PRODUCTIVITY LEADERSHIP FORUM: WORKPLACE RELATIONS WORKSHOP

Transcription

1 ACCI PRESENTATION PRODUCTIVITY LEADERSHIP FORUM: WORKPLACE RELATIONS WORKSHOP 11 June 2013 Chris Gardner, Partner, , chris.gardner@hsf.com

2 WHERE IS PRODUCTIVITY BARGAINING IN AUSTRALIA? 2

3 MOVE FROM INDUSTRIAL RELATIONS TO EMPLOYEE RELATIONS Enterprise Based Bargaining Units A Better Way of Working, report to the business Council of Australia, vol 1, July 1989, p 2 3

4 WORKPLACE RELATIONS MODELS HALLMARKS TRADITIONAL CAPTIVE TRADITIONAL MODERATE TRADITIONAL PROGRESSIVE TRANSITIONAL PROGRESSIVE EMPLOYEE RELATIONSHIP Hostile / disenfranchised workforce Largely indifferent workforce Some indifference but awareness / acknowledgement of business needs Awareness of business needs and moderate-strong employee alignment Engaged at or above industry norms LINE MANAGER ROLE Low accountability for outcomes Some accountability for outcomes but regularly undermined High accountability for outcomes but sometimes undermined High accountability for outcomes High accountability for outcomes UNION RELATIONSHIP Union controls many facets of employment (from hiring to termination) Union a key stakeholder and remains influential within the business Union presence sometimes dictates business outcomes Often highly confrontational flashpoints Union present but rarely dictates business outcomes Limited union presence and no influence in business decisions INSTRUMENTS All collective Multi-layered Strong union controls Highlight regulated employment arrangements All collective Some union controls Collective Low no union controls Varying degrees of regulation Collective / individual Low to no controls Individual and/or non-union Minimal / no restrictions on employee prerogative CAPACITY FOR CHANGE / PROGRESS Extremely limited Limited usually at a high loss Sometimes possible but usually not without challenge Sometimes possible but resistance remains Possible and regular 4

5 Q.1: WHERE ARE WE ON THE CONTINUUM AND WHY? Old School IR Progressive Employee Relations

6 HRM: RESPONSE TO COLLECTIVISM EXTERNAL Use of labour law Compete with/ marginalise union power Reduce tribunal reliance INTERNAL AIM Engaged high performance workforce Improved leadership Improved communication Flexible job design Higher staff involvement Recognition of (individual) performance Robust performance management Robust internal grievance systems OUTCOMES Enhanced productivity Higher trust climate 6

7 Q.2: WHAT HAVE EMPLOYERS DONE WELL?

8 UNDERSTANDING LEVERAGE Why does an employer need to make an EA? Why do the unions need to make an EA? Employer capitulation point Cost of Price of making Union industrial action = > desired EA capitulation = (short term (long term cost) point pain) Benefits of new agreement Cost to the union Industrial action Public campaign Employee discontent / mistrust Safety disputes Subterranean industrial campaign Holds the cheque book Capacity to withstand industrial action Strike pay 8

9 Q.3: WHAT DO EMPLOYERS NEED TO BE BETTER AT?

10 SOME ALTERNATE MODELS UNIONS MANAGEMENT Unions Management Individual Management Non-Union Collective Management 10

11 Q.4: WHAT ARE THE CULTURAL / ENVIRONMENTAL FORCES GETTING IN THE WAY?

12 PRODUCTIVITY BARGAINING TODAY Today, bargaining initiatives are taking on new dimensions in such private-sector industries as auto-mobile, rubber, electrical manufacturing, and trucking and in the public sector at the town, city, and state levels of government. A new real politique is emerging, indicative of the fact that labor and management must recognize that technological change is a driving force that must be accepted and managed, and the frame of reference for bargaining today has to be wider than at any time in the past. Management, faced with severe inflation and the soaring cost of energy, money, and labor, is trying to convince unions that they must recognize and be responsible to market pressures. It points out that the decline in the U.S. should be a matter of concern to unions as well as to management. by Wayne L. Horvitz Remarks in The National Productivity Review Winter

13 PRODUCTIVITY BARGAINING TODAY 13

14 Q.5: WHAT TOOLS / KNOWLEDGE IS NEEDED TO FOSTER PRODUCTIVITY BARGAINING?

15 THE NEGOTIATION Arguing at cross purposes Paper walls Playing the person Being drawn down rabbit holes Lack of preparation Dominated by positional bargaining 15

16 Q.6: IS THERE A SKILL DEFICIT AND HOW DO WE FIX?

17 YOUR WISDOM: Q.1: Where are we on the continuum and why? Q.2: What have employers done well? Q.3: What do employers need to be better at? Q.4: What are the cultural / environmental forces getting in the way? Q.5: What tools / knowledge is needed to foster productivity bargaining? Q.6: Is there a skill deficit and how do we fix?

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