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investigate the need for caution on the part of such practitioners in implementing
The purpose of preparing this essay is to assess the changed role of human resource
Australian Industrial Relations system. This essay also investigates the need for caution
on the part of such practitioners in implementing the provisions of this new legislation.
The essay starts with a brief introduction to the current Australian industrial relations
system. Then it analyses Work Choices legislation and compares it with the previous
legislation ‘Workplace Relations Act 1996’. It also examines the changes that will occur
overall strategic goal which at the same time requires changes in managing the entire
workforce. Considering these changes, gradually this essay comes to the conclusion and
evaluates why human resource professionals have to be careful about their activities and
how they will manage to practice Work Choices in a logical and fair way to build a
With the aim of transforming the industrial relations system from a centralised process
final outcome the Work Choices legislation has been introduced in December 2005 and
it came into effect March 2006. This legislation is an amendment of the previous
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legislation ‘Workplace Relations Act of 1996’. The legislation has some basic features
like an AWA agreement must only meet the following five conditions, which are:
minimum wage $12.75 per hour, 38 hours per week ordinary working time which can
be averaged over 1 year period and overtime hours pay must be negotiated, 4 weeks
annual leave with 2 weeks cash out option, 10 days personal/sick leave and a 52 weeks
of unpaid paternal leave. (Work Choices, 2005). According to the government, the
replaces the traditional, rigid and outdated system that was designed over 100 years ago.
relations system which will also guide it towards a more flexible, simpler and fair
national system. The Federal government also claims that it will allow employees to
negotiate with their employer to ensure economic prosperity of both parties, since the
government thinks that the key to greater productivity in the workplace today comes
In support of this view, Hamberger, (cited in Dessler et al, 2004, p.520) a government
spokesman and head of the office of Employment Advocate has recently commissioned
research and he found that the number of employees and employers using AWA is
terms and conditions and the agreement reduced the scope for third party intervention
for dispute resolution. Based on the ABS data he also pointed out that average weekly
wage under AWA was $895, compared with $711 under certified union agreements.
Furthermore, Gollan and Wooden (cited in Dessler et al, 2004, p.520) in their research
have found a strong correlation between AWA and high organisational productivity.
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employers actually tends to increase the organisational development and employee
retention.
On the other hand, most of the employees and union members think Work Choices as
‘No Choices’. For example, the Australian Council for Trade Unions (ACTU) president
Sharan Burrow (cited in Baird, 2005, p.19) said, “On any measure Work Choices
legislation will be a bad law”. With this new legislation, all new employees have no
elsewhere and it will affect the majority of workers within five years. Moreover, in
opposition to the above mentioned Gollan and Wooden’s research, Burrow added that
the claim of increase in productivity related to AWA is difficult to agree with because
Similarly, Ellem (2006) agrees with Burrow and he mentioned that Work Choices has
actually enhanced managerial control and flexibility on management’s terms and that
‘choice’ is therefore unlikely to be a genuine choice for employees. This new legislation
is a choice for employees between no job and an individual contract. Chapman (2005,
p.65) added that Work Choices is specifically designed to make it easier for employers
meaningful negotiations. In addition, critics like Ruan, Bramble and Lafferty (2001,
p.387) in their research have found that woman, part time and casual employees are
more likely to be disadvantaged by this type of individual contract. For example, the
ACTU has recorded a couple of hundreds incident which happened in 2005 where the
employees had been dismissed unfairly under AWA contracts. (ACTU, 2006). One of
the most negative results on the use of AWA comes from the study of Robbins (cited in
Dessler et al, 2004, p.521) of 800 small businesses in the Albury-Wodonga area.
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Protesting the government’s claim of small businesses were beneficiary of AWA
system, his survey found that only 4% of those business actually used this legislation.
This discussion in a nutshell shows that according to the government Work Choices is
about giving people more choices (flexibility, job satisfaction, fair treatment) and
securing their future by improving life standard which will enhance a more family-
friendly workplace and will nurture economic prosperity. On the other hand, critics
claim that Work Choices is a grossly unfair and complex system which is less flexible
implement this legislation in their organisations under a new framework. At the same
time, HR is also faced with other pressures, such as equal and fair treatment, employee
retention, job satisfaction and work / life balance. How does the Work Choices affect
the HR role? One possibility is that the HR role becomes primarily an industrial
new IR laws, and enforcing adherence to agreements and policies. There may be
pressure on HR to examine ways to tighten up pay and conditions, and explore ways to
dismiss employees who are considered to be performing poorly. (Yen, 2006). Work
Choices changes the systems of employees' pay and conditions and for many employers,
it has meant a complete change because they have moved from the jurisdiction of a state
system to the federal system. Along with it, existing awards and agreements have fallen
under a new set of criteria which makes a big change in organisational HR practices.
(Martin, 2005).
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Another possibility of the HR practitioners’ volatile role is to encourage a fair and
this case, HR practitioners have to be fully aware of this legislation and understand its
span. Thus they need to add value in their role which can be done by understanding the
organisational policy and strategy to manage the workforce. Covering the whole HR
activities, HR practitioners have to be very careful about the legal issues of unfair
dismissal, comply with the Australian Fair Pay Conditions Standard on paid / unpaid
works for their particular companies. Equal and fair treatment is another important
concern. “People are not greedy or unreasonable about any of these factors. They want
to be treated fairly and they know what fairness is” says Sirota (cited in Martin, 2006).
A recent survey by Mercer HR consulting shows that 58% of respondents have lack of
but have no real impact on the executive. Some HR managers serve the organisation's
business goals by agreeing to whatever decisions the executive makes about the
workforce. But most importantly, the value that HR practitioners bear contributes a
great deal in the workforce damage or prosperity. (Australian Business Limited, 2006).
So, HR practitioners have to consider the available options to formulate the new
legislation without hampering the employee awards and benefits. They are also
expected to know the minimum obligations that employers and employees have under
this new legislation. Moreover, each HR practitioner has to consider what other
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employers are doing so that they remain competitive. If other employers are changing or
lowering pay and conditions, there may be pressure on HR to copy those actions.
Finally, from the above discussion it can be forecasted that Work Choices will deliver
very little for workers and their careers but will be more beneficial for employers. It can
extensive and complex, so in many cases it is still unclear how it applies in a particular
organisation’s mission and long term goals by maintaining a healthy, fair and peaceful
take the lead in practicing Work Choices in a logical and fair way to build a dynamic
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References
Australian Business Limited: Work Choices (2006). [Online, retrieved on 2nd October 2006], available at:
<http://www.australianbusiness.com.au/?content=/channels/Workplace_relations/WorkChoices/
Small_and_medium_businesses/WorkChoices.xml>
Australian Council of Trade Unions (ACTU) [1], (2006) Unions@Work. [Online, retrieved on 24th
September 2006], available at: <http://www.actu.asn.au/public/papers/unionswork/>.
Baird, M., (2005), ‘Government policy, women and the new workplace regime: A contradiction in
Terms and policies’, IR Change Report Card, University of Sydney. [Online, retrieved on 26th
September 2006], available at: <http://www.econ.usyd.edu.au/14896.html>.
Business Council of Australia, Submission to the Senate Inquiry into the Workplace Relations
Amendment (Work Choices) Bill 2005. [Online, retrieved on 2nd October 2006], available at:
<http://www.bca.com.au/content.asp?newsID=97547>
Chapman, A., (2005), ‘Challenging the Constitution of the (White and Straight) Family in Work and
Family Scholarship’, Work Family and the Law, vol. 23, no. 1, pp. 65-87. [Online, retrieved on 1st
October 2006, from UWS / ProQuest global database].
Dessler, G., Griffiths, J. and Lloyd-Walker, B., (2004), Human Resource Management, 2nd edn, Pearson
Education Australia, Australia.
Ellem, B., (2006), ‘Deregulation and other myths: Re- reading industrial relations policy’, IR Change
Report Card, University of Sydney. [Online, retrieved on 26th September 2006], available at:
<http://www.econ.usyd.edu.au/14896.html>.
Martin, G., (2005), ‘HR in the new IR landscape – balancing the pressure’, Workplace Info. [Online,
retrieved on 30th October 2006], available at:
<http://www.workplaceinfo.com.au/registered/alert/2006/060531411.htm>
Mercer Human Resource Consulting, (2006), ‘Work Choices: from IR to HR, are your choices clear’.
[Online, retrieved on 2nd October 2006], available at:
<http://www.mercerhr.com.au/knowledgecenter/reportsummary.jhtml/dynamic/idContent/1204310>
Teicher, J., Lambert, R. and O’Rourke, A., (ed), (2006), Work Choices: The New Industrial Relations
Agenda, Pearson Education, Australia.
Work Choices: Our Plan for a Modern Workplace, (2005). [online, retrieved on 2nd October 2006],
available at:
<https://www.workchoices.gov.au/ourplan/overview/Ourplanforamodernworkplace.htm>
Yen, M., (2006), ‘Making the right Work Choices’, Human Resources. [Online, retrieved on 2nd October
2006], available at:
<http://www.humanresourcesmagazine.com.au/articles/0D/0C03E80D.asp?Type=60&Category=871>
Bibliography:
Boxall, P. and Purcell, J., (2003), Strategy & Human Resource Management, Palgrave Macmillan,
USA.
Barneveld, K., (2006), ‘Australian Workplace Agreements under Work Choices’, The Economics and
Labour Relations Review 165. [Online, retrieved on 2nd October 2006], available at:
<http://www.austlii.edu.au/au/journals/ELRRev/2006/8.html>
Moore, D., (2005), ‘Work Choices: Less Flexible, More Complicated and Still Unfair?’ Conference
proceedings of ALSF on 3rd December, Australia.
Pocock, B., 2003, The Work / Life Collision, The Federation Press, Australia.
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