Employment Relations May, 2011

What is Employment Relations?

Legislation is not the critical factor…

…Employee Engagement is• Strengthening the direct relationship between employees and management

• A strengthened relationship brings about the creation of greater employee ‘ownership’ in the Company’s performance

• Whilst providing greater rewards for employees, customers, the business and its owners (shareholders)

Who Are The Stakeholders in the ER Process?

•Employees- Earn money, have job satisfaction

•Employers- Want to increase profit and return to shareholders

•Employer Associations- Advise employers on their rights and obligations

•Unions- Represent their employees

•Government Organisations- Implement policies eg. Workchoices and Fair Work Australia

(FWA)

How is ER Success Defined?

Company/ Employer’s Perspective

Third Party/ Employee Representatives’/ Union’s Perspective

Federal/ State Government’s Perspective

Employment Relations Success

=Employee Engagement =>

Company Results

Employment Relations Success

=Employee Dis- Engagement =>

Org/Union Results

Org/ Union ResultsCompany Results = Votes! & Govt Funding+

Employment Relations Framework

GENERAL BENEFITS (eg)Safety support

LeaveSuperannuation

Company DiscountsEmployee Assistance

The Company’s Goals/ Visions – ultimately creating shareholder value

We all share a commitment to live by the principles of OUR VALUESAchievement Entrepreneurship Ownership Teamwork

REWARDS AND RECOGNITION (eg)Attractive Pay

Bonuses/IncentivesEmployee Share Plans

Skills and Career Development Career Opportunities

Under a COLLECTIVE AGREEMENT Everyone shares the same arrangements

Generally negotiated by a third party on your behalf Protected by Statutory Law

Each individual’s employment conditions are protected by either a Collective Agreement/ Individual Contract

Under an INDIVIDUAL CONTRACT with RB There is scope for variation/flexibility in your arrangements

Discussed directly between you and your managerProtected by Common Law

Underpinned by minimum employment entitlements protected by law for ALL employees

The Employee Benefits and Terms & Conditions the Company provides

OR

Historical Employment Relations SnapshotPre-Workchoices

• Seen as very bureaucratic/ complex • Industrially disruptive• Excessively litigious• Cynically “too Union friendly”

Workchoices• Simplified legislation• Formal industrial disruption minimised• Still rather litigious• Cynically “too Employer friendly”

Post Workchoices (FWA)• Complexity creeping back in

• Took Company’s & Unions a good 12-18 months to get their head around it

• Opportunities for industrial disputes opened• Yet to see this come to fruition

• Lawyers are always going to make a lot of money out of this• Cynically: “still in the Employer’s favour but foundation is there if Labor is re-elected”

FWA Overview

Federal Government’s new Fair Work Act took effect on 1 July 2009• Caught many Companies and Unions off guard – IR hiatus

As part of Fair Work Australia, a new modern award structure and 10 National Employment Standards commenced from 1 January 2010

• These awards and standards underpin all individual and collective employment contracts

Key changes:• Impact of changes has been minimal… at this stage

• The state of the economy has enhanced stability• State Legislative impact minimised• Provisions regarding flexible employment

• Push to provide employees with more flexibility in terms of work/ life balance• Enterprise Bargaining Process

• Encouraging the use of third parties• Workchoices effectively removed them from the equation• Union Right of Entry

• Promoting Good Faith Bargaining• Dispute Settlement Procedures

• Re-introduced 3rd parties• Unfair dismissal

• Push to settle through Conciliation NOT through Arbitration

What has this meant to RB?

• Impact of changes have been minimal… at this stage• Managing effective Employee Engagement (and hence ER) requires dealing in a world far

beyond FWA legislative requirements• The consequence of not doing so puts you at the mercy of competitors, not the FWA

• State Legislative impact minimised• Most Global and large employers only deal with Federal Legislation

• Provisions regarding flexible employment • Increasingly a major draw card for employees (more importantly talented employees)• Trend in Australia regarding work expectations has become rather alarming• Company’s have yet to warm to this notion• Provides a real challenge for HR to manage

• Enterprise Bargaining Process• Encouraging the use of third parties

• Hasn’t presented any major issues yet• Promoting Good Faith Bargaining

• Appears to have worked although has proven difficult to challenge• Informal industrial action (sick leave; workers comp; go slow)

• Dispute Settlement Procedures• Essentially business as usual

• Not in the business of denying employees representational rights

• Unfair dismissal• Expectation to settle ($) during conciliation no matter how strong your case is

Employment Relations

Questions?