A Comprehensive Report on Industrial Relations Conflict in Australia

This report delves into the intricacies of industrial relations conflicts in Australia, with a specific focus on the construction industry. It examines the causes of these conflicts, including long working hours, poor conditions, and low wages, highlighting the impact on economic growth and social development. The report analyzes the roles of various stakeholders, such as government, labor unions, employees, and clients, and emphasizes the importance of their involvement in decision-making processes to mitigate disputes. It explores the legislative framework, including the Fair Work Act and the Sex Discrimination Act, and discusses the impact of industrial actions on company performance, using Kane Constructions as a case study. The report underscores the need for proper communication, stakeholder intervention, and compliance with regulations to ensure a sustainable flow of operations and achieve desired production objectives.

Running head: INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 1
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INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 2
Introduction
It is important for an organization to focus on building a proper relationship at the
workplace for the achievement of the desired production level. The industrial relations conflict
occurs when there is a disagreement between the employees and the management of the
company. The disagreement leads to disruption of the production process which leads to a
reduced profit margin in the market. Business management is required to identify the needs of
the stakeholders of the company towards a reduction of the conflicts in the market. The
dissatisfaction of employees causes an unstable relationship at the workplace which makes it
hard to acquire a proper organizational structure. According to Wallensteen (2015), the
remunerations and wages are the main causes of the industrial relation conflict in a company.
The organization and the government are required to develop policies that will assist in reducing
the industrial conflicts in the nation. The industrial conflicts negatively impact the performance
of the company due to the reduced number of products in a certain industry (Comboh 2014). In
Australia, there has been a continuous increase in the industrial disputes, especially in the
construction industry. The workers in the industry intend to have an increase in wages and
working conditions for a smooth flow of operations.
Description of the conflict
In Australia, the industrial conflicts have been continuously increasing making it hard to
acquire the desired social and economic development. According to Australian Bureau of
Statistics (2018), there were 67 industrial disputes in December 2017 quarter which is 10 more
than the quarter of September 207. The employees involved in the industrial dispute in the fourth
quarter of 2017 were 17,100 and in the third quarter were 8,100. The continuous increase in the

INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 3
number of people in the industrial dispute has lead to a reduced economic growth in the nation.
The high number of industrial conflicts is causing a slow economic and social development in
the nation. It is necessary for the management to focus on developing strategies that will enhance
the relations with the employees (Van den Berg 2016). The Australia construction industry is
supposed to consider rules that are employee focused on reducing the industrial conflicts
experienced in the sector.
The causes of industrial conflicts in the construction industry are mainly due to the long
working hours, poor working conditions and low wages. There has been a 34% increase in an
industrial dispute in the construction industry since the abolishment of the Australian Building
and Construction Commission (ABCC) (Smart Company, 2018). The industrial actions in the
construction sector contribute to two-thirds of industrial conflicts in the nation. The government
intends to restore the ABCC to ensure that there is proper control of the construction industry for
a sustainable flow of the economy. The Australian government is dependent on the construction
sector for developing the needed structure for commercial and residential purposes. The focus on
the industrial actions aims at ensuring that there are a reduced number of days lost due to the
industrial action. Proper evaluation of employee needs assists the management to develop plans
that are widely accepted in the sector (Wallace et al. 2016). The Fair Work Building Industry
Inspectorate was founded after the abolishment of Australian Building and Construction
Commission (ABCC) in 2012 (ABC News, 2016). The involvement of stakeholders in decision-
making process assists in identifying problems and coming up with appropriate solutions.
The stakeholders in the construction industry should be involved in the policy-making by
the government. The involvement of stakeholders assists in reducing the conflicts in the market
towards a sustainable flow of business operations. The Australian Bureau of Statistics discovered

INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 4
that industrial disputes for every 1000 workers in the construction industry are five times higher
than any other industry in the nation (ABC News, 2016). The government is required to focus on
the decision that will provide a steady flow of operations in the sector for the achievement of the
desired production objective. The stakeholders in the construction sector include the government,
labour unions, employees, and clients. According to Natspec (2018), the professionals used in
the design and building of properties should be considered in the decision-making process
towards the achievement of the desired production level through reduced industrial conflicts. The
cooperation in the industrial sector is vital for developing of quality structures in the nation.
Stakeholders’ values and positions
Stakeholders’ interest and power are considered towards the development of appropriate
rules and regulations that are widely accepted in the construction industry. A continuous increase
in industrial conflicts in the Australian construction industry is an indication that the decisions
implemented do not consider the stakeholders in the market. According to Lupo (2016), the
planning, review and formulation process in the construction industry is required to identify the
needs of the stakeholders. The trades unions are used to assists the employees have the power to
express their grievances to the management. It is necessary for the trade union in Australia to
focus on business ethics and legal aspect of industrial conflicts to reduce the number of days lost
due to the strikes. The trade unions are used to provide a proper employee and employer
relationship by assisting in dealing with issues facing the organization (Bray et al. 2014). The
ability of an individual to offer quality services is facilitated through a suitable working
environment. The construction industry workers are aimed at ensuring that there is the
development of the working condition towards a sustainable flow of business operations. The
stakeholders’ interests are considered in developing a proper strategy that will deal with the

INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 5
changes in the market (Heravi, Coffey & Trigunarsyah 2015). Business values implemented in a
business is required to consider the needs of stakeholders for a prior flow of the industry. The
design of the building is expected to provide a suitable working environment to reduce cases of
harm to the workers.
The evaluation of stakeholders’ roles and needs assists in making sure that there is a
proper project outcome towards a sustainable performance in the market (Eskerod, Huemann &
Ringhofer 2015). The inspection and reporting of construction progress assist in dealing with the
construction conflicts that are available in the industry. It is possible for the employees to
provide the inspectors with the issues faced in the workplace. The construction inspector is
required to act based on the issues in the industry for a sustainable flow of the construction
industry. The decision making process is required to focus on the needs of stakeholders for a
steady operation in the targeted market (Cascetta et al. 2015). The use of technological
innovation in the construction industry will assist in reducing the cases of industrial conflicts.
The stakeholders will be able to communicate using the assessable information system in the
company effectively. Most industrial actions in Australia are due to the inability of employees to
reach out to the management to express their problems in the workplace. Stakeholders are
required to work together in developing a proper communication plan that will reduce conflicts
during the production process.
The evaluation of stakeholder’s values assists in identifying the point of intervention for
different stakeholders in the market. The intervention point is supposed to offer a smooth flow of
operations in the market towards a sustainable performance of the company. According to
Tantalo and Priem (2016), stakeholders’ interventions should provide suitable solutions to the
industrial conflicts. In the construction industry, the trade union intervenes when ether is a

INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 6
disagreement between the employer and employees to assists in developing proper plans to solve
the problem. The trade union is supposed to provide a lasting solution by considering the two
parties involved in the conflict. The construction industry requires the employee and their
representatives to focus on continuous development of the industry through reduced industrial
conflicts.
Legislative framework
Government regulations are aimed at providing a proper infrastructure that will facilitate
the flow of the industry. The legislative framework in the construction industry is used to deliver
quality structures to the clients. It is important for the stakeholders in the construction industry to
focus on quality production following the set regulations in the nation. According to Safe Work
Australia (2018), 33 workers died, and 35 people are injured every day requiring focusing on the
safety of employees. The Worker Health and Safety (WHS) Act is aimed at reducing cases of
harm to the stakeholders in the market. The regulations provide the workers with a suitable
environment due to reduced injuries and deaths in the construction site. The evaluation of
stakeholders' interests and power is used in developing a proper plan that will reduce the cases of
injury at the workplace. The construction industry safety and health are necessary for ensuring
that there is a proper flow of the sector towards the accomplishment of the desired production
level. The properties developed in the nation should provide stable performance in the economy
through to the proper design and quality of building (Yorio, Willmer & Moore 2015). The code
of practice implemented in the construction sector is focused on the health, safety, and welfare of
the employees considering the WHS Act in the sector. The approved code in the construction
industry is expected to focus on the health and wellbeing of the workers to reduce the industrial
conflicts in the industry.

INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 7
The stakeholders are expected to comply with the set regulations in the industry towards
a sustainable flow of operations in the market. The contractors and builders are required to
implement decisions that are highly accepted in the industry. The Australian government is
focused on developing regulations that will provide a proper infrastructure in the construction
sector. According to Australian Construction Industry Forum (2018), the members are required
to have proper information regarding the building and engineering construction in Australia. The
forum aims at providing needed knowledge to the members regarding the design, cost building
management and legislation to consider in the construction process. According to Australian
Government (2018), the Fair Work Act 2009 is legislation that is used to manage the relations of
employees and employer in the nation. The Act provides the minimum requirements that the
employer and employee should consider towards a proper flow of operations in the industry. The
fairness is necessary for motivating the employees to achieve the desired production level in the
market. The work systems implemented by the management should provide a suitable working
environment for the employees. The management of relations using the legislation is used to deal
with conflicts in the market.
The Sex Discrimination Act 1984 aims at ensuring that there are proper recruitment and
compensation of employees regardless of the gender (Australian Human Rights Commission,
2018). The legislation is aimed at dealing with the gender inequity in the nation for a sustainable
flow of the nation. It is important for a nation to treat male and female equally for the
achievement of the desired production level in the nation. The macroeconomic goal of economic
growth and full employment is achieved through elimination of discrimination in the workplace.
The dealing with the gender pay gap is necessary for a nation to accomplish the desired
production objectives.

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Industrial action
Kane constructions experienced an industrial action that negatively contributed to the
performance of the company. The industrial action was lead by the Construction Forestry Mining
and Energy Union (CFMEU) after the death of staff in the construction site. The industrial
actions by the company lead to a reduced performance of the company due to the lost days of the
conflict. According to Hannan (2017), CFMEU was later found to have negatively incited the
staff to strike instead of focusing on the Fair Work Act that considers the health and safety of the
employees. It is important for the stakeholders to have a proper understanding of the needs of the
market towards the development of a proper strategy that will be widely accepted in the market
for the achievement of set production goals. Kane Company is a leading construction company
in Australia which experienced a reduced performance level from the strike organized by
CFMEU. The company reported that it was targeted by CFMEU with the aim of negatively
impacting the performance level where over 100 workers were involved in the strike (Toscano,
2016). The industrial action protecting the health and safety of employees required proper
evaluation for proper flow in the market. An organization is required to have a proper health and
safety policy that will provide a proper perception to the stakeholders.
The industrial strike was illegal as CFMEU was later fined for assisting the employees to
take up the industrial action. According to Patty (2017), CFMEU was fined for facilitating an
illegal strike for the Kane construction workers. It is important or the trade union to focus on
industrial legal actions that will enhance the employee and employer relations (Bray et al. 2014).
The industrial actions are used to push the management to implement the required strategy for a
sustainable flow in the market. The illegal strike by Kane workers provided a poor reputation for
the company. Kane Company stated that it had followed the Worker Health and Safety Act

INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 9
despite the injuries and death at the construction site. It is necessary for industrial action to
consider the factors that lead to a particular accident to reduce the number of strikes in the
construction industry. Construction companies in Australia have experienced threats from trade
union, and the ABCC restatement aims at ensuring that there is a proper flow in the construction
industry (Toscano, 2016). The strike by Kane Workers had a negative impact on the relationship
with the clients, employees, and CFMEU. The company removed the CFMEU union flags in the
construction sites which have to lead to a poor relationship between the union and the company
(Marin-Guzman, 2018). The employees’ morale was reduced after the injuries and deaths in the
site requiring the company to focus on the WHS Act for a proper flow of operations. The issues
between the union, employees and Kane Company have reduced the profit margin of the
company due to the poor reputation of the company due to the industrial action.
Resolution to the conflict
The industrial conflict was handled by the Fair Work Commission of Australia to provide
a smooth flow of the company. Proper evaluation of the situation assisted in coming up with the
issue of industrial action in the company for a steady flow of operations in the market. Patty
(2017) stated that the Fair Work Commissioners took legal action due to the loss caused by the
industrial action. The legal action was against CFMEU and ten officials which were presented to
the Federal Court of Australia. The legal action was aimed at reducing the incitement by the
labour unions which negatively impact the performance of the company. The Federal Court of
Australia found out that CFMEU targeted eight construction sites of Kane Company which is an
offence according to the Fair Work Act (Patty, 2017). The sabotage of operations of the
company reduces the profitability and economic development in the nation. It is necessary that

INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 10
the management focuses on the development of problem resolution strategies that will reduce
cases of industrial actions.
The conflicts resolution strategy implemented by an organization is supposed to
contribute to the growth of operations. Industrial action concern should be solved in reducing the
strikes in the company. A company with a reduced number of strikes makes it possible to acquire
the desired production level in the market through the high employee morale. The motivation of
employees is achieved through fair treatment of employees by considering their needs, health,
and safety (Koivupalo et al. 2015). Resolution of the conflict at Kane constructions was acquired
by assuring employees of full implementation of Fair Work Act towards a suitable working
environment.
Conclusion
The industrial conflicts cause reduced performance of an organization due to the low
motivation of employees. The industrial conflicts lead to industrial action which makes the
business to lose revenue due to missing employee days at work. The economy of a nation is
negatively impacted by the increase in industrial conflicts. In Australia, the construction industry
has been experiencing a high number of industrial conflicts making it hard to accomplish the
desired project target. It is necessary for the company to have an insight of the interests and
needs of stakeholders towards a sustainable performance in the market. The analysis of the
stakeholders' needs assists in developing strategies that are widely accepted in the market. Kane
Constructions is a company that experienced industrial actions that lead to reduced performance
of the business. Worker Health and Safety (WHS), Sex Discrimination Act and Fair Work Act
are legislations that are used to provide a smooth flow of businesses in the nation.

INDUSTRIAL RELATIONS CONFLICT IN AUSTRALIA 11
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