Syllabus
Industrial Conflict
industrial conflict
•
definition and causes — wage demands, working conditions,
management policy, political goals and social issues
•
perspectives on conflict — unitary, pluralist, radical
•
types of industrial action
–
overt — lockouts, pickets, strikes, bans, work-to-rule
–
covert — absenteeism, sabotage, turnover, exclusion from decisionmaking in business
•
roles of stakeholders in resolving disputes
•
dispute resolution processes — conciliation, arbitration, grievance
procedures, negotiation, mediation, common law action, business/division
closure
•
costs and benefits of industrial conflict
–
financial, personal, social, political, international
Causes of Industrial Conflict
Management Policy
Industrial Conflict is a clash between
employees and employers
The main causes of conflict are wages,
hours of work, entitlements, managerial
policy, physical working conditions, trade
unionism, and other things.
Wage Disputes
Hours of Work
Income for employees vs
Profits for employers.
Basic source of conflict
because workers want more
money, and businesses want
fewer expenses.
Causes for wage disputes
include business profit,
executive salary increases,
inflation, differing salaries.
Major changes to
business structure or
policy.
E.g changes to shifts,
promotions, new
awards or
agreements,
discipline policy etc.
Needs of the
business vs
Employee flexibility.
Changes to normal
hours
Restrictions on
holidays
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Entitlements
(leave, compensation, etc.)
Physical Working Conditions
Employers must provide safe working
conditions.
Employees may feel their conditions are
substandard or to uncomrfotable.
Mainly in business collapse. Employees
want the money that they are entitled to.
Accumulated sick leave, and long service
leave for example.
Trade Unionism
Perspectives on Conflict
Decreased in recent years due to The
Workplace Relations Act 1996
Ability to take legal action for unlawful
industrial disruptions.
Unitary
Pluralist
Radical
Unitary
Unitary View of ER
A perspective on
conflict that assumes
both employers and
employees have the
same business vision
and this work together
to ensure smooth
industrial relations
pratices are carried
out.
If conflict does arise it is because of poor
management or poor communications, or
interference from third parties.
This is closely tied to HRM where the
organisation is viewed in its entirety as
‘one’ without a fundamental conflict.
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Pluralist View on Conflict
Pluralist
A perspective that assumes conflict in the
workplace is inevitable because employers
and employees want different things.
Radical
Argument for the need for employees to
act together to overcome the position of
power of the employer.
Loyalty should be towards the union, or
fellow employees, rather than the
business.
Conflict should be resolved by an
‘independent’ or Government.
Radical View on Conflict
A perspective on
conflict based on a
difference in ideology.
A rejection of all
forms of
entrepreneurship.
Conflict is caused by the class war in
capitalist economies between workers and
owners.
Change to the social structure and
economic system is required.
Pluralist
Unitary
‘No wonder workers
are nervous and
edgy about their
prospects. They’ve
been downsized,
contracted out and
casualised.’
ACTU Secretary, Greg Combet
We [Govt.] don’t believe that
at the first sign of trouble
commissions should rush in.
We fundamentally believe
that the relationship between
workers and managers is
best run at the workplace
level rather than mediated
between third parties.
Workplace Relations Minister, Tony Abott
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Radical
Types of Industrial Action
‘The Australian labour force
has seen a polarisation
between over and under
employment culminating in a
loss of job security for those
at the lower end of this
spectrum and consequently
a weaker position in the
Industrial action is when disputes cannot
be resolved through negotiations.
Generally we can break industrial action
into overt and covert action.
class power struggle
- The Dole Army
Overt Actions
Obvious and visible
forms of industrial
action.
These include strikes,
pickets, work bans,
and work to rule, by
EMPLOYEES
And lockouts,
transfers, and
dismissal for
EMPLOYERS
Pickets
Protests outside workplaces to disrupt workers
and suppliers from entering or exiting the
building.
May lead to significant loss of production.
Strikes
Obvious and common industrial action.
Disruption to business as well as the
community.
Requires higher rates of union
membership or skilled workers
Employers can now sue employees for
unlawful strike action
Work Bans and Work To Rule
Refusal to do duties
not specifically
outlined in the
employment contract.
E.g. overtime or other
duties.
Work to Rule is
similar wherein
workers do only what
is specified in the
employment contract.
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Overt Actions by EmployERS
Lockouts
-
-
Transfer and Dismissal
Employers actually lock the workers out
leaving workers with no income.
Quite an extreme measure
Covert Forms on Industrial
Action
Moving workers to other departments or
locations. Reducing the power of
employees by separating workers
responsible for conflict.
Dismissing workers who do not comply
with their conditions of employment
Absenteeism
Sabotage and Accidents
‘Chuckin a sickie.’ obvious sign of worker
dissatisfation.
Turning up late or leaving early
Effective indicator of effective employment
relations.
Damaging equipment, stealing, disrupting
work process, and wasting time.
Carelessness can lead to accidents
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Turnover Rates
Covert Action by EmployERS
The number of employees permanently
leaving a workplace who need replacing.
Worker dissatisfaction, unmotivation, or
lack of rewards.
The Role of Stakeholders
Employees and Employers
Resolving disputes has traditionally been
characterised by unions and employer
associations battling for power.
Recent years has seen a move towards
dispute resolution at the workplace level.
Unions and Employer Associations
Government Organisations
Role of unions is decreasing
Work Choices introduced a ‘bargaining period’ in
between contracts. Industrial action must not
occur outside this time period.
Unions and Employer Associations are only
required if the dispute heads to conciliation or
arbitration at an industrial tribunal level.
Exclusion of workers from decision making
Reduction of entitlements and ‘perks.’
Rostering someone out or reducing hours.
Many disputes do not need the union to
intervene.
It is costly to both parties involved
Significance and importance of the formal
grievance procedure to reduce productivity
loss and assist in dispute resolution.
AIRC – Australian Industrial Relations
Commission.
Anti Discrimination Board
Courts
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The Process of Dispute Resolution
Negotiation
CA’s and Awards normally will be
negotiated through unions and employers.
AWA’s are at an individual level.
When disputes cannot be solved at a
workplace level, or if grievance procedures
fail.
Mediation
When both parties cannot
agree on a resolution
mediation may be a likely
alternative
Mediation involves
inviting a third party to
assist with the
negotiations encouraging
parties to find common
ground and settle a
dispute.
Suggestions are not
binding.
Arbitration
The AIRC will hear both sides and then
provides a legally binding decision before
a commissioner in small disputes, or a full
bench for large disputes.
Conciliation
Conciliation is mediation but the AIRC is
the mediator. Disputing parties may be
ordered to the Industrial tribunal.
Parties would rather resolve their dispute
here than move to arbitration.
Common Law Action
Bringing an action before a Court to claim
for damages. Where the plaintiff sues for
damages.
For example, breaches of contract,
unlawful industrial action, and breaches of
duty of care.
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Costs and Benefits
Costs during a dispute, benefits may come as
flow on effects.
Costs include, financial costs, loss of production,
reduced job security, lost revenue, stress and
loss of morale, divisions etc.
Benefits include, a better workplace and
workplace practice. Fairer outcomes releasing
possible tension, improved employment
relations.
Check page 301!!
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