Industrial Arrangements in the Workplace

Industrial Relations

Industrial arrangements in the workplace

Each industry area is covered by an industrial instrument call an award or an agreement. Some employees, such as professionals and senior management, may not be covered by any award or agreement.

Awards

An award is like a rule book for your industry and it sets out the minimum rights you have at work. An employer must abide by the award. The employer cannot pay you less than the award or reduce your working conditions. They can pay you more or improve the conditions.

Some Australian workplaces operate under federal awards that are made up by the Australian Industrial Relations Commission (AIRC) - for example, hotels and motels, service stations, manufacturers, and butchers. State awards are determined by state industrial Relations Commissions – for example, health and fitness, hospitality, child-care, retail, and engineering.

Enterprise awards

Sometimes an award is negotiated for a specific business organisation and this is called an enterprise award – sometimes called a certified agreement. An enterprise award sets out the pay rates and conditions for a specific workplace or organisation. It is a collective agreement between an employer and a group of employees and needs to be supported by the majority of workers. It cannot provide less than the federal or state award conditions which apply to that industry. Big W, Coles and Kmart are some retail organisations that operate under certified agreements.

The workers bargain through their union with their employers to work out the agreement which will benefit both the employees and the employer. The main aim of such enterprise bargaining is to make the workplace rules more flexible, to increase efficiency at work, to increase productivity and to improve the quality of the employees’ working life. The agreement must be certified by the relevant state Industrial Relations Commission.

Australian workplace agreements

Sometimes an employer will offer you an individual employment contract instead of award conditions or the conditions laid down in an enterprise award. Such an agreement may be an Australian Workplace Agreement (AWA) or a state Workplace Agreement. This agreement is a stand alone agreement between an employer and an individual worker that overrides an award and covers things such as wages, leave, training, and hours of work. This has been implemented in 2006 as WorkChoices.

Training agreement

A training agreement is the documentused when employing apprentices and trainees. It sets out the conditions of employment and obligations of the employer and the apprentice or trainee and is a legally binding agreement. It is accompanied by a training plan.

Apprenticeships and traineeships

There are hundreds of apprenticeships and traineeships available in almost any area of interest to you – the list is endless. You can undertake a full-time, part-time or school-based apprenticeship or traineeship. All apprenticeships and traineeships combine work with training. Traineeships vary in length from 12 months to 3 years and an apprenticeship can take up to 4 years to complete.

School-based apprenticeship or traineeship

School-based apprenticeships or traineeships are available in a range of industry areas to students who are 15 years old and in their senior years of schooling. It is a great way to gain a HSC, a nationally recognised vocational qualification, workplace experience and to earn some money. School-based trainees and apprentices may work one or two days a week and attend school on the other days.

School-based trainees will usually require a representative from the school to be present at the time of signing a training agreement to ensure a fair allocation of school time, training time and work time. An Education, Training and Employment Schedule needs to be signed at the same time as the agreement.

If you do not complete your apprenticeship/traineeship while at school, it will be converted to a full-time or part-time apprenticeship/traineeship as soon as you leave school.

The training agreement

The training agreement sets out the conditions of employment and has to be signed by the employer, the apprentice or trainee (if under 18, then a parent or guardian has to sign) and the organisation which is providing the training – this is called a Registered Training Organisation (RTO). All apprentices and trainees are on a probationary period. The probationary period for a trainee is 30 days and for an apprentice 90 days. Wage rates and allowances are outlined in the particular award.

Industrial Organisations

Industrial relations is about the relationship between those who provide work (employers) and people paid to do the work (employees). Australia has a complex framework of industrial relations laws and systems because federal and state powers are divided. As mentioned above, there is the federal AIRC as well as separate state Industrial Relations Commissions. However, other organisations and governments also play a role. Both employers and employees use organisations to represent them. Trade unions represent employees and employer associations represent employers. The government plays a role in policymaking and making sure that the rules are followed.

Industrial Relations Commissions

The various commissions are involved in:

• Helping employers and employees reach agreement about pay and conditions and ensuring that there is a legal minimum standard

• Helping to ensure that people get equal pay for work of equal value

• Resolving disputes such as retrenchments, hours of work, and working conditions

• Dealing with unfair dismissal claims and settling redundancy payouts

• Approving the registration of employer and employee associations.

Trade Unions

Over 1,901,800 Australians are union members, that is about 24.7% of the full-time workforce. Unions are organisations set up by employees to help them at work. All workers can join a union if they choose, whether they are full-time, part-time, casual, completing an apprenticeship or working as a trainee.

Unions talk to employers on behalf of workers about pay or work conditions and they also talk to governments about fair wage deals for everyone. Unions provide advice on work issues, health and safety, pay rates and entitlements. They can also make sure that rights are protected and protect workers from harassment and discrimination. Unions are committed to securing better health and safety at work as well as job security. Unions have obtained paid holiday leave and long service leave as well as many other entitlements for workers, including:

• A 38 hour week
• Annual holidays
• Sick leave and long service leave
• Minimum wages
• Appropriate rest and lunch breaks
• Parental leave
• Superannuation
• Safe and healthy workplaces

Unions cover different industry areas and in some cases you will have a choice of unions. One of the biggest unions in Australia is the Australian Manufacturing Workers Union (AMWU), which looks after the interests of workers in metals, engineering, printing, packaging, food preserving, and vehicle industries. Other union examples include Shop Distributive and Allied Employees Association, Australian Services Union, Media, Entertainment and Arts Alliance, and the Transport Workers Union.

When you join a union you will pay fees (or ‘dues’). It is not compulsory to join a union.

The Australian Council of Trade Unions (ACTU) was established in 1927 to provide a national policy and administration centre for the union movement. Unions are affiliated with a state council of unions and the state councils are represented by the ACTU at a national level. The ACTU has a great website for students with a glossary of terms, fact sheets on unions, youth wages, apprenticeships and traineeships, the Australian Industrial Relations Commission.

Employer associations

Employer associations are organisations that support groups of employers engaged in different industries or businesses. The first Australian employer association, formed in 1825, was the Sydney Chamber of Commerce. Some of the major employer associations today include: Business Council of Australia, Australian Chamber of Commerce and Industry, Australian Mines and Metals Association. There are also state employer associations such as the Retailers Association of Queensland Ltd.

Employer associations:

Provide advice to members

Provide counselling

Assist with industrial matters

Offer training

Represent employer interests in industrial relations

Provide employment services

Lobby the government in industrial relations issues.

Activity

1.Explain the difference between an award, a certified agreement, training agreement and an AWA.

2.Write a paragraph outlining the role of the AIRC and the ACTU.