Industrial Relations Report: MG315, Labour Relations, Vanuatu

This report, prepared for the Industrial Relations Manager of Vanuatu's Ministry of Labour and Employment Relations, assesses the emerging trade union landscape. Grounded in the Scientific Management Theory as a contributor to Unitary Theory, the report conducts a SWOT analysis of the trade union, examining its strengths, weaknesses, opportunities, and threats within the context of the Pacific Islands. It identifies challenges faced by key actors: the local government, politicians, and the people, particularly in a unitary environment. The analysis considers factors such as education levels, financial constraints, and political influences on industrial relations. The report provides specific recommendations to enhance the effectiveness of the trade union, improve labour relations, and promote sustainable development in Vanuatu's industrial sector, including suggestions for establishing a trade union, improving communication, and fostering partnerships with educational institutes and employers. References are provided to support the arguments.

Running Head: Industrial Relations Theory & Policy 0
Industrial Relations Theory & Policy
Report
Student name

Industrial Relations Theory & Policy 1
Contents
Introduction.................................................................................................................................................2
Analysis and challenges...............................................................................................................................2
Recommendation........................................................................................................................................4
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

Industrial Relations Theory & Policy 2
Introduction
Industry Relation (IR) has based on the government and various industries. The private and public
organization has some mutual understanding to make a proper relationship between them. Vanuatu’s
also has supported by Australia, UK, USA, New Zealand, Japan, China and others. Vanuatu’s has small
private sectors that are started in low-level. The government has established a good relationship with
foreign aid to provide good support. It will provide straights of the various industries for Vanuatu and
their weaknesses. The trade union has designed for managing various operations that are related to
labour and industrial relations. This report will also describe the opportunities and threats for those
enterprises and other sectors (Acton, 2011). This essay will provide a SWOT analysis with pacific island
examples and challenges faced by three main actors. It will provide recommendations for Vanuatu.
Analysis and challenges
It was a difficult process to identify challenges of industries and their internal issues. There are many
good things in small enterprises. However, they have some issues because of a lack of change
management and other things. SWOT analysis is helpful to find out various strengths and weaknesses of
the particular industry. Vanuatu’s Ministry of Labour and Employment Relations has faced many
challenges because of lack of knowledge and services. There are many basic issues in the trade union
because of social and technical services (Ah Chong-Fruean, 2010).
The Vanuatu Council of Trade Unions (VCTU) and the Vanuatu Chamber of Commerce and Industry
(VCCI) are the social partners. Labour issues are the responsibility of the Department of Labour (DOL),
headed by the Labour Commissioner. In addition, DOL is part of the Ministry of Internal Affairs. In
addition, the local government should mention rules and regulations to manage different conditions. It
is the best way to manage different issues of labour-related issues and industry relations.
Strengths Weakness
 People can provide a better outcome
based on their education (Rochelle-Lee &
Rereman, 2019).
 Provide benefits for starting of new
businesses
 Low level of education
 Labour cost is high
 Less funding for startups

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 Grant is directly given to the new
enterprise based on their basic needs
(Keast, 2013).
Opportunities Threats
 Awareness about new business startups
 Advantages of funding in new ventures
 Education opportunities
 Lack of government support
 Funding not renew
 Risk of oblivion
The population of this island in 2012 was 247,000. There are some data about the island (DOL, 2012).
GDP per capita is (2012): US$ 3,969
Labour participation rate (2012): 70.9%
• 80.3% male
• 61.5% female
Labour force is (2012): 110,000
• 62,000 male
• 48,000 female
Employment to population ratio (2009): 67.6%
• 77.1% male
• 58.3% female
Unemployment rate (2009): 4.6%
• 4.1% male
• 5.2% female
There are lacks of education and other factors on this island and government and political issues are the
barriers in between this thing. In addition, there are three main actors in the pacific islands, which are
local governments, politicians, and people (Baird, 2011). People are less educated and it is the main
weaknesses of them to start a new venture at high-level. They also faced a financial challenge in startup
their business at a high level. Industrial relations are based on the financial conditions and other things.
People cannot change their interest in less time. Therefore, the local government should provide
education facilities for them. However, a large amount of international fund was not used for a lower
level of people. Lack of money and education make them weaker to invest in the business (Eriksen,
2009).
There are many other factors are related to the labour departments. In addition, proper education and
funding encourage people for business and other works in a proper way without creating any issues.

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However, political issues make a high impact on the income and tax of the various import and export in
the businesses (Keast, 2013). Furthermore, the government should avoid these challenges to improve
the performance of labour in the various businesses of the industry to grow and succeed in the market.
It will help with other products work as well (Rochelle-Lee & Rereman, 2019).
As the name implies, enterprise members of the family incorporate two phrases, enterprise, and
relations. In which industry covers the manufacturing activity wherein the group of workers is engaged
in, even as the relations show the connection between the control and the people in the industry. IR
plays a significant role in this dais’s running scenario where the harmonious dating among the
employers and personnel is wanted to have an uninterrupted production.
Importance of Industrial Relations
1. Increased Productivity: IR has provided enhanced productivity in the business of an
organization.
2. Reduced Industrial Disputes: IR is helpful in reducing disputes between different competitors in
the same industry.
3. Increased Morale: it is beneficial for the company to increase the morale of the company.
4. Minimization of Wastage: IR also supports in minimization of wastage of the company.
Recommendation
There are some recommendations for the trade union created in the country. It will provide many
benefits to the local government and the whole island in different ways (Stewart, 2011). These
recommendations:
 Establish a trade union to provide equal benefits to all the enterprises
 Organizing of members to provide benefits to SME’s employees,
 Provide responsibilities to the young people to make them more familiar with trade union
 Transform the organisations with liberalized labour market
 Should improve strategic planning of TU’s activities
 Improve internal and external communication to make collaboration between employees and
others
 Start fundamental TU activities, such as bargaining

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 Develop a partnership with different employers to make a bond between social partners and
others
 Establish cooperation with educational institutes to make people expert in business
 Implement a fair distribution of tax and another burden in the society
 Provide better living and working conditions for the employees and others
 Create a good image in front of international organizations using effective business
communication by union officials
Conclusion
It has concluded from the above parts of this report that, pacific islands have many issues in their basic
needs, which makes a huge impact on their development. Social partners make many changes in the TU
and its processes. In addition, the international relationship is necessary for fundraising and other
benefits. Moreover, TU should make changes in their working process and create different posts to
monitor different processes and make them clear for all the actors. Finally, TU should follow the
recommendations to establish more enterprises and provide benefits to employees and employers.

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References
Acton, J., 2011. Fair Work Australia: An accessible, independent umpire for employment matters.
Journal of Industrial Relations, 53(5), pp. 578-595.
Ah Chong-Fruean, P., 2010. Mapping the Industrial Relations System of Samoa: An assessment of
industrial democracy and employee participation in employment relations decisions in a Pacific Island
Nation. s.l.:s.n.
Baird, M., 2011. The state, work and family in Australia. The International Journal of Human Resource
Management, 22(18), pp. 3742-3754.
Eriksen, A., 2009. ‘New life’: Pentecostalism as social critique in Vanuatu. Ethnos, 74(2), pp. 175-198.
Keast, A., 2013. Biogeography and ecology in Australia. s.l.:Springer.
Stewart, A., 2011. Fair Work Australia: The Commission Reborn?. Journal of Industrial Relations, 53(5),
pp. 563-577.