. Anti-bullying was introduced in 2014 in
the commission
The Functions of Fair Work Ombudsman
1. Advice and education for employers
and employees
2. An inspectorate to make sure that
employers, organizations and
employees are meeting their obligations
under FWA or enforce the laws in court
system
3. Monitoring of certain temporary skills
shortage( TSS) visas.
Functions of Fair Work Division
1. Hearing matters that arise under
workplace relations law
2. making appropriate orders to remedy a
contravention, including injunctions
3. hearing small claims about
entitlements: underpayment of wages,
up to an amount of $20,000.00
ENTERPRISE BARGAINING BULLYING
- Negotiation of the terms and conditions of - Where one or more people engage in
employment between employers and repeated and unreasonable behaviors towards
employees or their respective another individual
representatives, a subset of collective
bargaining that occurs at enterprise level.
GOOD FAITH BARGAINING
- The principles that parties entering into the
bargaining process will participate in a
meaningful way and genuinely try to reach an
agreement.
STRIKES
- One form of industrial action, where groups of
employees withdraw their labor
UNFAIR DISMISSAL
- FWA introduced the Fair Dismissal System ,
started in July 1, 2009
- Fair Dismissal System(FDS) sets out the
steps that an employer should go through
before dismissing an employee
-s.385 of FWA , dismissal occurs:
1. If the person has been dismissed; the
dismissal is deemed to be harsh
2. Unjust or unreasonable
3. The dismissal was not consistent with
small business code
4. The dismissal was not a case of
genuine redundancy
MUTUAL GAINS BARGAINING
- Refers to the approach to bargaining
between the employers and unions
where the emphasis is on defining the
problems and finding solutions that
benefit both parties.-
RIGHT TO REQUEST
- The right to request changes of work
arrangements and leave.
- In Australia, rights to request refers
specifically to the right of employees
with newborn, pre-school- aged or
disabled children to request an
extension to unpaid parental leave.
- Employees aged 55 years or over
and employees experiencing family
violence or caring a family or
household member who is experiencing
family violence may also request a
change to working arrangements.
WAGE THEFT
- Refers to the non-payment or underpayment
of wages or other employment-related
payments lawfully due to workers