HRM107 Lecture Notes - Lecture 3: Collective Bargaining, Enterprise Bargaining Agreement, Union Movement

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Week 3 Employment Relationships and Industrial Relations
Industrial Relations
- Formal relationships between employers and trade unions, together with the
institutional arrangements that arise from those relationships
- Also includes employment relationships, employee relations and workplace
relations
- Refers to the management of the employment relationship
Workplace Relations
The employment relationship as it is constructed and managed at the workplace or
enterprise or organisation
The Qantas Dispute 2011
- Planned to reduce costs by bringing NZ employees to Australia (cost them
30% less in staff expenses)
- Industrial action affected customers
- Grounded planes costing $20 mil a day for Qantas and 447 flights grounded.
Passengers in caos , almost 68,000 left stranded
- The pilots union, license engineer union and transport workers union tried
saving Australian jobs
- More than 20,000 turned to Virgin airlines
Result:
- New increased redundancy pay agreement (severance pay)
- Major bonus in pay for job losses
- Nothing mentioned of offshoring
- Terrible staff morale
Achievement:
- Shows the power of the people
- Agreement ended the dispute
- Huge profits today
Penalty Rates
- Fair Work Act provides that the Commission must conduct a 4 yearly review
of modern awards
- Decision to vary certain penalty rate provisions in some awards for the
hospitality, restaurant and retail industries
- Affects some permanent and casual employees on Sundays, public holidays,
early mornings and late nights
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Employment Relationship
- An economic exchange
- A power relationship (submit to authority of employer)
- A continuous and open-ended contract
- Independent nature (seek cooperative relationships)
- Industrial conflict over issues in wages, employment conditions and
managerial prerogatives
- This gives rise to IR systems towards rules and regulations in institutions
Framework to Understand IR
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Document Summary

Formal relationships between employers and trade unions, together with the institutional arrangements that arise from those relationships. Also includes employment relationships, employee relations and workplace relations. Refers to the management of the employment relationship. The employment relationship as it is constructed and managed at the workplace or enterprise or organisation. Planned to reduce costs by bringing nz employees to australia (cost them. Grounded planes costing mil a day for qantas and 447 flights grounded. Passengers in caos , almost 68,000 left stranded. The pilots union, license engineer union and transport workers union tried saving australian jobs. More than 20,000 turned to virgin airlines. New increased redundancy pay agreement (severance pay) Major bonus in pay for job losses. Fair work act provides that the commission must conduct a 4 yearly review of modern awards. Decision to vary certain penalty rate provisions in some awards for the hospitality, restaurant and retail industries.

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