Essay on HRM: Employer Social Licensing and Wage Concerns in Australia

This essay delves into the critical issues of employer social licensing and wage concerns within the Australian context. It investigates the challenges of wage theft and stagnation, analyzing the roles of key employer associations like The Business Council of Australia and The Australian Industry Group. The essay explores the impact of economic changes, political influences, and the structure of employment relations on wage growth. It examines the perspectives of various stakeholders, including employees, unions, and government bodies, highlighting the need for fair wage practices and the importance of addressing underemployment and skill underutilization. The conclusion emphasizes the necessity for unions to adapt to the evolving economic landscape and the importance of fostering a self-motivated work environment to improve the standard of living and address the needs of young workers.

Running Head: Human Resource Management
Employer Social Licensing to Operate
Name of the Student:
Name of the University:
Author’s Note

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Introduction
The following essay is concerned is concerned with the state of employee in Australia
with regard to social license and its operation which is challenged against the wage theft and
the stagnated level of wage growth in the company and organisation. There has also been a
rise in the share of national income profit but the wages of the employee was affected
(Gooberman, Hauptmeie and Heery 2019). The aim of this essay is to illustrate on the two
chosen employer association which are The Business Council of Australia and the second one
is The Australian Industry Group. Further in the essay it will illustrate on the primary
references which will cater the source of defending the employer position that is drawn from
the above mentioned two associates.
Discussion
In human resource management the management and the people work towards the
desired ends which is the fundamental right of any activity in any company or any
organisation in which the appropriate people are employed. While there is a variation in the
different levels of managerial activities the HRM works in some other way (Boxall and
Purcell 2011). According to Boxall and Steeneveld (1999) described that the HRM
contributes in order to enhance the organizational performance with the relative to the other
managerial investments.
With the content of social licensing it can be defined that the existing firm of the
ongoing project requires a approval within the local market and other local community or
stakeholder for the ongoing approval of the board which accepts the ongoing approval
(D'Cruz, Noronha and Beale 2014). This Employer Association of Australia is a collective
body which focuses on employee role in the business and creates the vision of providing to
all without any discrimination. The objective here is to analyze the development of the
implication of resources based views of the firm in order to develop strategic management.
However the monetary loss for the employee in their wage was not appropriate as it was not
suitable by them to accommodate with the same wage all throughout the year (Thornthwaite
and Sheldon 2019). On the other hand the central bank was maintaining the financial and
monetary integrity where the whole economy was traced. It can be analyzed that in several
interventions for the year 2017 and 2018 in the wake of the five year where they was
unprecedented declaration in the wage growth of Australia. In this scenario the Dr. Lowe, the

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Governor of the Reserve Bank of Australia had highlighted the macroeconomics danger of
the catastrophe in the actual wage growth and also advocated the superior increase in
earnings.
According to the multi country study there are two economic factors why it is implicit
for creating density across the Australian region. The wage growth is welcomed by the
suggestion made by Mr. Lowe where certain unusual sentiments where exposed of the
bankers. The wage forecast was made by the agencies and the commonwealth budget
projection (Shore et al, 2018). They have consistently over anticipated the income growth
and had predicted the coming up rebound in pay which led to rise in traditional annual
increase in 4% where it realized that the age gains had sided lower and lower. However the
community, anti-poverty and the union had also advocated their petition on the comparable
concerns about the crash of weak wage enlargement on the families with inequality and
financial stability (Jena and Pradhan 2018). The Prime Minister of the country also
acknowledged the record of the low wage growth which was kept on hold for the income
households with the own budget targets.
The employer position and its status with the wage in Australian Industry Group had
indicated a traditional concern over reducing the wage with the pressure that has been
replaced with the apparent structure of the wage that are too low and not too high. The
concern was to cut cross the economic condition that included the community, organisation,
union and government bodies which was not a equivalent consensus with regard to the wage
slowdown. Since the year 2013 the rate of the nominal wage rate has been growing at a rate
of 2% every year. According to Boxall and Purcell’s (2016) the social legitimacy and
managerial power is also important and caters to serve the organisation. With reference to the
HRM it does not need to hold up the profitable outcomes which are often referred to as the
business case where it serves to exist in serving the organizational needs for social
legitimacy. The other tremendous is held by the worker who seems to imagine that the
manager is waiting with the bated breath in order to implement the most recent concept of
best practice (Müller and Schnabel 2019). The pole underestimates the way the organization
is affected by the government and economic conditions of production in their own respective
sector. Hence it needs to create a natural skepticism among the managers who claim that
there are some new techniques that will be inevitable to improve the business.

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The factor which is impacting the wage system of the Employee Association is the
structure of thy economic changes and the political changes. The international literature on
collective employer action creates a stress on how the structural change impacted on the
communal employee action although it had extended to which it took place in Australia. The
changes were characterized by the decrease or decline in the proportionate of the employee
work force. It was examined that there was correlation between the collapses in the
manufacturing employment and a decline was also showcased in Employment Association of
Australia (Addison and Teixeira 019). The absence of the comprehensive literature of the
Employment Association contributes to draw its international literature with the purpose of
allocation two factors that could explain the declining incidence, structural economic change
and reduce the stage of cooperative bargaining. The people of Australia have also witnessed
the changing system of employment relation to propose the factor of political agency. The
people had observed that the victims of the state had driven the change in the Australian’s
political economy (Macdonald, Bentham and Malone 2018). This was the reason of collective
bargaining and was a closure of tripartite body that regulated the aspects of labor market
which reduced the employee level of incentives which were in association with the Business
Council of Australia and the Australia Industry Group.
Hence it can also be seen that that the labor market is not actually the right form of
official unemployment statistics that makes it seems good but in particular the high level of
work and unemployment is also recorded in Australia. There has been under utilized people
in the same region who falls under the unemployed rate and as a result there is an increase in
the competition between the skilled workers where the companies or organisation is trying t
extract more hours of work and is offering with them with minimum salary and no benefits or
incentives. This however creates a suppressing more hours of work with suppressing wage
growth which creates the in general redundancy rate to reach at its highest level (Clibborn
and Wright 2018). However if the condition tries to improve the technique of working then
the circumstance will lead to increase the wage rate of the employees.
On the other hand the demand and supply will persist to conclude the growth in wage
rate in line with the conservative monetary theory but that will only be felt with the relevant
time. The employee have to be sufficient with the labor market force and will perform the
autonomous efficient job. There has also been an underutilization of skills and less
opportunity of jobs in many parts of the Australian regions (Thornthwaite 2017). This was
the result of under employment which made many employees sit back home and led much

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employee work for years under the same scale of wage. Hence it is hard to believe that the
employee or the underemployed workers who particularly among the young workers in repair
sector or examine jobs which could have such a large harmful impact on the wage
discrimination.
The unequal growth in the wage rate is not only a problem in Australia but also one of
the biggest issues in some of the other countries. There are not just the two Employee
Associates and thinks that they have similar situations. A pool of suggestions has also been
made to both the firms where it can inculcate the situations that might bring in the possible
recommendation factors.
Conclusion
Hence it can be concluded that the increment in the wage rate by the Australian Union
is one of the most important criteria which needs to be amended. It is important for the
association to understand the skills and requirement of the employee in demand of the new
economy and where young people are concerned. The mindset of the unions needs to shift
and reflect the self-motivated function of work where the linear occupation will be far less
ordinary to the young public who will need skill and capability. Hence the minimum wage
will never increase the standard of living of the workers, increase the level of poverty and
reduce the morale.

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