Comparison of Employment Relationship in Australia and China

This paper compares and contrasts the employment relationship in Australia and China. It discusses the role of key factors of employment relation in both countries and highlights the differences between them.

Running head: HUMAN RESOURCE MANAGEMENT
Compare and contrast employment relationship in Australia with China
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Introduction:
Employment relation is considered as one of the key factors for strengthening the morale
and productivity of the staffs which is the key of improving the organizational performance
level. According to Sobral, Chambel & Castanheira (2019) the employment relationship is
considered as the process of developing legal link in between the employers and the employees.
In the contemporary business environment, positive employment relationship is highly required
in terms of generating trust among the staffs which is very much needed for enabling them to
perform their assigned tasks with utmost efficiency. As opined by Bray, Budd & Macneil (2019)
experimental and decentralized approaches are the key factors of improving employment
relationship as it supports the process of developing the labor relations frameworks in an
effective manner.
Appropriate labor relation put stress on protecting the interest and fundamental rights of
the staffs which is the key of generating positive image among the staffs. Audenaert, George &
Decramer (2019) showed that the factors such as technological advances, improved
communications, economic liberalization, and increased international competition in the era of
globalization are playing critical role in terms of modifying the employment relationship by
protecting the interest, wellbeing rights of the staffs. Present paper will highlight the comparison
between Australia and China, two of the most emerging economies around the world. The role of
key factors of employment relation will be discussed here.
Discussion:
From the year 1990s, thee industrial relation is changing in a raid manner. It has been
observed that non-standard forms of employment are increasing in a drastic manner for the sake
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of protecting the rights of the staffs. At the same time, Aronson (2019) stressed on the fact that a
sharp shift from centralised industrial relations system to that of the decentralised can also be
found in the employment relations in Australia. In the recent year, the structure of employment is
changing radically. Full-time permanent employment has declined total and multiple forms of
non-standard employment such as Casual work, Temporary jobs, Outsourcing and usage of
agencies are increasing promptly. Serrano Pascual & Jepsen (2019) opined that from the year
1901, there is federal government in Australia which is playing a critical role in developing
effective laws related to the employment relationship with the intension of preventing the
industrial dispute which was expanding rapidly.
In the year 1904, Conciliation and Arbitration Act 1904 had been developed which was
limited to that of the industrial disputes beyond the regional trade. In order to respond to this
issue, Industrial Relations Act 1988 has been developed which has incorporated the industrial
action which intends to protect the fundamental rights of the staffs. In the same way, the
industrial relationship in China has also changed rapidly. Being one of the most emerging
economies around the world, the labour force of China comprises of more than 700 millions of
workers. Gallie (2019) stressed on the fact that in the past 30 years, the labour and employment
law in China is changing tremendous manner.
It has been observed that prior to 1980, the administrative bureau of Australia hold the
responsibility of allocating jobs to the people and prevents the employees from taking necessary
employment related activities. Erlinghagen (2019) put stress on the ideology that at the same
time, regulations have also been passed by stating the fact that the employees have to work for
the same employer for the whole life. In this era, the companies can only terminate the staffs on
the basis of professional misconduct. Unlike Australia, the employee relation in China was far
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more complicated. Dispatch Labor System was followed in China. These workers were totally
controlled by the Chinese government. In the year 1949, PRC has been introduced and serves as
the basis for forming appropriate employment relationship.
However, Ospina, Cleveland & Gibbons (2019) shaded light on the fact that in the year
1950, there was great upheavals an turmoil which have continued since over the decade and
significantly affected the employment relationship of China. Australia has been reformed from
the white settler colony of the British Empire to that of the industrial capitalist and self-governed
federal state. The state is one of the key factors of forming effective employment relationship by
developing effective legislative framework. In the context of Australia, National Labor Law has
been introduced for the sake of protecting the fundamental rights of the labors. Chamoso et al.,
(2018) said that in the year 1901, Commonwealth of Australia had been introduced, the aim of
which is to make generally reforms in the employment relationship by creating a federal system
which has played a critical role in order to prevent and settle the industrial dispute. In the year
1996, Workplace Relations Act has been introduced for the sake of providing effective
framework to the organizations to amplify the workplace relationship which can give economic
prosperity.
While in Australia, there are multiple frameworks, which have been established for the
sake of strengthening employment relationship. Hodges (2018) shaded light on the fact that
China has an inclusive legal framework which allows the workers around the nation to protect
them from that of the exploitation by employer. In China, the employees are allowed to get
formal employment contract, a 40-hour working week, fixed overtime rate and social insurance.
It is true that, the economic overturn in the year 2010, there was certain change in the protection
of the labors. However, Lopez-Cabrales & Valle-Cabrera (2019) counter argued by saying that
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senior government officials have put consistent effort in the way of mitigating this issue and
rolling back the existing rights and protection of the staffs. As discussed by Morrison (2019) the
local government of China holds the responsibility of enforcing labor law and thereby ensuring
the fact that the fundamental rights of the workers are protected. However, Van Staden & van
Eck (2018) contended on the ground that during the era of reform, the Chinese government has
resigned the power to the business owners and thereby allow them direct the pay and working
conditions of their human resources. Still, it has created major force for the employers to ensure
that the staff’s fundamental rights are protected.
A trade union is the critical factor in employment relationship as it intends to protect the
legal rights of the employees. Marquand (2018) showed that in order to strengthen the employee
relationship, Trade Unions’ Reform Pilot Program has been introduced by Chinese government
in the year 2015. The aim of the government behind such reform is to expand the experience of
the local officials and enable them to understand the significance of workers at the grassroots.
All-China Federation of Trade Unions (ACFTU) intends to strengthen the work of grassroots by
the slogan, ““balancing downwards and strengthening at the base”. As discussed by Sassen
(2018) this slogan has created a significant basis for creating a new and innovative unionization
models in the industrial zone and construction sites. This model has incorporated ad-hoc, local,
sectorial and subsidiary union which is the key of protecting the fundamental rights of the
workers.
While, trade union is the fundamental factor of the employment relation in China, the
trade union of Australia has declined rapidly. Freedland et al., (2016) said that execution of
conciliation and arbitration systems had encouraged the development of Australia trade union. In
the year 1921, there was almost half of the entire Australian labour force was unionised. Still, in
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the year 1990, the trade union of Australia has been declined by 49% and in 2007, this rate was
19.5%. The reason behind such decline in trade union is highly complicated. The ranges of
structural change in the economy such as contraction of manufacturing employment and prompt
growth of service sector have resulted in declining of trade union. In addition, decline in full-
time employment and the growth of non-standard employment has resulted in sharp decline of
trade union. As opined by Ospina, Cleveland & Gibbons (2019) internal union policies, Removal
of institutional arrangements and the growing trend of anti-unionism among the employers are
also the contributory factors of declining trade union.
However, during 1927, Australian Council of Trade Unions (ACTU) has been introduced
which has incorporated more than 90% of the unionised workers. ACTU had played a critical
role in preventing the decline of membership density (Sobral, Chambel & Castanheira, 2019).
Moreover, ACTU has also conducted the ‘Your Rights at Work’ campaign for the sake of
protecting the fundamental employment right of the workers. Australian employer associations
us another major factor of the employment relationship in the context of Australia. Serrano,
Pascual & Jepsen (2019) commented that the growth of Australian trade union has resulted in to
development of Australian employer associations which intends to protect the fundamental rights
of the staffs. In order to protect the regulations related to worker’s choice which is the key of
strengthening the employee relationship.
In the context of China, the organizational citizenship behavior is not based on the job
satisfaction. Rather, it is attributed by the personal loyalty and attachment of the staffs which is
formed by the relationship between the employers and employees. Ospina, Cleveland &
Gibbons, 2019) perceive that in China, the personal relationship with that of the managers plays
a major role in improving the organizational citizenship behavior by generating motivation and
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commitment among the staffs. There are several factors such as working hour, minimum wage
and the age of employment which is the key of promoting the relationship between the
employers and employees.
One of the major factors of the employee relationship of China is that labor contract
system has been introduced in the country by replacing the policy of life long employment as it
was affecting the degree of productivity among the staffs. According to this system, it is
important to make the employment contract for one hour and the factors such as remuneration,
job requirements, working conditions, disciplines and the penalties must be covered in the
contract. However, as China is highly developed country, the labor contract system has failed
soon and the supply of labor exceeds the demand. On the other hand, Sassen (2018) contended
on the ground that a well-developed employment system is followed in Australia. Such
employment system has been designed with the intension of providing flexibility and certainty to
both the employers and employees. Forms of employment are also the fundamental factors of the
employment relationship in Australia. In the country, the workers can access employment in
different forms, each of which provides flexibility and stability for both the employees and
business.
Institutional reform is the major factor of Australian employment relationship. Both the
discretion and judgment practiced by the government is playing a critical role in developing the
fair work system in Australia. The Fair Work Ombudsman of the country is showing high degree
of commitment in the way of adopting innovative approaches in order to protect the rights of the
staffs (Van Staden & van Eck, 2018). The government is also working competently for the sake
of strengthening the employment relationship. In the context of China, the way of integrating
migrant workers in the trade union is needed to be considered in this context. In the year 2004, a
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union movement has been started in China, the aim of which is to give union membership to
migrant workers. It has resulted in the employment of more than 100 million immigrant workers
which continued to grow by 5 million in every consecutive year Audenaert, George & Decramer
(2019). The migrant workers in China are mostly employed in the labor-intensive manufacturing,
service industry and construction.
Conclusion:
To conclude, it can be said that employee relationship is the major factor in keeping the
staffs motivated which is the key of accelerating organizational productivity. Relationship
between employers and employees plays a major role in improving the degree of productivity
among the staffs by keeping them motivated. This is the way of protecting the fundamental rights
of the staffs and thereby creates a positive vive among them which is the key of letting them
perform their assigned task with utmost efficiency.
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