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Labor And Employee Relations

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Globalization is one of the factors affecting the employee relations, otherwise known as the industrial relations. Strategic management is important because changes in employee relations has resulted to increased bargaining power of the employees, flexibility in working time as well as changing job functions and this has occurred due to the increase in competition, product processes changes due to consumer awareness combined with the increasing essence in quality, productivity and skills. An integration of all these factors has had impact on the practices and policies of the management. While managing change in the firm, the employee involvement in making sure the change is effected is very important while the management has to ensure that the skills processed by the employees are compatible with those required in the market to meet the customer needs. The results of globalization are that:-



oCountries have become more interdependent economically than before due to the breakdown of barriers of trade hence they cannot become self reliant.

oGovernments have been unable to control information, technology and capital flow across the boundaries.

oMarkets are now not regulated allowing the goods, services and capital to integrate like the European Union

oCompanies are becoming global entities which are forming the global webs due to de-nationalization of firms

oThe firms have discovered the importance of remaining competitive in the market b y producing high quality services and goods

A strategic human resource management is essential in making sure the objectives of production of high quality products, ability to counter fast to the dynamics of the market and continuous innovation are attained, and this can only be achieved through employee training, involvement and intrinsic and extrinsic rewards, this making the employee relations to be of paramount importance in management. In many firms which include the general motors, the employee relations are taken to consist of five values which have enabled the management to succeed in achieving its objectives, these are:

oHow the works are organize

oAcquisition skills and development of employees

oCompensation and pay processes and structures

oSecurity arrangements on employment and staffing

oLabor management issues

With the increased importance of the employee relations, the human resources is has shifted it focus to quality, innovation and reduction of the cost. The importance of human resource management (HRM) is reflected in the personnel management in the firms. Employee relations (ER) is better viewed as a long term goal rather than short term because it deals with the way the HRM treats the people in long term view. In successful companies like General Motors it’s noted that how the workers are treated is a key item feature in the long term beside other factors like the corporate culture and the objectives.

Today in most industries, the HRM is recognized since it’s of big concern to the company since it’s not meant to only ensure that the employees comply with the laid down policies but also win commitment of the workers, this therefore makes the ER a worthy investment. HRM strategies are affected or influenced by the decisions made in relation to the structure, strategy and considering the external factors like the legal system, labor market position and the influence of trade unions.
Labor And Employee Relations
This is confirmed by government statistics that suggest that 1,000 people per week are migrating to Queensland, Australia to live. The attraction is lifestyle affordable property and housing, progressive government development and support for new business initiatives and low unemployment.

In addition there are a large proportion of immigrants coming to our shores from the United Kingdom, South Africa and New Zealand to name a few.

Sadly amongst this good news there are some concerns amongst employers and employees alike. Over the last 10 years with out-placing, downsizing, outsourcing, redundancies, and other interesting forms of industrial justification for off-loading employees, the workplace has been experienced as difficult and for some ?a house of pain?.

However, the industrial relations environment in Queensland and Australia continues to evolve in response to business concerns, community expectations and continuing pressure on the government to ensure that unemployment is kept low with the additional concern of the Commonwealth Government on the continuing drain on the welfare system.

There continues to be some pessimism by employers about the economy and a lack of trust which has seen a delay in employing more full-time workers especially in the small to medium enterprise sector. This is confirmed by research which suggests that the particiaption of casual and contract employment has increased markedly However, Queensland has made some large inroads into creating an environment conducive to small business growth.

Because of the reducing birth rate in Australia it is estimated that by 2010 the percentage of employees aged between 45 and 60 years of age will be 65%. Many industries are not presently equipped to cope with this radical change in age demographics and it is now time for industry and government to work together preparing the way ahead.

Recent studies have belied the myth in respect to older workers and concluded that mature workers are productive, however, there still continues to be muddied perceptions about age related workers (Productivity of Mature and Older Workers: Employers? Attitudes and Experience ? ACIRRT 1996).

Grey power will increasingly become more important as enterprises endeavour to stay ahead of the pack and retain mature aged workers who have skills, experience and competencies to contribute to industry and business.

The industrial relations arena continues to be highly regulated and subject to many acts. These include,

?Common Law

?Australian & State Industrial Relations Acts/Regulations

?Workplace Relations Act 1996 ? Federal

?Workplace Health & Safety Acts

?Anti-Discrimination Act 1991

?Human Rights and Equal Opportunity Commission Act 1986

?Trade Practices Act 1974 ? section 53B

?Income Tax Assessment Act 1936 & other Tax Legislation

A move towards

?Awards ? State & Federal

?Enterprise Bargaining Agreements (EBA)

?Australian Workplace Agreements

?Increased workplace mediation before legal action

We are making progress in employer / employee relationship there are many enterprises and employees who continue their day to day businesses without having experienced these concerns.

Employers can take measures that increase their understanding and educate employees to understand their rights and responsibilities and thereby protect themselves for various workplace issues.

Small business is not an easy road especially in start up mode but there is help available. For other helpful aricles please visit www.biz-momentum.com

Philip Lye is Director of Biz Momentum providing services in strategic human resource management, critical thinking, workplace health and safety. Biz Momentum is based in Brisbane, Australia and operates nationally.

For other helpful articles visit

Lets us have your thoughts and feedback we are always interested in your quesitons or concerns.

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