The WRA has brought upon some positive advances into the workplace, namely flexibility, an efficient avenue to negotiate wages and conditions, decrease in trade union influence, increase in worker participation & the opening of communication lines, improved time utilisation and anti discriminatory policies. Increased flexibility comes from enabling employers and employees to choose the most appropriate form of agreement for their particular circumstances. This may be experienced in the form of family friendly policies (telecommuting, child care facilities, and part time/casual work) or through such schemes as maxiflex, flexitime, study leave and job sharing. This is recognised as important due to the longer hours worked & higher levels of stress associated with many occupations.
Businesses have realised that they can save millions by retaining good quality staff through appropriate and flexible strategies. This is shown in the example of the NRMA. In the 1980s, inflexible contracts were in place and staff turnover was at 35% which was costing $6 million pa in recruitment, induction, training and separation fees. By 2000, an overhaul of work practises which created flexibility for families was inducted. This reduced staff turnover to 24% and saved $2 million pa. As can be seen from this example, as an employee, you are now more likely to stay with the same company for a longer period than previously done so, as well as make use of a flexible work agreement.
Increased flexibility has also supported the reintroduction to the workplace of mothers after the birth of their children through the ability to negotiate part time contracts or job sharing schemes with employers. This is evident through the growing feminisation of the workforce at present.
The WRA has decreased the influence trade unions have on employees as the roles and responsibilities of trade unions have been significantly reduced. ‘Closed shops’ are now illegal, industrial action (striking, bans, go-slows) is only permitted during a protected bargaining period, and it is no longer mandatory to negotiate CAs or AWAs with unions. There is now no obligation to join a trade union, and employers are forbidden to discriminate against union and non-union employees (freedom of association). As a result, unnecessary demarcation disputes have been significantly reduced, creating more efficient workers. Current figures show trade unionism is declining.
The mass introduction of enterprise agreements has greatly encouraged high industrial democracy. This allows for the greater recognition of individual performance through individualism and self regulation, as well as the ability to be involved in profit sharing schemes (just as Kennard’s Hire did last year with its employees, as well as when the Commonwealth Bank issued $100 million worth of shares to its employees from 1996 to 1999). The increased amount of AWAs processed also denotes more interaction with the Employment Advocate (EA). Positive changes in workplace moral can be easily distinguished as problems can be aired and the power relationship between employees and employers is modified. Enterprise bargaining can lead to greater personal & social opportunities in a worker’s life.
If disputes do arise in the workplace, they can be settled relatively quickly and efficiently without the need for a third party (which can be costly in monetary terms, as well as time wise). Thus, employees now have less contact with the AIRC as arbitration and conciliation are discouraged and their occurrence is decreasing. There is also the tendency for fewer disputes as the agreements have been decided upon by the employees themselves, and not forced upon them. Thus, there will be less striking and other forms of overt and covert industrial action, and workers can experience higher productivity. In turn, a greater trust will develop between employers & employees, moving from a radical (Marxist) perspective to a unitary employment perspective.
One of the aims of the WRA is found in section 3j - to respect and value the diversity of the workforce by helping to prevent and eliminate discrimination on the basis of race, colour, sex, sexual preference, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion and political opinion. As Australia is one of the most multicultural countries found in the world (> 40% of employees in Australia were born overseas & have a foreign ancestry), and as we are an aging population, it is often that employers discriminate when recruiting against people because of one of the reasons above. This type of discrimination can be seen in the case of Qantas Airways Ltd vs. Christie → Qantas was forcing Mr Christie to retire at 60, but under section 170DF of the WRA, this was illegal. The act also encourages firms to take on young workers as it allows junior rates of pay to be included in awards and agreements. Reducing discrimination in the workplace signifies advancement in ethical ER practises and provides hope for the younger, older and disabled workers in the workplace.
However, the WRA does bring about some negative effects to people’s work lives in Australia, namely wage differentiation and restructuring effects. The WRA separated workers into three streams for the purpose of employment contracts:
- Award system (those with little bargaining power)
- AWAs (independently negotiate with employer)
- CAs (negotiated through union via collective bargaining)
To some extent, the WRA leads to a wage increase differentiation between workers covered under the award system with little bargaining power (eg cleaners) and those covered by enterprise agreements (EAs). Those covered by EAs have more bargaining power, and are thus able to negotiate more superior wage increases (often by several percent). They also have the potential to gain better conditions as those in stream 1 (above) are now affected by asset stripping (can hold only ‘20 allowable matters’ – simpler for employees, but a reduction from when the centralised system was in place).
The move to a more decentralised ER format threatens the job security of employees. Many redundancies and sackings have resulted from businesses restructuring and flattening or completely removing hierarchies through downsizing and outsourcing. This is noticeably evident during the 1998 Waterfront issue, as well as when the Portland’s Avoca Smelter cut its workforce by 50% when it introduced enterprise agreements.
The Workplace Relations Act 1996 is a development in employment relations which has had the most significant impact on people’s work lives in Australia. Employers and businesses have been able to competently handle the changes brought forth by it. Never before has one development or statute concerning employment relations and business law directly affected so many individuals’ work lives so rapidly.
