Stakeholders

Stakeholders are any individual or group that has a common interest in or is affected by the actions of an organisation

Employers have been widely criticised in many management surveys for failing to tackle issues in managing employees effectively. A recent survey of more than 7600 people found ‘people management’ to be the most serious failing of business leaders in Australia, and was cited 2.5 times more frequently than any other management failing.

Employees today are, 

•  more highly educated than in the past. 

• Demand more challenging, interesting work, involvement in decision-making processes and autonomy at their workplace. 

• Employees no longer trust one business to look after their needs. Leads to 'churning" particularly in service industries. 

• Businesses hoping to retain and motivate skilled staff need to put extra effort into developing their career and training plans, rewards and opportunities for greater employee involvement. 

•  1/3 of employees  keen to get more work–life balance

Many older workers, women and younger inexperienced people struggle to obtain full-time jobs, particularly in the knowledge-based service sector. These people have become our ‘flexible’, casual workforce.

The number of Australians aged 65 years and over is projected to double by 2055 and their participation rates will increase from 5% to 17%. Women will also have a more substantial role to play in the workforce and it is expected that their participation rates will grow by 4% in the next 20 years.

Employer associations are organisations that represent and assist employer groups. They are usually respondents to the awards covering the employees of their members, and covering employers in the same or related industry.

A log of claims is a list of demands made by workers (often through their union) against their employers. These demands cover specific wages and conditions. Employers may also serve a counter-log of claims on the union

• • Provide advice (especially to small businesses) on such matters as awards, unfair dismissals and discrimination issues

  • Make submissions to safety net wage cases

  • Negotiate agreements

  • Lobby governments and other organisations with the views and interests of employers, industries and trade.

  • Acting as marketing bodies - e.g. dairy cooperatives and Meat and Livestock Australia.

  • industrial relations function within their services, such as the Australian Chamber of Commerce and Industry (ACCI), and the Australian Industry Group (Ai Group) representing the Australian Chamber of Manufactures and the Metal Trades Industry Association

Trade unions are organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their members. 

The peak trade union body is the Australian Council of Trade Unions (ACTU). Some of the larger unions include the following.

•  Australian Services Union (ASU)

•  Australian Workers’ Union (AWU)

•  Australian Manufacturing Workers’ Union (AMWU)

•  Construction, Forestry, Mining and Energy Union (CFMEU)

Union Stats

•  16% of full-time and 12% of part-time employees belong to a trade union

•  38% of government workers compared with 9% of private industry workers are trade union members

•  The highest levels of trade union membership are in education and training (37%) and the industries with the lowest levels of union membership are real estate services and professional, scientific and technical services with 3%

•  68% of workers have never belonged to a trade union.

Governments have significantly affected the industrial relations system as a result of their key roles, as follows:

•  Legislator. Our elected representatives pass laws in parliaments (state and federal), which provide the legal framework for industrial relations. Legislation has also led to the growth of the judicial system, and the institutions and processes used by employers and employees to conduct bargaining and resolve disputes.

•  Employer. Federal and state governments employ almost 1/3 of Australian workers, as teachers, nurses, clerks, police officers, postal workers, transport workers and in other roles. They are often regarded as pacesetters in terms of responsible industrial relations policies, having introduced practices such as maternity leave, flexitime and affirmative action for women that were eventually adopted in the private sector.

•  Responsible economic manager. Governments operating at the macro level are keen to ensure non-inflationary, stable economic growth and a high standard of living for all Australians. At times there may be conflict between governments’ economic goals, which impact on industrial relations. For example, a decision to cut spending through reductions in the size of the public service in order to reduce a budget deficit may conflict with its desire to maintain employment.

•  Administrator of government policies on industrial relations. Through the departments and agencies established, governments are able to implement the legislation they enact. This is achieved through publishing information and guidelines providing advice to the government and the public and investigating breaches of legislation.

•  Representative of Australia in the international arena, in foreign affairs, trade and international labour matters. Australia is a foundation member of the International Labour Organization and has been represented on its governing body. As a result of its membership of such organisations, the government generally implements legislation based on the treaties and conventions it signs with international organisations. Social justice legislation passed in relation to discrimination, and human rights originated in these treaties and conventions.

Statutes

Statutes are laws made by federal and state parliaments

These statutes provide the framework for awards and agreements and the resolution of disputes, and require employers to:

•  meet WHS requirements

•  maintain workers’ compensation insurance

•  provide all employees with superannuation, annual leave and long-service leave

•  ensure employment practices in the workplace are free from discrimination on the basis of age, sex, physical or mental disability, marital status, family responsibility, pregnancy, union membership, political opinion, race or social origin

•  give each new employee, covered by the national industrial relations system, a Fair Work Information Statement. This statement provides basic information about employee rights

Australia has a dual industrial relations framework whereby all private sector employees are covered by a federal industrial relations system and public sector workers in several states, including New South Wales, remain in state-based system.

This system, implemented under the Fair Work Act 2009, is administered by the federal government. It covers all employees of constitutional corporations in all states and most private employees formerly covered under state awards and enterprise agreements. The system gives employers and employees the same workplace rights and obligations, regardless of the state they work in.

Key elements of the framework include:

•  a national framework for industrial relations covering most private employees of all states except Western Australia

• 10 National Employment Standards (NES) developed to provide basic protections to employees

•  collective bargaining and good faith bargaining required by all parties

•  modern awards for specific industries and occupations

•  enterprise bargaining continued

•  Annual National Wage Case sets minimum wage

•  protection from unfair dismissal

•  Fair Work Commission administers the Fair Work Act 2009 and the Fair Work Ombudsman is responsible for promoting unified, supportive and productive workplace relations that comply with the Fair Work laws.

The 122 modern awards cover most employees in a wide range of industries, and replace thousands of previous state and federal awards. Together with the NES and the national minimum wage order, they make up a safety net for employees covered by the national workplace relations system. 

A modern award is an industry or occupation-based award that covers all private sector employers and employees who perform work that falls within their scope. They replace all existing national system awards (except those applying to a single enterprise). They do not cover employees earning higher incomes.

Industrial tribunals and courts

Industrial tribunals exist at the federal and state levels to enforce laws established by governments. The Fair Work Commission today plays a role in ensuring that the bargaining process and any associated industrial action occur according to law.

The Fair Work Commission follows in the footsteps of the longstanding  Australian Industrial Relations Commission (AIRC), formerly the Australian  Conciliation and Arbitration Commission. Its primary functions include settling disputes through conciliation, supervising the making of agreements or awards and award simplification, hearing appeals and handling unfair dismissal cases. The Fair Work Commission assists in resolving disputes involving employers, employees, unions and employer associations who are covered by the national workplace relations system. Through these functions and specific cases, the Fair Work Commission determines questions about future rights of employees and employers.

The Fair Work Commission members come from a diverse range of employment backgrounds and must have knowledge or experience in one or more of the fields of workplace relations, economics, social policy, business, industry or commerce. 

A panel of seven senior members, the Fair Work Commission’s Expert Panel, is responsible for hearing annual wage cases and setting minimum wages for employees in the national workplace relations system. Breaches of the Fair Work Commission’s orders can lead to fines of up to $12 600 for individual workers or $63, 000 for a corporate entity.

Federal Court

The Federal Court of Australia is a judicial court. Under the Constitution, only courts have the judicial power to determine disputes about existing rights and to make decisions about these matters. The Federal Court has a division that enforces industrial relations legislation by administering court actions that arise under Australian industrial laws. It handles cases relating to industrial action and breaches of industrial laws, interprets industrial legislation, and is able to impose penalties for the breach of an award or order, and discrimination or victimisation under industrial and human rights legislation. It also has the power to approve the disamalgamation (splitting up) of unions, declare unauthorised action taken during a dispute and hear cases under the Corporations Act 2001.

Other government agencies

A number of other federal and state government agencies are also stakeholders in the human resources process. For example, the roles of the Australian Human Rights Commission (HREOC), the Workplace Gender Equality Agency (WGEA) and state organisations such as the Anti-Discrimination Board are to implement particular areas of government legislation.

In the area of WHS the federal National Occupational Health and Safety Commission Act 1985 established the National Occupational Health and Safety Commission, now Safe Work Australia. Safe Work Australia began operating as an independent statutory agency in 2009. Its primary responsibility is to improve WHS and workers’ compensation arrangements across Australia.Recognising the need to standardise and harmonise WHS systems around  Australia, the federal government developed, in collaboration with each state government through the Australian Chamber of Commerce and Industry (ACCI) and the Australian Council of Trade Unions (ACTU), a new framework for a national occupational and WHS system.

As global competition increases the pressure on businesses to become leaner, the need for more efficient operations, global business consolidation and rationalisation of production has increased. Multinational corporations increasingly use contractors to supply or manufacture key components or services, creating opportunities globally for suppliers with the most cost effective operations. Often the process of relocating production offshore, or shifting production regularly to lower cost locations, leads to dislocation and structural unemployment in the communities left behind.

Community demands for safety and wellbeing at work have increased over recent decades, as has the pressure to eliminate discrimination against female, indigenous and disabled members of the working community.For businesses, it means an ongoing battle between the need for the business to find ways to reduce its biggest cost — labour — as pressure increases from global competition, and the needs of employees, particularly those with dependent families.

2012

16 The global financial crisis (GFC) caused many businesses to reduce their employee numbers.

What type of influence on human resources was this?

(A) Economic 

(B) Financial 

(C) Government 

(D) Legal

2013

13  Full­time, permanent employees in Australia are generally entitled to four weeks annual leave. 

 What is the legal basis for this? 

(A)  Common law 

(B)  Industry awards 

(C)  National Employment Standards 

(D)  Workplace health and safety legislation 

2014

3 Kim is an independent contractor who cleans a school. 

Which of the following statements is true regarding Kim’s employment? 

(A) She is entitled to four weeks annual leave. 

(B) Her employment is subject to award conditions. 

(C) She is responsible for paying her own income tax. 

(D) She is entitled to maternity leave provided by the school

12 Work patterns in Australia have changed over the past 20 years. 

An example of such a change is the decrease in 

(A) casualisation. 

(B) part-time positions. 

(C) female participation. 

(D) full-time male participation. 

16 What is the most likely impact of a recession on human resources? 

(A) Increase in wages 

(B) Increase in overtime 

(C) Decrease in involuntary separation 

(D) Decrease in employee bargaining power 

2015

Question 22 (6  marks)

(a) Describe ONE common law obligation of an employee 2 marks

(b)  How does the government influence employment contracts 4 marks

2016

2 Ruth observed that a work colleague was stealing and reported the theft to her superv As a result, Ruth’s employment was terminated. 

What is this an example of?

(A) Performance management 

(B) Redundancy 

(C) Retrenchment 

(D) Unfair dismissal

5 An employee is treated unfairly because she is pregnant. 

What legislation prohibits this behaviour?

(A) Trade Practices Act 1974 (Cth) 

(B) Affirmative Action (Equal Employment Opportunity for Women) Act 1986 (Cth) 

(C) Sex Discrimination Act 1984 (Cth) 

(D) Competition and Consumer Act 2010 (Cth)

16 A business needs to reduce its workforce for financial reasons. All its employees are equally skilled and have 3 years of service.

Which staff member should be dismissed first?

(A) A casual employee 

(B) A pregnant employee 

(C) A part-time employee 

(D) A 66-year-old employee

18 Hannah is a permanent employee at XYZ Ltd who has been injured in a workplace accident.

Who is ultimately responsible for paying Hannah’s medical expenses for this injury?

(A) Hannah 

(B) Medicare 

(C) WorkCover NSW 

(D) XYZ Ltd’s insurance company

20 An independent web designer has a legal agreement with a department store to improve its online shopping site in time for the Christmas sales. 

The web designer’s working conditions are specified in

(A) an award. 

(B) the contract for service. 

(C) an enterprise agreement. 

(D) the National Employment Standards

2017

11 Whose interests is an organisation most likely to be representing when it meets with government to discuss business flexibility, expansion and competitiveness? 

A.   Employees 

B.  Employers 

C.  Society 

D.  Unions 

19    A business implements a new policy that limits the use of work-related email accounts before 8 am and after 8 pm. 

Which consideration has most likely led to the development of this policy? 

A.  Economic 

B.  Legal 

C.  Social 

D.  Technological 

2018

11 An increasing number of employees are seeking a better work–life balance. As a result, many businesses are adopting job sharing. This is an example of establishing

 A. communication systems in response to a social influence. 

B. flexible working conditions in response to a social influence. 

C. communication systems in response to an economic influence. 

D. flexible working conditions in response to an economic influence. 

2019

2020

Question 21 (10 marks) 

(a) Outline the role of ONE external stakeholder who represents the interests of employees in workplace disputes. 2 marks

2021