Breaking HR News from across Australia and the world This edition: ARE ALL STRIKES NOW ILLEGAL UNDER HOWARD’S IR LAWS? EOWA ANNOUNCES BUSINESS ACHIEVEMENT AWARD WINNERS UNIONS PUSH FOR MINIMUM WEEKLY WAGE TO TOP $500 HOWARD TO RESTRUCTURE APPRENTICESHIP SYSTEM BIG FIRMS LIKE WORKING FROM HOME A FOCUS ON ETHICS WITH THE SHARE PRICE IN MORE FIRMS TURNING TO EXECUTIVE COACHES US STATE COURT RULES EMPLOYEE HAS SELF-DEFENSE RIGHT JOBS JUST KEEP ON RISING UK EMPLOYERS SEE SABBATICAL LEAVE AS STAFF RETENTION MECHANISM NEW AUSTRALIAN SAFETY COMPENSATION COUNCIL EXPECTED TO IMPROVE CONSISTENCY, DISCUSSION OVER WORKPLACE SAFETY. AUSTRALIAN FIRMS PAY $1,300 MORE FOR OFFICE STAFF ARE ALL STRIKES NOW ILLEGAL UNDER HOWARD’S IR LAWS? WorkplaceInfo 21/9/05 Severe restrictions on strikes but an ‘open slather’ on lockouts by employers are part of the Federal Government’s secret war on blue collar unions under which all strikes may be illegal, according to a Sydney academic. Chris Briggs, a Post-Doctoral Fellow at the University of Sydney IR think-tank acirrt, says that under the new rules ‘it is difficult to think of a strike that would be unambiguously legal’. In a paper called ‘Secret ballots or secret war?’, published by Australian Policy Online, Briggs says the Coalition’s IR changes ‘appear designed to hollow out the legal right to strike while giving employers an almost unlimited freedom to lock out their employees’. ‘In a world first, Australian law will be tilted dramatically in favour of employer lockouts,’ he says. Briggs says a series of limitations have already been placed on strikes. ‘They are no longer permitted while an agreement is in force (even if the issue isn’t covered by the agreement),’ he says. ‘Multi-employer or sympathy strikes are illegal (which, according to the International Labour Organization, is in breach of international conventions). ‘A technical definition of “employment matters” limits what unions can strike about, and excludes matters like consultation rights as well as social and political matters. ‘Moreover, big penalties have been introduced for strikes which don’t fit within these parameters.’ And he says the legislation imposing secret ballots before unions can call strikes is fraught with difficulty for L10 17 CASTLEREAGH STREET SYDNEY NSW 2000 AUSTRALIA T: +61 2 9299 3030 F: +61 2 9299 6030 EMAIL@OHR.COM.AU WWW.HUMANRESOURCES .COM.AU OHR PTY LTD ABN 75 081 652 584 2 unions. ‘Unions will have to get ‘permission’ from the IR Commission even to hold a membership ballot,’ he says. ‘If they get past the objections of legal counsel acting for employers, they must then apply to the Australian Electoral Commission (AEC) for a ballot. ‘The AEC draws up a roll of eligible voters, collates names, posts ballot papers, waits for them to be returned and collates the results. ‘Over 40% of eligible voters must vote and 50% of them must vote yes. Legal counsel for employers can challenge the result on the grounds of “irregularities”.' Briggs says workers can then finally take industrial action after giving a further three days’ notice. ‘But if their action doesn’t conform to the precise wording of the ballot the lawyers can move in again,’ he says. ‘Even after a group of workers finally navigates its way through this legal quagmire, the legalities are still not over. ‘Under the Better Bargaining Bill any “significantly affected third party” will also now be able to apply to have a strike suspended – any student, any commuter, any customer, any patient, any business. ‘The law’s so openended that it’s difficult to think of a strike that would be unambiguously legal.’ Briggs asks ‘if the ballot process is about democracy, why are employers not also required to ballot their shareholders before locking out their employees? ‘Why are industrial action ballots supervised by the AIRC and the AEC whereas employers are permitted to self-conduct ballots of their own workers to determine whether they consent to non-union agreements?’ he queries. Briggs says these changes will do nothing to alleviate, and may even worsen, the real problems of contemporary working life, such as issues like work/life balance, the very low work participation of mothers and deepening inequality. ‘Instead of addressing these difficult, complex policy challenges, the Coalition prefers to play war games with blue collar unions,’ Briggs says. EOWA ANNOUNCES BUSINESS ACHIEVEMENT AWARD WINNERS Wednesday, 21 September, 2005 aap The Equal Opportunities for Women in the Workplace Agency (EOWA) has announced the winners of its 2005 business achievement awards at an event in Sydney. The award recipients came from a broad range of organisations, including universities, major corporations, and smaller companies. The EOWA awards showcase business leaders and companies that have displayed commitment to and advancement in equal opportunity for women in the workplace. The awards were judged by industry leaders and academics, including Australian Industry Group CEO Heather Ridout, Sex Discrimination Commissioner Pru Goward, Professor Ed Davis from Macquarie University and Dr Marion Baird from Sydney University. The categories and winners were: Diversity Leader for the Advancement of Women Ms Sara Rasmussen, Work & Life/Diversity Specialist, Insurance Australia Group Leading Organisation for the Advancement of Women (<500 Employees) Overnewton Anglican Community College Highly Recommended: Novita Childrens’ Services Highly Recommended: RSPCA (Victoria) Incorporated L10 17 CASTLEREAGH STREET SYDNEY NSW 2000 AUSTRALIA T: +61 2 9299 3030 F: +61 2 9299 6030 EMAIL@OHR.COM.AU WWW.HUMANRESOURCES.COM.AU OHR PTY LTD ABN 75 081 652 584 3 Outstanding Result for the Advancement of Women SCI Fleet Motors Leading CEO for the Advancement of Women Giam Swiegers, CEO, Deloitte Touche Tohmatsu Leading Organisation for the Advancement of Women (>500 Employees) ANZ Banking Group Ltd Highly Recommended: University of NSW Outstanding EEO Practice for the Advancement of Women Macquarie University Highly Recommended: Westpac Outstanding EEO Practice for the Advancement of Mature-Aged Women The Windsor Hotel Outstanding EEO Practice for the Advancement of Women in a Non-Traditional Area/Role Century Drilling Highly Recommended: G & K O'Connor Pty Ltd Judges Award for a Person or Organisation for their contribution to the Advancement of Women Professor Sally Walker, Vice Chancellor, Deakin University UNIONS PUSH FOR MINIMUM WEEKLY WAGE TO TOP $500 Wednesday, 21 September, 2005 aap The union movement will seek a wage rise of four per cent for Australia's 1.6 million lowest paid workers in what is expected to be the last national wage case to be heard by the Australian Industrial Relations Commission (AIRC). The ACTU lodged its claim today to lift the minimum wage above $500 a week. The claim has been lodged in the shadow of the federal government's planned industrial relations changes which will take away the AIRC's power to set wages, transferring it to a new Fair Pay Commission. ACTU secretary Greg Combet said the claim was moderate and reflected rising petrol prices and other increases in living costs. It would represent a pay rise of $19.38 a week for people on the minimum wage, lifting it to $503.80. The new claim follows the award of a pay rise of $17 a week by the AIRC in June, which lifted the minimum wage to L10 17 CASTLEREAGH STREET SYDNEY NSW 2000 AUSTRALIA T: +61 2 9299 3030 F: +61 2 9299 6030 EMAIL@OHR.COM.AU WWW.HUMANRESOURCES.COM.AU OHR PTY LTD ABN 75 081 652 584 4 $484.60. Mr Combet said the four per cent claim reflected the amount that wages throughout the economy had risen in recent times. But it is well above the inflation rate of 2.5 per cent for the year to June. This year's claim has been lodged earlier than in the past to pre-empt the introduction of the new workplace legislation. If successful, the new minimum wage would apply from early June next year. The ACTU also will seek to increase training wages, after Prime Minister John Howard signalled yesterday that they could be cut under plans to encourage more young people to be trained as apprentices. Mr Combet dismissed criticism by the government and employer groups that it was a stunt. On Monday, Workplace Relations Minister Kevin Andrews said the government would move to block the claim being heard by the AIRC. Mr Combet said this would effectively freeze wages for the lowest paid until the second half of next year. He accused the government of hypocrisy, as the salaries of federal MPs and ministers had risen by an average of four per cent over the past two years. "This is a challenge to the government," he said. “... We think it is necessary and justified to protect the living standards of low-income earners, particularly in the face of increasing petrol prices. He said the AIRC should not be influenced by any political pressure and should consider the wage claim on its merits. The ACTU's claim also will be lodged in state industrial relations systems, which are to be scrapped under the government's proposed shake-up. HOWARD TO RESTRUCTURE APPRENTICESHIP SYSTEM WorkplaceInfo 20/9/05 The Federal Government has announced plans to increase the number of school-based and part-time apprenticeships and to allow the Fair Pay Commission to set new minimum wage rates for trainees. The Prime Minister, John Howard, announced today that new workplace relations legislation will: Include a requirement that minimum wages for trainees be set by the Australian Fair Pay Commission (AFPC) at levels that ensure they are competitive in the labour market; Provide the AFPC the discretion to establish separate minimum wages for all categories of trainees; Give the AFPC a general power to take any action in relation to wages that is necessary to ensure that the full range of apprenticeships and other training arrangements that are created by the training system will be covered by appropriate wages; Require the AFPC to establish minimum training wages for all types of apprenticeships that will operate wherever there are currently any gaps in state or federal award coverage; Remove any provision of an award that restricts the range of apprenticeships. This would include the removal of any provision that regulates or limits the duration of new apprenticeships; and Include standard minimum wages for school-based traineeships and apprenticeships that will take effect immediately and be available for Australian Technical Colleges wherever awards do not already include such minima. The minimum wages will apply until the AFPC has been established and has set minimum wages that will fill the gaps in award coverage. State barriers more serious, says Howard There have been suggestions the freeing up of the duration of apprenticeships and traineeships could be negotiated through AWAs. Howard said the barriers to apprenticeships are ‘generally much more serious in the state industrial relations systems than under the federal system’. L10 17 CASTLEREAGH STREET SYDNEY NSW 2000 AUSTRALIA T: +61 2 9299 3030 F: +61 2 9299 6030 EMAIL@OHR.COM.AU WWW.HUMANRESOURCES.COM.AU OHR PTY LTD ABN 75 081 652 584 5 ‘Most of the state industrial relations systems provide little coverage for school-based apprenticeships, and only a small number of state awards provide for the employment of part-time apprentices,’ he said. Howard said a lack of appropriate wage provisions in awards and restrictions on the range and duration of apprenticeships are obstructing people from entering apprenticeships. The Government has already announced its intention to create a single national workplace relations framework which will include training provisions. BIG FIRMS LIKE WORKING FROM HOME Chicago Tribune (08/09/05), Carol Kleiman Large communication firms like AT&T are allowing employees to telecommute, which is also known as teleworking. Upwards of 90 percent of the firm's 30,000 management employees work remotely "at least part of the time," says AT&T's senior vice president Cathy Martine. She notes that two of the biggest mistakes companies make are not trusting employees who telecommute and not realizing the potential for saving money, which can be used as a business incentive. Workers actually tend to become more productive, notes Martine, and any delinquent behavior does not stay hidden for long. A recent study revealed that 66 percent of AT&T's teleworkers said they are "happier" since starting their teleworking arrangements, and 69 percent said they are happier in their personal lives as well. Clay Nelson, founder of Consulting Services Network, says merging work/life balance into their work helps people be more satisfied. He adds that it is not possible for people to separate their personalities at home and at work. An AFL-CIO Work and Family report reveals that flextime is available to almost 62 percent of employees who earn more than $71,000 annually, but to less than 31 percent of working parents who earn less than $28,000 annually. A FOCUS ON ETHICS WITH THE SHARE PRICE IN MIND Financial Times (08/08/05) Larsen, Peter Thal; Wighton, David Chuck Prince, the chief executive at Citigroup, has strived to make his firm's corporate culture more ethical. He was plagued by two major incidents in the summer of 2004 -- a trade that upset the eurozone government bond market and Japan's request that Citigroup suspend its private banking businesses in that country. In response, Prince launched a tour to meet Citigroup employees, during which he apologized for the firm's behavior in Japan. He also asked executives of other large firms for guidance. For instance, he discussed the benefits of anonymous feedback with Michael Dell, the founder of Dell Computer, and also consulted officials at General Electric, IBM, Time Warner, and Xerox. He concluded that workers tended to concentrate too much on realizing short-term goals and the performance of their divisions and not enough on long-term performance and the effect of individuals' actions on the company. He next developed the "Five Point Plan" of intensive training for all high-ranking executives, established anonymous assessments of supervisors by employees, and set up a standardized system for performance evaluations. By increasing discipline at the firm and sidestepping mistakes, Prince anticipates improving the firm's share price and encouraging further acquisitions in the future. ONLINE LEARNING TREADS WEARY PATH CNN (08/15/05) ; Grayson, Ian Universities and business schools believed Internet-based learning, which allows geographically diverse students to complete modules at their own pace, would become a significant source for executive education. L10 17 CASTLEREAGH STREET SYDNEY NSW 2000 AUSTRALIA T: +61 2 9299 3030 F: +61 2 9299 6030 EMAIL@OHR.COM.AU WWW.HUMANRESOURCES.COM.AU OHR PTY LTD ABN 75 081 652 584 6 Universitas 21 Global has enrolled 800 students from more than 40 countries since its start in 2003, but the idea of online learning has yet to boom as previously expected. However, developing countries, such as India and China, are using online executive training to fill gaps caused by shortages of qualified executives. Universitas 21 Global CEO Mukesh Aghi asserts that online education is cost-effective and convenient for developing countries. In opposition, Monash Center for Research in International Education director Simon Marginson believes face-to-face learning is more effective, since some learning experiences can only be done in groups. However, Marginson is careful not to dismiss the idea of e-learning, which he believes is beneficial for specific types of learning. Meanwhile, Aghi is attempting to boost awareness of e-learning and increase acceptance of the model as a desirable learning tool for corporate executives. MORE FIRMS TURNING TO EXECUTIVE COACHES Dallas Morning News (08/18/05); Robertson, Jordan Executive coaching, which involves one-to-one corporate mentoring, is increasingly being used for future leaders rather than solely for existing top-ranking executives. Executive coaching, which focuses on skills like communication and management, has grown to be a $1 billion per year industry in the United States. Kasey Bell, an operations manager for IBM, says working with an internal coaching network helped her boost her direct reports five-fold. Bell felt that she "needed a pain-free environment where nothing was off-limits" in order to alter her management style. Emerging return-on-investment data indicates that hiring business coaches can lead to greater productivity and sizeable financial gains for companies. At Booz Allen Hamilton, for instance, a 2004 study showed that personal coaching returned $7.90 for every $1 spent, according to MetrixGlobal, and the more than 40 participants noted an increase in camaraderie, improved consulting, and higher retention rates among senior managers. Full-time coach Buzz Kolbe says most of his clients are successful managers who want to move forward in an increasingly competitive job market. But because there are virtually no hurdles to working as a corporate coach, there is a concern that incompetent people are providing services as coaches. People who lack adequate corporate or psychiatric training can actually hurt a company and reduce employee morale, says clinical psychologist Steven Berglas, who is also a researcher at the University of California at Los Angeles' Anderson Graduate School of Management. STATE COURT RULES EMPLOYEE HAS SELF-DEFENSE RIGHT Christopher Cornell August 22, 2005 In a case being watched around the USA, the West Virginia Supreme Court has ruled in favor of an employee who was fired after foiling a robbery. The case of Feliciano vs. 7-Eleven, began when a masked woman with a gun attempted to rob the Baker Heights, W.Va., convenience store where Antonio Feliciano worked. Feliciano was able to grab the robber’s gun and hold her captive until the police arrived. Feliciano was then terminated for failure to comply with its company policy, which prohibits employees from subduing or otherwise interfering with a store robbery. Feliciano sued, claiming to have been wrongfully discharged. Feliciano’s attorney’s cited a law that says exceptions to the “at-will” employment doctrine can be made in the case of a “substantial public policy,” arguing that a citizen’s right to self-defense ought to be such a substantial public policy.” The lower court turned to the state Supreme Court for a ruling on the question. L10 17 CASTLEREAGH STREET SYDNEY NSW 2000 AUSTRALIA T: +61 2 9299 3030 F: +61 2 9299 6030 EMAIL@OHR.COM.AU WWW.HUMANRESOURCES.COM.AU OHR PTY LTD ABN 75 081 652 584 7 Justice Robin Jean Davis, writing for the state’s high court, noted that “from the earliest reported cases to present-day decisions, this court has repeatedly recognized and safeguarded an individual’s right to defend him/herself against an unprovoked assailant,” and therefore declared that an “exercise of self-defense in response to lethal imminent danger ... constitutes a substantial public-policy exception to the at-will employment doctrine and will sustain a cause of action for wrongful discharge.” However, she added, “an employer may rebut an employee’s prima facie case of wrongful discharge ... by demonstrating that it had a plausible and legitimate business reason to justify the discharge.” The case now returns to the lower court. JOBS JUST KEEP ON RISING HR Manager - August 2005 The Australian job market finished the financial year at an all-time high. According to the Olivier Internet Job Index, jobs rose 4% in June, with an average of 163,837 job offers appearing each week. "This is a substantial increase at a time when there's traditionally a market dip," said Helen Olivier, co-director of the Olivier Group. Increases in some sectors were significant, such as multimedia, internet and graphics jobs up a startling 21.45%. IT added 1.46% in jobs for June, pushing it up 55.75% on the same time last year, while transport rose 15.88% and administration 9.15% in the month. "The main reason we've seen for this is the continued skill shortage," said co-director, Bob Olivier. Both Olivier directors said employers are adopting more flexible hiring strategies to combat the current skill shortages. "Already canny employers have been taking on more junior people and working on their learning and development programs," said Helen Olivier. "The willingness to hire overseas, to take on part-time workers, to entice people back to the workforce and to employ mature age workers have all been adopted enthusiastically," she said. Bob Olivier added that employers are willing to compromise on skills if the cost is more favorable to them. "We've seen enormous growth in the number of graduate opportunities in the last 12 months," he said. "Alternatively they're looking at remuneration packages, both base and incentive, to lure the right people." Drake International's Quarterly Employment Forecast also predicted jobs to grow 1.25% over the next three months, translating into 101,413 new jobs for Australians. Drake's survey found fulltime employment prospects are best in the professional services and transport and distribution sectors, while retail and hospitality and tourism are expected to create more casual jobs. "While the economy has slowed compared to last year, Australia's job market continues to grow at an impressive rate," said national manager for Drake, Andrew Dingjan. By contrast, D&B's National Business Expectations report released in July showed expectations for employment growth during the September quarter to be at its lowest in almost three years, down to an index of zero. EMPLOYERS SEE SABBATICAL LEAVE AS A VALUABLE MECHANISM TO RETAIN STAFF Hr manager 12 Sept According to a recent survey, two-thirds of employers believe that sabbatical schemes can help them to retain staff. With the current labour market determined by skill shortages and emergence of Generation Y, employers are looking for innovative solutions to retain staff who are no longer motivated by the “job for life” of “live to work” mentality. Volunteer travel company i-to-i, surveyed 500 British employers and found that almost 60% thought that such career breaks could enhance employee’s skills and 55% believed that sabbaticals motivated workers. Indeed, a significant number of those surveyed reported that they would financially support staff while they took sabbatical leave. More than 40% reported that they would pay some salary to staff on leave so as to encourage them to L10 17 CASTLEREAGH STREET SYDNEY NSW 2000 AUSTRALIA T: +61 2 9299 3030 F: +61 2 9299 6030 EMAIL@OHR.COM.AU WWW.HUMANRESOURCES.COM.AU OHR PTY LTD ABN 75 081 652 584 8 return to work, while 60% of large organisations (those with a turnover of more than £20 million) would consider offering sabbaticals as part of their remuneration packages. NEW AUSTRALIAN SAFETY COMPENSATION COUNCIL EXPECTED TO IMPROVE CONSISTENCY, DISCUSSION OVER WORKPLACE SAFETY. Hr manager 12 Sept The Federal Government is looking to establish a more national approach to workplace safety and workers compensation through the establishment of the Australian Safety and Compensation Council (ASCC). The Minister for Employment and Workplace Relations, Kevin Andrews recently introduced the legislation which would see the establishment of the ASCC, which would comprise representatives from the Federal Government, each State and Territory Government as well as employer and employee representatives. The main role of the new Council will be to coordinate research and provide policy advice to the Workplace Relations Ministerial Council. It will act as the key forum for greater national discussion and coordination while respecting the states’ jurisdictions over workplace safety and workers compensation. The ASCC, like its predecessor, the National Health and Safety Commission, will have the power to declare national OHS standards and codes of practice. Above all, however, the expectation is that it will promote greater levels of consistency and uniformity across various jurisdictions. AUSTRALIAN FIRMS PAY $1,300 MORE FOR OFFICE STAFF 12 Sept Hr manager Australian firms are paying around $1,300 more on average for office personnel this year, compared to 2004, an increase in average wages of 3.24%, according to Drake International’s 2005 Salary Survey. The average wage of an office professional in Australia is $42,753, up from $41,410 in 2004. At the top end, office staff take home $63,075 while the lowest paid receive $33,192. Senior Accounts staff command the highest salaries, with employers paying an average $57,713 per annum, followed by Office Managers at $54,816. Data Entry Operators take home the lowest wages at an annual average of $34,475. According to Donald McNeill, National Marketing Manager for Drake, wage growth for office professionals was modest compared to other occupations. “Australia’s increasing skills shortage is not as evident among office professional roles, and this is helping keep price pressure at bay. Office Assistants have seen the most significant rise with average wages increasing 8.48% from $34,783 to $37,734 per annum. Inbound and Outbound Sales is the only occupation to record a pay decrease. Drake’s survey found that average wages slid marginally from $40,280 in 2004 down to $39,994 currently. Wages have increased steadily over the past 12 months in Adelaide, Perth, Brisbane and Melbourne with each reporting growth of 10.96%, 9.58%, 4.28% and 0.61% respectively. Drake’s research shows it can cost an organisation up to 2.5 times the annual salary of the person they have to replace. “Businesses need to consider the non-financial benefits they can offer to remain competitive in this candidate tight market,” said McNeill. Drake surveyed 261 companies from the nation’s seven mainland capital cities and three key regional areas for its 2005 Salary Survey. L10 17 CASTLEREAGH STREET SYDNEY NSW 2000 AUSTRALIA T: +61 2 9299 3030 F: +61 2 9299 6030 EMAIL@OHR.COM.AU WWW.HUMANRESOURCES.COM.AU OHR PTY LTD ABN 75 081 652 584 9 THOUGHT FOR THE DAY IMPORTANT DISCLAIMER No person should rely on the contents of this publication without first obtaining advice from a qualified professional person. This publication is provided on the terms and understanding that (1) the editor & publisher are not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication; and (2) the editor and publisher is not engaged in rendering legal, accounting, professional or other advice or services. The publisher and editor, expressly disclaim all and any liability and responsibility to any person, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication. L10 17 CASTLEREAGH STREET SYDNEY NSW 2000 AUSTRALIA T: +61 2 9299 3030 F: +61 2 9299 6030 EMAIL@OHR.COM.AU WWW.HUMANRESOURCES.COM.AU OHR PTY LTD ABN 75 081 652 584