Analysis of Industrial Relations Theories in Minimum Wage Submissions

This assessment report delves into the realm of Industrial Relations (IR) theories, specifically focusing on their application to the 2019 Minimum Wage case in Australia. The report begins by establishing the core concepts of IR, including its multidisciplinary nature and its focus on employment relationships, collective bargaining, and the interplay between management, unions, and employees. It then outlines the objectives of IR, such as protecting worker interests, resolving conflicts, and fostering a healthy work environment. The report highlights three key theoretical frameworks: Unitarist, Pluralist, and Radical perspectives, which are used to analyze workplace dynamics and the positions taken by various stakeholders. The core of the assessment involves analyzing submissions from an employer peak body and a Non-Governmental Organization (NGO) concerning the 2019 Minimum Wage case. The report examines the organizations' stances on minimum wage, how these align with the IR theories studied, and the similarities and differences in their theoretical positions. The analysis considers the minimum wage in Australia, its legal framework, and the impact of Fair Work Commission decisions. The report concludes by synthesizing the theoretical frameworks to critically analyze the issues in practicing industrial relations in Australia and their influence on minimum wage.

Running head: ADVANCED STUDIES IN INDUSTRIAL RELATIONS
ADVANCED STUDIES IN INDUSTRIAL RELATIONS
Name of the student
Name of the University
Author’s note

1ADVANCED STUDIES IN INDUSTRIAL RELATIONS
Introduction
This assessment report focuses on the theories of Industrial relation with respect to
unions of Australia. It applies the theories of IR to characterise and analyse the Minimum
wage case 2019. The assessment contains analysis of two submissions from employer peak
body and from NGO. This determines the position of minimum wage of the organisation. It
determines the similarities and differences occurs in the theoretical positions of any
organisation by the union functions (Bender, 2018). It analyses the issues relating to the
practice of industrial relation in Australia. The purpose of the study is to synthesise and apply
the theoretical framework to critically analyse the issues in practicing industrial relation in
Australia.
Industrial relation
Industrial relation is a multidisciplinary field which focuses on employment
relationship. It defines the relationship between management and union, and between
representatives of employers and representatives of employees. Industrial relation is a set of
processes which expresses the relation among the employees, union and management (Ibsen,
2017). The industrial relation deals with collective bargaining which is conducted by the
union and management. The term Industrial relation consists of two terms; industry and
relation. The term industry refers to productive work where individual or group of individual
are engaged (Kelly, 2015). The term relation means the relationship which exists between the
employer and employee.
The two dominant aspects of industrial relation in modern industrial society are-
Cooperation- the modern industrial production depends on the cooperation between labour
and capital. Labour denotes the workers of the company and capital denotes the owner of the
company who supplies the capital to the company (Munro, 2018).
Conflict- the conflict always exists in the industry. Relation between management and
employees arise results in strikes and lockouts. This results in industrial dispute.
Objective of Industrial Relation
 The objective of industrial relation is to protect the interest of workers and the
management by establishing and maintaining industrial democracy at work.
 To resolve industrial conflict to establish a healthy work environment.

2ADVANCED STUDIES IN INDUSTRIAL RELATIONS
 It encourages for collective bargaining among employees and management through
unions.
 To help the government in making laws to improve the quality of employees.
Theories of Industrial Relation
The industrial relation consists of three frameworks which analyses and provides a
perception analysis on workplace relations. These frameworks interprets the conflicts arouse
during different functions (Poole, 2017). These are the three major framework –
 Unitarist perspective- In unitarism, the management is the only authority to control
and take decisions. It is a paternalistic approach where loyalty of employees are
determined by managers (Preston, 2018). The assumptions on workplace relations
describes the management and employees have common interest and goal. The
assumptions on trade union describes that a competing and illegitimate source of
authority.
 Pluralist perspective- the pluralistic perspective perceives that the organisation has
power and contains many sub- groups that have its own legislation. These
subgroups of the organisation manages the organisational functions they are the
trade union and management (Tapia, 2015). The pluralistic aspect considers that the
conflict is inherent in context to industrial relation. The management is least
bothered about controlling and enforcing the employees. They mainly focuses on
persuasion and coordination. The trade union of an organisation is the legitimate
representative of employees who deals with the rising conflicts.
 Radical- the radical perspective deals with the relation of workforce in an
organisation. It deals with the inequalities of power and also the economic wealth of
the organisation.
Minimum Wage 2019
The minimum wage is the lowest wage that an employee can be paid off. The current
minimum wage in Australia is $740.80 per week. This is considered as $19.49 to a minimum
hourly rate. The minimum wage was set on 30th May, 2019. The minimum wage in Australia
is one of the important element to maintain an effective cost structure while running a
business. For this a standard is set by Fair Work Commission for minimum grades of pay for
various job roles in an organisation.

3ADVANCED STUDIES IN INDUSTRIAL RELATIONS
The minimum wage increased from 1st July 2019. The Fair Work Commission had decided its
Annual Wage Review for 2018-19. They have decided that there will be increase in the
national minimum wage and the modern award minimum wage by 3 percent from the first
full pay period on or after 1st July 2019. It has affected nearly 2.2 million population or 21
percent of the Australian employees who are under the pay set by modern award. The other
1.7 percent of the Australian employees who are paid at the adult minimum wage rate (Wood,
2017). It is observed that 3 percent increase in the national minimum wage for
award/agreement free employees, 3 percent increase to the modern award minimum wages.
NGO Employer peak body
The Benevolent Society (TBS) is a
NGO who serves across New South
Wales, Queensland and South
Australia. It also provides services to
the Australian Capital Territory.
They provide services to ageing,
child and family, and disabilities.
They promotes many campaigns for
advocacy and social justice for fix
pension, rights of every child and
many more.
The employees of TBS are under
Copied state awards in disability
service business.
The first pay period on or after 1st
July 2018 the salaries of transferring
employees were increased by 3.5%
as a result of the Annual Wage
Review 2017-18.
The Australian Workers’ Union (AWU) concerns
on the issues of modern award minimum wage for
unappreciated junior employees.
The adult wage rate for entry level employees in
vehicle manufacturing, repair and service retail
award 2010 (VMRSR). It concerned that most
employees received low wage rate than award free
junior employees covered by the National
Minimum Wage Order 2018.
The Union and management have power to vary
junior rates. The modern award minimum wage
defined in s 284(3) of the Act stated that the rates of
minimum wages in modern awards includes wage
rates of junior employees.

4ADVANCED STUDIES IN INDUSTRIAL RELATIONS
Conclusion
The assignment concludes about the theories of industrial relation impacting the minimum
wage. The trade unions protects the interest and demands of employees in an organisation.
The responsibilities are stated which helps the employee to get minimum wage.

5ADVANCED STUDIES IN INDUSTRIAL RELATIONS
References
Bender, K. A., & Elliott, R. F. (2018). Decentralised pay setting: A study of the outcomes of
collective bargaining reform in the civil service in Australia, Sweden and the UK.
Routledge.
Ibsen, C. L., & Tapia, M. (2017). Trade union revitalisation: Where are we now? Where to
next?. Journal of Industrial Relations, 59(2), 170-191.
Kelly, J. (2015). Trade union membership and power in comparative perspective. The
Economic and Labour Relations Review, 26(4), 526-544.
Munro, A. (2018). Women, work and trade unions. Routledge.
Poole, M. (2017). Towards a new industrial democracy: Workers' participation in industry.
Routledge.
Preston, A. (2018). The structure and determinants of wage relativities: evidence from
Australia. Routledge.
Tapia, M., Ibsen, C. L., & Kochan, T. A. (2015). Mapping the frontier of theory in industrial
relations: the contested role of worker representation. Socio-Economic Review, 13(1),
157-184.
Wood, G. (2017). Trade unions and democracy: strategies and perspectives. Routledge.