Employment Relations in Australia: Impact of COVID-19 Analysis Report

This report provides a comprehensive overview of employment relations in Australia, beginning with a historical background and timeline of key legislation, including the Fair Work Act 2009. It examines the political, economic, and legal contexts shaping employment relations, highlighting the influence of government policies and economic conditions. The report then delves into the challenges faced by trade unions, such as membership decline and the complexities of the labor market, while also addressing the renewal of memberships. A significant portion of the report focuses on the impact of COVID-19 on Australian employment relations, analyzing the effects on businesses, government support measures like JobKeeper, and the role of unions in protecting workers' rights during the pandemic. The report also explores the enterprise bargaining system and its adaptations in response to COVID-19, concluding with an assessment of the evolving landscape of employment relations in Australia.

employment relations in australia
Assessment 1[HRMT20029]
Khushi Vasireddy
12106614

Table of content
Introduction………………………………………………………...……………2
Historical background and timeline …………………………………….………2
 Political, economic and legal context……………………….……………3
Challenges faced by unions………………………………..……………………3
 New membership……………………………………...………………….3
 Renewal of membership………………………………….………………4
Impact of COVID-19 on employment relations in Australia.
 Impact of covid-19 on Australian business………………………………5
 Australian Government support for businesses &
employees…………….5
 Enterprise bargaining system………………………………..……………5
 Unions during COVID-19………………………………...………………
5
Conclusion………………………………………………………………………7
Reference……………………………………………….……………………….8
pg. 1

Introduction
Employment relations in Australia has minimum conditions in terms of employee and the
employer in the variety of workplace responsibility and the rights. In Australia all the states
come together and follow the federal laws that points several issues such as work rights,
annual leaves, service leave, workplace conditions such as safety, health and compensation
and industrial actions. Australian employment relations as in fair work system was started in
1st of July 2009 it was established by the fair work Act 2009. This act created the independent
agency know as fair work Ombudsman (FWO). As of COVID-19 playing a big role in our
communities FWO in support of the Federal Government is helping the society by its
schemes and agreements like JobKeeper and JobSeeker schemes. This essay begins with
timeline of the industrial relations or employment relations Act from its beginnings at the
federation of Australia until the Fair Work Act of 2009. Then we will discuss about the
Political, Legal and Economic context of the of Employment Relations in Australia. The
essay follows up with challenges faced by the trade unions and the enterprise Agreement in
terms of conciliations and arbitrations to resolve issues regarding employment relations
between the employee and employer. Finally, the most important and relevant topic of the
essay discusses the impact of COVID-19 on Australian employment relations.
Historical Background and Timeline
Australia is globally recognised as a liberal market economy, it has relatively flexible labour
market and comparatively high wage costs. Most first world countries have liberalised
markets, whereby markets are open for business to and from different industry sectors and
operate locally or globally. There are minimum restrictions. The labour laws of this country
have evolved similarly over the decades since federalisation in 1901. In the beginning the
colonial influence was strong and the employment relations were not beneficial for the
workers. Then in 1927 the Australian Council of Trade Unions was established with the
intention to workers to have a say in the arbitration of any disputes. However, until mid-last
century, the federal power over individual states and their employment relations was
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overwhelming. Then in the 1990’s Industrial Relations Reform Act was introduced, which
made it easier for non-union collective agreements to be in Federal control. This helped with
the unions to set a period for industrial action which was previously not deemed possible. In
the 1996 the Workplace Relations Act was introduced. By this time, the power of the unions
had peaked. The labour market was mostly heavily unionised jobs like mining, construction
and other trade jobs. With the new Workplace Relations Act there was an opportunity for
non-union members the get a contract known as an Award. In 2005 there was another change
in the Employment Relations with introduction of Work Choices Legislation. This further
undermined the power of the unions and gave way for non-standard employment, which was
increasing as there were industries and jobs developing which required casual, part-time
work, temporary contracts etc. These jobs and the workers doing them were not particularly
part of or being keen on joining unions. However, by 2007, the unions had developed a
campaign for worker rights and the government introduced the Fair Work Act in 2009. There
have been no major changes to the employment relations laws since (Bamber, Lansbury,
Wailes and Wright, n.d.).
Political, Legal and Economical Context
Australia has been a federal country since 1901 where it has one central federal government
and six internal state governments. By the end of World War II, the industrial relations laws
have been a major point in the political debate. The two major parties and its allies when in
power have influenced these laws and change the course of employment relations in
Australia. In the 1980’s and 1990’s with labour government of Hawke and Keating the
unions enjoyed a golden period in the context of employment relations. Hawke was a former
president of the ACTU (Australian Council of Trade Unions). Then the Liberal Coalition
government of Howard saw the advent of Work Choices which was beneficial for the
industries and employers had choices to enter employees in different form of non-standard
employment. Work Choices turned out to be unpopular and was changed to Fair Work Act by
the Rudd Government in 2007 when the Labour party came into power. So, it is clear to see
how the changing political landscape evolves the employment relations laws in a country
(Fairbrother et al., 2007).
Challenges Faced by Unions
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Out of the many challenges faced by any organisation, this essay explores the two major
challenges faced by the Union in the current and relevant times.
New Memberships
In the context of relevance, the unions are perceived to behemoths of a long-gone era. This
springs from the seeming rigidity of the system and the bureaucracy it presents. However,
this is no longer the case or rule of thumb for all unions. Unions have evolved and have
strived to change with times. Those unions that have failed to do so have found it difficult to
exact new members and have shown a steady decline in numbers. The reasons for Unions that
have failed to change are political and economic. Unions have always been backed by major
political party and have produced leaders of this country time and again in the past. There
was a certain political certainty, hence, with certainty came complacency. Moreover, in the
decades following the Wars, the economy has always been booming at a higher pace. There
was a largesse of work and the workers to do so. In the current times, the political scenario is
not as stable as it used to be. We have had multiple governments in quick succession. The
liberal market economy has also shown signs of slow down due to global recession in 2008
and the pandemic of 2019 – 20. To overcome these challenges Unions, must evolve and
operate as a corporation and strive for the benefits of its members (Hall, 2007).
Renewal of Memberships
Unions are there for its members, they are run by members. In the current scenario it has been
noticed that unions affiliated to occupations have been growing with most success. Big
conglomerated unions have seen significant decline in renewals. This is evident due to the
complexities of the labour market and these big unions are not flexible enough to help its
members in the way they are required to. Industry unions on the other hand have shown
managed to even out the declines with renewals or new memberships (Hall, 2006).
Impact of COVID-19 on employment relations in Australia.
Due to this pandemic spread all over the world it’s been real challenging for the society and
the Government to deal with, as the economic drop and instability in the market has caused a
huge problem for the industries across the world.
Impact of covid-19 on Australian business:
pg. 4

Due to the latest survey we know that the major of the Australian business has impact by the
covid-19 that is reduce in the demand of goods, services and letting the staff go because of
low demand market. Many of the industries has cut down their roasters by more than 50%
due to low demand.
 Business such as food services, accommodation (hostels, hotels, motels, international
student accommodation etc.,) social assistance and health care industries has majorly
affected by nearly 80% of industry down.
 Construction, automobile, manufacturing and technical industries have less than half
of the market down which not majorly affected.
 Reducing the staff hours has affected many employees all over the country with an
average of 28% in all the industries. Were, construction has only 14% down by the
staff.
 Cutting down the hours in the retail industry, restaurants, cafes and bars made life
tough for the part time and casual job holders who are mostly students/international
students, made their live harder in the foreign country.
 Most of the small to medium business has shut down due to no cash flow and cannot
afford the loss what the business was making due to low demand of goods in the
market.
 International retail industries like G-star, EB Games, Jeanswest, Harris Scarfe,
McWilliam’s Wines etc.,
Australian Government support for businesses & employees:
Australian government has been supporting it community during this pandemic COVID-19
effect by providing,
 Introducing JobKeeper payments supporting the business to allow paying their
employees their salaries on time.
 Wage subsidy for the employers in the small to medium businesses to pay their
trainees and apprentices.
 Providing temporary cash flow to the business small to medium to survive in the
times of pandemic.
 Temporary relief from the commercial and residential tenants.
 Early access to superannuation available for everyone.
 Lifting up the mutual obligations for the Job Seekers.
pg. 5

Enterprise bargaining system:
Australia fair work commission has implemented system on the enterprise bargaining system
during this pandemic with the responses from the government both federal and state
governments. Wide range of industries has been implemented many restrictions as per
governments order which has impacted many businesses and their employees, and these will
be affecting in the future till the further notice on the pandemic. As of the few business are
constantly trying to reconsider the enterprise bargaining agreements for more flexibility for
the employee and the employer.
Unions during COVID-19
Unions has to be at their best for their members during this pandemic times than ever, unions
look after their members during work for their safety, job security and over all well-being at
work weather the employee is looked by their employer or not. Australia has more than 100+
unions to support their employees.
SDA is one of the largest private company for the workers in
retail, fast food and warehousing. It has more than 213,127 members. Sda has its link ups for
Woolworths (Supermarkets, BWS & BIG W) Dan Murphy’s, Officeworks, Target, Kmart,
Ikea and EG Fuels. It’s been calling for the employers and the Morrison government to
provide paid leave for the casual, part-time and full-time employees for self-isolation in this
pandemic times. Sda has also been fighting for the paid leaves for the casual employees were
the casual employees does not get any pain, annual or sick leaves. Due to the panic buying in
the retail industry lately there been many abuse and violence with the staff of the retail stores,
sda has also took initiation passing the say “No abuse or violence form the customers” saying
they need respect as they are working for the community at this hard times to make sure
everyone has food on their tables. Sda has also been working with the retail rescue wage
subsidy that the Job Keepers payments are received by the employers and passed on to the
employees with the fair transfer in the company (COVID-19 IMPORTANT INFORMATION
FOR WORKERS, 2020).
Government had introduced New restriction for the employee and the employer safety during
the pandemic time, few of the safety agreements are maintain at least 1.5m distance between
each other, cleaning and disinfecting public areas, stores and retrial shops, making sure
customer are sanitised their hands before entering the shop for the employee safety, not more
than two people using lift at a same time, no access to the sharing water pots in the gyms,
pg. 6

these are the few work instructions which effect the business, but health and safety comes
first.
 Trade unions in Australia facing against the mass unemployment, financial and most
importantly danger with their employee health. Many lives are in danger due to not so
safe workplaces, many challenging standards been fighting for the employee by the
trade unions (Covid19 crisis: Mapping out trade union and social partners’ responses -
TUAC, 2020).
 The Australian unions has negotiated a deal, of a $130 billion wage subsidy, that is 6
million employees have access tool dollar 1500 a fortnight for six months (Covid19
crisis: Mapping out trade union and social partners’ responses - TUAC, 2020).
 ACTU has warm welcomed it gives away dollar 130 billion because it would cover
many small to medium businesses and most of the employees. ACTU make sure that
the working visa holders and the casual employee of the company are included and
said it does not matter if the employee has finished his/her 12 months with the
company
 As ACTU also talk about the safeguard and reemployment guarantee that the
employees are kept in employment (Covid19 crisis: Mapping out trade union and
social partners’ responses - TUAC, 2020).
 ACTU made sure all the workers get their safety at work and all the casual workers
who do not have access to any paid leaves, which were about 3 million people got
their access (Covid19 crisis: Mapping out trade union and social partners’ responses -
TUAC, 2020).
Conclusion:
Employment relation in Australia has been on boarder due to the pandemic COVID-19 but
the federal and state government are at their best with the trade unions helping out the
community by looking after its safety and well-being of their employees and their businesses.
ACTU (Australia council of trade union) at its best for the employees and the employers. The
FWO has also introduced the enterprise bargaining systems for the new agreements between
the employees and the employers. As the business are dropping down due to covid-19
government has introduced new schemes and wage subsidy in the society (Markey, 2020).
pg. 7

Getting the retail, health care and few more essential industries priority to make sure they go
on without any obstacle as unions are also fighting for their pay increment as they are risking
their health by working for the society at this pandemic.
Reference
Bamber, G., Lansbury, R., Wailes, N. and Wright, C., n.d. International And Comparative
Employment Relations.
Fairbrother, P., Williams, G., Barton, R., Gibellieri, E. and Tropeoli, A., 2007. Unions Facing
the Future: Questions and Possibilities. Labor Studies Journal, 31(4), pp.31-53.
Markey, R., 2020. Journal Of Australian Political Economy, The - The Impact Of The COVID-19 Virus On
Industrial Relations (APAFT) - Informit. [online] Search.informit.com.au. Available at:
<https://search.informit.com.au/documentSummary;dn=213328906561584;res=IELAPA> [Accessed 27 August
2020].
Hall, R., 2006. Australian Industrial Relations in 2005 - The WorkChoices
Revolution. Journal of Industrial Relations, 48(3), pp.291-303.
TUAC. 2020. Covid19 Crisis: Mapping Out Trade Union And Social Partners’ Responses -
TUAC. [online] Available at: <https://tuac.org/news/covid19-crisis-mapping-out-trade-union-
and-social-partners-responses/> [Accessed 27 August 2020].
SDA Union. 2020. COVID-19 IMPORTANT INFORMATION FOR WORKERS. [online]
Available at: <https://national.sda.com.au/coronavirus/> [Accessed 27 August 2020].
2020. [online] Available at: <https://www.employment.gov.au/newsroom/impact-covid-19-
australian-businesses-part-one> [Accessed 27 August 2020].
2020. [online] Available at: <https://www.employment.gov.au/newsroom/impact-covid-19-
australian-businesses-part-three-0> [Accessed 27 August 2020].
Hall, R., 2007. The First Year of Work Choices: Industrial Relations in Australia in
2006. Journal of Industrial Relations, 49(3), pp.307-309.
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