Manage Employee

Relations Report
Pieternella Busk SN: 5220054291
Manage Employee Relations
Report
Pieternella Busk SN: 5220054291
Introduction:

Manage Employee Relations Report

This report covers the employment relations issues found at the Malaga Division of the Powerlife Manufacturing Company as of July
2012. It will cover an evaluation, recommended objectives for both medium and long term, employee relations strategies and training
program plan.

Evaluation of Employee Relations Issues:

There appears to be various employee relations issues, most of which have stemmed from the facility becoming heavily unionised by
the Amalgamated Workers of Australia Union in January of 2009. This occurred after a long and costly strike. Production supervisors in
the lower three level of management have mainly come from within the working rank which may be part of the issue as fellow
workers either do not have respect for them or the supervisors do not have the ability to manage where required due to issues with ex
co-workers, some who are union reps, coming against them. Though this number is small the issues caused amongst the rank and file
by these workers has been immense and costly. Another issue which has escalated the problems found in the work force has been the
lack of support at times from senior management in backing lower levels of management when attempts were made to discipline
offenders. This in turn has created a bad working moral and lack of respect towards line-managers and supervisors.

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 Human resource manager at Malaga, John Grisson, is stated as saying he believes the human relations problem at the organisation
stems from only about 11 employees whom are all union officers or shop stewards. These are found to be the ring leaders of the
Industrial relations problems. These employees have all been given written warnings and with further investigations it is believed
more concrete evidence can be found which can enable the company to proceed with disciplinary action against those 11 as permitted
in the industrial awards covering Powerlite employees. The disciplinary action he would like looked at would be the suspension of all
11 employees.

John Grisson wants to make sure the organisation is ready for any retaliation from the union such as the attempt to close the plant
with a strike as has been the case in previous industrial action. By having the company act immediately with the stern message and
disciplinary action of dismissing all the 11 ringleaders if a strike does occur, Malaga hopes to implement the first step to re-build
management-employee relations. This action could go both ways as the workers might take notice of the example being made if the
11 ringleaders are stood down, however it could also go against them and cause a more intense and longer strike action or other
problems. You have to remember there is no one-off magic bullet or panaceas (Martain, 2015). The 11 ringleaders must be dealt
with according to the issues they have caused in relation to their work standards and not because of their involvement as part of the
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union. That way it cannot be taken to be an attack on the union and therefore for the whole workforce, but as fair
treatment/punishment due to the lack of correct behaviour in the workforce.

The CEO of parent company Powerlite Manufacturing, C.J.Passmore has written a letter to all employees addressing the issues Malaga
Division has had to deal with, its actions to rectify and asking for assistance from all workers in coming together for the good of the
organisation and security of the work place. The letter is well written and does not lay all blame directly on the workers but instead
explains both the operative issues and the small number of employees who are affecting the operating efficiency. It mentions the
irresponsible behaviour of those few whose actions such as sleeping, slacking on the job, gambling or game playing on company
property and threats or abuse towards management have placed everyones job security on the line. Would this letter be affective? I
cannot answer that as it would depend on the workforce and its current culture. Where at one workplace it would make great sense
to appeal to all the workers and give a full explanation to the situation at hand at another it could be seen to be a weak move by the
CEO to suck up to the workers so to speak and hope they turn on the trouble makers.

At this time, current organisation goals are not able to be met due to the continues pressure industrial action, by way of strikes, have
placed on the company. The damage from the previous mentioned and issues with continuing difficulty in getting the new production

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process to operate effectively had taken the company to the point of being on the verge of bankruptcy by the end of 2011. A loan of
$6 million and change of local top management at Malaga in early 2012 allowed Powerlite to get on top of its technical problems.
Human relations problems however remained unchanged as of July 2012 and are required in order to turn company back on the right
track.

Employee Relations Objectives

The organisation is to strive for a unified workforce, with a set aim for an amicable working relationship with the union for the benefit

Manage Employee Relations Report

of the workers and the company. This will hopefully ensure that work stoppages and go slows are a thing of the past. The
development and implementation of a set of work cultures, ethics and values which are in line with the companys policies and
procedures to allow for a better work environment will benefit both employees, the organisation and all stakeholders. The
development and implementation of a fair and just Enterprise Agreement so that workers know where they stand, this will provide a
more secure work environment for the workers and will in turn benefit the organisations through work output and quality of work.
By establishing performance based bonuses will see an improvement on work quantity and quality.
The establishment of a positive working environment between management and employees will allow for higher workplace moral and
a happier workforce in general on all levels.

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 Employee relations objectives medium term:

Objective 1
E Work with the union to establish appropriate boundaries within the constraints of the Fair
Objective Work Act and other relevant legislation to mitigate the risk of industrial action which has
plagued the organisation.
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Hi High priority as it provides improved relationships between the union/workers and the
Priority organisation through working together for the betterment of all. It will allow for a
S constructive relationship with unions.
R Risks that can result are: some members of the union feel that the company is trying to
Risks deceive the workers because they do not believe the organisations actions with the union are
Y for the benefit of the worker. This can place the organisation at risk of more industrial action
through strikes as rogue union leaders turn more workers against the company.
Union demands made are impossible to work with to allow for good working terms between
the organisation and union.

A working environment that benefits both the workers in job security and good working
Benefits culture and the organisation through improvement in work quality and quantity. Workers
who feel secure in the work place due to a well-placed EA and non-toxic relationship between
their union and workplace perform better in all areas.

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(Martain, 2015)

Objective 2
E Improve employee relations climate by negotiating an enterprise agreement together with
Objective the relevant unions with functional flexibility and performance based bonuses.

Hi High priority as it provides improved relationships between the union/workers and the
Priority organisation through working together for the betterment of all workers and the organisation
S as a whole.
R Risks that can result are:
Risks Union demands are impossible to work with to allow for an Enterprise Agreement which

Manage Employee Relations Report

Y benefits both sides and delays the development and implementation of a workable EA.
Reluctance of unions to support changes to work practices.
A well set up EA which benefits both the workers and the organisation allowing therefore for a
Benefits work culture that can grow and expand. An EA that is set up whilst ensuring all current
legislative factors are considered when developing and implementing allows for assisting in
lowering industrial action by the workers and therefore lowering of financial loss due to
workforce issues. This in turn increases work quality and production output. By
implementing performance based bonuses with KPIs set for the workers enables them to
gain financially through increasing their work quality and quantity. This in turn benefits the
organisation in output and therefore growth.
(Martain, 2015)

Objective 3
E Development and implementation of a clear, coherent and well written ER policy with
Objective accompanying objectives.

Hi High priority as it provides improved relationships between the union/workers and the
Priority organisation through working together for the betterment of all workers and the organisation.
S By having a well set out ER policy both management and workers can know what standards

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 Objective 3
are required to be met and what the organisations aim is. This policy is to be in line with and
at all times meet relevant legislation, laws and company policies and procedures.
R Risks that can result are:
Risks Some in management may wish to adopt ER practices which focuses on controlling and
Y neutralising union influence which in turn causes issues with the workforce. The
development of the ER policy is to be done with the input of both upper management,
management, HR manager and HR department and union representatives.
Allows for all employees under the ER to know exactly where they stand, what rates they are
Benefits on, break entitlements, leave entitlements, employee conditions, general employment matters
including issue resolution procedure as per Fair Work Act 2009.
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Employee relations objectives long term:

Objective 1
. To work jointly with management and staff to attain a positive working relationship.
Objective

Hi High due to the current issues between management and employees
Priority

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 Objective 1
S
R
Risks Some in the workforce might be against working with management as they could believe
Y there are underlying reasons which will do benefit the workforce in the long run. There could
also be some further challenges and issues with those who have so far identified to be part
of instigating stop work action.
To bring the workforce together and allow for the development and improvement of the
Benefits culture and moral in the workplace. If workers see that the organisation wishes to work with
them and takes into consideration their needs staff moral will grow, workers will feel more

Manage Employee Relations Report

secure in their job and this in turn will increase work quality and quantity. It is a known fact
that workers who are happy in the workplace and feel secure will work at a higher quality and
quantity.
(Martain, 2015)

Objective 2
Development and implementation of a co-operative workplace culture, work ethics and
Objective values in line with the organisation vison and policies and procedures.

Hi High again due to the current issues between management and employees which has seen
Priority the organisation go downhill and brought in the unionisation of the worksite.
S
R Risks that can result are that the culture, work ethics and values implemented are too much
Risks based on the benefit of the organisation and not on the employees. It is important a correct
Y balance is brought in to allow for employees to feel trust and security in the company.

Increased productivity, moral and security amongst the workers which allows for growth and
Benefits continuous improvement in the organisation.

(Martain, 2015)

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 Employee Relations Strategies

Employee commitment and satisfaction 1. Set up survey for the workforce to identify work/life balance programs which
meet staff and organisational needs and implement as appropriate. 2. Managers and supervisors to be assessed on their
management and people skills, if gaps are found then a training program needs to be put in place to ensure managers and
supervisors have the skills and knowledge to communicate in the right way with all employees. Most employees leave an
organisation because of poor quality relationships with their boss, not because of the organisation.
Job design and restructuring 1. review, rewrite and update all job roles and descriptions to eliminate confusing and
restructure positions to work better for both the organisation and the employees involved. 2. Assess job skills and identify
gaps to be filled. Gaps found are to be fixed by providing training to those employees who require this in their role.
Organisational culture 1. develop and implement a well written culture, vision and values statement in line with the
organisations aims and strategies. 2. Promote constructive workplace relationships between employees and management
through the use of recognition of performances reached by employees.
Relations with unions and other peak bodies 1. set up a joint consultative committee to deal with major ER policy matters
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which include representatives of all areas organisation, unions and other peak bodies. 2. Promote a flexible approach to
consultation with unions and other peak bodies addressing issues as they arise. This will be in the form of setting up an
organisational representative of the company whom union representatives can approach as the go to.
Salary, remuneration, benefits and bonuses 1. Negotiate an enterprise agreement with annualized salaries, functional
flexibility and performance based bonus. 2. Set KPIs to employees job descriptions to allow for a fair and well set up
performance based bonus program.
Workforce planning 1. develop and implement the correct policies in line with the organisation to allow for attraction,
recruitment, retention, training and development, performance management, talent management, and succession planning.
2. Review, develop and implement comprehensive workforce policies to incorporate career development workshops and
training for leadership development in employees.
Workplace reform 1. establishment of leadership workshops and training sessions reviewed regular to ensure continuous
growth and improvement. 2. Review the organisations Conflict Resolution and Grievance Management Policies to ensure all
steps are in place to allow for prompt handling of issues brought to the attention of the company by employees. This will
allow for a proactive, constructive and respectful dispute resolution process aimed at encouraging timely resolutions of
disputes.

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All of the above-mentioned employee relations strategies must follow current relevant laws, legislations and be in line with
organisational policies and procedures.

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Implementation plan
Issue: Employee commitment and satisfaction
Strategy Action(s) Who is Who else is Resources Required Time
responsible involved Frame/Deadline
Set up survey for the
workforce to identify Conduct a survey to HR Manager CEO, line managers, 1 person x 2 days 1 June 2017
work/life balance determine the needs of employees
programs which meet employees
staff and organisational
needs and implement as
appropriate

Assess managers and HR Manager HR team, managers 1 person x 7 days 30 July, 2017
Managers and
supervisor on and supervisors
supervisors to be
assessed on their management and people
management and people skills, identify gaps found.

Manage Employee Relations Report

skills, if gaps are found Organise training where
then a training program required for gaps needed
needs to be put in place to be fixed
to ensure managers and
supervisors have the
skills and knowledge to
communicate in the right
way with all employees.
Most employees leave an
organisation because of
poor quality relationships
with their boss, not
because of the
organisation.

Issue: Job Design and Restructuring

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Strategy Action(s) Who is Who else is Resources Required Time
responsible involved Frame/Deadline
review, rewrite and Conduct review on all HR Manager HR team, 2 persons x 14 days 31 July, 2017
update all job roles and current job roles and management team,
descriptions to eliminate descriptions line managers
confusing and restructure Update any job roles and HR Manager HR team, 2 persons x 14 days 15 August 2017
positions to work better descriptions which require management team,
for both the organisation changes or which are no line managers
and the employees longer in line with the
involved organisations
requirements

Assess job skills and Assess employee job skills, HR Manager HR team and 2 persons x 21 days 4 October 2017
identify gaps to be filled. identify gaps found. employees, training
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Gaps found are to be Organise training where groups and

fixed by providing required for gaps needed personnel
training to those to be fixed
employees who require
this in their role.

Issue: Organisational Culture

Strategy Action(s) Who is Who else is Resources Required Time
responsible involved Frame/Deadline
develop and implement a well Develop, write, implement HR Manager CEO, senior 2 persons x 12 days 31 September, 2017
written culture, vision and values and distribute a well management,
statement in line with the written culture, vision and management
organisations aims and strategies values statement in line committee, hr team
with the organisations

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 aims and strategies. This
is to be undertaken with
input from both
management and
employees to ensure a
culture is developed and
put in place that will
benefit all in the
workplace. This in turn
will therefore allow for a
workplace that is stable

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with high worker morale.
Promote constructive workplace Set up employee HR Manager Manager, supervisor, 1 person x 3 days 5 June 2017
relationships between employees recognition program HR team
and management through the use
of recognition of performances
reached by employees

Issue: Relations with Unions and other peak bodies

Strategy Action(s) Who is Who else is Resources Required Time
responsible involved Frame/Deadline
set up a joint consultative Contact those who would HR Manager HR department, 1 person x 6 days to set 15 July 2017
committee to deal with be beneficial in attending senior management, up
major ER policy matters and being part of this line manager, union
which include committee and invite for representative and
representatives of all attendance. These will representatives from
areas organisation, include representative other peak bodies
unions and other peak from the organisation,
bodies

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 unions and other peak
bodies

Promote a flexible Assign role of company HR manager HR team, union, 1 person x 4 days 30 June 2017
approach to consultation representative to be manager
with unions and other union go to ease of
peak bodies addressing communication
issues as they arise. This
will be in the form of
setting up an
organisational
representative of the
company whom union
representatives can
approach as the go to.
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Issue: Salary, remuneration, benefits and bonuses

Strategy Action(s) Who is Who else is Resources Required Time
responsible involved Frame/Deadline
Negotiate an enterprise Establish communication HR Manager CEO, senior 2 people x 60 days 31 May 2018
agreement with with union management, union
annualized salaries, representatives, other representatives,
functional flexibility and employee representative workforce
performance based and those required to be representatives, legal
bonus. involved in the representatives to
negotiation of an ensure EA meets all
amicable EA for the legal obligations
organisation with
annualised salaries,
functional flexibility and

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 performance based
bonus. The EA is to
follow all relevant
industrial other legislation
as per Australian law.

Set KPIs to employees Set up KPIs to be HR manager HR team together 2 persons x 30 days 10 November 2017
job descriptions to allow reached for performance with managers and
for a fair and well set up based bonus program to supervisors
performance based each job role in the
bonus program. organisation eligible for
said bonus

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Issue: Workforce Planning
Strategy Action(s) Who is Who else is Resources Required Time
responsible involved Frame/Deadline
develop and implement Develop and implement HR Manager CEO, senior 2 person x 72 days 21 March 2018
the correct policies in line recruitment and retention management,
with the organisation to policy, training and management, line
allow for attraction, development policy, managers, hr
recruitment, retention, talent management department, union
training and policy, succession representative
development, planning and
performance performance
management, talent management policy
management, and
succession planning.

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 Review, develop and Set up training provisions HR Manager CEO, managers and 2 persons x 40 days to 30 March 2018
implement for those employees HR department , set up
comprehensive showing talent and training team/training
workforce policies to passion to take on further organisation
incorporate career training to increase their
development workshops current skills via Tafe,
and training for university or other training
leadership development forms. Organisation to
in employees both encourage and
support those wishing to
improve their skills, part
financial assistance to be
looked at for those who
have completed further
education that benefits
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their role in the

organisation.

Issue: Workforce Reform

Strategy Action(s) Who is Who else is Resources Required Time
responsible involved Frame/Deadline
establishment of Establish leadership HR manager Training facilitators, 1 person x 21 days 4 October 2017
leadership workshops program and training hr team, managers,
and training sessions requirements and review line managers and
reviewed regular to regularly to ensure employees
ensure continuous company needs and
growth and improvement legislative requirements
are still being met.

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 Review the organisations Review and adjust where HR manager HR team, managers, 2 persons x 30 days to 26 November 2017
Conflict Resolution and required with the supervisors, union, gather required
Grievance Management assistance of union employee information and develop
Policies to ensure all representatives and representatives any changes required
steps are in place to managers/supervisors
allow for prompt and employee
handling of issues representatives the
brought to the attention conflict resolution and
of the company by grievance management
employees. This will policy to ensure it is still
allow for a proactive, affective and follows the

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constructive and lines of allowing for a
respectful dispute proactive, constructive
resolution process aimed and respectful dispute
at encouraging timely resolution process
resolutions of disputes.

(Martain, 2015)

Training plan

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 Learning Outcomes of
the Employee Relations
Training Program
This will allow for minimisation of interpersonal conflict and disputes in the
The employee relations training program will identify skills missing and train
those staff required to in ER issues as required by the organisation. Staff will
attain the skills and knowledge for conflict management, have the ability to
identify and manage grievances and conflict in the workplace, partake in
negotiations in relation to conflict management and ER development and work
amicably with relevant union bodies by the end of the learning process.
workforce and a better standard of employee morale. By understanding the
nature and causes of conflict and strategies to be used allows for lower current
management time spend on conflict resolution.
SKILLS

Skills to be developed Who Needs these skills? How skills to be developed

HR manager, hr team, Training courses and via group training
Interpersonal skills such as management, line managers
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listening and hearing what is

being said - Communication
skills
Managerial skills such as
dealing with high conflict
situations
HR manager, senior Training courses on site and off site in groups and
management, management, online training
line managers, hr team

Negotiation skills
Ability to remain open
minded and neutral. You
must be able to remain
neutral
HR manager, senior
management, management,
line managers, hr team
HR manager, senior
management, management,
line managers, hr team
Through training courses on site and off site and
through experience
Training courses and via group training and
experience

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 HR manager, senior Training courses on site and off site in groups and
Mediation management, management, online training
line managers, hr team
HR manager, senior Training courses on site and off site in groups and
Prevention of bullying management, management, online training
line managers, hr team
HR manager, senior Training courses on site and off site in groups and
Conflict management management, management, online training
line managers, hr team
Bargaining HR manager, senior Training courses on site and off site in groups and
management, management, online training and group training sessions

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line managers, hr team
KNOWLEDGE

Knowledge to be Who Needs this How the knowledge is to be developed

developed knowledge?
HR manager, hr team, Via courses on site or off site and online information
Employment law and managers accessible via the organisation intra hub
legislation
How to identify and manage HR manager, senior Via courses on site or off site and online information
causes of grievances and management, management, accessible via the organisation intra hub
conflict line managers, hr team

Dispute resolution HR manager, senior
techniques management, management,
line managers, hr team
Knowledge on all relevant HR manager, senior
laws and agreements in management, management,
relation to ER line managers, hr team
Via courses on site or off site and online information
accessible via the organisation intra hub
Via courses on site or off site and online information
accessible via the organisation intra hub

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 HR manager, senior Via courses on site or off site and online information
Proactive conflict management, management, accessible via the organisation intra hub
management line managers, hr team

(Dwilson, 2017) (Martain, 2015)

Works Cited
Dwilson, S. D. (2017). Skills Needed in Employee Relations. Retrieved April 29, 2017, from Chron: http://work.chron.com/skills-needed-
employee-relations-30534.html

Martain, R. J. (2015). Managing Human Resource Systems (3rd ed.). Nollamara, WA, Australia: HRVET.
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