Hrm 603 Comparative study between Fiji and Australia
- 1. Name: CagiMerelita ID no.: 2011001230
- 2. Table of Contents Introduction ............................................................................................................................................................ 1 The development & evolution of IR/ER system ........................................................................................ 2 The development & evolution of IR/ER system in the Fiji Island ...................................................... 3 The IR/ER system of Australia against that of the Fiji Islands ............................................................ 4 The emerging issues & recent trends in IR/ER in both nations ......................................................... 5 Considered key roles & responsibilities by the major actors in an IR/ER system in each country ...................................................................................................................................................................... 6 Major actor’s roles & responsibilities that are considered most significant in an IR/ER context & why ......................................................................................................................................................... 8 Bibliography............................................................................................................................................................ 9
- 3. Introduction Employment Relations are the employer and employee relationship, it also describes the relationship between workers and employers in business (Employer and Employee Relations, 2011). Employment Relations is important because it encourages motivation, it builds up the reputation of a worker and the business through the increase in number of potential customers, investors and staff, increase in productivity output, efficiency and profit levels (Employer and Employee Relations, 2011). With the changing industrial landscape in every country or nation, the growth of new townships/cities and the dispersal of activity, a process of „industrial culturalisation‟ of workers have set in. New working class areas have come into being and old ones are expanding. In new areas, adaptability to this culture depends on the extent and strength of workers‟ linking and working together with a common goal. While in traditional industries, this change has been somewhat slow, it has been somewhat more significant in sophisticated employments such as engineering and metal trades, oil refining and distribution, chemical and petro-chemical, machine tools and machine building and in synthetics and many „white collar‟ occupations. Against the background stated above, the development & evolution of IR/ER system in Australia will be critically examined, with the development & evolution of IR/ER system in the Fiji Islands. The IR/ER system of Australia will be compared and contrasted against that of the Fiji Islands, withthe emerging issues & recent trends in IR/ER in both nations. Furthermore, the critical analysis of what is considered as key roles & responsibilities by the major actors in an IR/ER system in each country with critical analysis and evaluation of the major actor’s roles & responsibilities that is considered most significant in an IR/ER context, with its reasons. 1 CagiMerelita 2011001230 HRM 603 Tri 3, 2013
- 4. The development & evolution of IR/ER system Critically examine the development & evolution of IR/ER system in that country? (2.5 marks) According to (Shelton, 1995), “ Human resource management in Australia is in a very critical phase of development, as the recent changes in the international economic standing of Australia have created an „economic crisis‟ mentality that is having a lasting impact on business and politics. (Teicher, 2004)noted that the development of the industrial relations in Australia can be categorized into stages. Firstly, is the emergence of industrial relations from law.(Teicher, 2004)further noted that the second phase; “is characterized by an explicit focus on economics, where the role of the Australian Industrial Relations Commission and its predecessors as instruments of anti-inflationary wages policy throughout most of the period since World War II, with the preoccupation and emphasis on economics was also influenced by the rise of collective bargaining and the concerns of American labor economists of the 1960s”. The third phase of development traces the shift of industrial relations into management departments in universities, and the influence of psychology and organizational behavior, which led Walker (1984) to foreshadow a fourth stage of development, in which the human resources and industrial relations aspects of all management decisions would be taken fully into account by management 1. However, we can argue that this has come to pass as, according to (Teicher, 2004), “with the industrial relations discipline being influenced by, and often perceived to be in competition with, human resource management”. Furthermore, according to (Sagoa, Industrial or Employment Relations in Australia, 2013); “Since the 1990s the Australian industrial relations system has undergone significant legislative change, structural change, significant declines in union density and power with increases in non-standard forms of employment, and a shift away from a centralized industrial relations system to a decentralized system focused on enterprise bargaining”. 1 Teicher, J. (2004, July). Industrial Relations and the Law: The New Industrial Relations (Issues). MONASH University: Business and Economics. 2 CagiMerelita 2011001230 HRM 603 Tri 3, 2013
- 5. The development & evolution of IR/ER system in the Fiji Island Critically examine the development & evolution of IR/ER system in the Fiji Island? (2.5 marks) According to (Hodges, 2006), “Industrial relations in Fiji were developed historically during the colonial period when the economy was predominantly based on agriculture, although the major source of foreign exchange earnings, is still sugar and tourism”.. Furthermore,(Khan & Khan, 2001)elaborated that; “industrial relations in Fiji has developed along a mix of the traditional British voluntarist and historic interventionist New Zealand traditions, and have mirrored developments in Australia and New Zealand (Prasad and Hince, 2003)”. (Sagoa, 2013)said that, “Fiji is in rife with all forms of disputes, however, it is the area of industrial and employment relations that generates the most disputes in Fiji, and is quite serious in terms of their outcomes because, unlike Australia, Fiji has no social security net”. Therefore, the Fiji Government in 1973 enacted the Trade Disputes Act Cap 97 that required parties to try and resolve disputes themselves (Sagoa, 2013). Recently, in Fiji, the Fijian Parliament has enacted a new Employment or Industrial Relations legislation known as the Employment Relations Promulgation (ERP) 2007, which seeks to preserve the stages of dispute resolution currently being practiced but introduced mediation as an additional method of dispute resolution prior to adjudication 2. 2Sagoa, I. (2013, March 25). Industrial or Employment Relations in Fiji. HRM 603: Comparative studies in industrial or employment relations. Suva, Nasinu, Fiji: Fiji National University Nasinu Campus. 3 CagiMerelita 2011001230 HRM 603 Tri 3, 2013
- 6. The IR/ER system of Australia against that of the Fiji Islands Compare & contrast the IR/ER system of your chosen country against that of the Fiji Islands? (2.5 marks) When compared with Australia, or other Pacific countries, according to (Khan & Khan, 2001), Fiji has “the most developed and well-defined industrial relations system and structure, with its economy that is the most diverse and its labor markets more extensively developed, including its labor administration institutions”. However, when it comes to the outcomes of industrial or employment relations disputes, Australia has advantage as they have social security safety net when compared to Fiji (Sagoa, 2013). Furthermore, (Shelton, 1995) highlighted that there are “three (3) major concepts implicit in the Australian industrial relations system which are the concept of basic wage, comparative wage justice and capacity to pay”, when compared to Fiji, (Sagoa, 2013) noted that “since the introduction of the Employment Relations Promulgation (ERP) 2007, it provided various labor standards and social protection provisions for workers and to promote good faith social dialogue and productivity improvement in workplaces”. However, just like Fiji, Australia moved from centralized to decentralized regulation of work and employment relations, or bargaining system (Sagoa, 2013). 4 CagiMerelita 2011001230 HRM 603 Tri 3, 2013
- 7. The emerging issues & recent trends in IR/ER in both nations Compare & contrast the emerging issues & recent trends in IR/ER in both nations? (2.5 marks) Both Fiji and Australia, saw significant changes due to reforms made by the present or appointed government of the time. The changes for Fiji took place after the 2006 coup by the Bainimarama government whereas Australia saw its significant changes since the 1990s. According to (Sagoa, 2013), these changes are, “significant structural changes, significant legislative changes, a shift away from the centralized system of the past towards enterprise bargaining and significant declines in union density and power”. Thus, both the countries, Fiji and Australia, have both their management facing the challenge of, “balancing a desire for efficiency enforcement with the need to address the concerns of their employees and the increasing extent of work intensification, employee insecurity and job dissatisfaction” (Sagoa, 2013). Therefore, Australia and Fiji both strife for the increase in productivity and efficiency. 5 CagiMerelita 2011001230 HRM 603 Tri 3, 2013
- 8. Considered key roles & responsibilities by the major actors in an IR/ER system in each country Critically analyze what you consider as key roles & responsibilities by the major actors in an IR/ER system in each country? (5 marks) The major actors in Industrial and Employment relations system are the: Trade unions Trade unions according to (Aminuddin, 2008), “is to provide protection at the most personal level for individual workers,collective bargaining for better terms and conditions of employment and assistance to individual workers who have a grievance or problem with their employer. This is further supported by (Raj, 2007) who stated that, “the main roles of the trade unions is to protect and promote the interest of the workers and conditions of their employment”. The roles and responsibilities of the trade unions stated above are both used by trade unions in Fiji and Australia. However, since the recent reforms made by the governments in Fiji and Australia, employment has been moved from collective bargaining to individual contracts. The shift from collective agreement to individual contracts has contributed to the decline of unionism density. The State (government) and The role of the state in modern capitalist economies can be hardly ignored, whether through legislation, macro economic policy or its role as an employer, the presence of the state is pervasive (Sagoa, 2013). It was further noted by (Sagoa, 2013), that the state “had traditionally played various roles in different countries in providing institutional framework…”. Some of the key roles of the state according to (Sagoa, 2013)are; - Provision for institutional framework (general aim of regulating conflictual relationship between management and labour at all levels) - Provision for collective bargaining (the state provides the general alternative mechanism for settling general terms of employment by non- political means) 6 CagiMerelita 2011001230 HRM 603 Tri 3, 2013
- 9. - Limiting or avoiding industrial conflicts (in all developed nations, the state tries to avoid or limit collective industrial conflict) - Interpretation of conflict of right and interest (clear distinction is made between individual and collective conflict of interest). Therefore, the role of the state in Fiji is similar to that in Australia. Employer or Employer Associations Employers‟ association key roles and responsibilities are to, according to (Wolfe, 2013), “act as a counterbalance to labor unions, helping businesses organize their resources and promote their interest. However, many employer associations engage in political lobbying designed to promote the passage of legislation favorable to employers”. In Fiji, according to (Sagoa, 2013), the main key role of the employers association is to provide advice, support and training to its members on industrial relations, and wide range of employment or work related matters, whereas in Australia, most employer associations were vocally supportive of Work Choices legislation, with bodies even funding pro- Work Choices media advertisements (thus, the employers association are mostly politically motivated). 7 CagiMerelita 2011001230 HRM 603 Tri 3, 2013
- 10. Major actor’s roles & responsibilities that are considered most significant in an IR/ER context & why Critically analyze and evaluate which major actor’s roles & responsibilities you consider most significant in an IR/ER context & why? (5 marks) The role of the trade unions that I consider most significant is the providence of protection at the most personal level, that is, the trade unions look after the welfare of its members during the period of their employment. This includes the increase in wage rates, better working conditions, etc. The role of the state as the regulator and provision for institutional framework is considered as the most significant. Without the states intervention on labor or industrial relations disputes, strikes would happen indefinitely and could cause economic instability. The role of the government to act as a third party during negotiations would help settle industrial disputes peacefully. Lastly, the role of the Employers Association that I consider most significant is providing support and training to its members on industrial relations. This key role is important and significant as, when providing support and training to its members on industrial relations, it will help decrease the potential emergence of industrial or employment disputes, and it will also help employers to solve employer – employee relationship disputes. 8 CagiMerelita 2011001230 HRM 603 Tri 3, 2013
- 11. Bibliography Employer and Employee Relations. (2011, November 28). Employee Relations. Retrieved March 3, 2013, from http://www.slideshare.net/kushising/employer-and-employee-relations Aminuddin, M. (2008, January 21). The Role and Responsibilities of trade unions: What's changing, What's not! Hodges, J. (2006, August). National Labour Law Profile: Fiji. Retrieved March 25, 2013, from International Labour Organization: http://www.ilo.org/ifpdial/information- resources/national-labour-law-profiles/WCMS_158895/lang--en/index.htm Khan, A., & Khan, R. (2001). Trends in Industrial Disputes in Fiji, 1987-2001. In Fijian Studies Vol.5 (Vol. IV). Fiji Institute of Applied Science. Lansbury, R. D. (2000, July). Workplace Change and Employment Relations Reform in Australia: Prospects for a New Social Partnership? I. Sydney, Australia: School of Economics and Political Science, University of Sydney. Raj, C. (2007, December 7). Trade Unions. Sagoa, I. (2013, January 6). Industrial or Employment Relations in Australia. HRM 603: Comparative Studies in Industrial or Employment Relations. Suva, Nasinu, Fiji: Fiji National University Nasinu Campus. Sagoa, I. (2013, March 25). Industrial or Employment Relations in Fiji. HRM 603: Comparative studies in industrial or employment relations. Suva, Nasinu, Fiji: Fiji National University Nasinu Campus. Shelton, D. (1995). Human Resource Management in Australia. In L. F. Moore, & D. P. Jennings, Human Resource Management on the Pacific Rim (pp. 31-55). New York: Walter de Gruyter & Co. Teicher, J. (2004, July). Industrial Relations and the Law: The New Industrial Relations (Issues). MONASH University: Business and Economics. 9 CagiMerelita 2011001230 HRM 603 Tri 3, 2013
- 12. Wolfe, M. (2013). The Role of Employer Association. Retrieved March 26, 2013, from eHow: http://www.ehow.com/facts_6889831_role-employer-associations.html 10 CagiMerelita 2011001230 HRM 603 Tri 3, 2013