INTRODUCTION

There are three (3) topics to this Unit. They are;

Topic 1: Communicate and Implement Organisation’s Industrial Relations Policies and
Procedures
Topic 2: Assist in Minimizing Industrial Relations Conflicts

Topic 3: Enhance Employee Relations

This Learner’s Resource brings together information to develop your knowledge about this
Unit.
In this Unit you will be exposed to the Employee and Industrial Relations systems and
processes. It will give you the opportunity to explore the various Legislations governing
employee welfare, Industrial Awards, Enterprise Agreements, Common Rule, Codes of
Conduct, Employee and Industrial Relations Policies and Procedures.

TOPIC 1: COMMUNICATE AND IMPLEMENT ORGANISATION’S

INDUSTRIAL RELATIONS POLICIES AND PROCEDURES

TOPIC INTRODUCTION AND OUTLINE

This Topic speaks about two (2) important things;
1. Sourcing of relevant Legislation, Awards and Agreements, Common Rule, Industrial
Relations Policies and Procedures, and Code of Conduct. In the first instance, what is
to be communicated or disseminated must be identified, sourced and incorporated into
the existing policies and procedures then only can it be communicated accordingly to
the stakeholders.
2. Implementation of these Legislation, Industrial Awards and Enterprise Agreements,
Common Rules, Industrial Policies and Procedures and Code of Practices. After the
implementation there is again the need to have regular review of these industrial
systems and processes to ensure it is up to date and serving its intended purposes.
Apart from sourcing, incorporating and implementation there is great need to regularly
communicate and promote the organisation’s industrial systems and processes for adherence
at all times.
This Topic describes the performance outcomes, skills and knowledge required to work with
industrial relations systems and processes.
This Topic addresses the knowledge and skills required to represent the
organisation/employer in dealing with employee and industrial relations matters in the
workplace. The Topic covers communicating and implementing industrial relations systems
and processes that meet statutory and legislative requirements; assisting in dealing with
industrial relations conflicts and issues; and generally working towards a harmonious
industrial relations climate within the workplace.
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LEARNING OUTCOMES
At the end of this Topic you should be able to;
 Understand the relevant legislation surrounding employee and industrial relations
systems and processes
 Understand what Industrial Awards, Enterprise Agreements and Common Rules are
 Source and communicate relevant Legislation, Industrial Awards and Enterprise
Agreements, Common Rules, Policies and Procedures, and Code of Conduct to all
relevant stakeholders
 Implement relevant Legislation, Industrial Awards and Enterprise Agreements,
Common Rules, Policies and Procedures and Code of Conduct in accordance with
site, enterprise and statutory requirements
 Develop strategies to effectively communicate with relevant stakeholders on
employee and industrial relations matters
 Promote the organisation's industrial relations systems and processes to relevant
stakeholders
 Represent the organisation appropriately in discussions with key stakeholders.
SOURCING AND COMMUNICATION
Source and communicate or disseminate relevant Legislation, Industrial Awards, Enterprise
Agreements, Common Rule, Employee and Industrial Relations Policies and Procedures, and
Code of Conduct to relevant stakeholders.
There are a number of relevant sources available to you when compiling and providing
advice to stakeholders. Below is a list of such sources and a brief description of their
function:

Employer’s Federation of Papua New Guinea

EFPNG is an independent topmost employers group providing labour and industrial relations
advice and services to over 200 private sector employers of all sizes across a wide range of
industries.
The Federation is a member of the International Organisation of Employers (IOE) and
represents employers’ interests at international forums such as the International Labour
Organisation (ILO) annual International Labour Conference (ILC).

Employee entitlements
There are regulations around employee’s activity in the workplace, such as the hours they
work and how regularly they should have a break. These regulations can be established in
different locations such as an Industrial Award, Enterprise Agreement, Common Rule or
Employment Contract. Employee entitlements are set out in the Employment Act (1978), the
Common Rule as well as the Employment of Non-Citizen Act (1978) and cascaded down to
the various HR policies and procedures within respective organisations. A registered Award
or Agreement, Common Rule or Employment Contract can deliver other entitlements but
must be within the framework of the relevant legislation, like the Labour Law and the
Employment Act (1978).
Pay
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The minimum pay rate for an employee may be set out in an Industrial Award, Enterprise
Agreement, Common Rule, or the Minimum Wages negotiated and awarded by the Minimum
Wages Board within the Department of Labour & Industrial Relations.
The Minimum Wages Board meets after every 3 years in the meeting known as National
Wages Determination review and decides on the wage structure. If you are paid anywhere
outside of the determination then it is appropriate to raise concern with the DLIR.
It is a requirement that employees be paid the correct pay rate for all hours they work,
including time spent:
 Training
 Participating in meetings

 Opening and/or closing the business

 Overtime

Awards and Agreements and the Common Rule

Minimum conditions in the workplace are set out in the Industrial Awards and Enterprise
Agreements as agreed to between the employer and the employees through the workers
union. When an Award, Agreement is in place the employer is obliged to abide by and pay
and uphold any conditions outlined in the Award and Agreement. Where no registered
Agreement exists and an Award covers the business and the work conditions of the
employees, the minimum pay and conditions in the Award will apply.
There are numerous Enterprise Agreements between the various employers and their
employees through the unions. Example the PNG Power Energy Workers Association and
PNG Power Limited. Within the Enterprise Agreements are Awards specific to cluster of
employees and their conditions of work.
Likewise there are Common Rules, like the Port Moresby Common Rule of 1977. Common
Rule is independent of the Employment Act and exists to spell out where irregularities exists
in the Act. It differs across cities and towns and is more practical in terms of calculations.
Conditions can co-exist between the Employment Act and the Common Rule but whichever
is favourable to the employee is applied. With better Awards and Enterprise Agreements and
sound negotiations the Common Rule is mostly silent.

Leave
Employees take leave for a multitude of reasons, such as taking holidays, because they are ill
or to care for sick family members. Minimum leave entitlements for employees are stipulated
in the Employment Act (1978) and Common Rule. A Common Rule comes to light in areas
not spelled out clearly by the Employment Act and is specific to sites or geography. An
Award, Industrial Agreement or Contract of Employment can offer other leave entitlements,
however they cannot be less than what is outlined in the Employment Act (1978).

Ending employment

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Employment can end for a variety of reasons. An employee might resign or be dismissed.
Regardless of the reason, it is important to follow guidelines regarding dismissal, notice and
final pay. Code of Conduct or Ethics are many times non-negotiable; one-strike out that can
see an employee dismissed without notice.
In addition, there are different rights and obligations in cases of job redundancies or when a
business becomes bankrupt.
All these are stipulated in the Industrial Awards, Enterprise Agreements, Common Rule,
Contract of Employment, HR Policies and Standard Operating Procedures. Again the
Employment Act clauses give a general outline to employment cessations and correct payout
calculations. Any dissatisfied employees have the right to seek redress through the
Department of Labour & Industrial Relations.

Best practice for small business

Best practice guides seek to assist small businesses and employees with a host of workplace
issues. By taking on best practice initiatives, employers and employees can achieve a fair and
more productive workplace. The topics and areas of assistance include:
 Work and family
 The right to request flexible working arrangements
 Consultation and cooperation in the workplace
 Use of individual flexibility arrangements
 A guide for young workers
 An employer’s guide to employing young workers
 Gender pay equity
 Small business and the Fair Work Provisions
 Workplace privacy
 Managing underperformance
 Effective dispute resolution
 Improving workplace productivity through bargaining
 Parental leave

Employing people with a disability

There are a variety of services available to businesses to help them with recruiting, training
and employing people with a disability. Department of Community Development and the
many social services and support NGOs (Non-Governmental Organisations) assist employers
with the correct advice when it comes to recruitment and retention of people with disability,
injury or health condition including:
 Policy relating to employment of people living with disability

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 Professional recruitment advice / job matching
 Assistance with role design for employees with disability
 Workplace or off-site support to facilitate new employees with a disability settle
into their role
 Ongoing support for the required period, for both employees and employers who
request support services to maintain their employment
 Disability employment information and awareness training
 Assistance for workers whose job may be at risk as a result of their disability

Department of Community Development assists people to access a host of other financial support
and incentives, such as workplace modifications, assistive technology, mental health first aid
training, a range of awareness training, and social support services.

Employing Non-Citizens
The Employment of Non-Citizen Act (1978) stipulates all requirements necessary to recruit and
employ a non-citizen. Non-citizens are brought in under the underetakings of the Localisation
Policy; to train the nationals to eventually take on the role after 3-years. If the successor is not
identified then the non-citizen is normally given and extended work permit.
The process of work permit applications are processes requiring compliance prior to the
engagement of the non-citizen through the Department of Labour & Industrial Relations.
Passport and Visa applications are through the Department of Immigration. Cancellation is a
reverse of the process.

Maternity and Paternity Leave

This sort of leave provides eligible working parents to take paid leave and prepare for the coming
of a new child or after childbirth. The fathers normally takes less leave days as paternity
leave whilst the mother takes up to a 12-weeks; 6 weeks before birth of child and 6-weeks
after birth.

This depends on what the Industrial Agreement, or as the HR Policy stipulates in the
Employment Contract. The Labour Law and the Industrial Relations Act (1962) stipulates
that.

The Department of Labour & Industrial Relations for Fair Work Environment
Through the various offices within the Department; like the Industrial Registrar’s office, National
Tripartite Consultative Council, Minimum Wages Board and the Arbitration Tribunal

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as stipulated in the Industrial Relations Act (1962) are available to assist employers and
employees develop cooperative and productive workplace relations. It facilitates workplaces
to prevent disputes, as well as helping to resolve them when they do occur. The Department
makes the following information available to employers and employees and provides related
resources:
 The workings of the national workplace relations system
 Minimum wages and conditions by workplace
 Basic rights and obligations according to the legislation
 Assistance with resolving disputes in your workplace

Workplace Gender Equality

Many organisations in PNG with the stern advocacy by the Department of Community
Development & Religion together with the added advocacy from the pressure groups like
NGOs are incorporating Gender Work-Place and Social Inclusion Policy to improve and
promote equality for both women and men in the workplace. The principle objects are to:
 Promote and improve gender equality (including equal remuneration between
women and men) in employment
 Assist employers to remove barriers to the full and equal participation of women
in the workforce, in recognition of the disadvantaged position of women in
relation to employment
 Work towards the elimination of discrimination on the basis of gender in relation
to employment matters (including in relation to family and caring responsibilities)
 Foster workplace consultation between employers and employees on issues
concerning gender equality in employment and in the workplace
 Improve the productivity and competitiveness of Australian business through the
advancement of gender equality in employment and in the workplace.
IMPLEMENTATION OF INDUSTRIAL RELATIONS POLICIES AND PROCEDURES

Now that you have sourced and disseminated or communicated the relevant Legislation,
Industrial Agreement, Code of Conduct, Policies and Procedures the next thing to do is the
implementation, monitoring and review of these industrial relations systems and processes.

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Remember that Policies and Procedures are an incorporation of the various Legislation,
Regulations and Codes of Conduct that have been customized for implementation at
organisational level.
There are many and varied benefits to the establishment, and careful monitoring of workplace
policies and procedures around employee and industrial relations. Well- constructed policies
and procedures:
 Are aligned to the values of the organisation
 Comply with employment and related legislation
 Demonstrate that the business is managed in an efficient and professional manner
 Ensure uniformity and consistency in decisions and operational processes
 Provide validity to the position of staff when possible legal actions arise
 Save time, as issues can be handled quickly and effectively through an existing
policy
 Promote stability and continuity
 Maintain the identity of the business throughout periods of change
 Bolster the agenda for business planning
 Help in analysing performance and maintaining accountability
 Clarify functions and responsibilities

DEVELOPING AND INTRODUCING WORKPLACE POLICIES

Management Support
It is critical to have management support for the implementation or update of a policy,
particularly where policies relate to employee behaviour. The validation and modelling of the
behaviour by managers and supervisors will incite staff to take the policies seriously.
Although management endorsement of a policy is a vital first step before actively seeking
feedback from employees on a proposed policy, the idea for the policy and some of its details
will inevitably come from staff.

Consult with Staff

Engage staff in the development and implementation of workplace policies to
promote greater awareness, understanding and ownership of the outcome. Staff involvement
will also determine how and when the policies may be applied, and will help in identifying
potential unintended outcomes of the policy.
Define the Terms of the Policy
It is important to clearly define key terms used in the policy from the start so that employees
understand the meaning and purpose of the policy. The policy should describe what
acceptable and unacceptable behavior is in the workplace. It is advisable to include specific
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examples to outline problem areas or unacceptable behaviours. There should also be clarity
around who the policy applies to. For example, does it solely apply to employees of the
organisation or to contractors engaged to perform work on behalf of the business? This is of
particular importance with workplace health and safety which protects everyone in the
workplace.
The policy might also require information about what to do if it is not possible to follow the
policy. For example, if there is a policy relating to punctuality, it may be advisable to add a
procedure outlining what to do in cases where the employee is going to be late. In addition,
the policy may contain procedures to uphold the policy in its operation, such as the
implications for non-compliance with the policy.

Example 1: Workplace health and safety

Employee may not commence work, or return to work whilst under the influence of alcohol
or drugs. A breach of this policy may result in disciplinary action, including possible
termination of employment.

Example 2: Email policy

Using the company’s computer server to seek out, access or send any material of an offensive,
obscene or defamatory nature is strictly prohibited and can result in disciplinary action.

Document and Publicize the Policies

To be effective, policies must be documented and publicised or issued to all existing and new
employees, including casual, part-time and full-time employees and those on maternity leave
or other forms of leave. Policies are to be written in plain English and accessible by all
employees. You may wish to look at translating the policies into the appropriate languages
for employees who have English as their second language. Make sure all staff comprehends
the meaning of the policies. Describe how to comply with the policies and the consequences
of not complying.
Training and Referral
Policies may be presented to staff through information and/or training opportunities, at staff
meetings or during the induction process for new employees. Furthermore, they should be

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reinforced and discussed with staff at regular intervals to ensure they remain relevant. Copies
of policies must be easily accessible. Copies can be stored in folders in a centralised location,
or in policy manuals which are available on the organisation's internal system.

Implementation
It is vital that policies are applied consistently throughout the organisation. A breach of a
policy must be addressed promptly and according to the procedures outlined in the policy.
The outcome of the breach should also be aligned with the severity of the breach, be that a
warning, disciplinary action or dismissal.

Evaluation and Review

It is important to evaluate policies regularly to ensure they are current and keeping up with
any changes within the organisation and the business environment. Where policies are
significantly updated they should be presented and emphasised to all staff again on any
changes by describing clearly, ensuring understanding of the organisation's new directions.
These new policy updates should also be widely publicised. A well-developed workplace
policy should:
 Set out the purpose of the policy
 Describe why the policy was developed
 State who the policy applies to
 Define what is unacceptable behaviour
 List the consequences of not complying with the policy
 Record the date of policy development and version number

Policies should also be reviewed regularly and updated as necessary, such as if there is a
change in equipment or workplace procedures. Policies are reviewed normally after 2-3
years. Legislation around employment changes, as do Awards or Agreements, and such
changes may spark a review of your policies and procedures. Below are some common
examples of workplace policies that could assist your workplace:
 Code of conduct
 Recruitment policy
 Internet and email policy
 Mobile phone policy
 Non-smoking policy
 Drug and alcohol policy
 Health and safety policy
 Anti-discrimination and harassment policy
 Grievance handling policy
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 Discipline and termination policy
 Using social media

EFFECTIVELY COMMUNICATE AND PROMOTE THE ORGANISATION’S INDUSTRIAL SYSTEMS

AND PROCESSES

Support the strategies by effectively communicating with relevant stakeholders on industrial

relations matters and promoting the organisation’s industrial relations policies and procedures
to relevant stakeholders.
The team responsible for policy development and management can choose from a range of
methods to ensure effective implementation of employee relations strategies. These include:
 The analysis of risks involved in implementing the policies and procedures and
developing contingency plans for these
 Implementing and/or complying with elements of the Labour Law and the
Industrial Relations Act (1962).
 Ensuring employees have the opportunity to undertake training and development
to enable them to achieve the organisation’s goals

Implementation Planning
The ideal employee relations environment is a robust corporate culture that actively supports
the development of employees. It is crucial that management personnel recognise the
importance of their workforce. When management teams develop an implementation plan for
the organisation’s employee relations policies, it is vital that the culture of the organisation is
incorporated; culture being defined as the shared values and beliefs of all individuals within
that workplace.
For the successful implementation of changes to employee relations policies, the
implementation team should have the support of employees. It is also essential that an
implementation plan offers employees the opportunity to undertake training and development
in order to adapt to the new policies. Management support, and particularly leadership from
the organisation’s CEO, is critical. Employees should understand that their CEO is taking
policy development seriously, and will reward employees who are committed to
implementing the policies and procedures contained within the employee relations plan.

Communication
It is crucial that the plan and its goals are communicated to all employees. Employees should
know what the plan contains and how policies will affect their duties and performance
expectations. In addition, they are required to understand the benefits they will receive by
committing to the implementation of the plan, such as greater flexibility in work hours,
incentives for enhanced productivity, and greater career development through access to
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training and education. Some common communication methods used by organisations in
introducing an Industrial Agreement are:
 Individual conversations with employees
 Periodic formal meetings

Contingency Plans
Employee and Industrial relations implementation plans should include contingency plans to
deal with instances where negotiations with employees over proposed changes break down.
Prior to entering into negotiations, you should assess the possible risks and benefits related to
the negotiation. The contingency plan should identify these potential risks, and explore
methods to reduce their impact on the organisation, its customers and other employees.
In all decision making it is advisable to include as many well informed staff members as
possible in the process, thus increasing the potential of identifying effective outcomes and
risks. Having received input from a range of stakeholders then an informed decision can be
made. Including others in the process also increases the likelihood that there will be a
commitment to the decision. Undertaking a SWOT (strengths, weaknesses, opportunities,
threats) analysis can provide an effective means of assessing both risks and benefits of a
planned change. When composing a contingency plan, it is advisable to consider all the
issues that may affect the success of these plans. These may include:
 Prior relationships with unions or other parties involved in the negotiations
 The availability and willingness of staff to speak on behalf of other employees
involved in any industrial action

You may need to plan for other contingencies, such as:

 Unexpected staff shortages
 Unexpected levels of client demands
 Accidents and/or emergencies
 Legal action taken during negotiations by staff (e.g. strikes or other forms of
industrial action)
Employee Relations Policies
Workplace relations policies within the implementation plan can include:

Proposed solution in implementation plan

Workplace relations issues

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Job restructuring
Restructure workplace

Performance levels of employee Analyse work practices

productivity Introduce technology – supported by training
Provide training and education
Greater involvement in decision making

Provision of training and development opportunities,

including entry level training
Actual and desired level of employee
Offer incentives to employees to gain skills (e.g.
skill (e.g. technical knowledge)
bonuses, opportunities for career advancement)
Encourage teamwork

Employ a qualified trainer / assessor

Allocation of funds for training and development
Actual and desired level of training
and education available to employees Support by management for training
Offer incentives to employees to access training (e.g.
time spent training is paid for, bonuses)

Increase channels of communication between

employers and employees
Degrees of conflict, such as Enhance grievance procedures
absenteeism, strikes and turnover
Job enhancement programs Multiskilling, job-
rotation programs

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Yearly performance reviews

Level of opportunities available to Access to training programs

employees relating to career Training linked to job role requirements and career
progression progression
Clear progression lines (such as organisational chart)

Employment of part-time, casual employees to

augment provision of flexibility
Flexible rostering arrangements / start and finish
times
Amount of flexible work arrangements Flexible arrangements to cater for individual needs
(e.g. family, study commitments)
Providing non-monetary compensation options for
work outside ordinary working hours (e.g. time off in
lieu)

Enterprise Agreements
Enterprise Agreement (or Collective agreement), which is developed by employers and unions or
between employers and employees within a single organisation have specific agreement clauses
for implementation within a given period. Within the Enterprise Agreements there can be Awards
specified to certain cluster of employees in a specified geography or locations. Example,
Enterprise Agreement between PNG Power management and the Energy Workers Union agreeing
to an Award for employees working at high risk areas like Rabaul – due to irregular volcanic
activities.
In the absence of an Enterprise Agreement there can be an Award negotiated specific to a
cluster of employees or jobs. Example the Local Employees Award for Porgera Joint Venture
stipulates employment conditions specific to the employees identified as locals from the
mining area.

Benefits of Agreements
Some of the benefits revealed by organisations after successfully initiating agreements, as
documented by the Department of Labour and Industrial Relations through the Office of the
Industrial Registrar that arbitrates between the employer and the union includes:
 Localisation of positions
 Clear career path and succession plans
 Safety and hardship allowances
 Enhanced flexibility in scheduling and rostering
 Fair and merit based promotions

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 Gender equity and balance
 Consistency in staff costs over a defined time frame
 Decreased levels of absenteeism and staff turnover
 Decrease in overtime payments
 Equitable and fair pay systems
 Greater productivity from well trained and motivated staff

Determining the Type of Agreement

In choosing the type of agreement to compile you may wish to consider the specific
requirements of your organisation. Such considerations include:
 Does the current award meets the specific needs of the organisation / does the
employer need to know the cost of labour
 Financial turnover and the economic conditions – the organisation’s ability to meet
the agreement once it is agreed and signed
 The existing levels of staff turnover – must be negotiated with each new
employee, certified agreements encompass all new and existing employees
 Concerns around confidentiality – are confidential documents, whereas certified
agreements are public documents
 Is it more advantageous for the organisation to customise conditions for the
requirements of each employee or a cluster of employees
 The importance of focusing on workplace issues – agreements allow for general
policies to be collectively negotiated
 Location and allocated time – agreements are approved by the Department of
Labour & Industrial Relation’s Office of the Industrial Registrar.

REPRESENTATION AT KEY STAKEHOLDERS DISCUSSIONS

Represent the organisation appropriately in discussions with key stakeholders. In a developed
country like Australia it has approximately one million employers, who engage over ten million
employees and contractors in an ever changing labour market that is diverse, complex and
continuously evolving. Contemporary workplaces increasingly mirror the mutual aims of industry
and the workforce, employers and employees. Employer representative groups across Australia
have initiated policy units that collaborate with organisations to ensure that employing enterprises
are provided a fair platform in providing more jobs, reward for effort, flexible and diverse
working conditions that are sustainable and address the requirements of business, employees and a
safe working environment.

In comparison to Papua New Guinea, most of the negotiations surrounding employee welfare
and job conditions are entrusted with the management team with the advocacy of the human
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resource management department. Many organisations and a cluster of industries have rallied
behind the industrial unions, like the PNG Waterside Workers Union, Construction &
Builders Union, that is affiliated to the mother union, the Trade Union Congress, who support
negotiations with the respective employers.

An accepted set of standards of behaviour and norms that act as foundation for rights and
responsibilities in the workplace are paramount. These standards should not however detract
from individual or enterprise flexibility in workplace agreements. It is important for society
to promote the freedom of association and respect for the representative role of responsible
trade union activity. This approach allows enterprise large and small and employees and
contractors to customise remuneration and working arrangements in a manner that offers the
organisation and its employees every chance to develop and succeed. The functions of such
group representative workplace policy units include:

 Providing forums for workplace relations experts to meet and deliberate industry
views on proposed workplace legislation, regulation and industrial relations awards
 To advocate and represent the views of employers and employees on industrial
relations matters before governments, parliaments, regulators and tribunals such as
Minimum Wages Board, Public Services Conciliation & Arbitration and National
Tripartite Consultative Council
 Develop industry views and act as representative on wages policy and minimum wage
reviews
 Support industry representatives from varying sectors and regions to exchange
information about best practice and productive workplace relations Represent PNG
employers at international forums such as the International Organisation of
Employers (IOE), the Confederation of Asia Pacific Employers (CAPE) and the UN
style’ International Labour Organisation (ILO) based in Geneva, Switzerland.

Publicise the benefits to both industry and the community which result from safe work
systems workplaces with good safety records
 Represent the interests of employers or employees on matters concerning health and
safety, such as advocacy to governments, parliaments and regulators such as the PNG
National Safety Council
 Monitor and advise organisations of important decisions by courts and tribunals on
matters concerning employment and workplace regulation

 Foster workplace participation, inclusion and diversity through principles of equal

opportunity and a framework of anti-discrimination legislation that reflects a
modern society

Common Policy Unit Objectives:

 Strive for legislative reform which will permit greater flexibility and efficiency
within workplaces

 Educate political parties, and the community in general, of the necessity for
continuous labour market reform as technology and society evolve

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 Eliminate misconceptions about the effects of labour market reform

 Secure coordination of legislative measures taken at federal and state/territory levels

 Uphold principles of freedom of choice for employers and employees in their

workplace arrangements

 Support the development of enterprise agreements and individual agreements

TOPIC 2: ASSIST IN MINIMISING INDUSTRIAL RELATIONS CONFLICT

TOPIC INTRODUCTION AND OUTLINE

Minimising industrial relations conflict in an organisation is not just the responsibility of the
HR Manager or HR practitioner. It is every managers and supervisors, those who are
responsible for managing others or subordinates.
Why and how is that so? It is better to be proactive; taking every precautions when dealing
with employee and industrial relations matters that may trigger an industrial conflict or
dispute. Example; job dissatisfaction over pay issues may lead to major industrial conflict.
Every managers and supervisors must deal or manage their subordinates in the best possible
way by explaining to them the employee and industrial relations policies and procedures
pertaining to their employment conditions and welfare issues. The HR department is
responsible for ensuring that those policies and procedures have been communicated and
made available to them in the first instance.
No one is saying here that there cannot be any industrial disputes. We all see and interpret the
world differently, hence employees will still interpret the policies and procedures the way
they understand it. What is expected here is; keep the conflicts at a minimal by assisting to
minimize it to a manageable and acceptable level.
In the Topic you will explore some of the common or foreseeable ways in how you can assist
in keeping the industrial relations conflicts at a minimal. The learning outcomes below spells
out those areas you’d be exposed to.

LEARNING OUTCOMES
At the end of Topic 2 you should be able to assist in minimizing industrial relations conflict by;
 Monitoring the implementation of industrial relations policies and procedures
 Process and report to management on potential industrial relations conflict
 Prepare and forward documentation to management and other relevant parties about
potential industrial relations conflicts
 Work in conjunction with managers to contain industrial relations conflicts
 Work with employees to resolve personal grievances and to prevent escalation of
industrial relations conflicts.
These objectives are to be reviewed at the end of this Topic.
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DOCUMENT PROCESSING AND REPORTING

Process documentation and report to management and other relevant parties about potential
industrial relations conflict.
Conflicts and grievances that are not adequately addressed result in higher levels of
absenteeism, low worker morale, reduced levels of productivity and a higher staff turnover.
To deal with conflict effectively, management teams must initially develop the skills to
identify potential grievances or conflicts.
Methods to resolve workplace issues must be established and it is important to put in place an
identified person or team within the organisation to oversee the management of these issues.
A formal process should also be documented so that employees know how and when to
express their grievances. Key terms are as follows:
 Conciliation: a process of proposing options for a solution or pathways to a
solution to resolving a dispute
 Grievance procedure: a formal procedure that allows employees to know when
and how to express their grievances
 Mediation: a process of negotiating a mutually agreed solution between parties
engaged in a dispute, whereby the facilitator is neutral and does not provide
potential solutions or advice.
 Procedural fairness: the principle that the process is fair
 Substantive fairness: the principle that the final decision is fair
 Workplace culture: the common values and beliefs of the people within a
particular work environment
Documented grievance procedures
The HR policy is required to contain a grievance procedure. In developing a grievance
procedure, it is vital that it is both procedurally and substantively fair, this meeting the legal
requirements as stipulated in the Labour Law and the Employment Act (1978).

Complaints offer a valuable opportunity to address potentially damaging conflicts and retain
a productive workforce. Grievances should be handled sympathetically, seriously and with
the appropriate level of sensitivity. A grieved individual does not receive a fair hearing when
their complaint is dismissed as inconsequential or trivial.

Legal responsibilities
In order to adequately address employers’ legal responsibilities a grievance procedure must:
 Be in writing, easily understood and communicated to staff, incorporating
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any special requirements (eg available on audio / video, placed on the
company’s website, Auslan interpreted, etc.)
 Be user-friendly and accessible by all parties
 State the time limits for grievance handling
 State that grievances are handled fairly, confidentially and void of
unfair repercussions
 Offer a range of entry points so that staff feel comfortable coming forward
 Identify the steps to be taken, and which roles are involved in the management of
the grievance

SUPPORT TO MANAGERS AND SUPERVISORS

Support the managers and the supervisors to contain industrial relations conflict and deal with
grievances and disputes, within limits of delegated authority.
Summarise Grievance Resolution Policy and Procedures
For a grievance to be resolved effectively, it is crucial that staff responsible for resolving the
grievance have the authority and skills to do so. Following are suggested strategies to achieve
adequate outcomes:
 Provide all parties to the grievance access to support such as legal representation,
counselling, interpreters and/or union representation
 Identify the types of solutions which should be reached, ensuring that grievance
resolutions are consistent
 Review only the relevant information, particularly where the grievance may
result in disciplinary action
 Indicate where the records will be kept and which personnel will have access to
these
Offer an internal appeal system, and issue information on external avenues for advice, should
the individual be dissatisfied with the internal grievance procedure or outcome

Grievance Outcomes
A well designed grievance procedure should comprise of the following:
 An amicable method of conflict resolution that decreases industrial action and
promotes greater stability
 Timely and effective results
 Enhanced communications and working relationships
 Employee engagement and consultation in the workplace

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 Greater productivity and efficiency of the organisation
 Resolution of issues arising from workplace change programs
 General emotional wellbeing, performance and morale of employees

Formal grievance policies should be validated by both employers and employees to be truly
effective and must resolve grievances within a specified time frame. All grievances
regardless of their nature must be taken seriously. Staff who are trained in this area should
deal with issues in strict confidentiality.
Work with employees to resolve personal grievances and prevent escalation of industrial
relations conflicts
It is an inevitable element of your role that dictates that you will need to resolve a conflict
situation in your workplace. You may encounter conflict with:
 Personal or professional differences between employees
 Dismissals or redundancies
 Challenging customers
 Motivating low performing staff
 Assisting employees perform at a higher level

There are a numerous ways that conflict is expressed within the workplace. It may manifest
through the industrial action such as strikes, high levels of absenteeism, or increased levels of
staff turnover. The ability to identify potential conflict is a crucial management skill, and
providing methods for the early resolution of conflict through a well-designed grievance
procedure is paramount. Managers are expected to possess the skills to manage these forms
of conflict. Conflict management skills include:
 Negotiation skills
 Conciliation and mediation skills
 The ability to address difficult situations using legal remedies
 Knowledge of your own responsibilities and who you need to notify when the
issue extends beyond those boundaries
 The ability to work within specified time frames.
 Being sympathetic to how conflict impacts on yourself and others
 Promoting the development of effective problem solving skills
 Highly developed communication skills specific to conflict resolution

Along with formal grievance policies and procedures, conflict management training can focus
on providing employers and managers with skills in conciliation and mediation. Both
methods can be utilised to resolve a conflict or dispute between two or more parties.

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Conciliation
The role of the conciliator is to play an active part in the resolution of a dispute, usually by
offering options for solutions or pathways towards a solution. The conciliation process is
flexible and may be as formal or informal as each case demands. The advantage of this
approach is that if it results in successful outcomes, it enables all parties involved to learn
how to manage their relationships and resolve their own conflicts.

Mediation
Mediators are often required in cases where two or more parties are engaged in a high level
dispute which may result in industrial and/or legal action. The role of the mediator is to guide
the parties to negotiate a mutually agreed solution. The mediator must remain neutral, and
does not offer solutions or advice. His or her primary role is to assist the parties involved in
to talk their way through the issues and find a realistic solution.
This may be helpful within an organisation where employees are experiencing problems
working collaboratively or where there are claims of discrimination or harassment. These
issues can be potentially damaging to the staff members concerned and the organisation as a
whole. They can also prove very expensive to pursue through legal proceedings. In such
instances, effective mediation provides a structured negotiation, resulting in an agreed
outcome.

SOURCING OF SPECIALIST INDUSTRIAL RELATIONS EXPERTISE

Work under supervision to source specialist industrial relations expertise.

Identify Sources of Expert Advice

There are times when the dispute resolution procedure in the workplace fails to resolve the
grievance or conflict. In such cases, you may be required to refer the matter to the Office of
the Industrial Registrar within the Department of Labour & Industrial Relations or the
Industrial Relations Division within the same Department. In this situation, the employee
may refer to specialist, expert assistance in the form of legal or union representation.
Employers may also engage external specialists, such as an industrial relations expert, or an
employment advocate, like the Employers Federation if they are registered with the
Federation, operating privately or under the commission of an employer association. Other
services include conciliation assistance provided by the state and federal Industrial Relations
Commission.

Employer Options Under the Act

In instances of industrial action, the Labour Law and the Industrial Relations Act (1962)
provides employers the following list of options:
 Orders to prevent or stop industrial action
 Penalties
 Damages and injunctions
 Orders to stop or prevent industrial action
Employers can apply to the Courts for an order to stop or prevent industrial action. The

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Courts may then issue such an order if there is actual or potential industrial action in the
following categories:
 An industrial dispute
 The negotiation or proposed negotiation of an Industrial Award or Enterprise
Agreement
 Any work regulated by an Industrial Award or Enterprise Agreement.
Penalties
The Industrial Relations Act 1962 does not permit industrial action to occur during the period
of an agreement. Should an industrial dispute occur during this period, employers are in their
rights to seek either a redress or an injunction to stop the action.

Damages and injunctions

Employers, after attempts through the tribunals set up by the Department of Labour in the
instance of industrial disputes, may to take legal action seeking Court for damages or an
injunction for a breach of common law for instances such as unlawful interference with their
trade or business. A restraining order can be sought in the Courts.

TOPIC 3 – ENHANCE EMPLOYEE RELATIONS

TOPIC INTRODUCTION AND OUTLINE

This final topic in this Unit is indeed the first topic when it comes to Employee and Industrial
Relations as a functional area in human resource management.
Employee relations is within the organisation whilst industrial relations is outside the
organisation. They both work towards creating a harmonious working environment between
the employer and employees.
If the employer can successfully contain any disputes, grievances, dissatisfactions within the
organisation through bi-partisan approaches with the union, correct employee relations
advices, clear policy processes and procedures and sound human resource management then
there can be assurance that conflicts will not evolve into an industrial dispute.
Employee relations and industrial relations must complement each other.
In this Topic there a 5 sub-topics identifying ways to improve or enhance employee relations.
You will have the opportunity of learning how to enhance employee relations through;
1. Trial and implement strategies to monitor the implementation of the organisation’s
industrial
relations policies and procedures
2. Implement strategies to facilitate feedback on the industrial climate
3. Implement strategies to strengthen relationships with relevant persons and groups
4. Provide information and feedback to management on industrial relations
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5. Provide information and advice to relevant persons and groups

LEARNING OUTCOMES
At the end of Topic 3 you should be able to;
 Differentiate what employee relations is as to what industrial relations
 Identify and apply the various ways in enhancing or improving employee relations in
organisations.
 Understand the 4 different methods of promoting policy within an organisation

IMPLEMENTATION OF ORGANISATION’S EMPLOYEE RELATIONS POLICIES AND

PROCEDURES

Trial and implement strategies to monitor the implementation of the organisation’s employee
relations policies and procedures.

Background
Satisfied employees are generally also productive employees. Successful businesses will
invest time and energy into employee relationships to build lasting employee satisfaction.
Employees for the most part wish to communicate and work with others to fulfill their roles
and attain set goals. To be successful, employers must develop methods to manage
relationships in the workplace in order to keep the business functioning smoothly, avoid
internal employee relations issues and make sure individual employees are performing at
their best.
Employee relations is defined as managing employer-employee relationships. Typically,
employee relations is a term used to describe an organisation’s efforts to prevent and resolve
issues arising from situations at work. The goal of an employee relations plan is to increase
employee satisfaction and maintain healthy morale among workers. Motivated workers are
typically more productive and higher productivity results in better outcomes for the business.
An organisation with effective employee relations provides fair and consistent treatment to all
employees in order that they remain committed to their jobs and loyal to the organisation.
Employee relations plans are generally part of a human resources strategy designed to ensure
the most effective use of people to accomplish the goals of the business. Human resource
strategies are deliberate plans organisations use to maintain a competitive edge in the
marketplace.
Elements of Good Employee Relations
An effective employee relations plan begins with clearly written policies. Employee relations
policies describe the company's philosophy, rules and procedures for focusing on employee-
related matters and resolving conflicts in the workplace. Most middle to large size
organisations have one or more employee relations representatives who work in the human
resources department and ensure that company policies are followed in a fair and consistent
manner. Employee relations representatives listen to employees and managers, and work with
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both groups to address concerns.
Employee relations is not a holistic solution to all workplace problems. Strategies for
effective employee relations can take many forms and vary by a number of factors, including
industry, location, size of the organisation, or individual leadership values. Issues that
concern construction workers for example, can be significantly different from the concerns
facing nurses or accountants. There are however some common elements that transcend
boundaries to contribute healthy employee relations in any context.
Possibly the most important element for successful relationships with employees is
communication. To feel engaged in the organisation, employees need to be informed of the
direction and performance of the organisation, including management plans and how those
plans may affect their role. Management personnel can keep workers informed of the latest
developments by numerous means, such as email announcements, newsletters, employee
portals, regular meetings and seminars. Effective communications are consultative in that
employees should feel as though their opinions and concerns are being heard by managers.
Open channels of communication can be informal, such as every day interactions between
employees and managers, or formal mechanisms for employee feedback, such as satisfaction
surveys or grievance and appeals procedures.

FEEDBACK ON INDUSTRIAL CLIMATE

Implement strategies to facilitate feedback on the industrial climate and Provide
information and feedback to management on industrial relations.
Employee Relations teams or ‘units’ can provide workers with advice relating to workplace
conditions. Functions of employee relations units typically include:
 Administer Recruitment
 Administer Senior Appointments
 Administer Academic Promotion
 Provide relevant employee relations or industrial advice in respect to:
o National employment or industrial issues and employee relations
directions
o Ongoing support, assistance or advice on organisational restructuring and
change processes
 Provide advice and support to staff on work related issues and assist staff to
resolve workplace issues at a practical level
 As required, facilitate the resolution of workplace disputes or conflict whilst
maintaining confidentiality
 Administer Enterprise Agreements, employment conditions and relevant policies
and procedures
 Assist with the development of Enterprise Agreements concerning Workplace
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Relations or Employee Relations
 Consult with staff and if requested, their representatives, in relation to employee
and industrial relations issues

For feedback to be valuable and productive, employers must pay close attention to potential
consequences that can occur once it has been provided. Constructive feedback generally
strengthens employee relationships by creating higher levels of trust, honesty, and genuine
concern for staff welfare, professional development and growth.
Feedback constantly needs to be re-visited in order to determine its degree of agreement. This
process is defined as consensual validation. Consensual validation is a measure of the value
of the feedback to both the sender and receiver. If the receiver of feedback is not certain
about the provider’s motives or intent, the uncertainty itself constitutes feedback. As such,
outlining in detail the need for feedback should be completed before other problems begin to
occur. Particularly in the workplace, where the feedback may have a diverse range of
consequences on performance or staff morale, it is vital to check one’s feedback for message
content and factual data to ensure that effective communication is taking place. A common
method of achieving this is to ask the receiver to rephrase the feedback.
Regardless of the intent of the feedback, it remains potentially threatening and can be subject
to distortion or misinterpretation if not clearly presented. It is important to be aware of
various negative responses to feedback in order to react to them appropriately when they
occur. Following certain guidelines for providing effective feedback can help to minimise
negative reactions to it, particularly critical or necessary intervention types of criticism.
Managers, mentors and supervisors can expect themselves and their employees to
automatically react in a negative manner to what they deem as intimidating or threatening
feedback. This reaction can take various forms, such as:
 Doubting the giver’s intentions or motives
 Selectively receiving or perceiving the feedback message in a biased manner
 Rejecting or contradicting the facts presented as part of the feedback
 Reducing or diminishing the feedback’s impact
 Arguing with, or verbally attacking the individual that is offering the feedback

Receiving Feedback in a Positive Manner

The first step to receiving valuable, reliable feedback is to actively solicit it. As part of the
process make certain to:
 Maintain your self-confidence whilst receiving feedback
 Maintain a sound, professional rapport with the individual giving the feedback
 Apply active listening throughout the discussion, such as paraphrasing and
stating your understanding of what you are hearing
 Summarising the information provided
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There are a number of key strategies that tend to enhance the productive feedback process:
 Focus the discussion on the information required
 Apply open-ended questions as they are the most effective in expanding the
discussion
 Use closed-ended questions to prompt for specific responses
 Promote ongoing dialogue via eye contact and positive facial expressions. The
process involves nodding in agreement, leaning forward more closely toward the
other person, and making verbal statements in order to acknowledge that what is
being said or stated, is heard
 Confirm your understanding of what you are hearing by briefly paraphrasing what
the other person is saying
Once the key points have been summarised, gain agreement on the next steps. In addition,
make certain to show appreciation for the effort made so far.

STRENGTHENING RELATIONSHIPS
Implement strategies to strengthen relationships with relevant persons and groups
According to the Australian Bureau of Statistics, there are on average around 200 industrial
disputes each year in Australia. This also amounts (in part) to an average of 150,000 lost
working days each year. For unions, maintaining an antagonistic approach towards employers
has been to some degree an effective way of spurring support amongst a union’s members,
but it also acts as a way of keeping employers on their toes. If all corporations were co-
operative and collaborative at all time, the relevance of unions would be diminished.
That may go some way to explaining why union membership in Australia has declined so
dramatically over the past decade. Employers have made vast improvements to their
employees’ rewards, flexibility, and working conditions. Thus, a large proportion of
Australian workers no longer see the benefit of union membership and its associated fees.
That stated, some industries still experience persistent industrial disputes. The road towards
ideal collaboration must start with unions and employers perceiving each other as partners,
not adversaries. Both parties should understand that the other side is not aiming to defeat or
trounce the other. Unions and industry recognise that their interests are interlocked such that
neither can succeed without the other, there is a footing for an effective partnership.
Trust
This is thought to be the most relevant factor. It involves the sharing of information, acting
on promises, maintaining confidentiality, resolving conflict, and being honest.
Communication
This requires an energy from both sides to engage in formal and informal discussions and
consultative meetings. Unions should be welcome to make site visits, and managers equally
should trained on industrial relations.
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Employee voice
This is an understanding that unions are best placed to represent the rights of employees, and
decisions made by an organisation’s managers are carefully deliberated in regards to their
potential impact on employees.
Respect for the regulations
Certified agreements are in place and stipulate the terms and conditions of the relationship.
Unions veer away from an adversarial strategy and escalate matters only as a last resort.
Individual professional credibility
Managers display a respect for the role that unions play in the workplace, and in turn union
representatives hold managers in high professional esteem.
For all the scrapping that occurs between unions and employers publicly, there are hundreds
more that are resolved quietly, constructively, and successfully.

PROVISION OF INFORMATION AND ADVICE

Provide information and advice to relevant persons and groups.
There are four key methods of promoting policy within an organisation. They are as follows:
Newsletters
A newsletter is a very effective, non-threatening means of communication. Well-constructed
and presented, a newsletter can provide a vast range of information to staff and management.
Newsletters can be used to update staff with news and current activities within the workplace
and associated stakeholders and customers. They can be used to provide written information
about new initiatives, report on successful projects, and look towards the future. Employee
relations are an overarching philosophy in any organisation, and a newsletter can be a vehicle
for taking a vision, and communicating it to staff. It can be used to promote ideas, and
illustrate how past ideas have worked, and strategies that are in place.
The newsletter is perhaps less threatening than many other promotional or communication
tools. It can be used to remind staff of any specific policies or workplace issues, without
singling out anyone individually. One of the limitations of a newsletter is that often it may be
dismissed as unimportant by staff, and as such may not be read. To overcome this issue, you
may wish to include other information on social events within the organisation, along with
important quality industrial relations news.

Workshops
Workshops are formal training session that can be utilised to provide information in an
interactive environment. You can use a workshop to deliver news and current events, and
allow staff to try activities and exercises based on the information provided. Workshops can
often require substantial preparation, particularly when developing a range of activities. That
stated, if you allow staff to experiment with new initiatives before they are formally
introduced into the workplace, they will provide valuable feedback and be more receptive to
its implementation. Workshops also allow input into the development of new policies and
procedures, whilst concurrently allowing trainers to encourage those staff members who may
be reluctant to get involved.

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Forum Groups
Forum groups may be the most interactive form of promotion undertaken in the workplace. In
a forum group, members are encouraged to exchange and explore ideas among themselves
and also with management personnel. A forum provides a platform for everyone’s ideas to be
heard without judgement. It is important that any new initiatives remain the most important
component of the forum discussions. This may lead to the establishment of a facilitator or
chairperson to ensure control is maintained and the group stays on topic. Forum groups are
valuable in promoting initiatives that may not be entirely popular. This is because they allow
for discussion, so those opposing an idea can present their views, and this can be discussed in
an open and positive environment.

Presentations
Presentations, be they applied with the use of videos or computer slides, are a non-interactive
means of training for the most part. In this sense they are like newsletters, but with a human
presenter. This method can support question and answer components, however discussion is
usually not encouraged in a conventional style of presentation. This method of promotion is
effective in cases where the initiative is simple, and can be briefly presented.

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