12 BUS Ch 6 Employee relations Flashcards Preview

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Flashcards in 12 BUS Ch 6 Employee relations Deck (64)
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Employee relations

The total interaction between an employee, employer and their representatives in regard to the establishment of conditions of employment


Employer(for legal purposes)

someone who exercises control over employees, is responsible for payment of wages and holds the power to dismiss employees


Employee(legal purposes)

A worker under an employer's control which may involve: the location of the workplace, the way in which the work is performed and the degree of supervision involved.


Trade unions

Organisation's formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their employees


Employer associations

Organisations that represent and assist employer groups


Log of claims

A list of demands made by workers against their employers.



When a third party participates in the resolution of a dispute and attempts to help resolve the differences through discussion.



When a judge or a panel of judges hears both arguments in a formal setting and then determines the outcome


What are the 5 key roles governments have in the employee relations process

1. Legislator
2. Employer
3. Economic manager
4. Administrator of government policies on employee relations.
5. Representative of Australia in the international arena


What does The Fair Work Commission do?

Promotes compliance with the legislation through education, information and assistance.
Monitors compliance with legislation


What is a centralised system?

Where governments and tribunals control the process of wage determination.


What body determines the minimum wages?

Minimum Wages Panel of the Fair Work Commission


What are the advantages of the centralised system?

1. There's a degree of comparative wage justice and equality for workers employed by a different employer.

2. Gov has greater control over wage outcomes so can maintain between economic management.

3. Industrial disputes can be reduced because awards cover entire industries.

4. One set of rules ensures stability and predictability


What are the disadvantages of the centralised system?

1. Less flexible

2. Only provides limited opportunities for individual businesses to provide improved employment conditions in return for productivity gains.

3. Large unions are favoured due to their wealth.

4. Less incentive for participative approach to management


Advantages of a decentralised system?

1. More flexibility
2. Greater communication---->improved motivation
3. Greater effort and contribution due to reward incentives.


Disadvantages of a decentralised system?

1. Greater inequality between wages of skilled and unskilled workers.

2. Harder to control the economy

3. Industrial disputes can drag out for longer


What is the role of employers in the employee relations process?

~Negotiate terms in line with org objectives.


Role of employees in employee relations process?

~Negotiate their conditions of employment with employer.
~May want more challenging work, higher pay, more decision-making authority.


Collective/enterprise agreement

A negotiated agreement between an employer and a union or group of employees


common law individual contract

Covers employees who are not covered under any Award or collective agreements


What is the role of industry-wide awards?

They provide a set of minimum employment standards for employees working within an industry.


What is award modernisation?

It is where all individual overlapping awards were amalgamated to remove inconsistencies between industries to reduce the number of Awards


What matters are covered by NES?

-Leave entitlements
-Maximum weekly hours of work
-Notice of termination and redundancy pay
-Rights and entitlements of employees


What matters are included in modern awards?

-Types of employment
-Minimum wages
-Penalty and overtime rates
-Superannuation arrangements
-Procedures for disputes etc


What must a collective agreement include?

1. 10 national employment standards
2. Procedures for dispute settlement
3. Terms that allow individual flexibility
4. Provisions for consultation with employees when change occurs


What is good faith bargaining?

Where both parties act ethically in the bargaining process and do not force decisions


What does the Fair Work Commission ensure before approving a collective agreement?

-Both parties agree to the terms
- Employees have been consulted
- Employees will be better off overall
- consistency with the NES
- consistency with legislation.


What are the requirements of individual agreements?

-Must conform to existing awards
- Conditions cannot be reduced if wages are paid above the award.


When can a common law contract exclude award conditions?

When the employee earns above $133 000



A legally binding agreement that sets out minimum wages and conditions for an industry of employees