Advanced Studies in Industrial Relations

Advanced Studies in Industrial Relations

Introduction

In the recent business environment and the global business practices, employees are considered to be an asset of the organization that can help it attain a competitive advantage in the market. With the trend of globalization and international business expansion, a concept that has made its distinctive place in the business environment is the employment relations or the industrial relations. The contribution of these relations in the business progress is being evident from the success of enormous US and European companies that have made their existence known to the world.

The essay focuses on the vital role that industrial relations may play in the success of the Australian businesses and their achievement. It highlights the labour laws and the fundamentals of employment relations that are being followed or exercised in the Australian business industries. The essay discusses the critical components that may make or break this contribution to the success of the business arena in Australia and the various aspects of macro environment that may hurt the effectiveness of this relation.

Discussion

Australia has naturally been identified as the country of Anglo-Saxon culture that is setting an example like United Kingdom, Canada, United States and New Zealand to ensure liberal social protection and labour laws. The country is always boasted of owning an original system of labour regulation, which is very different from that existing in North America and the UK.

Since its existence, Australia has been marked by a strong commitment of state in the economy, the labour movement and social regulations that may influence the business achievements and industrial progress. In the early 20th century, Australia was regarded as the "workers' paradise", with weekly or annual working duration same as employed in most of the European countries and North America. Australia has been identified as a good example of an industrialized country where the system of courts had a comparatively foremost role on industrial relations (Silva, n.d.).

Industrial Relations

In a real business environment, there are a number of stakeholders having their direct or indirect share in the organization and in one way or the other they are influenced or they keep influencing the business performance. Among these fundamental stakeholders, are the employees (internal customers) of an organization and the labour unions who negotiate and bargain with the industry on behalf of these employees and labourers. To put it straight, employment relation reveals the relationship among employees and employers, the way they work collaboratively in order to ensure sustainable working conditions (Australia's Fair Work system, 2010). Employment relations also entail the obligations which the employer has for its employees and vice versa.

Figure 01: Industrial Relations (Jones, 2002, p. 151)

The Australian industrial relations system is being based on the Fair Work Act 2009 that established a statutory minimal employment conditions in the country. The constitution of the land has become both the source of considerable constitutional litigation and the power source throughout the twentieth century. The constitution has set the national standards for employment that are equally applicable ...