Analysis of Social Legitimacy of Employers: Casual Employment Debate

This essay examines the social legitimacy of employers' use of casual employment, focusing on the debate surrounding the practice of employing casual workers for extended periods and the challenges to this practice. The essay defines social legitimacy and flexibility, drawing on Boxall and Purc...Read More

Social Legitimacy of Employers 1
Social Legitimacy of Employees
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Social Legitimacy of Employers 2
The use of casual workers by employers for more than six months without offering them
permanent position is under threat. Furthermore, employer associations reject the idea of offering
casual laborers permanent status because it would affect their flexibility and increase their
bargaining power. Even though employers benefit from flexibility with which they employ
casual laborers, casual workers need to be given the opportunity to decide whether they would
want permanent position. This paper will discuss social legitimacy of employers by focusing on
two employer association to justify that it is socially acceptable to offer casual workers
employment on permanent basis. Among the points that are discussed in favor of casual workers
include permanent employment offers more benefits and rights under well-regulated system,
procurement process need to be modified, offer job security, regulations and reduce
unemployment rate. However, the paper will first define social legitimacy and flexibility to offer
insight on how employer’s position differs from that of the union.
Social legitimacy is a concept that suggests that lack of societal acceptance often leads to
the disintegration of institutions. This concept shares similarities with liberalism in terms of
internal market. Furthermore, the concept suggests that shared benefits of a joint venture to free
trade are attainable in an environment characterized by objectives of the society. It, therefore,
implies that employee unions must prove that the need to employ casual laborers is a social
acceptable issue (van Oorschot, Roosma, Meuleman and Reeskens 2017).
Flexibility generally refers to a number of various ideas in relation to time. In essence,
flexibility refers to an institutions ability to respond to changes in its environment. Strategic
flexibility is often pegged on liquidity and the capability of responding in a much faster way.
Similarly, flexibility depends on an organizational structure in terms of collaboration of tasks and
decision-making process.

Social Legitimacy of Employers 3
In relation to Boxall and Purcell theory, high-performance work practices contribute to an
organization performance through skills and recognition of seniority, incentives and
opportunities to participate (Boxall and Purcell 2016) The purpose of this theory is to understand
why managers do what they do and why they do it. Social legitimacy tends to explain how the
performance of an organization is based upon the characteristics of its employees (Productivity
Commission 2015). To elaborate more, there are three pillars that govern the concept of social
legitimacy among institutions. These principles include regulation, normative and cultural-
cognitive (Bornstein 2019).
Although the employers’ use of casual employment of duration of more than six months
is under threat, perhaps it is significant to understand the circumstances of a casual worker in
order to dwell on why employers’ are opposing the idea. Employers cite concerns of flexibility
as their primary reason although it can be attributed to limiting casual labor bargaining power.
The Fair Work Act stipulates that casual employee does not count towards the minimum
employment period unless they are employed on a regular and systematic basis and there is a
reasonable expectation of ongoing employment (Fair Work Ombudsman 2019).
A casual employee, on the other hand, is defined as an individual who does not have a
commitment in advance from an employer concerning their employee status. Hence, a casual
employee does not commit to all the tasks assigned by the employer. Among other
characteristics of casual employees include lack of guaranteed working hours, irregular hours, no
benefits, no sick and annual leave and there are no notices for dismissal (Unfair dismissals
benchbook 2019).
Casual workers should be offered the opportunity to change to permanent status because
there are more benefits to be gained by a causal worker under permanent employment.

Social Legitimacy of Employers 4
According to an article that was published by Adam Gartrell, the casual worker ought to be given
the choice to change their employment status from casual to permanent status after six months
(Gartrell 2019). The advantages cited by the writer imply that that casual workers would have
more rights under a well-regulated union that offers gig workers bargaining power. These
sentiments are reiterated by Australian Council of Trade Union Leader, Sally McManus who
champions for the change of rules. For one thing, Sally advocates for a more flexible work
arrangement for people with domestic challenges such as caring for the sick (Borland 2018).
Procurement process plays a significant role in determining companies that get contracts.
For this reason, Sally McManus is lobbying for the government to change procurement processes
with a keen focus on bending its arm to focus on local firms. Sally believes that this move should
be supported as it focuses on pertinent issues that affect the majority of workers. Through change
of procurement policies, casual workers would be in a better position to benefits from the new
policies.
Another reason employer union if suggesting is job security because it impacts the
economy of a particular country. As a result, casual worker being offered permanent
employment opportunity is considered a political issue because the public is more interested in
policies that address rising cases of unemployment and secure casual workers. Sally argues that
the majority of the casual workforce do not plan about their lives because they are not assured of
their job status (Stewart, Stanford and Hardy 2018). This situation has forced many in this
category to fear from asking for sick leave for fear of losing their jobs. One major concern that
the Australian Council of Trade Union aims to accomplish is putting limits on the period casual
workers are employed.

Social Legitimacy of Employers 5
Furthermore, there is need for regulating the casual workers industry. The council
suggests that the number of casual workers continues to surge. With the increase in the number
of casual workers, there is need to regulate the industry in order to free casual laborers from
exploitation by their employers. However, labor acknowledges the fact that there is a looming
problem that needs to be resolved. Furthermore, they understand that the issue affects wages and
inequality which is a significant topic and an election issue (Jackson 2015).
Abolishing hiring companies and focus on national system that will increase
opportunities for local laborers is one of the ways labor unions attempt to address the issue of
causal worker. Once the issue is resolved, casual workers are expected to be considered with
respect to minimum wage, sick leave, public holiday and unfair dismissal. She alludes that the
current system is not as effective as a result of denying opportunities to local workers and
offering them to foreigners (Barry and You 2018). The Australian government loses huge sums
of money to foreign companies as a result of a weak procurement system that the ACTU is
planning to lobby for change.
Australian Retailers Association holds the position that restricting casual employment
would increase challenges to retailers who are already experiencing poor operating environment.
ARA argue that flexibility of casual retail employee is important especially when there is an
increase in the number of shoppers during trading hours. Most of the activities had been directed
at defending union claims for changes which include automatic conversion of causal to
permanent status among other benefits. The employers have since remained frustrated due to
lack of effective policies that are in their favor.
According to the Fair Work Commission, casual employment is often challenging to
most employees. As a result, many of registered Unions in Australia have begun lobbying the

Social Legitimacy of Employers 6
commission to assist employees to have job security among other opportunities for transitioning
from casual to permanent after six months elapses. Recently, the landmark ruling by the
commission ruled in favor of casual works represented by unions from various fields such as
retail, aged-care and hospitality industries (Gahan Pekarek and Nicholson 2018).
The New South Wales Business Chamber is among the employer union that has
challenged the idea of offering casual workers benefits under permanent employment. The
union’s position is that Fair Work Commission should review the number of modern awards.
According to a letter that was addressed to the President of Fair Work Commission, the union
wants to introduce a new category that would be called ‘Perma-flexi.’
Under this new framework, the employer association argues that it would enable casual
workers to convert from regular hours to perma-flexi staff. The transition would allow them
access to annual incentives including sick leave. However, the casual employees would receive a
deduction of 15 percent on causal loading ("NSW Business Chamber pushes to introduce new
type of work amid mounting concern about casual employees 'double dipping' -
SmartCompany", 2019). As a result, the union is determined to change the awards in industries
that are associated with casual employment.
Additionally, the new plan would enable employers to be able to increase or decrease the
number employees work without necessarily having to be committed to pay overtime. NSW
Business Chamber suggests that the new plan would balance employer concerns such as fair
entitlements and flexible working plans. In contrast, this proposal has since been rejected by the
Australian Council of Trade Union.

Social Legitimacy of Employers 7
In conclusion, the paper suggests that social legitimacy of employers’ use of casual
workers is not under threat and the move is significant because it is aimed at offering casual
labors opportunity for entitlement and incentives. Opponents of employers unions argue that
there is need to change current procurement policies to offer regulation, job security and reduce
unemployment.

Social Legitimacy of Employers 8
Reference List
Barry, M. and You, K., 2018. Employer and employer association matters in Australia in
2017. Journal of Industrial Relations, 60(3), pp.358-377.
Borland, J. 2018, ’Five questions (and answers) about casual employment’, The Conversation,
October 30, https://theconversation.com/five-questions-and-answers-about-casual-employment-
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Bornstein, J., 2019. Employees are losing: Have workplace laws gone too far?. Journal of
Industrial Relations, p.0022185619834321.
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Gahan, P., Pekarek, A. and Nicholson, D., 2018. Unions and collective bargaining in Australia in
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Gartrell, A. 2019. All casual workers to be made permanent after 6 months under ACTU plan.
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Social Legitimacy of Employers 9
wages-insecure-jobs-struggling-youth-rising-inequality-shrinking-unions-joinsthe- dots-50981 -
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Productivity Commission, 2015. Workplace Relations Framework, Final Report. Canberra:
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to do about it. University of Adelaide Press.
Unfair dismissals benchbook. 2019. Periods of service as a casual employee. [online] Available
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employee [Accessed 19 Apr. 2019].
van Oorschot, W., Roosma, F., Meuleman, B. and Reeskens, T. eds., 2017. The social legitimacy
of targeted welfare: Attitudes to welfare deservingness. Edward Elgar Publishing.