Industrial Relations
PAILIN, DAPHNE, HARRY, LACHLAN AND
GENEVIEVE
Breakdown in Negotiations
 When unions and employers negotiate, both sides try
to exert pressure on the other to force them to back
down
 These are tactics used by each party to gain the
upper hand. This includes:
Employee tactics
-Work to rule
-Strike
-Demarcation dispute
- Secondary boycotts
Employer tactics
-Stand-down
-Lock-out
Strikes
 Occurs when employees refuse to perform their normal
duties.
 2 forms of strikes:
- Rolling strikes- happens for part of the day on different days
- Full day strike
 The aim is to force the employer to negotiate by stopping
production->which reduces the business income.
 Under international law e.g the international covenant
on Economic, Social and Cultural rights- workers have
the rights to strike.
 However, the Workplace Relations Act 1996 (Cwlth) only
allow strikes under limited circumstances
Strikes
 WorkChoices changes the rights workers have had to strike:
- Required to give notice to employers
- Voting must be held by secret ballot
 These changes ensure that the employers and public will not
be affected by random lightning strikes(strikes with no
notice)
Case study: Ansett Industries (Operations) Pty Ltd v. Australian
Federation of Air Pilots (1990)
 After a dispute over wages and conditions- AFAP(represents commercial pilots) –
issued a directive for pilots to fly only between 9 a.m to 5 p.m
 Caused disruption to Ansett’s operations-Ansett’s pilots were required to fly
outside these hours
 Refused AFAP’s rights to negotiate, then applied to the Industrial Relations
Tribunals- cancellation of existing awards and agreements
 The remaining pilots all resigned the following day
 Ansett went to take action against AFAP-Victorian Supreme Court
 The argument was:
-Pilots had a right to strike
-Should not be liable for any loses incurred by the airline
 The court held that there was no implied right in their award.
 AFAP- tort of interference and unlawfully interfered with Ansett’s business
 Damages were awarded in favour of Ansett
Stand-Downs
 When a worker’s labour is not required for short
period
 Occurs as the result of industrial action
 Only legal if conducted in accordance with an award
or agreement or have the approval of the appropriate
authority
 WorkChoices- stand-downs permitted if the business
has no work
Lock-Outs
 Once a common tactics used by employers
 Consists of locking up the workplace and denying the
worker’s entry
 Much less common now, illegal in NSW
Demarcation Disputes
 Demarcation-The union practice of allocating jobs to
specific unions.
 Demarcation disputes- which workers should be
doing what work
 Disputes have little to do with employer- more with
rival unions fighting over members’ rights to carry
out certain tasks.
Work to Rule
 When workers only do the tasks specifically set out
in their job description
 Work is restricted to the min. hours required- no
overtime work
 Intention- to demonstrate how much work the
employees do beyond min. requirements
Secondary Boycotts
 Putting pressure on a third-party employer- boycott
the goods/services of the employer involved in the
dispute
 Unlawful under Trade Practices Act 1974 (Cwlth)
Process of Settling
Industrial Disputes
Industrial Dispute
 A dispute between an employee and an employer
regarding their work relationship.
This was
established in Coldham and Other Australian
Welfare Union (1989).
Role of the Union
 Support members who have been unfairly dismissed
 Ensure safety standards are upheld
 Assist those who have been discriminated against
 The registration of unions allows them to gain legal
standing and thus enables them to run
democratically and cooperate with government
bodies
 This is covered in the Workplace Relations Act 1996
Shop Floor Meetings
 Held during work hours in the premise of the
workplace
 Generally called to discuss workers grievances and to
keep members informed of developments
 Unionised workplaces have representatives that
liaise between union leadership and employees
Industry Log of Claims
 A formal way of bringing employee concerns to the
employer
 Initiates industrial action or negotiation
 Industrial arbitration cannot take place unless a log
of claims has been submitted
Institutional Structures and Powers
 New South Wales Industrial Relations
Commission (NSWIRC) can order an employee to
cease industrial action and order an employer to
reinstate workers who have been dismissed
 Australian Industrial Relations Commission
(AIRC) may inspect workplace premises or interview
employees about possible breaches of awards. The
AIRC’s role was reduced when a majority of corporations
moved to the federal system, covered by the exclusive
corporations powers (s. 51xx)
 Inspectors (appointed by the NSWIR Act 1996) of the
Office of Workplace Services have powers of entry which
allows them to inspect workplaces and employees to
determine if an act has been carried out
Commonwealth and State Powers
 The Commonwealth has the power to make laws
regarding industrial disputes (under section 51
(xxxv) of the Constitution
 Work choices and High Court rulings have reduced
residual powers covering industrial relations, this
was challenged in the case NSW v. Commonwealth
2006 however the High Court ruled that work
choices were a valid commonwealth law
 Only 15% of workers are covered by State systems
Reform
 Until 2006, industrial relations was broadly covered
by state and federal acts
 With the introduction of WorkChoices, a majority of
the AIRC’s arbitration power was removed and their
role was to then simplify and modernize awards
 The Fair Work Australia Act 2009 was introduced
which developed the National Workplace Relations
Tribunal and replaced the AIRC
- This is an attempt to unify the national
workplace system
Fairwork Australia Ballot System
 Protected ballots authorize industrial action.
 Must be undertaken prior to industrial action, unless
action is in response to action from another party’s
enterprise bargaining.
 Fairwork Australia must approve a ballot application
for it to be permissible.
 Over 50% of relevant employees must agree to the
ballot for it to be effective and for the specified action
to take place.
Conciliation and Arbitration
 Functions of industrial commissioners –
specific in their adjudication of cases which enables
them to develop expertise and experience in dealing
with specific issues.
The powers of the commissioners include the power
to: set working hours, investigate work places and so
forth.
 Compulsory conferences are called upon when a
commissioner suspects information is lacking from an
investigation before making a judgment
The role of a conference is to gather information on the
nature of a dispute and to determine exactly what each
side wants
 Fines and Deregistration are given by
commissioners. This power is usually exercised after a
union has failed to abide by the instructions of a
commissioner
Fines are imposed as a result of boycotts or breaches of
an award
Deregistration (eliminating a unions legal status and
thus standing in court) is an extreme measure and is
usually only used if a union continually disregards
arbitration rulings
Role of the Courts
Role of the Courts
 1956 High Court held no Commonwealth body
should have both judicial + legislative power.
 As a result; Australian Industrial Relations
Commission legislates the awards system, but the
Federal Court has responsibility.
Responsibility of the Federal Court
 Federal Court has power to resolve disputes lodged
by individuals or unions surrounding unlawful
termination.
 Federal Court has two key roles; as a supervisor of
the Commissioners and as an adjudicator in matters
which the courts have exclusive powers (e.g. when a
union/ employer is sued).
 As a supervisor the Federal Court ensures tribunals
do not exceed their power or jurisdiction.
Days Lost to Industrial Dispute