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Industrial relations

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Industrial relations

  1. 1. Systems Theory, ‘Web or Rules’, and the Fair Work Act Presented by:
  2. 2. Definitions  Dunlop’s Systems theory, key concept: functionalist or structuralist perspectives of society  The macro-sociological, social system or order view of society  Functionalism: nature and goals of a theory  Teleological - concerned with goals a system serves  Mathematical - co-variation between variables  Configurational - interdependence between elements of a system; seeks to examine how and what each contributes to the whole
  3. 3. Definitions  DS theory based on works of Parsons (social system), which adopted an inherent bias in favor of order and stability.  Dunlop: at any stage of its development, an industrial-relations system has four elements: i. Actors - the parties involved ii. Contexts - nature of industrial relations differs from one context to another iii. Body/bodies of rule - governing the actors through ‘substantive and procedural rules in the context iv. Ideology - binding the various elements of an industrial-relations system together
  4. 4. Dunlop’s Systems theory  Actors defined based on product and labor markets, technology, and distribution and/or balance of power in wider society  Key factor: implications on workplaces and individuals  Context defined by technology, budgetary and market factors, and balance of power in society  Premise: the larger environment… shapes the conduct of and the rules established by workers, employers and the state  Body of rules (Web of Rules) governs the workplace (context) and interactions between people in it  Ideology: beliefs held by actors in a context, that integrate and/or bind the system together as a single entity; must be “sufficiently consistent or compatible to permit a common set of ideas which recognize an acceptable role for each actor”
  5. 5. ‘Web of Rules’  Governs relationship among other elements of industrial relations  Divided into substantive and procedural rules.  Substantive rules set and define terms and conditions of employment.  Procedural rules focus on procedures for resolving conflicts between parties and interpretation of rules made in disagreement between parties  Other rules concern negotiations, management prerogatives, joint consultations, as well as conditions of service.  Mainly made within the organization (internally) to guide the behavior of the parties involved.
  6. 6. Substantive Rules of the Act  Basic mandatory obligations for employers, conditions under which a person or institution is considered an employer.  Provides responsibilities of employers and employees within its definitional framework  Rules on the minimum national employment standards - minimum/maximum number of hours an employee can work in a week, accompanying conditions, etc.  Base rate of pay – “rate of pay payable to the employee for his or her ordinary hours of work”  Not including monetary allowances, loadings, penalty and/or overtime rates and incentive-based bonuses and payments, etc.
  7. 7. Procedural Rules of the Act  Address issues on relationship between employers and employees and/or between employer and employer.  Rules on ‘how’ to terminate employment and make an ‘unfair termination’ claim - reinstatement and/or compensation.  Termination must be made in writing, specifying date and reason.  Employee required to make an ‘unfair dismissal’ claim within 14 days of employment termination.
  8. 8. Procedural Rules of the Act  Settlement of small claims: provides capacity for employees to pursue claims as little as less than $20,000  Others: ‘agreement making’ and ‘good faith bargaining’.  Collective Bargaining: where employees, employers, and their representatives bargain over an enterprise agreement.  Good faith bargaining: all parties present – employer permits good faith bargaining in agreement to negotiate or initiate an enterprise agreement.
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