Business Services Training

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1 Business Services Training Unit of Competency Manage Industrial Relations BSBWRK509A Unit Descriptor This unit describes the performance outcomes, skills and knowledge required to manage industrial relations matters within an organisation, with day-to-day involvement. It includes strategic planning and policy development for industrial relations as well as negotiation, conflict management and dispute resolution. Employability Skills This unit contains employability skills. This unit applies to individuals with a well-established, sound theoretical knowledge base in human resources management and industrial relations who are proficient in using a range of specialised technical and managerial techniques to plan, carry out and evaluate their own work and/or the work of a team. Application of the Unit They may or may not have responsibility for supervising the work of others but are authorised to oversee industrial relations in the organisation. However they will have knowledge of current industrial relations trends and legislation. The unit addresses staff who have responsibility for working across the organisation to ensure that there is a policy infrastructure which ensures legislative compliance and clarifies issues. It also addresses the requirement for responding to industrial conflict and grievances. Competency Field Workforce Development Workplace Relations

2 Manage Industrial Relations This book supports BSBWRK509A, Manage Industrial Relations in the Business Services Training Package. Copyright Alfred Quay, August 2008, Revised June 2010 ISBN: Disclaimer All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, scanning, recording, or any information storage and retrieval system, without permission in writing from the publisher, Software Publications Pty Ltd. No patent liability is assumed with respect to the use of the information contained herein. While every precaution has been taken in the preparation of this book, the publisher and the authors assume no responsibility for errors or omissions. Neither is any liability assumed for damages resulting from the use of the information contained herein. These learning materials have been prepared for use as part of a structured vocational education and training course and should only be used within that context. The information contained herein was correct at the time of preparation. Legislation and case law is subject to change and readers need to inform themselves of the current law at the time of reading. Publishers Software Publications Pty Ltd (ABN ) Head office Sydney Unit 10, 171 Gibbes Street Chatswood NSW 2067 Phone: (02) Fax (02) Australia Toll Free Numbers Phone: Fax: Web address Published and printed in Australia

3 2.1 Develop an implementation plan and a contingency plan for the industrial relations strategies/policies Introduction The industrial relations implementation plan should contain all the necessary strategies to make it a successful IR system. Of course, smaller organisations may develop an informal system and shorter process to fit their purpose, but essential components of the IR legislation must be adopted. HR has the responsibility of ensuring that the IR planning and implementation process goes through without a hitch. The formal IR system has many stages which must be strictly followed to guarantee success. Essentially, the following principles should be considered before implementation: review organisational objectives/goals for workplace relations review current workplace relations Act develop IR policies and procedures manuals consult all stakeholders communicate the necessary information to all employees organise and conduct induction program organise personal interviews with employees to clarify working conditions monitor and improve where necessary The implementation process stages of a formal system can then be determined as follows: Stage 1 hold joint discussion with all stakeholders set goals and procedures establish timelines for implementation prepare policies and procedures manuals (quality documentation) develop action plan Stage 2 conduct induction programs and workshops organise interviews with employees involved organise training for all stakeholders Stage 3 Review progress Change and improve where necessary 52

4 Activity 2.1: Implementation Process Analyse the various stages of the implementation process above and lead a group of three in a discussion using the example of implementing an IR policy and procedures manual in your organisation. The Induction Program It is important for HR to develop an induction program (Figure 2.1) followed by workshops to ensure that all participants are given the correct information about the new IR policies and procedures. The manager in charge of the induction program and workshop should then use the program to plan and prepare for the important occasion. With the introduction of new legislation, care must be taken to make sure that employees are given all the necessary information and changes to their working conditions including: Fair Work Act enterprise or collective agreements conditions of employment union membership grievance and conflict resolution processes industrial action disciplinary action and dismissals HRM and line managers/supervisors may include any other industrial issue(s) they deem necessary to help the employees. Part of the induction should include a period when they are informed of the organisation s culture, code of conduct and performance standards that are expected by the organisation and its management. Brief descriptions of pertinent information on the organisation structure, rules and regulations and safety procedures are given as opening statements which will be helpful to the participants. The rest of the induction program should concentrate on the requirements of the Fair Work legislation and the matters listed above. The Fair Work Act The Legal Officer or HR Manager should explain the current Act to the management team and stakeholders to acquaint them with their effect on the organisation. Policies and strategies for implementation can then be developed. Enterprise (or Collective) agreements The terms and implications of the enterprise agreements employees have with the organisation should be explained to the management team. In turn, HRM and line managers would have to inform employees about their contract with the organisation. 53

5 Union membership Under the freedom of association rule, employees do not have to join a union if they do not wish to. Unions cannot force them to join. Also, the organisation cannot discriminate against non-union members, for example for promotions and transfers. Grievance and conflict resolution procedures Employees must be informed about the organisation s grievance and conflict resolution procedures. These must be set up, as in all organisations, as a result of the provisions of the legislation. This is HRM s responsibility. Industrial action It is important to inform workers and their union representatives of management s intention to work with them to negotiate an amicable solution to industrial conflict. Industrial action must be avoided at all costs, as there are no winners in any form of confrontation. Conciliation and negotiation towards agreement will be encouraged. Disciplinary action and dismissals Employees must be informed about the organisation s disciplinary and dismissal procedures, as well as its code of conduct. The procedures manual should contain all necessary instructions. Workshops As part of induction, participants, managers and workers should break up and form groups in workshops to discuss and reinforce their knowledge of the IR legislation and how it affects them. Moreover, they should introduce practical examples relating to their own work situations to apply what they have learnt. The convenors should leave information at each table to guide the group. Workshop facilitators should be appointed for these workshops. Workshops will enable workers to work with line managers/supervisors on a one-to-one basis addressing their working conditions. All relevant documentation like the IR Act, their job descriptions and information on their agreements should be used for the workshop activities. Ongoing departmental meetings Management should carefully plan and follow up the induction with staff discussions to make sure they understand all the necessary matters relating to their terms and conditions of employment. If this is not done properly, they may get the wrong idea about their rights and liabilities and how it is going to personally affect them and their working conditions. 54

6 Figure 2.1 Induction Program Induction Program Objective: Introduction to workplace relations policies and strategies Date: Location: Time: The program includes: 1. Organisation information company s mission business goals operational strategies 2. Introduction to IR legislation Fair Work Act enterprise agreements union membership industrial action 3. Employment Conditions conditions of employment superannuation relevant awards performance review grievance procedure disciplinary action and dismissal 4. Workshop group discussion facilitation Activity 2.2: First meetings Assume you are the manager organising the first meeting to introduce IR policies to your employees. Make a list of what you are going to say and do at the meeting. 55

7 Contingency Plans for Potential Risks New changes in organisations affecting how people work have the potential to cause problems which might lead to organisational upheaval and industrial disputes. Invariably, the implementation of new workplace regulations, especially the Fair Work legislation, will have risks attached such as new pay scales, collective bargaining and more protection for employees. All such risks must be carefully analysed and contingency plans put into place to anticipate and overcome them. This is called risk management. In planning, managers must always draw up a contingency plan in case the plan fails. Contingency plans (or Plan B) should be used as a backup in case Plan A fails, and it should cover emergencies and critical situations such as industrial action including wildcat strikes (where all workers down tools and walk out on strike) following unsuccessful negotiations. Plan B should also be put in place to avoid workplace injuries or loss of life. Contingency plans are similar to risk management, where all risks are analysed according to their advantages and disadvantages, followed by the development of contingency plans to provide the backup in case things do not pan out the way they were originally intended. This is smart and prudent planning where all bases are covered. Activity 2.3: Induction program Does your organisation run an induction program on IR for its employees? If it does, find out if the program contains an introduction to the IR. If it does not, make up a simple induction program yourself. Do the same if you are not in the workplace. Review questions 1. If you were asked to develop an implementation process for IR policies and procedures for your organisation, explain what you would do. Show a diagram of the stages involved. 2. List and describe the principles that should be considered before the implementation process. Who should be responsible for the task? Explain with examples. 3. What is an induction program? Explain its purpose and what should be in the program content. Explain who should be conducting it and how it should be run. 4. Explain what needs to be done after induction to make sure that all participants understand what was covered in the induction program. Describe the activities you would introduce and why. 5. What are contingency plans? Describe an example of a contingency plan that you can develop in your workplace. 56