Role of Human Resource Management in Resolving the Industrial Dispute
The report is prepared to discuss about the human resource management considering the case of the industrial dispute occurred at New South Wales, Australia. The industrial dispute is related to the strike conducted by the employees with support provided by the Rail Tram and Bus Union. The strike has been mainly caused due to the lower wages provided to the employees and inflexible working conditions, which is the main concern, due to which, the workers are involved in managing the strike (Armstrong & Taylor, 2014). It was also found that the Sydney train management and higher authorities of the organization failed to make any proper negotiations regarding the agreement with the employees. The workers demanded an increase in annual pay of 6 percent, which the Government and higher authorities of the organization did not consider rather only a 2.5 percent hike was placed. The report is presented to discuss how the conflicts will be resolved, furthermore proper utilization of international relations theories will be done for overcoming the industrial dispute.
The persons who are mostly responsible during the industrial dispute are the management employees, public station, RTBU workers, managers and the employees of the organization. There were major issues regarding the lower wages and inflexible working conditions, which were found to be associated with the use of strike by the workers (Bratton & Gold, 2017). The wages and compensation structure were not effective and also the working conditions were not good enough, which further created complexities and enabled the NSW staffs to start the strike.
The management departments consists of employees who have the authority and power to manage the human resources properly and at the same time, apply their skills and knowledge to make the employees understand about the mission statement, vision and goals to be achieved by the organization, i.e., to serve the clients first and foremost. The management consisting of the leaders and the human resources’ manager has the right to monitor the employees’ performances and consider their needs and requirements to be fulfilled for making them keep motivated and encouraged to perform efficiently (Bos?Nehles, Van Riemsdijk & Kees Looise, 2013). The management is also responsible for maintaining a strong workforce that consists of motivated employees, thereby aiming to enhance the productivity and create higher engagement of employees altogether for achieving the shared vision and mission appropriately.
There were conflicts, as found from the case study, regarding the lack of wages and inappropriate working conditions, which made the employees, start the strike with proper support by the Union and other regulatory bodies. There were words exchanged between the Transport Minister and NSW’s Union Secretary, which showed that they both did not pay any heed to what should be done for overcoming the issue. According to Alfes et al., (2013), issues were mainly related to the increase in wages that should be done every year, according to the employees and thus the Union workers started the strike from 12.01 am during the date of 29th January in 2018. There are various roles and responsibilities managed by the Union workers to enforce certain laws, rules and regulations for managing the employment practices. This is mainly done for engaging the workers altogether, allow them to communication and even unite them by raising a collective voice and stand against the issues faced due to poor wages and compensation structure along with lack of flexibility in working conditions in NSW rail. This would also assist in proper sharing and exchange of information, furthermore resolve the issues, which has been the major role managed by the position held by the Union (Marchington et al., 2016). The third parties are also involved to manage trust, loyalty and encourage coordination for brining a sense of togetherness, unity and raise voice against the higher authorities in case their needs and preferences are not being taken care of.
External Forces and Pressure Exerted by Government Bodies and Regulatory Authorities
The external forces and pressure are exerted by the Government bodies and regulatory authorities who are responsible for managing the employment relationships and maintain coordination among them too. From the case study, it was found that the activities related to the strike made by the workers caused industrial dispute, which was beyond the actual rules and regulations set by the Government of Australia. The Government thought that the wages were sufficient and thus no industrial actions were undertaken to make sure that the needs of the workers are taken care of properly (Cullinane & Dundon, 2014). The workers demanded a 6 percent hike on the wages while the Government consider only 2.5 percent hike for them working at NSW Rail. According to the Unitarism theory, Australian Government holds a good position, because of which, it is necessary to control the rail networks properly to prevent any transport disruption, furthermore ensure they are aware of the demands and expectations of the employees to be fulfilled. This will not only keep the Union workers satisfied with their job roles, but can even keep them encouraged and motivated to perform to their potential effectively.
The theories include unitarism, pluralism, etc. which are mainly focused on understanding the behaviors of employees, furthermore ensure fulfilling the demands and expectations of the stakeholders properly. Based on pluralism, the management department must consider the needs of various stakeholders associated with the Rail network including the employees, shareholders or investors and also the employers to ensure that they are motivated and encouraged to perform better rather than creating strikes which might disrupt the entire transportation system and create difficulties for people to visit places (Dawkins, 2014). According to the case study, it is important for the Unions to challenge the decisions made by the management and make compromises by uniting with the employees to make sure that the strike brings positive results in the form of increased wages along with good and flexible working conditions. On the other hand, the pluralism concept could benefit in evaluating the causes and effects of the conflicts, furthermore allow the Unions to work accordingly for the fulfillment of employees’ needs and preferences and also the employers. The management of employment relationships is possible with the proper collaboration between the ACTU and Labor Government to facilitate the trade unions and employers to take necessary actions and make decisions as well (Arrowsmith & Parker, 2013). Based on the radicalism perspective, the management of employment relationships is also responsible sometimes for creating conflicts and misunderstandings among the employer of the organization and its employees, which can further create more complexities unless proper compromises and negotiations will be made to prevent the industrial dispute as soon as possible.
Unitarism, Pluralism, and Radicalism Theories
The three different types of business strategies introduced by Porter are cost differentiation, cost leadership and focus, which can allow the business to gain competitive advantage and at the same time, ensure that the industrial disputes are resolved. The cost leadership strategy should assist in making the rail network to deliver services at affordable prices and also bring innovation to the services for the management of enhanced value creation along with differentiation of services from the other company products and services (Richardson, 2013). The cost differentiation should allow for keeping the prices competitive and this will allow the clients to chose the company’s services rather than from anywhere else. The strategy of focus ensures focusing on the specific market segment targeting to understand the scopes for higher revenue generation, furthermore meet the preferences of clients properly.
The collective agreements are combined together to manage collective bargaining and this has been done by implementing various laws and regulations to ensure that the employment relationships are managed wisely and a proper connection is established between the employer and employees. Based on the case study concerned with the train strike, collective bargaining or collective agreement has the ability to make employees work as an unit and even engage the Unions, management and Government bodies to make negotiations. By negotiating with the employer, it would be easy to make a decision that should be agreed upon by both the parties and follow the laws and regulations accurately too (Troy, 2016). It should allow the employers to mainta9ng good relationships with the employees and manage the legal rights and obligations too with effectiveness.
There are a set of rules and regulations confined with the standards of National Employment to maintain good standards of wrong circumstances and create flexible working conditions for the employees. Based on the Australian Fair Pay Act, close eye should be kept on the performances of employees and then come to a decision regarding whether to increase their wages or not. The hike should be based on individual performance and must also fall under the laws and rules set by Government to ensure keeping certain limitations and ensure greater workforce functioning (Schulten & Müller, 2015).
- The Australian Fair Pay Act and condition standards should be maintained for fulfilling the requirements of employees such as delivering them the right wages and flexible working conditions
- During the commencement of employment, it is recommended to keep the employees informed about their duties, rights and thing that they need to do
- More scopes and opportunities of employment is recommended to be provided to the female individuals to bring structural changes and improved business performance
- The collection bargaining should e recommended for mapping the employee behavior and monitor the workplace conditions
- Alternative ways of transportation is recommended to ensure that the clients do not face any severe issues to move from one place to another during the strike
- Industrial action process
Strategic planning needs to be exposed towards resolving the conflicts. One of the primary steps in this direction would be to conduct assessment of the causes, which resulted in such conflicts. Aligning with the case scenario, it can be said that the major causes of conflict are inappropriate working conditions, which generated disinterest among the Rail Tram and Bus Union workers. This analysis would assist in seeking effective resolution methods. One such method can be collective bargaining (Moore, 2014). Logical reasoning and judgmental rationality in this direction would result in negotiation for the wages and other employment conditions in case of Rail Tram and Bus Union workers.
Business Strategies Introduced by Porter
As a sequential step, assessment needs to be done for the risk levels of the workers. Following a grievance procedure is crucial in terms of providing justice to the victims. In this case, written claims and requests would reflect relevancy, reliability and validity of the negotiations (Currie, Gormley, Roche & Teague, 2017). Prior approvals need to be taken for filing the written grievance and the claims for justice.
The next step is arbitration, which would reflect the intervention of independent parties. This intervention, further, would enable the government officials and the management to conduct a deeper study of the bargaining situation. This study, further, would help in collecting necessary data from the Rail Tram and Bus Union workers and the opposition party members. As per Diehl & Balas, (2014), this data would be assistance in terms of conducting the steps of conciliation, adjudication and consultative machinery for helping the Rail Tram and Bus Union workers to get their due wage increment.
Along with this, radical approach can be adopted in terms of perceiving the whole situation from the capitalist economic system. Evaluation needs to be done in terms of assessing which approach would be appropriate for preserving the individual employment rights of the employees.
- Adjustments made to prevent the dispute
After referring to the pluralist, radical and conflict theory, it can be said that pluralist approach reduces the managerial burden in terms of regulating the workplace operations. One of the main duties in this context is enhancement of the adjustability levels in terms of preventing the likeliness of occurrence of instances like conflicts and disputes. Ross, (2017) opines that the primary step in this context would be to gain awareness about the needs, demands and requirements of Sydney train clients. Awareness in this direction would assist in acquiring efficient and effective negotiation means. The Union and Tram spokesperson needs to indulge in meetings with the government agencies for this purpose. Intimating the workers about the proposed alternatives would reflect the consciousness towards preserving the “right to information” in case of the employees. Here, proper written notice along, specifying the time duration of this proposal would reflect the reliability and validity of the negotiation process.
According to the opinions of Wiarda, (2016), Time management is crucial in terms of maintaining the balance between all the activities and processes. Preparation of schedules would enhance the awareness in terms of systematizing the process according to their priorities. Consultation with the Transport Minister and the statutory bodies of law needs to be kept on the top priority. Adoption of radical approach instead of pluralistic approach would help in managing the human resource management aspects. Complaince with the standards and protocols of Fair Work Commission would be effective in managing the compromises for fulfilling the demands of Rail Tram and Bus Union workers. However, as the outcome of the case was positive, therefore pluralistic approach would be appropriate (Siebert et al., 2015). However, rightful enforcement would be beneficial in terms of averting the instances of conflicts.
Need for Collective Agreements and Standard National Employment Rules/Regulations
Consultation with the Reconciliation Officers is also crucial in terms of adding fairness to the negotiation process. Within this, adoption of public utility service would be helpful in terms of legalizing the conciliation proceedings. Compromises can be made with the schedules in terms or organizing meetings with the Conciliation Board members. This would be effective in terms of seeking effective negotiation means.
Conclusion
Considering the management of human resources with the inclusion of the case study regarding the industrial dispute, it was found that the low wages and inflexible conditions at work were the main causes of the strike. The workers wanted a hike in their wages, which was ignored by the Government and management authorities and thus the strike was managed by them. The rules and regulations along with the business strategies such as collective bargaining, industrial processes integrated with the international relations theories to overcome the issues. After much negotiations and compromises, it was finally stated that there had to be 3 percent increase in wages and that should e final considering the strike to be withdrawn as early as possible.
For elaborating this segment, first slide has been selected. The basis of selection is the role played by the trade union members in the preserving the individual interest of the employees. Exposure of pluralist approach reflects a mutual understanding between both the parties. However, compromising attitude raises doubts on the role of the management in terms of achieving the identified and the specified goals. Conflicts are inevitable within the business aspects, however, the management needs to be conscious about the differing and conflicting interests of the employees. According to the revelations of the slice, conflicts are considered as “resolvable outcome of the employment relationship” (Johanson & Mattsson, 2015). These conflicts contradict the fairness in the responsibility of the Fair Work Commission.
Both the parties adopted pluralist approach after the suspension of proposed industrial action by Fair Work Commission. This approach reflects the inevitability of conflicts in the process of managing the industrial relations. Application of pluralist approach projects a lower level of managerial role in terms of enforcing coordination within the employees.
Here, one of an important aspect is the role of Fair Work Commission. Awarding minimum wages to the workers is accounted as one of the major duties of the Fair Work Commission. However, the case scenario projects the negligent approach of the management, trade unions and government towards annual pay increment demands of Rail Tram and Bus Union workers. This negligence is a violation for the rules laid down for practising a fair and conducive working environment (Tapia, Ibsen & Kochan, 2015).
Strategic Planning and Assessment of Causes for Resolving the Conflicts
The selection of the slice enhances the awareness of the businesspersons in terms of exposing strategic approach towards preserving the individual rights and interests of the employees.
The main theme of the slice selected is pluralism, which can be counter argued with that of radical approach. This approach perceives the industrial relations from a capitalist society. One of the main function of this approach is catering to the fundamental division between capital and labor. According to this approach, inequalities of power and economic finds its roots in the capitalist economic system. Based on this, conflicts are perceived as the natural outcome of capitalism. Therefore, alliance with the trade unions is a natural responsibilities is an inevitable factor. Along with this, capital exploitation is one of the other aspects, which plays a crucial role (Poole, 2017). Consideration of this radical view by the managers and the governmental agencies would have acted as an enhancement for managerial position. This is in terms of regulating the conflicts in the industries like the one between Rail Tram and Bus Union workers and managers and governmental agencies. Moreover, it would have reflected the intervention of private owners into the business affairs, which would have increased the conflict levels. Countering this, intervention of the trade union members have resulted in wage increment in case of Rail Tram and Bus Union workers although less.
Employment relations differs in their intensity at various levels, which can be understood with the help of industrial relation theories like unitary theory, conflict theory and systems theory. As the main issue of the case scenario is the conflict, therefore conflict theory is selected for elaborating this segment.
Conflict theory proposes that organization is a “coalescence of sectional groups with different values, interest and objectives”. This is true, as the employees within the workplace belong to different socio-cultural backgrounds. According to the conflict theory, it is natural and can be resolved through mutual agreement and collective bargaining (Jackson & Sørensen, 2016). This theory perceives trade unions members as a challenge for the managers in terms of regulating the workplace operations. This seems true in terms of the case scenario. Managers ignored the demands of the Rail Tram and Bus Union workers in terms of wage increments. However, after the intervention of the trade union members, there was 2.5% increase in their wage.
Going through the case scenario, I think all the companies and organizations needs to follow the rules laid down by Fair Work Commission. This is in terms of maintaining the legal standards and protocols in the execution of the business activities. I found that catering to the wage requirements is accounted as the main responsibilities of the Commission. However, I felt that the management and the government official turned deaf ears to the plea of Rail Tram and Bus Union workers in terms of wage increment. I have also found that intervention of trade union members into the business activities, which reflects the adoption of pluralist approach. I think compliance Fair Work Commission is necessary in terms of averting the instances of conflicts. I counter argued the pluralist approach with that of radical approach. This is in terms of regulating the intervention of the intervention of private owners like the trade union members.
Collective Bargaining and Grievance Procedure to Provide Justice to the Victims of the Dispute
References
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