L10 - Industrial Relation

• Industrial Relations (IR)


  A multidisciplinary field that studies the employment relationship, connecting economics, law, sociology, and psychology
• Industrial Relations


  • Encompasses human resource management, labor relations, employee rights, and employment law
  • Looks at the relationships between employers, employees, and the government, and the institutions and behaviors that arise from these relationships
  • One primary aspect is the negotiation of wages and workplace standards between employers and unions, also known as collective bargaining
• Industrial Relations


  The functions of ensuring that there is industrial harmony between the Employer (Employer Organization) and the Employee (Employee Organization – i.e. Trade Unions) and the Government (State)
• Industrial Relations


  The relationship between the Employer and the Employee in their day to day working relationship
• Industrial Relations is now mostly called; Employee Relations or Employment Relationship because of the shift from industrial employment relationship
• Main objective of Industrial Relations function


  To create an industrial harmony or create a harmonious relationship between the employer and the employee or their organisation within an organisation and the state
• Approaches to Industrial Relations


  • Unitarist Approach
  • Pluralist Approach
  • Radical or Marxist Approach
• Unitarist Approach


  • Industrial Relations is grounded in mutual corporations, individuals treatment, teamwork and the sharing of common objectives. Trade Unions are regarded as competitors for employee's commitment and cooperation's
• Pluralist Approach


  • Regards conflict as inevitable because employers and employees have conflicting interests. Trade Unions are seen as a legitimate counter to management authority
• Radical or Marxist Approach


  • See industrial relations conflict as an aspect of conflict. The solution to worker alienation and exploitation is overthrow of capitalist system
• Three Main Parties in Industrial Relations


  • Employer
  • Employee
  • Government (State)
• Employer or Employer Association (Management)


  • Their main role is to Buy Labour / Provide Employment
  • Employer Association represent employer interests at industrial tribunals and provide a range of IR advisory services, including award interpretation, dispute handling and how to counter union activity
• Employee or Employee Organisation (Trade Unions)


  • Their main role is they sell labour to employer
  • Formal and powerful organisations that represent and fight for improved terms and conditions of employment (for example pay rise, overtime, bonus, housing etc.) for their members in an industry or in an occupation
• Government (State)


  • Sets legislations to control the relationship between the Employer or Employer Organisation and Employee(s) or Employer Organisation
• Industrial Dispute


  Any disputes differences between employer and a group of or all employee
• Industrial Matter


  Any issues connected with employment such as pay, hours of work, overtime, bonus, condition of work, job security etc.
• Any strikes that is outside the scope of employment is not an industrial issue
• Main Industrial Relations Legislations in PNG


  • Industrial Relations Act
  • Industrial Organisations Act
  • General Order No. 21
• Industrial Relations Process (HR Role)


  1. All grievances and disputes must be settled at the organisational level between management and employee

  2. If the grievances and disputes can not be solved at the organisational level then it is goes outside where the laws are applied to solve the disputes through arbitration, mediations and tribunals

  3. Certain techniques / tools are used such as Collective Bargaining and Awards
• Union and Management Activities


  • Strike
  • Collective Bargaining
  • Award
• Grievances and disputes


  Must be settled at the organisational level between management and employee
• Grievances and disputes


  If not solved at organisational level, go outside where laws are applied to solve through arbitration, mediation and tribunals
• Collective Bargaining


  The process through which representatives of management and unions meet to negotiate a labour agreement
• Award


  Agreed terms and conditions that are agreed by certain union and employer, signed by the industrial register and gazetted, enforceable by law
• Union Activities


  • Strike
  • Bans
  • Boycott
  • Picket
  • Industrial Tribunal
• Management Activities


  • Lockout
  • Injunctions
  • Strike breakers
  • Employer Association
  • Industrial Tribunal
• Management Techniques/Best Practices


  • Democratic leadership style
  • Open door policy
  • Open communication
  • Improved terms and conditions
  • Proper OHS
  • Individual employment contracts
  • Performance based pay
  • Good corporate culture
• Legal Environment


  Influences HRM practices, provides framework and minimum standards for organisations to develop policies, contracts and perform HRM functions
• Types and Levels of Laws in PNG


  • Legislations (Acts of Parliament)
  • Registered Awards
  • Court Judgements
  • Employment Contracts
• Legislations


  Laws made by parliament, including constitution, organic laws, acts, subsidiary legislations
• Registered Awards


  Law made by agreement between parties or imposed by arbitration tribunal, registered by industrial register and gazetted
• Employment Contract


  Law consisting of terms and conditions agreed between parties, subject to legislations and registered awards
• Legislations are superior to registered awards and employment contracts
• Employment contracts must capture what is stated in registered awards and confirm with relevant legislations
• Employment Sectors in PNG


  • Public Sector
  • Private Sector
  • Statutory Organisations
• Public Sector Employment


  Highly regulated by Public Service Management Act, General Orders and other subsidiary legislations
• Private Sector Employment


  Governed by the Employment Act, more freedom for employers to decide on employment practices
• Department of Personnel Management


  Responsible for regulating and enforcing all HRM laws in the public sector
• Department of Labour and Industrial Relations


  Responsible for regulating and enforcing all HRM laws in the private sector
• HRM Laws in Statutory Organisations


  Governed by their own legislations set by the government, but General Orders apply where the law is silent