Workplace Policy - Hwer are we now

This lecture will be looking at the scope and significance of industrial relations in Australian politics & society. So the history and how did we get where we are now? Language, rhetoric and symbols of "IR".  This lecture focuses on the detail of the legislation and policy debate. Tension between efficiency & equity. How different are party policies from WorkChoices to Fair Work?

So what's in a name? (Industrial relations, employment relations, human resource management, workplace relations & resilience of "industrial relations") Important relations, industrial relations to some extent are all used interchangeably to cover the relationship between employers and employees. It includes the rules and conditions under which people are employed. It's a broad field that covers all aspects of work and employment.

Industrial Relations is most common in Australian History though in the 80s, industrials relations started to be defined as employment relations. As IR had complications of being in relation to trade unions. The term employment relations was supposed to include the institutional, trade unions and other larger bodies.

Human Resource management is now the preferred term to describe the relationship and study of employment matters. Workplace relations was later defined in the 80s which had a focus on the individual enterprise or the individual workplace - Because that's where the rules and conditions under which people work should be set - At the workplace people would agree on the rules and conditions under which they work.

Scope & Significance of IR - Political and Policy Contest is related to work central to income, status and identity. It is a wide-ranging policy connection involving the labour market, economy, welfare and social security. There are connections with Human rights, democracy and the aspect of people being given a 'fair go.'

Strikes - Represent something of a challenge to the status quo and to authority.

There is a Fundamental Transformation of workplace policy

• Change in Australian industrial relations since 1980s. 
• Liberal WRA (1996) important - but process began with Labor in the 1980s. Work Choices (2005-07) was the fundamental change. 

So how far did the Labor rollback go? 

Arbitration, Awards & Centralised Wage-Fixing - Federal power shared with the states (S.51.xxxv) Arbitration part of "settled policy" and awards and centralized wage fixing: 

• 1904 - Federal Conciliation of Arbitration Act
• The FCoAA was a central aspect of IR for most of the 20th century. Western Australia still has a state based Industrial Relations system. 
• State governments around Australia are pretty much compliant with the Federal IR act except WA which as mentioned above retains it's power. 

Labor in Power - 1983 - 1996 - Centralisation evident in wage indexation was a core aspect of the Accord. External economic crisis, awards & centralised wage fixing impeded productivity and competitiveness. 

• 1986 - Award Re-structuring. 
• 1993 - Enterprise Bargaining. 

Workplace Relations Act 1996

It was introduced as rhetoric, freedom of choice, flexibility and that no worker will be worse off. 

It reduced the role of unions, limited the role of status of arbitration and provided a new direction in individualisation - AWAs (no disadvantage test) - Also assaulted union power - the 1998 waterfront dispute. 

How big was the shift in IR from Labor to Coalition workplace relations reform. 

"A continuation of the existing trajectory of industrial relations reform" ? 

Labor reduced centrality of arbitration - but policy was based on collectivism & representation. 

The Coalition referred to individualisation and union exclusion - but residual elements of collectivism. 

Changing the Employment & IR resulted in polarisation of earnings, decline in industrial action, emergency of the "working poor", longer working hours and the work intensification and perceived job insecurity. 

There has been a tremendous change in the days lost as a result of industrial strikes. It was in the 1000s in the 70s and is now well below that figure. 

The shifts in industrial relations has shown a moved from centralised arbitration and industry awards to a decentralised "enterprise bargaining" system. Most workers union members - is approximately only 18% of the workforce. Wages driven by prices & fairness to where wages a re dependent on workplace change, productivity and a demand for labor. 

WorkChoices - Was introduced as a single national system - changed constitutional basis of Australian legislation. 

Australian Fair Pay and Conditions Standard (Work Choices) - was going to set a minimum on wages by AFPC, the maximum ordinary hours of work (38 hours) can be averaged or annualised. Individualisation extended, AWA facilitated no NDT, agreements must comply with AFPC Standard (may removal all other provisions by agreement), AWAs apply immedately upon lodgment (no approval, certification or 'cooling-off' process). 

WorkChoices limited the collective bargaining & union activities restricted (no requirement for negotiation or collective agreement even if majority of employees wanted one - it left it totally up to the employer) 

Cooper - "WorkChoices was a profoundly anti-union policy. It restricted unions’ ability to take industrial action and to enforce collective bargaining, it made organising non-union worksites much more difficult and it gave employers the capacity to marginalise unions and to avoid unionisation."

Work Choices shifted the power to employers and meant de-regulation in 1800 pages? AWAs used to remove penalty rates, overtime allowances & reduce pay - especially in the hospitality industry. 

The Coalition emphasised Language, Rhetoric & Symbols - Freedom, Choice, Flexibility & Fairness. 

Labor's Policy in 2007 was an election campaign that condemned WorkChoices, but rhetoric less extreme and diluted. The Forward with Fairness: "Fairness is about getting the balance right. The Howard Government's WorkChoices laws went too far in tilting all the rules in favour of one side." IR important factor in the election of 07. 

National Employment Standards involved Fair Work Australia which was renamed the Fair Work commission last year. The Fair Work Act replaced AIRC, Fair Pay Commission, Workplace Authority and Office of Workplace Services. It prevented unfair dismissal provisions for all employees. 

The Election 2013 Policy of the Coalition left out WorkChoices or any work place relations policy. They did however say if there were any changes they would be introduced after the next election. 

Basically the conclusion is more heat than light in IR debate. Continuities evident in policy, but Labor more collectivist, Coalition more individualist. Abbott Government may have other immediate priorities probably more the abolition of the Carbon Tax. 

Employment Policy in Australia

Employment policy in Australia is one of the biggest concerns of government in today's age. Social policy is generally linked to the labour party.

"Employment is the means of earning a living having an identity, acquiring social staus in society and participating in social activities. Employment constitutes the fundamental prerequisite for the rights of social citizenship. An unemployed person is condemned to an inferior status and is deprived of access to resources."

Policy Objectives of Employment Policy include: 

• Increasing human capital. 
• Social protection for individuals and groups. 
• Main focus: Level of employment, workforce skills availability of trained workers to meet industry demand and unemployed people who want to work can get a job. 

Unemployment in Australia is 5.8 % of the labour force. >5% 2006-2008, 4% February 2008, 5.9% June 2009, August 2012 it is currently around 5.1%.

An unemployment graph can be found at tradingeconomics.com.

What's the problem?

If unemployment is actually low compared to most of the world allot of people are saying, what's the problem?

"If the big problem since the early seventies has been finding jobs for people, the big problem with the new decade will be finding people for jobs." ~ Edwards 2004.

Unemployment in Australia is lower than most comparable countries.

"Highest unemployment represents the largest single policy failure of the last quarter century." Stephen Bell, 2004

What's the Problem??? Social cost is 5.8% = 712,400 people or 16.6% are youth (age 15-19), indigenous 16% (2011) and various regional differences. Economic and fiscal cost is unemployment benefits 2013-14 = $9.5 billion. Labour market programs cost $2 billion.

The Australian 2013-14 Budget includes more assistance for other groups within the community such as the aged, families, veterans and those with disabilities.

Further... What's the Problem??? At one level unemployment tracks lots of things such as those that have the Dole bludger syndrome (those that could get employment but take advantage of not needing to work by staying on welfare payments). The workforce has changed over the last 50 years - Incresaed employment of women has led to gender segregation of industry and occupation. There has been a decline in manufacturing employment and an increase in services employment.

The Workforce change... There has been an increase in part-time and casual jobs. Long hours of work for full-time employees - high levels of under employment for others. There's been a decline in full-time jobs with 'standard' hours. Increasing "own account" workers and independent contractors. Growing inequalities in income and work conditions.

Policy Components for Employment Policies - Market direction is relied upon for economic growth and labour price flexibility to better match the demand and supply. Government intervention includes industry policy, labour market programs: demand for labour and supply of labour. (workers)

Generally both parties have utilised both approaches by moving in the market direction. The coalition likely to favour the market (liberals) while labor are more sympathetic to intervention. 

Labour - Priority on skills education and training, connnection between labour force, productivity and social inclusion.

Coalition - Demand for labour = overall economic growth.

Economic Growth - The rate of growth shapes the level of employment. Australian economy needs to grow by 3% if unemployment is to remain stable. GDP forecast: 2013-14 = 2.5% and 2014-15 = 3%. The unemployment forecast is 6.25% on average, June 2014.

Wages - Neo-liberal argument is unemployment caused by lack of labour market flexibility. Lower wages = more employment, Wage increases = more unemployment. But too hard to lower wages - Employers will reduce labour costs by downsizing, casual or outsourced employment, which results in work intensification. Wage-fixing institutions and trade unions prevent a free market - attempts to minimise the role of arbitration and unions.

The Counter argument is no clear correlation between the level of wages and the level of unemployment. Some countries have higher wages than Australia and lower levels of unemployment. Some countries have lower wages than Australia but higher overall unemployment.

Intervention - Industry Policy - Government support needed to boost investment and jobs in target industries.

"If they really wnat ot bring an end to unemployment, governments will have to undertake more public investment and intervene direction to supply jobs."

Labor government (2012) - Some fiscal stimulus went to industry to keep Ford and General Motors in Australia. Assistance to vehicle manufacturing is 'for the good of the economy and the nation.'

Intervention - Labour market programs - Macro/general level is education and training systems & policy push for education to provide employment skills. Child care and parental leave. Micro/individual level is the active labour market programs such as employment services and individualised training.

Election 2013 Labor Launch focused on jobs and training with a 'rapid response' to newly unemployed. Federal construction projects to employ minimum numbers of apprenticies and trainees. Commitment to future of TAFE funding and federal takeover if states don't maintain funding. Jobs and Training boards in 42 regions.

While the Coalition promised one million new jobs over the next five years (1.7% a year) and two million new jobs over the next decade (1.6% increase per year).

"Create Jobs by Boosting Productivity" - Download the Policy

"Unemployment can have a corrosive impact on individuals, families and society at large. In addition to the economic costs, unemployment can be particularly debilitating particularly if for long periods of time. Allowing people who could readily work to stay out of the workforce for long periods is cruelty, not compassion."

Both parties committed to indigenous employment plans, neither party committed to increase the newstart allowance however they both were concerned about international education.

Measuring Unemployment

Concepts include labour force, employed, unemployed, long-term unemployed, very long-term unemployed, participation rate, youth unemployment, part-time work, casual employment, underemployment & underutilisation, hidden unemployment.

Unemployment is measured independently of looking at hte Australian Government social welfare system and is measured by the ABS.

Households selected for the labour force survey are from a selection of 26,000 household, c. 60,0000 people.

Concepts - Employed worked for a least one hour a week or normally worked but on leave etc. Unemployed meant you didn't work for more than an hour and are actively looked for work in the preceding 4 weeks and were available to start work. Unemployment rate is the % of labour force which is employed. 

ABS labour force survey, August 2013 - The Labour Force = 12,360,700 people 54 % males and femals are 46%. The tred over the last 4-5 years has steadily declined since June 2009 but crept back up in 2011 to it's current position, just below 6%.

Long-term unemployed is (0ver 52 weeks). In the 1970s this was around 5% while in 1989 it was around 22% today in August 2012 it was 18.7% and in August 2013 it was 19.6%.

Very Long-term unemployed - over 104 weeks is 9.5%.

Youth unemployment (15-19) is another category - August 2010 (17.3%) and in August 2013 (16.4%) (132,600). Unemployed youth that are looking for full-time work is 26.4%. 

The life of a Strava Athlete

Dressed in tight fitting lycra and swathed in sweat, I travel as far as I can go along a road heading up into the hills of Townsville, knowing my challenge has not yet been met. When there's time for a break, I take a swig of my favourite orange flavoured electrolytes drink, and continue on.
What sets myself apart from other young fitness warriors is the drive to accomplish new heights of achievement, both on foot and on bicycle. Achievements often gained through inadequate experience and training, but achievements nonetheless. It’s a game that has become a new way of life.

I strive to meet challenges that the average health addict, runner or cyclist would take months—years to achieve with normal levels of regular training. I'm driven by the ability to quantify the work I've put in by comparing numbers with other like-minded people through the 'Facebook' of the fitness world, Strava.

It's a Wednesday morning; I wake at 3am and prepare for my morning ritual of a black coffee and a sweet biscuit before I suit up, head-out and start spinning circles. As I head out, I notice that a Strava user I follow has just beaten my personal best (PB) for a segment of road known as "3 Lions." It's not a very popular segment but it's one that I know I can handle — a 1.4km all-out sprint. My friend's results earned him the King of the Mountain (KOM) by completing the segment in 2 minutes and 21 seconds, with an average speed of 36.1km/h. To beat this, I knew I would have to warm-up extensively.

I plan a nice slow warm-up by riding about 30km before attempting the 3 Lions. I determine the best option was to spin into town and head-up Castle Hill, followed by a nice recovery ride along the strand before attempting the 3 Lions.
As I approach the 3 Lions, I gear down and start pushing the pedals hard, transferring power into the cranks and then into the wheels. My speed climbs from 27km/h to 39km/h, a speed I would have to maintain for at least the next 2 minutes. When it's all over just two minutes and 18 seconds later I realise I've won the KOM and will now appear at the top of the Strava’s leader board, with an average of 36.9km/h.

After mentally giving myself a pat on the back, I realised my ride wasn't over yet. You see, I'm taking part in a cycling mileage challenge and need to maintain my position on the leader board. This particular challenge I've joined on Strava requires that I ride 963km in 23 days — an average distance of 41km a day. However, my mindset is to complete the required distance as fast as possible so I can get back to cross training in my other fitness area of running. 

At the top of Mount Stuart in Townsville the destination of one of my recent Strava rides.

You see, last the week before the Strava cycling challenge, I was not a cyclist but a champion long-distance runner, with an average pace of 6 minutes a kilometre. Though my speed may not be up to that of world-renowned marathon runners, I accomplished running 80 miles, a distance of 128km in 10 days, an average of about 12 km per day. What makes this even more astonishing, I suppose, is that prior to this I had only run 20km in the week before.

It begs the question, when do you stop? When do you step back and decide you need to take a break, rather than risk over training? The 80-mile running challenge pushed me over the limit. I self-diagnosed shin splints about 6 days into the challenge, which was probably due to using incorrect running techniques and attempting a half-marathon with a distance of 21km. However despite my injury, the next day I ran a further 8km, just at a slower than usual pace. At the end of the challenge I took a few days rest and then got straight back into cycling, to give my shins some much needed recovery time.

As I looked back at my achievements in these challenges, I discovered I had lost 1kg in weight, improved on my 5km pace and achieved a new 10km PB. Which can otherwise take weeks to improve with 'normal training.'

With new social fitness devices being released just about every 6 months and applications springing up everywhere on smartphones, there's no doubt about the fact that people love quantifying their fitness in numbers. Perhaps it’s because, once we have numbers and data to represent the activities we take part in, we can no-longer lie to our friends or ourselves about our fitness.

If competing in group challenges isn't your thing, perhaps setting a personal challenge like walking or running a certain amount of kilometres is. Walker Alastair Tse who is a member of Quantified Self, a group of people fascinated by taking an interest in self knowledge through self-tracking, has set a goal to walk all of Manhattan. While others such as Matthew Ames transformed himself through the use of various quantified fitness tools like Nike+ and MyFitnessPal in a bid to lose 40lbs of weight in a year.

As for myself, right now I am happy simply completing challenges and getting my name on the first page of leader boards for certain challenges and segments. If I can achieve a KOM it's a bonus. Tracking my fitness has turned my health into a game that's as easy or as hard as I want to make it. I can even inspire my friends to have knowledge through self-tracking their own fitness. I hope that they too can get meaning out of their personal data.

Later this month in San Francisco the global conference, Quantified Self 2013 will allow self-trackers and tool-makers to meet and inspire each other and learn from each other's self-tracking projects and achievements.