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Fiona Le

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Based on their statements about the workplace and employment relations during the election
campaign, what are the theoretical assumptions that the newly elected government bring to
employment relations? Discuss some of the implications of that perspective.

The newly elected government brings a theoretically unitarist stance to employment relations based
on its statements about workplace and employment relations. Under a unitarist framework, the
workplace is fundamentally viewed as an integrated and harmonious entity, existing between
employees and management, with no inherent conflict present. A tightened approach to reduce
union militancy, increased access to individual flexibility arrangements (IFAs) within collective
bargaining agreements and a reformed paid parental leave scheme are key indicators that the
Coalition government is assuming a unitarist perspective. The implications of the unitarist
perspective implies that the Coalition government would be likely in the future to introduce policies
that would increase productivity, further decrease the role and legitimacy of unions and increase the
prominence of individual workplace agreements.
The unitarist perspective for employment relations is underpinned by a framework consisting of
several definitive elements which must be addressed when examining the Coalitions policies. One of
the overarching elements of the unitarist perspective is that the workplace is integrated and
harmonious, existing for a common purpose. According to Ackers and Payne (1998), the unitarist
perspective believes that employers and employees can exist together based on a commonality of
objectives, interests and values. Therefore there are no conflicts of interests between managers and
employees as organisations are working as a team for mutual goals. Another significant element of
the unitarist perspective is that employers are the singular source of authority in the organisation
and as such, there are no opposing leaders (Ross and Bamber 2009). According to Ross and Bamber
(2009), the role of management would be to exemplify strong leadership to attain organisational
objectives, such as increasing productivity. Unions are perceived negatively and are not essential for
the harmonious managing of conflict (Ackers and Payne 1998). The implications of the unitarist
perspective indicate that the role of the government would be to instate binding legislations to
support such an employment relations system.
The governments tougher penalties for unions demonstrate a unitarist assumption that unions are
misfits to the unified and cooperative structure that exists within an organisation. Based on
statements made by the newly elected government, current right of entry provisions would be
remodelled under the Fair Work Act (Griffiths 2013). The implications of this change means that
unions would be allowed fewer visits than what is currently allowed and access to workplaces
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would be restricted (Liberal Party of Australia 2013). It was also emphasised that employers would
not be forced to pay for the costs of travel and accommodation that were associated with union
bosses travelling to workplaces, placing a significant constraint to the capacity of unions to play a
substantial influence in the workplace (Liberal Party of Australia 2013). Furthermore, protected
industrial action proposed by the Coalition government states that strikes would only be able to
happen after talks between both parties were conducted, re-emphasising the importance of
productivity in enterprise bargaining (Griffiths 2013). According to Massola and Skulley (2013),
employers who could not strike a deal with unions for greenfields resources projects, after at least
three months of negotiations, would be able to bypass the union. Employers instead would be able
to directly get approval from the Fair Work Commission (Massola and Skulley 2013).
Additionally, in order to target union militancy through the legal system, the government has
proposed that the Registered Organisations Commission will be established as a watchdog to unions
(Griffiths 2013). The Australian Building and Construction Commission (ABCC) will also be restored as
a means to specifically target aggressive building unions and rising union disputes that impact on
productivity (Schneiders 2013). According to NSW Business Chamber (2013) the ABCC has the legal
authority to enter worksites, require the production of documents, question participants in the
building industry as well as intervene in proceedings in the courts. The negative implications for the
role of unions in the future can also be supported by Tony Abbotts dismissal on the importance of
unions to employees, whereby he emphasised that 87 per cent of workers in this country had
chosen not to become members of unions (Massola and Skulley 2013). Hence the legitimacy and
legality of unions would be severely undermined in the future, reasserting the governments
unitarist position on workplace and employment relations.
Extending access to existing individual flexibility arrangements (IFAs) to all employees indicate that
the government recognises the importance of the employee and employer relationship under a
unitarist perspective. Whilst individual contracts would strictly not be restored by the newly elected
government, increased flexibility to the existing collective bargaining agreements would provide a
reasonably better balance between employee and employer rights in the workplace (Bennett 2013).
According to Schneiders (2013), the changes mean employees would able to able to reach details
with their employers over hours and working conditions, but under the condition that the employee
remained better off overall to ensure that employers were not exploiting their authoritative position.
From a unitarist perspective, these changes allow for a high-trust employment relationship to be
developed, would reduce faulty communications and hence would provide management with a
practical authoritative reference point in the event of conflict (Gollan 2004). The broadening of
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existing individual flexibility arrangements however would have enormous implications for trade
unions in the future as increased individualisation is associated with declining union influence
(Gollan 2004).
The governments proposed paid parental leave scheme similarly aims to broaden individual
flexibility in workplace relations, substantially differing economically from the existing scheme to a
large extent. The Liberal partys new scheme proposes an extended 26 weeks of leave paid at either
the primary carers replacement wage or at minimum wage, funded through a 1.5% levy on
companies with taxable income over $5 million per annum (Kennedy 2013). From a unitarist
perspective, the scheme is a positive financial incentive for gender neutral employment and
promotional opportunities, as well as being a growth driver in boosting female participation in the
workforce (Kennedy 2013). According to Ichniowski and Shaw (2003), incentive pay would be likely
to elicit greater effort from employees, and by extension, greater performance in the workplace, a
critical aspect assumed by the unitarist perspective. The scheme also recognises the right of women
to have children, which adds to sustaining a positive organisational culture. From a unitarist
standpoint, a strong organisational culture is very important, as it links to a high performance work
system and can create sustainable competitive advantage (Hartog and Verburg 2006).
It is imperative to consider that under the Coalition government, there would be no proposed
changes to unfair dismissal laws or measures of penalty rates and overtime, with the Fair Work Act
largely retaining the same legislation (Griffiths 2013). Dismissal laws currently state that employees
are only able to make a claim for unfair dismissal after serving for a minimum period of twelve
months, whilst for large businesses the minimum period is reduced to six months (Department of
Education, Employment and Workplace Relations 2013). These laws already assume a unitarist
perspective in that it emphasises the importance of commitment in the workplace, protecting
employees from being unfairly sacked after having demonstrated commitment to their entity,
measured as a function of time. Furthermore the lack of a major haul of the Fair Work Act was
attributed to the Coalition government awaiting a Productivity Commission review which would
focus on improving productivity rates (Massola and Skulley 2013). The governments renewed focus
on productivity assumes a unitarist perspective, as productivity is seen to be an indicator of whether
management is exerting the best practice in managing employees (Blood and Reenen 2011). Future
implications suggest that the Coalition would introduce regulations and increase competition, to
help further increase productivity in the workplace.
It is evident that the newly elected Collation government brings several new policies that assume a
unitarist perspective. The restoration of entry provisions of the Fair Work Act, regulations on strikes
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and the proposed establishment of a Registered Organisations Commissions all represent a
tightened approach to reduce union militancy. Similarly, extending the access of individual flexibility
arrangements and the new paid parental scheme is characteristic of the role of management and
employees in establishing a commonality of interests and motivations. A unitarist standpoint
presents negative implications for unions in the future, for the current collective bargaining
enterprise system and changes to the Fair Work Act legislation to improve productivity.



















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References
Ackers, P. and Payne, J. 1998, British trade unions and social partnership: rhetoric, reality and
strategy, International Journal of Human Resource Management, vol. 9, no. 3, pp. 529 550.
Bennett, A. 2013, Workers have nothing to fear: Abbott, Sydney Morning Herald, 9 May, viewed 20
September 2013, <http://news.smh.com.au/breaking-news-national/workers-have-nothing-to-fear-
abbott-20130509-2j98k.html>
Bloom, N. and Reenen, J. V. 2011, Human Resource Management and Productivity, Handbook of
Labor Economics, vol. 4, pp. 1697 1767.
Department of Education, Employment and Workplace Relations 2013, Fair Work Fact Sheets,
Department of Education, Employment and Workplace Relations, Canberra, viewed 22 September
2013, < http://deewr.gov.au/fair-work-fact-sheets>
Gollan, P. J. 2004, Formalised individual agreements in Australia: Organisational strategies,
outcomes, and processes of Australian workplace agreements, Employee Relations, vol. 26, no. 1-2,
pp. 44-61
Griffiths, E. 2013, Abbott unveils Coalitions workplace relations policy, Australian Broadcasting
Corporation, 9 May, viewed 20 September 2013, <http://www.abc.net.au/news/2013-05-09/abbott-
unveils-coalitions-workplace-policy/4679404>
Hartog, D. N. and Verburg, R. M. 2006, High performance work systems, organisational culture and
firm effectiveness, Human Resource Management Journal, vol. 14, no. 1, pp. 55 78.
Ichniowski, C. and Shaw, K. 2003, Beyond Incentive Pay: Insiders Estimates of the Value of
Complementary Human Resource Management Practices, The Journal of Economic Perspectives, vol.
17, no. 1, pp. 155 180.
Kennedy, D. 2013, How does the ALP and Coalition differ on paid parental leave?, Special
Broadcasting Service, 26 August, viewed 21 September 2013,
<http://www.sbs.com.au/news/article/2013/08/26/comment-how-does-alp-and-coalition-differ-
paid-parental-leave>
Liberal Party of Australia 2013, Improving the Fair Work Laws, Liberal Party of Australia, Canberra,
viewed 19 September 2013, <http://www.liberal.org.au/improving-fair-work-laws>
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Massola, J. and Skulley, M. 2013, Abbotts timid IR strategy, Australian Financial Review, 10 May,
viewed 20 September 2013,
<http://www.afr.com/p/national/abbott_timid_ir_strategy_iv0PXSwjufLQBNRRrRB7KJ>
NSW Business Chamber 2013, Australian Building and Construction Commission Overview, NSW
Business Chamber, North Sydney, viewed 23 September 2013,
<http://www.workplaceinfo.com.au/resources/employment-topics-a-z/australian-building-and-
construction-commission>
Ross, P. and Bamber, G. J. 2009, Strategic choices in pluralist and unitarist employment relations
regimes: a study of Australian telecommunications. Industrial & Labor Relations Review, vol. 63, no.
1, pp. 24 41.
Schneiders, B. 2013, Big drop in days lost to industrial strife, Sydney Morning Herald, 6 September,
viewed 21 September 2013, < http://www.smh.com.au/federal-politics/federal-election-2013/big-
drop-in-days-lost-to-industrial-strife-20130905-2t864.html>

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