Employment Relations Analysis: Jetstar Case Study and Solutions

This report provides a comprehensive analysis of the industrial relations at Jetstar, focusing on the conflict between the company and its employees. It applies Fox's three frames of reference—unitarism, pluralism, and radicalism—to understand the dynamics of the situation, highlighting the cla...Read More

Running Head: MANAGING EMPLOYMENT RELATIONS
MANAGING EMPLOYMENT RELATIONS
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1MANAGING EMPLOYMENT RELATIONS
Table of Contents
Introduction......................................................................................................................................2
Fox’s three frames of reference.......................................................................................................2
Unitarism.....................................................................................................................................2
Pluralism......................................................................................................................................3
Radicalism...................................................................................................................................3
Solution............................................................................................................................................4
Conclusion.......................................................................................................................................5
Reference.........................................................................................................................................6

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Introduction
Industrial relation is also known as the employment relation where an employment
relationship has been made between the employers and the employees. The clash of interests and
cooperation in terms of negotiation between the employees and the employers are part of the
industrial relation. This report is going to analyse the case study of Jetstar by different theories of
industrial relation that are called Fox’s three frame of reference and then provide a solution for
Jetstar to resolve the issue.
Fox’s three frames of reference
Unitarism
From the unitarist perspective of industrial relation, it can be stated that the relationship
between the organisation and the employees must have been based on cooperation. Both the
employees and employers must understand their different interests and create an effective
measure so that it will harness different interests and create same values and goals that can help
to develop both the business organisations and the employees as well (Cooper et al., 2009). This
theory advocates that business organisations are not evil or exploiters rather companies are also
interested to create a healthy relationship with the employees so that both can get benefits from
the organisational development. Based on this understanding, it can be stated that in case of
Jetstar the unitarist approach was never follow because the management was more interested in
profitability and overlook the interests of the employees (Janda, 2020). Therefore, it became
evident to face a conflict between the employees and the employers.

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Pluralism
The concept of pluralism in industrial relation is resembled with the notion of conflicting
relationship between the employees and employers. However, the conflict is more of a
constitution as the employees have the support of the trade unions to ventilate their grievances
and demands and fight for their rights (Budd, 2020). Therefore, the role of trade union has a big
role to play in the relationship between the employees and the employers. In case of Jetstar, the
same situation was occurred where the Transport Workers Trade Union organised protest against
the alleged exploitation that Jetstar is imposed on its ground staffs in terms of low wage and
more time in the work station (Janda, 2020). The trade union demanded proper rosters for the
employees and a hike in the salaries of the ground staffs. Therefore, they called a strike to meet
the demands of the employees and offer them better salary packages on humanity ground.
Radicalism
The theory of radicalism in industrial relation is closely linked with the concept of
Marxism. It is important to note that the theory any kind of solidarity between the workers and
the employees as Marxism identify the employer as capitalist who are interested in gain more
profitability by exploiting the workers (Coe, Johns & Ward, 2009). The radical theory also points
out that the workers believe to be the integral part of the industry as they play the vital part of
production and they must have the right to get fair profits in terms of salary. In case of Jetstar the
organisation did not face such kind of radical protests from the workers but if the demands were
not met then it might have create a radical protest against Jetstar. The demands of the employees
were valid and justified as per Marxist ideology and the employers have no right to exploit the
employees by underpaying them.

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Solution
There are some potential solutions to this problem that Jetstar can offer to the employees
and trade union as well so that the operation of the organisation will remain continued. The
solutions are as follows,
 Negotiation can be a best part for the resolving the conflict as both the parties are trying
to put their own interests on others. Therefore a negotiation between the employees and
the employers will definitely help to create a common ground of interests where both of
the conflicting parties can fulfil their interests (Elgoibar, Munduate & Euwema, 2016).
 On the other hand, putting pressure on the Jetstar management by continuous strikes and
ban can be an effective solution. However, the solution can meet the interests of the
employees and trade union only. It will never serve the interests of Jetstar.
 Another solution can be identified as recruiting new employees or temporary workforce
can easily replace the Jetstar employees. It will be a serious threat to the employees as
they have family to feed. Therefore, they will be compelled to abide the decision of
Jetstar. Again this solution is also partial as the interests of Jetstar will only be met
through the solution.
Based on this understanding, it can be stated that the first solution will be the best for
both the conflicting parties. From the research of García, Pender and Elgoibar (2016) it can
be derived that the negotiation process creates a window of opportunity for both the
conflicting parties to end the conflict. It is a very positive gesture that can end the conflict
and successfully run the business of the organisation. For a successful business organisation
like Jetstar, it is not possible to recruit part time employees in such a short notice. Moreover,
the service and skills of the Jetstar employees cannot be replaced by part time employees. On

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the other hand, Jetstar agreed to implement a roster with only 3% salary hike (Janda, 2020).
The justification for the low hike percentage is that it is a core business strategy of Jetstar to
offer quality service to the passengers with affordable and cheap pricing. Therefore, the
negotiation practice will be an effective problem solving method. It can be argued that during
the negotiation both the employees and the employers will be able to acknowledge each
other’s interest and it should be respected (Tjosvold, Wan & Tang, 2016). The purpose of
face to face meeting is to resolve many of the personal and professional issues and create a
common ground where the interests of both the employees and employers can be met on a
same value setting (Yusuf-Habeeb & Kazeem, 2017).
Conclusion
The report clearly highlights the industrial relation theories with the help of the case
study. In fact, the theories are extensively analysed the conflict and then a solution has been
provided. The proposed solution is the negotiation practice that can help both the employees and
the management of Jetstar to develop a common ground of interests that facilitates the future
sustainability of the organisation.

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Reference
Budd, J. W. (2020). The psychologisation of employment relations, alternative models of the
employment relationship, and the OB turn. Human Resource Management Journal, 30(1), 73-83.
Coe, N. M., Johns, J., & Ward, K. (2009). Agents of casualization? The temporary staffing
industry and labour market restructuring in Australia. Journal of Economic Geography, 9(1), 55-
84.
Cooper, R., Ellem, B., Briggs, C., & Van Den Broek, D. (2009). Anti-unionism, employer
strategy, and the Australian state, 1996–2005. Labor Studies Journal, 34(3), 339-362.
Elgoibar, P., Munduate, L., & Euwema, M. (2016). Building trust and constructive conflict
management in organizations. In Building Trust and Constructive Conflict Management in
Organizations (pp. 1-13). Springer, Cham.
García, A. B., Pender, E., & Elgoibar, P. (2016). The state of art: Trust and conflict management
in organizational industrial relations. In Building trust and constructive conflict management in
organizations (pp. 29-51). Springer, Cham.
Janda, M. (2020). Jetstar workers 'in the fight of their lives' trigger cancellation of 48 flights.
Retrieved 27 March 2020, from https://www.abc.net.au/news/2020-02-18/jetstar-cancels-flights-
offers-refunds-amid-industrial-action/11974798
Tjosvold, D., Wan, P., & Tang, M. M. (2016). Trust and managing conflict: Partners in
developing organizations. In Building trust and constructive conflict management in
organizations (pp. 53-74). Springer, Cham.

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Yusuf-Habeeb, M. O., & Kazeem, A. O. (2017). Appraisal of conflict management as a tool for
achieving industrial harmony. Nile Journal of Business and Economics, 3(7), 28-51.