Of all the case studies and ethical dilemmas that students are asked to consider, this week’s is the most relevant to current challenges facing the manufacturing sector. The Oz Clothing case relates to clothing and textile but is could equally relate to automotive, white goods and even construction sectors. This week’s case asks that you consider the role of a number of key stakeholders in Industrial Relations and importantly the role of Fair Work Australia (FWA) does or could play in industrial relationships and strategic directions for companies OC to Oz clothing Question 5
To discuss the effect of FWA on industrial relations at Oz Clothing can entry with the element of IR. Firstly industrial relations have covered several aspects of industrial life as trade unionism, collective bargaining, workers’ participation in management, discipline and interpretation of labor rules and code of conduct (Christopher 2012). As the globalization, economic downturn and legislative change raised all these contributors have shaped the IR outlook with a re-examination of way it placed.
Fair Work Australia is the national workplace relations tribunal that was established under the Fair Work Act 2009 which carries out a range of functions relating to norm of wage and employment conditions, enterprise bargaining, industrial action, termination of employment and other workplace matters. From one side it set out series of legislation and regulations transition about dismissal applications. Once the employee was dismissed for the reason of draining payroll accounting which was harsh and unjust, if there was no case of genuine redundancy the FWA may get involved to deal with that for general protection (Scott 2009). This mean the strategic direction for Oz is tough to make over its manufacturing sectors and dismiss the rest of workers.
Also in the case study Oz Clothing intend to shut down the low-skilled, labor-intensive manufacturing industry. This would hard to implement as forced by FWA function of facilitating collective bargaining and enforcing good faith bargaining (Stone 2010). Federal government agreement as prescribed by international trade treaties and free trade protection is going to slash the advantage of local textile industry that there is no rely on any assistance such as tariff protection (Nelson 1997). So the manager had to handle the higher company tax and maintain operation of manufacture by their own force.
On the other hand according to Roberts (2005) stated the Rudd labor government arrangements with a greater priority provided for trade union interests. For the Clothing Worker Union against the risk of employment turn-off that will prevent agreements ending and Transport Workers Union can stop Oz form business sell off to the other trading nation. The remuneration politics is difficult to handle and would influence organizational strategy
Meanwhile in terms of awards and award modernization program, the FAW has the authority to adjust minimum wages and award condition with Fair Work Ombudsman. By making and varying awards in workplace relations system, this function would impact Oz Clothing on their cutting operation of Australian manufacturing because the massive remuneration package cannot been covered by executive decision.
Christopher C, Steven R 2012 ‘Industrial Relations a Journal of Economy and Society’, Regent of the University of California, vol 51. Issue 4
Nelson, L.G 1997 ‘Managers and enterprise bargaining’ Asia pacific journal of Human Resources, 35 p.54 Roberts, C. 2005 ‘Me Inc’s challenge’, BRW, 20-25 oct, pp.16 Scott, S 2009 ‘Gillard gets tough with states on IR’, Australian Financial Review, 29 January, p.7 Stone, R J 2010, Managing Human Resources, 3rd edn, John Wiley & Sons Australia Ltd, Milton QLD