Industrial Relation Theories and Application

This presentation covers Industrial Relation Theories and Application, HRM approach to employment relationship, parties, causes, process and outcomes of NSW Train Workers Dispute and perspective on the issue of NSW Train Workers.

INDUSTRIAL RELATION-
THEORIES AND APPLICATION

 Industrial Relations Reform Act 1993- bargaining to be done
to settle workplace disputes between employee and
management.
 Industrial relations include the internal and external activities
in workplace determining the employment relation.
 Theories:
 Unitarist theory
 Employees share same interest with management
 Trade unions are illegitimate and create unnecessary conflict
 Pluralist theory
 Employees’ objectives different from manager’s
 Trade unions are legitimate part and do not cause conflict
 Radicals theory
 industrial relation to be necessary for employees but not
ideal
 Marxist theory
 believe in institutions run by state organization
 standardized compensation
IR helps to maintain industrial peace, encourages industrial
democracy, provides benefit to workers and management
and productivity is improved.
 IR deals with the system used by employers and unions to
ANALYSIS OF INDUSTRIAL RELATION
SUMMARY OF THE
DISPUTE
 Unfair dismissal
 Lockout issues
 Fair pay
 Collective bargaining
 Victimization
 Public holiday

HRM APPROACH TO
EMPLOYMENT RELATIONSHIP
 A HR in real business would adopt both the approaches- hard and soft
 Hard or traditional approach involves: (Brewster, Chung & Sparrow, 2016)
 Employee is treated as resource of business
 Lack of proper communication
 Minimum wages are paid
 Delegation is not properly given
 Follows autocracy leadership
This approach provides little attention to the requirements of the employees.
Therefore, this approach suffers: (Ariani, 2013).
 High rate of absenteeism
 Turnover of staff
 Less recruitment
Effects on the employees due to bad management:
 Increases stress in employees
 Employees loose motivation to work
Hence, management should give up their traditional approach and gradually change
with the flow of modern times. HR manager should know how to deal with conflicts
on hours and wage, providing adequate safety and enlightening on leave policy
and also time and attendance issues. These steps taken by the HR can improve
the situations of the employees and their relations will be improved.

PARTIES, CAUSES,PROCESS AND OUTCOMES
OF NSW TRAIN WORKERS DISPUTE
 The parties to the NSW Train Workers Dispute, 2018 are the NSW Train
Workers and the Management of NSW Trains.
 It was a result of NSW Trains Management, who refused to negotiate a fair
and reasonable enterprise agreement.
 An agreement was proposed, to be known as NSW Trains Enterprise
Agreement,2018, which will be binding on NSW Trains, employees of Nsw
Trains, and which will be come into effect after it is approved by the Fair
Work Commission and will remain in force for three years.
 The employer will consult with the employees through a consultative
process, consisting of peak level and local level shall take place within the
organisation of employers.
 Dispute settlement procedure(DSP) was suggested to ensure quick
resolve. Certain steps were mentioned to resolve the dispute between
employer and employees.
 There were some positive and negative outcomes of the disputes.
Industrial dispute would cause around $50 million economic damage.
 The parties came to an agreement, which commits to reform, continuous
improvement and promote a culture of improvement and learning.
 It provides equality of opportunity, and commits to timely and transparent
dispute resolution in workplace.

PERSPECTIVE ON THE ISSUE
OF NSW TRAIN WORKERS
 On 29th January, 2018 NSW workers did a strike for 24 hours as their
negotiations regarding conditions and pay were not listened to (Chuter,
2018).
 This strike was against the management of NSW trains.
 They have refused to enter into a fair enterprise agreement
 Union took care of the fact that commuters did not suffer and were given
earlier notice
 This negotiation was going on for months but government and management
denied bargain (Pha, 2018)
 The management was still not ready to listen and after some period, the
government was successful in calling off the strike even though the
employees had followed all rules of the strike
 It can be seen from this incident that neither the workers are given their
basic wage or proper condition nor are their right to protest permitted.
 Every employee should be allowed to fight for their rights and unions help
the workers to fight against stronger entities
 The Government and management of NSW should have listened to their
bargains and negotiate on it instead of calling off the strike.
This whole situation shows how the workers have been deprived of their rights
and they are still ruled by a powerful class of people.

REFERENCES:
Ariani, D. W. (2013). The relationship between
employee engagement, organizational citizenship
behavior, and counterproductive work behavior.
International Journal of Business Administration,
4(2), 46.
Brewster, C., Chung, C., & Sparrow, P. (2016).
Globalizing human resource management.
Routledge.
Chuter, A. (2018). Groups unite for public transport
rally. Green Left Weekly, (1167), 6
Pha, A. (2018). Strength in unity. Guardian (Sydney),
(1808), 1.