Receive a Base Wage Based on Years of Service and Position

Part A – Case Study

Upon implementation of the Colesworths industrial relations plan negotiations with the workers break down over pay & conditions. Presently the workers:

Are required to work a 38 hour week

Receive a base wage based on years of service and position

In addition are paid 10% commission on sales over $10 000 per month (e.g. if the staff member makes $12 000 worth of sales per month, in addition to their base wage, they earn an extra $200)

Receive penalty rates on their base wage of 25% for Saturdays and 100% for Sundays (e.g an employee on a base rate of $160 per day will receive $200 for Saturdays & $320 for Sundays)

Are entitled to 20 days annual leave f Are entitled to 10 days of personal leave (sick, carer & compassionate leave)

The management offered workers:

A 3% increase in base wages

A reduction in penalty rates of 12 1⁄2 % for Saturdays plus one day TOIL (time off in lieu) and 50% on Sundays plus one day TOIL

A 2 1⁄2 % increase in commission on sales

Working hours, annual leave and personal leave arrangements remain thesame

Workers have demanded:

A 7 1⁄2 % increase in base wages

Penalty rates remain the same with no TOIL

A 5% increase in commission on sales

The forecasts are:

Sales for Colesworths will increase by 10% in the next financial year

Profit margins for Coleworths will increase by 5% in the next financial year

The inflation rate for Australia is predicted to be 3.94% in the next financial year

The unemployment rate for Australia is predicted to be 6.2% in the next financial year

How could you use conflict management techniques to manage this dis- pute? Discuss the following:
Dispute resolution procedures
Legal remedies
Which of the grievances do you think would be the easiest to alleviate or eliminate? Why?
What are the main issues in the dispute?
As a retail company, who might you approach for expert or specialist ad- vice? Provide two (2) options
What trade union may some of the workforce be members of?
In regards to your negotiations with the workers:
What is your best outcome? Why?
What is your worst outcome? Why?
What will be your negotiation strategy?
What timeframes would you place on reaching agreement? (It is now 3 months until the present agreement expires)
How will you advocate the company’s position?
If your negotiations fail what tribunals or courts are available to you to de- termine a resolution?
Your negotiation skills have paid off and an agreement between the com- pany and the workers has been signed. How will you document and certify the agreement?
A couple of workers who voted against the agreement (it was accepted due to majority vote) have unofficially protested against the agreement by regularly calling in absent on their scheduled weekend shifts. What remedial action could be taken?