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Industrial Conflict

Ian MejiaRedfield College2010


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Syllabusindustrial 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 decision-making in business roles of stakeholders in resolving disputes dispute resolution processes conciliation, arbitration, grievance

procedures, negotiation, mediation, common law action, business/divisionclosure costs and benefits of industrial conflict

financial, personal, social, political, international


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Causes of Industrial Conflict

Industrial Conflict is a clash betweenemployees and employersThe main causes of conflict are wages,hours of work, entitlements, managerialpolicy, physical working conditions, trade

unionism, and other things.


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Management Policy

Major changes tobusiness structure or

policy.E.g changes to shifts,promotions, newawards or agreements,discipline policy etc.


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Wage Disputes

Income for employees vsProfits for employers.Basic source of conflictbecause workers want moremoney, and businesses wantfewer expenses.Causes for wage disputesinclude business profit,executive salary increases,

inflation, differing salaries.


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Hours of Work

Needs of thebusiness vs

Employee flexibility.Changes to normalhoursRestrictions onholidays


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Entitlements

(leave, compensation, etc.)Mainly in business collapse. Employeeswant the money that they are entitled to.

Accumulated sick leave, and long serviceleave for example.


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Physical Working Conditions

Employers must provide safe workingconditions.

Employees may feel their conditions aresubstandard or to uncomrfotable.


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Trade Unionism

Decreased in recent years due to TheWorkplace Relations Act 1996

Ability to take legal action for unlawfulindustrial disruptions.


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Perspectives on Conflict

UnitaryPluralistRadical


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Unitary

A perspective onconflict that assumes

both employers andemployees have thesame business visionand this work together

to ensure smoothindustrial relationspratices are carriedout.


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Unitary View of ER

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 theorganisation is viewed in its entirety as

one without a fundamental conflict.


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Pluralist A perspective that assumes conflict in theworkplace is inevitable because employersand employees want different things.


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Pluralist View on Conflict

Argument for the need for employees toact 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 anindependent or Government.


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Radical A perspective onconflict based on adifference in ideology.

A rejection of allforms of entrepreneurship.


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Radical View on Conflict

Conflict is caused by the class war incapitalist economies between workers and

owners.Change to the social structure andeconomic system is required.


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No wonder workersare nervous and

edgy about their prospects. Theyvebeen downsized,contracted out andcasualised.

ACTU Secretary, Greg Combet

Pluralist


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We [Govt.] dont believe that

at the first sign of troublecommissions should rush in.We fundamentally believethat the relationship betweenworkers and managers isbest run at the workplacelevel rather than mediated

between third parties.

Workplace Relations Minister, Tony Abott

Unitary


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The Australian labour forcehas seen a polarisationbetween over and under

employment culminating in aloss of job security for thoseat the lower end of thisspectrum and consequentlya weaker position in the

class power struggle - The Dole Army

Radical


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Types of Industrial Action

Industrial action is when disputes cannotbe resolved through negotiations.

Generally we can break industrial actioninto overt and covert action.


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Overt ActionsObvious and visibleforms of industrial

action.These include strikes,pickets, work bans,and work to rule, byEMPLOYEES

And lockouts,transfers, anddismissal for EMPLOYERS


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Strikes

Obvious and common industrial action.Disruption to business as well as thecommunity.Requires higher rates of unionmembership or skilled workersEmployers can now sue employees for unlawful strike action


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PicketsProtests outside workplaces to disrupt workersand suppliers from entering or exiting thebuilding.May lead to significant loss of production.


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Work Bans and Work To Rule

Refusal to do dutiesnot specifically

outlined in theemployment contract.E.g. overtime or other duties.

Work to Rule issimilar whereinworkers do only whatis specified in theemployment contract.


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Overt Actions by EmployERS


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Lockouts

- Employers actually lock the workers outleaving workers with no income.

- Quite an extreme measure


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Transfer and Dismissal

Moving workers to other departments or locations. Reducing the power of

employees by separating workersresponsible for conflict.Dismissing workers who do not comply

with their conditions of employment


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Covert Forms on Industrial

Action


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Absenteeism

Chuckin a sickie. obvious sign of worker dissatisfation.

Turning up late or leaving earlyEffective indicator of effective employmentrelations.


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Sabotage and Accidents

Damaging equipment, stealing, disruptingwork process, and wasting time.

Carelessness can lead to accidents


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Turnover Rates

The number of employees permanentlyleaving a workplace who need replacing.

Worker dissatisfaction, unmotivation, or lack of rewards.


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Covert Action by EmployERS

Exclusion of workers from decision makingReduction of entitlements and perks. Rostering someone out or reducing hours.


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The Role of Stakeholders

Resolving disputes has traditionally beencharacterised by unions and employer

associations battling for power.Recent years has seen a move towards

dispute resolution at the workplace level.


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Employees and Employers

Many disputes do not need the union tointervene.

It is costly to both parties involvedSignificance and importance of the formalgrievance procedure to reduce productivityloss and assist in dispute resolution.


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Unions and Employer Associations

Role of unions is decreasingWork Choices introduced a bargaining period in

between contracts. Industrial action must notoccur outside this time period.Unions and Employer Associations are onlyrequired if the dispute heads to conciliation or arbitration at an industrial tribunal level.


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Government Organisations

AIRC Australian Industrial RelationsCommission.

Anti Discrimination BoardCourts


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The Process of Dispute Resolution

When disputes cannot be solved at aworkplace level, or if grievance procedures

fail.


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NegotiationCAs and Awards normally will benegotiated through unions and employers.

AWAs are at an individual level.


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MediationWhen both parties cannotagree on a resolutionmediation may be a likelyalternative

Mediation involvesinviting a third party toassist with thenegotiations encouragingparties to find commonground and settle adispute.Suggestions are notbinding.


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Conciliation

Conciliation is mediation but the AIRC isthe mediator. Disputing parties may be

ordered to the Industrial tribunal.Parties would rather resolve their disputehere than move to arbitration.


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Arbitration

The AIRC will hear both sides and thenprovides a legally binding decision before

a commissioner in small disputes, or a fullbench for large disputes.


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Common Law Action

Bringing an action before a Court to claimfor 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 asflow on effects.Costs include, financial costs, loss of production,reduced job security, lost revenue, stress andloss of morale, divisions etc.Benefits include, a better workplace andworkplace practice. Fairer outcomes releasingpossible tension, improved employmentrelations.Check page 301!!

employment relations 31

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