Managing Conflict In The Workplace

Ian MejiaRedfield College2009

Syllabus

industrial conflict • definition and causes — wage demands, working conditions,

management policy, political goals and social issues • perspectives on conflict — unitary, pluralist, radical • types of industrial action – overt — lockouts, pickets, strikes, bans, work-to-rule – covert — absenteeism, sabotage, turnover, exclusion from

decision-making in business • roles of stakeholders in resolving disputes • dispute resolution processes — conciliation, arbitration, grievance

procedures, negotiation, mediation, common law action, business/division closure

• costs and benefits of industrial conflict – financial, personal, social, political, international

Causes of Industrial Conflict

Industrial Conflict is clash between employees and employers

The main causes of conflict are wages, hours of work, entitlements, managerial policy, physical working conditions, trade unionism, and other things.

Wage Disputes

Income for employees vs Profits for employers.

Basic source of conflict because workers want more money, and businesses want fewer expenses.

Causes for wage disputes include business profit, executive salary increases, inflation, differing salaries.

Hours of Work

Needs of the business vs Employee flexibility.

Changes to normal hours

Restrictions on holidays

Entitlements (leave, compensation, etc.) Mainly in business collapse. Employees

want the money that they are entitled to. Accumulated sick leave, and long service

leave for example.

Management Policy

Major changes to business structure or policy.

E.g changes to shifts, promotions, new awards or agreements, discipline policy etc.

Physical Working Conditions

Employers must provide safe working conditions.

Employees may feel their conditions are substandard or to uncomrfotable.

Trade Unionism

Decreased in recent years due to The Workplace Relations Act 1996

Ability to take legal action for unlawful industrial disruptions.

Perspectives on Conflict

Unitary Pluralist Radical

Unitary

A perspective on conflict that assumes both employers and employees have the same business vision and this work together to ensure smooth industrial relations pratices are carried out.

Unitary View of ER

If conflict does arise it is because of poor management or poor communications, or interference from third parties.

This is closely tied to HRM where the organisation is viewed in its entirety as ‘one’ without a fundamental conflict.

Pluralist A perspective that assumes conflict in the

workplace is inevitable because employers and employees want different things.

Pluralist View on Conflict

Argument for the need for employees to act together to overcome the position of power of the employer.

Loyalty should be towards the union, or fellow employees, than the business.

Conflict shold be resolved by an ‘independent’ or Government.

Radical A perspective on

conflict based on a difference in ideology. A rejection of all forms of entrepreneurship.

Radical View on Conflict

Conflict is caused by the class war in capitalist economies between workers and owners.

Change to the social structure and economic system is required.

3 Perspectives

Three very good quotes in your text book representing the three differing perspectives.

‘No wonder workers are nervous and edgy about their prospects. They’ve been downsized, contracted out and casualised.’

ACTU Secretary, Greg Combet

Pluralist

We [Govt.] don’t believe that at the first sign of trouble commissions should rush in. We fundamentally believe that the relationship between workers and managers is best run at the workplace level rather than mediated

between third parties.

Workplace Relations Minister, Tony Abott

Unitary

‘The Australian labour force has seen a polarisation between over and under employment culminating in a loss of job security for those at the lower end of this spectrum and consequently a weaker position in the

class power struggle - The Dole Army

Radical

Types of Industrial Action

Industrial action is when disputes cannot be resolved through negotiations.

Generally we can break industrial action into overt and covert action.

Overt Actions Obvious and visible

forms of industrial action. These include strikes,

pickets, work bans, and work to rule, by EMPLOYEES

And lockouts, transfers, and dismissal for EMPLOYERS

Strikes

Obvious and common industrial action. Disruption to business as well as the

community. Requires higher rates of union

membership or skilled workers Employers can now sue employees for

unlawful strike action

Pickets Protests outside workplaces to disrupt workers

and suppliers from entering or exiting the building.

May lead to significant loss of production.

Work Bans and Work To Rule

Refusal to do duties not specifically outlined in the employment contract. E.g. overtime or other duties.

Work to Rule is similar wherein workers do only what is specified in the employment contract.

Overt Actions by EmployERS

Lockouts

- Employers actually lock the workers out leaving workers with no income.

- Quite an extreme measure

Transfer and Dismissal

Moving workers to other departments or locations. Reducing the power of employees by separating workers responsible for conflict.

Dismissing workers who do not comply with their conditions of employment

Covert Forms on Industrial Action

Absenteeism

‘Chuckin a sickie.’ obvious sign of worker dissatisfation.

Turning up late or leaving early Effective indicator of effective employment

relations.

Sabotage and Accidents

Damaging equipment, stealing, disrupting work process, and wasting time.

Carelessness can lead to accidents

Turnover Rates

The number of employees permanently leaving a workplace who need replacing.

Worker dissatisfaction, unmotivation, or lack of rewards.

Covert Action by EmployERS

Exclusion of workers from decision making Reduction of entitlements and ‘perks.’ Rostering someone out or reducing hours.

The Role of Stakeholders

Resolving disputes has traditionally been characterised by nions and employer associations battling for power.

Recent years has seen a move towards dispute resolution at the workplace level.

Employees and Employers

Many disputes do not need the union to intervene.

It is costly to both parties involved Significance and importance of the formal

grievance procedure to reduce productivity loss and assist in dispute resolution.

Unions and Employer Associations

Role of unions is decreasing Work Choices introduced a ‘bargaining period’ in

between contracts. Industrial action must not occur outside this time period.

Unions and Employer Associations are only required if the dispute heads to conciliation or arbitration at an industrial tribunal level.

Government Organisations

AIRC – Australian Industrial Relations Commission.

Anti Discrimination Board Courts

The Process of Dispute Resolution

When disputes cannot be solved at a workplace level, or if grievance procedures fail.

Negotiation CA’s and Awards normally will be

negotiated through unions and employers. AWA’s are at an individual level.

Mediation When both parties cannot

agree on a resolution mediation may be a likely alternative

Mediation involves inviting a third party to assist with the negotiations encouraging parties to find common ground and settle a dispute.

Suggestions are not binding.

Conciliation

Conciliation is mediation but the AIRC is the mediator. Disputing parties may be ordered to the Industrial tribunal.

Parties would rather resolve their dispute here than move to arbitration.

Arbitration

The AIRC will hear both sides and then provides a legally binding decision before a commissioner in small disputes, or a full bench for large disputes.

Costs and Benefits

Costs during a dispute, benefits may come as flow on effects.

Costs include, financial costs, loss of production, reduced job security, lost revenue, stress and loss of morale, divisions etc.

Benefits include, a better workplace and workplace practice. Fairer outcomes releasing possible tension, improved employment relations.