Comparative Analysis: Industrial Relations in China and Australia

This essay provides a comparative analysis of the industrial relations systems of China and Australia. It examines key aspects such as collective bargaining, the role of trade unions, and the legal frameworks governing employment. The essay highlights differences in labor laws, worker protections, a...Read More

Running head: INDUSTRIAL RELATIONS OF CHINA AND AUSTRALIA
Industrial Relations of China and Australia
Name of the student
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1INDUSTRIAL RELATIONS OF CHINA AND AUSTRALIA
Industrial relations refers to a multidisciplinary field that involves study pertaining to
employment relationship. Business Council of Australia has stated that the employers and the
employees are involved in conflict and hence for the public interest it is important to regulate
it. Industrial relations can help in protecting the employees and controlling of wages which
can help in protecting the economy. The main concern of industrial relations is in relation to
pay along with that of working conditions. Industrial relations deals with different aspects in
relation to the employment relations and it is not solely concerned with that of the unionized
workforce (Wang and Cooke 2017). Industrial relations is concerned with employment
relationship and the scholarship of industrial relations assumes that there are inherent conflict
of interest between that of the employers along with that of the employees. This essay
compares and contrasts the industrial relations of the two countries of Australia and China.
Collective bargaining has gained momentum in 2000 that was helped by legal
framework along with that of union membership. Collective bargaining in China has started
to occur at various levels in relation to the economy and not solely at the enterprise level. The
new development has been linked with creation of different forms in relation to trade unions
that has been made possible owing to the Trade Union Law that has been revised. Different
observers has stated that there are deficiencies pertaining to system of collective bargaining
in terms of the bargaining process. Number of Chinese workers who undertake collective
agreements has risen at a rapid pace and number of workers who are covered by the aspect of
wage agreements has evolved at a slower pace. The Chinese trade officials attach great
importance to sectoral bargaining (Bartram et al. 2015). The regional unions can articulate
the demands of the workers that is concentrated within the same area. They can act in an
independent manner with their individual employers. The sectoral unions can articulate the
demands of the workers within that of the same sector that is within that of the same locality.
The workplace Relations Act that is in place in Australia is based on collective agreement

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and states that the individual along with that of the collective should be treated on equal
basis. This act thus completely changed the face of labour law in Australia that laid more
emphasis on the aspect of collective bargaining that can provide the employees with a voice
in the arena of work. Collective agreements were taken account of in this act but it helped the
employers in the introduction of individual contracts. This can seem to be fair but it can
prove to be an advantage for the employers who are unscrupulous to frustrate the employees.
The Workplace Relations Act in Australia highlighted the rights of the individuals of
associating or not associating (Chung 2016). It laid clear that the employees cannot be
victimised on the basis of union membership. An employer cannot ask the employee to leave
union by making any kind of threats. The trade officials of China lay great importance to the
aspect of sectoral bargaining and the workplace Relations act that is prevalent in Australia
lays emphasis on collective bargaining and collective contracts were made (Chan and Hui
2017).
The State has an effect on that of the environment within which industrial relations
function. It has an influence on the economy with the help of the different policies in relation
to that of spending along with taxation. Chinese labour market does not offer protection to
different rights like freedom pertaining to association along with that of right pertaining to the
workers of striking. China has not carried out the ratification in relation to International
Labour Organization of that of United Nations. What adds to the problem in China is that the
labour contracts are not made use of by domestic employers in relation to the local employees
(Wen and Lin 2015). The absence of written contracts makes the employees struggle in
relation to their employment. It thus makes the workers lose the element of basic human
right. The regulation pertaining to dispatch agencies that offers temporary labour has
tightened in the recent age and there are some domestic employers who hire that of
independent service provider in order to avoid these kind of regulations. These kind of

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loopholes provides incentives to the employers to avoid the law as compliance will lead to
higher labour cost. On the other hand in relation to Australian contract of employment the
employees have a contract with their employer. The relationship pertaining to the contractual
employment persists along with the other statute-based form in relation to employment
regulation. The employers and the employees can thus take legal action so that they can
enforce the contract (Cheung and Wu 2014). All the workers cannot be deemed to be
employees in terms of legal sense. Common law distinguish between the employees along
with the independent contractors. The independent contracts cannot avail the benefits
pertaining to wrongful termination. The labour contracts are not made use of by the
employees in China and the dearth of any kind of written contract compels the employees to
struggle (Charlesworth and Macdonald 2015).
Within China, all the trade unions should be affiliated with All-China Federation of
that of Trade Union. This organization helps in reporting directly to Chinese Communist
Party. The Chinese Enterprise organizations have earned the legal status and they are created
for the promotion of reforms within the organization. It can help in improving the
management within that of the enterprise and act as liaison between the organization and
government. It can offer protection to the legitimate right in relation to the enterprises. The
state-owned enterprises in China establishes a trade union and the private business are also
asked to establish the trade union. Enterprise revising the internal policies can help in
affecting the interest in relation to the employees and the enterprise is supposed to discuss
such kind of matters with Employee Representatives Congress (Kaine 2016).The employees
are provided with the opportunity to make their proposal and provide the opinion in relation
to the process. General Assembly pertaining to the union membership can oversee the work
done by trade unions existing at the grass root level. The limited liability companies should
have employee representation within Board of Directors. The membership pertaining to

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Australian Council of Trade Unions (ACTU) grew significantly after the Australian workers
Union joined the ACTU. It was not formally affiliated with the Australian Labour Party but it
maintains close association along with Australian Labour Party. Union plays a pivotal role
pertaining to Australian politics and it represents the factor of organized labour. Australia
makes use of an arbitration system that has created interest in various other countries. The
system helps in fixing the wages along with that of working conditions fixed by law. The
national constitution provides the federal government with right that can help in undertaking
conciliation in relation to the industrial disputes. The arbitration system was established in the
year 1904 by Conciliation and Arbitration Act which gave birth to Commonwealth Court of
Reconciliation. The act states that on the occasion of the dispute not being solved by
collective bargaining then the employer can bring the dispute to the court for that of the
judicial decision (Shields et al. 2015). It is not that strikes are not allowed but the union in
defiance of judicial award can be held under contempt of court. The Chinese Enterprise
Organizations can promote reforms within the enterprise and The Australian council of Trade
Union represents the factor of organized labour.
Reduction of that of the economic distance can create opportunities in relation to
employment generation. The increase in per capita income in China is owing to the increase
in the level of openness in the world. There are empirical studies that have highlighted on the
rise pertaining to inequality in relation to wages. It occurs on account of integration
pertaining to the developing countries within that of the world market. Globalisation has
affected in a negative manner the employee relations in China. China has a bad record in
relation to wage and hours violation that is regulated by the national law. Relevant laws has
been introduced by Chinese government for addressing issues related to protection related to
labour rights (Jacobi et al. 2017). The labour dispute cases in China is increasing at an
alarming rate and with the development of the rights of the employees arbitration cases can

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be heard in every year. For the interest pertaining to employees of Australia the minimum
wage is determined with Fair Work Commission. The minimum wage rates are determined
on annual basis that can guarantee the Australians their fare share in relation to the income.
There are different factors that can help in the determination of minimum wage that includes
wage rate for adults, juniors and thecasual loadings. Wealth inequality has developed within
Australia but it is lower than Global Financial Crisis. It has been found with the help of
research that personal income in relation to the very rich has grown more strongly as
compared to rest of the population. Wage inequality exists in China and it also exists within
the Australian organizations (Brewster, Mayrhofer and Morley 2016). The working
conditions within Australia is conceived to be the best within the world as a contrast to
working conditions in China. The Australian industrial relations are governed by the element
of high union membership that helps in overlooking the conditions related to employment.
They help in assuring that the working conditions are of great standard. The Conciliation and
Arbitration Act encourages the employer associations to recognize the unions and they have
strengthened the unions so that the working conditions are good on behalf of the employees
(Preston 2018). The number of labour dispute cases are very low within Australia because of
the optimal working conditions that are provided to that of the employees.
The regulation of conflict in Chinese labour market is done with the help of the three
entities- Trade Union, collective consultation and that of tripartite consultation. The workers
based on their own initiative do not join union. The management of the companies decides
whether the workers should become members pertaining to the union. The workers have to
pay 1 % in relation to their salary if they join union. The company is supposed to pay 2 % of
total wage to that of the unions. The tripartite consultation committees monitor labour market
at both provincial along with that of national level. It acts like that of an advisory committee
that can help in the process of targeting active labour market policy (Davies 2018). The Fair

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Work Commission in Australia sees to it that the interests of the workers are saved and the
workers are safeguarded against any kind of harsh conditions.
The trade officials within that of China lay great stress on the aspect of that of sectoral
bargaining. The regional unions play a major role in articulation of the demand pertaining to
that of the workers. Australia lays emphasis on the factor of that of collective bargaining.
Collective contracts are made in that of Australia. The dearth of any kind of written contract
makes the employees of China struggle. In Australia the employees maintain a contract with
that of the employer. The working conditions of the employees in China is dismal as
compared to the working conditions in Australia. Fair Work Commission protects the
interests of the interests of the workers in Australia.

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References:
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enterprises and industrial relations: A research agenda for the 21st century. Journal of
Industrial Relations, 57(2), pp.127-145.
Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New challenges for European
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Chan, C.K.C. and Hui, E.S.I., 2017. Bringing class struggles back: A Marxian analysis of the
state and class relations in China. Globalizations, 14(2), pp.232-244.
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