BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT Resource Management Manage Industrial Relations BSBWRK510 Manage Employee Relations ii This workbook has been designed for use in conjunction with information and materials provided at lecture and tutorial sessions. Students should attend all timetabled sessions so they can obtain all subject information. Students should read and understand all materials provided. Information that is available in digital form is not included in this workbook in the interest of the environment. Publisher: Young Rabbit Pty Ltd (A.C.N. 003 381 182) trading as Australian Pacific College Ground Floor, 189 Kent Street Sydney NSW 2000 Australia Tel: (02) 9251 7000 Edition: 6th Edition Release date: February 2016 The publisher owns the copyright in this publication. All rights reserved. No part of this publication may be reproduced by any process without the prior written permission of Young Rabbit Pty Ltd. 2016 Young Rabbit Pty Ltd Australian Pacific College Lower Ground, 189 Kent Street Kent St Campus (CBD) Sydney NSW 2000 P (61 2) 9251 7000 F (61 2) 9251 7575 Web: www.apc.edu.au CRICOS Provider: Young Rabbit Pty Ltd - 01331F ABN: 28 003 381 182 RTO PROVIDER: 90396 Front cover image sourced from: www.rightsonsite.org.au WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 iii Contents Unit of Competency........................................................................................... iv BSBWRK510 Manage Employee Relations......................................................... iv Grading System................................................................................................ iv Assessment 1.................................................................................................... v Assessment 2................................................................................................... vi Legend............................................................................................................. vii 1. Strategic Plans.............................................................................................. 1 Activity 1.1..............................................................................................................1 Activity 1.2..............................................................................................................3 Activity 1.3..............................................................................................................5 2. Developing an Industrial Relations Plan........................................................ 6 Activity 2.1............................................................................................................19 Activity 2.2............................................................................................................20 Activity 2.3............................................................................................................22 Activity 2.4............................................................................................................28 2. Implementing the Plan................................................................................ 29 Activity 3.1............................................................................................................32 Activity 3.2............................................................................................................36 4. Reaching Agreement................................................................................... 37 Activity 4.1............................................................................................................39 Activity 4.2............................................................................................................44 Activity 4.3............................................................................................................46 5. Conflict Management................................................................................... 47 Activity 5.1............................................................................................................49 Activity 5.2............................................................................................................51 6. Negotiating to Resolve Conflict.................................................................... 52 Activity 6.1............................................................................................................53 Activity 6.2............................................................................................................56 WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 iv UNIT OF COMPETENCY BSBWRK510 Manage Employee Relations Elements 1. Develop employee and industrial relations policies and plans 2. Implement employee relations policies and plans 3. Manage negotiations to resolve conflict For further information on the Units of Competency, please visit www.training.gov.au, or refer to your Course Outline booklet. GRADING SYSTEM High Distinction (HD) 85% and above Distinction (D) 75-84% Credit (Cr) 65-74% Pass (P) 50-64% Not yet competent (NYC) Below 50% WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 v ASSESSMENT 1 Course Name BSB51915 Diploma of Leadership and Management Subject/module Manage Industrial Relations Assessment method Part A: Written or Oral Questions Part B: Written Assessment Due date Session 5 Weighting 50% Units of Competency BSBWRK510 Manage Employee Relations Instructions 1. Assessments will be provided by your trainer. 2. Assessments should be completed as per trainer's instruction. 3. The assessment must be submitted by the session mentioned above in the due date. 4. Your assessment should be presented as a word-processed document addressing all elements of the assessment. 5. Once you have completed the assessment, please attach the APC assignment cover sheet and hand both to your trainer. 6. Plagiarism is copying someone else's work and submitting it as your own. Any plagiarism will result in a mark of zero. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 vi ASSESSMENT 2 Course Name BSB51915 Diploma of Leadership and Management Subject/module Manage Industrial Relations Assessment method Written or Oral Questions Due date Session 8 Weighting 50% Units of Competency BSBWRK510 Manage Employee Relations Instructions 1. Assessments will be provided by your trainer. 2. Assessments should be completed as per trainer's instruction. 3. The assessment must be submitted by the session mentioned above in the due date. 4. Your assessment should be presented as a word-processed document addressing all elements of the assessment. 5. Once you have completed the assessment, please attach the APC assignment cover sheet and hand both to your trainer. 6. Plagiarism is copying someone else's work and submitting it as your own. Any plagiarism will result in a mark of zero. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 vii LEGEND Not all ICONS are used in this workbook Research/Investigate This tells you to go and find out some information Activity/Provide notes This indicates that you need to take notes and/or complete an exercise/activity in this workbook Reference material/manuals This means you should look to sample of organisations' policies and procedures or to some other learning material, resources to complete this exercise/activity. Think Take some time to think about the information and record your own ideas Talk Talk to your peers, colleagues - swap ideas. Reading Selected extra reading requirements. You Sydney Ferries Tube Youtube Selected Youtube requirements. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 1 1. STRATEGIC PLANS For a lot of people in management industrial relations is one of the most complex and difficult issues to deal with. Trying to balance the demands of the workers with the financial realities of the organisation can often mean a juggling act that tests the management skills of the best. Despite this trepidation and the dooms day articles in the tabloid press, industrial relations in modern Australia, is not the battleground it once was. With a little give and take from both sides agreement can be reached, which guarantees a happier, more productive workplace. Activity 1.1 Class Discussion What is the state of industrial relations in your home country? Who has the greater power - the organisation or the workers? Employee Relations Objectives Part of management strategy in dealing with industrial relations should be to have long-term relations objectives. By having these objectives in place it provides a framework to work within from a management point of view, and provides the worker with evidence that the organisation is genuine in their attempt to forge a co-operative working environment. Different organisations are going to have different objectives in relation to their relationship with their workforce, but there are some that should be universal. Let's consider some of these: ff Job design - this is an important element in industrial relations as it clearly defines the position. Effectively it summarises the way the job is done; the work to be done; the skills and knowledge required for the job; and the relationship to organisational goals. From an industrial relations point of view it assists in grading a job on a pay scale, and can also help frame the conditions under which the job is performed. ff Organisational culture - a very difficult term to define organisational culture is \"an observable, powerful force in any organisation. Made up of its members' shared values, beliefs, symbols, and behaviours, culture guides individual decisions and actions at the unconscious level. As a result, it can have a potent effect on a company's well-being and success\".1 1. http://www.organicworkspaces.com/pdf/What_is_Organizational_Culture.pdf WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 2 From an industrial relations perspective, organisational culture can have an impact upon the level of co-operation between management and the workers. Some organisations may have a history of tense industrial relations, where provocative actions from both sides have led to a culture of distrust. An example of this in Australia is Qantas, the national airline. Other organisations have a culture of co-operation where both sides are willing to go the extra mile to ensure smooth relations. Examples of these are the more modern companies like Hewlett Packard, Apple and Google. ff Workforce planning - as per its name workforce planning is a process of planning for the future. It is \"simply a methodical process that documents the directions in which a work area is heading and provides managers with a tool for making human resource decisions now and into the future.\"2 Its impact upon industrial relations is that this planning should involve both workers and management, as the workers should have a valuable contribution to make in such planning matters. Management making such decisions in isolation can cause disharmony and distrust within in an organisation. ff Workplace reform - in a similar way to workforce planning, the industrial relations of a company is better served by management discussing these issues with the workforce. Such reform can take many guises including restructuring, changes to conditions, etc. ff Salary, remuneration, benefits and bonuses - the objectives of an organisation should be to provide staff with all of the mentioned while maintaining a strong financial position. The organisation has an obligation to all stakeholders to ensure that the organisation spends within its means, and this applies to salaries and all associated benefits too. While the worker will always desire a higher salary it is also in their interest to keep wage demands to a sensible level. ff Negotiation outcomes - an organisation should have pre-defined outcomes before any negotiations begin. Like any type of bargaining the organisation should have defined its best outcome position and its worst outcome position. Ideally the results of the negotiations would be somewhere inbetween. By having well researched, defined outcomes the organisation can be more confident of an outcome that maintains the financial position of the company, while maintaining strong relations with the workforce. ff Employee satisfaction & commitment - while the financial position of an organisation should always be paramount in industrial relations negotiations, there should also be an acknowledgement of the benefit to the company of having a satisfied and committed workforce. A satisfied and committed workforce is going to be more productive, be more likely to contribute to innovation, and less likely to take unnecessary days off work. In contrast dissatisfied employees would be less likely to show concern for productivity, would contribute little in the way of new ideas and most likely have a high absenteeism rate. 2. http://www.cqu.edu.au/__data/assets/pdf_file/0017/6407/Guide-for-Managers-Workforce-Planning-V3-120911kp.pdf WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 3 ff Effective management of grievances, conflict situations and disputeresolution procedures - while the organisation would hope to maintain positive relations, an industrial relations objective should be to have procedures in place for effective management of grievances. By having procedures in place disruption to the working operations of the company can be minimised while also hopefully ensuring a speedy resolution to the dispute. ff Relations with unions - the industry your organisation is a member of will often dictate the level of involvement you have with trade unions. In the modern Australian workforce unionism is more concentrated in the blue collar industries and government departments. If you do have to deal with a trade union the chances are the relationship will be dictated by the history of your dealings with the union. Like all relationships some organisations have very cordial relations with the respective union, while others have had a history of dispute. The objective of most organisations would be to have a cordial relationship with the union to ensure minimal disruption to their day to day activities. Activity 1.2 Class Discussion Using your present or previous workplace, consider the above objectives and analyse how they are achieved. List them below and then be prepared to contribute to the class discussion. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 4 Analysing Existing Employee Relations When developing or updating an industrial relations policy or plan, one must firstly analyse your existing plan to see where improvements can be made. A point of reference can be the objectives listed above. Are you as an organisation fulfilling your objectives or is there a gap between what you wish to achieve and the present situation? Let's have a look at the above objectives and see how we can analyse them: ff Job design - what we need to analyse here is whether the employee is actually performing the role according to the skills, knowledge, etc. If not there is a possibility the employee is being underpaid, which can lead to the possibility of resentment, a high staff turnover, or even industrial action. If the employee is being over overpaid the organisation isn't getting value for money for the work performed. ff Organisational culture - it is not difficult to determine whether the organisational culture is a co-operative one or one characterised by dispute. A quick analysis of absenteeism rates or days lost to industrial dispute would tell the story. ff Workforce planning and reform - an analysis of the participation of the workers in workforce planning and reform will provide you with a picture of the existing relations. High involvement would suggest a positive picture, while low or non-existent involvement would suggest distrust between management and staff. ff Salary, remuneration, benefits and bonuses - an analysis of the organisation's financial position, and of absenteeism and days lost to industrial dispute will reveal whether the organisation is achieving its goals in regards to these objectives. A poor financial position will point to wages being too high, while high absenteeism and a high level of industrial dispute will give the appearance of wages being too low. ff Negotiation outcomes - an analysis of your pre-defined outcomes will indicate if your objectives have been met. The ideal scenario would be that the negotiation outcomes be as close as possible to what was originally planned. ff Employee satisfaction & commitment - a study of absenteeism rates, and days lost to industrial activity is a good indicator of satisfaction and commitment on behalf of employees. ff Effective management of grievances, conflict situations and disputeresolution procedures - similar measurements to those mentioned above will provide an indication as to how successful your organisation has been in dealing with these procedures. ff Relations with unions- the easiest way to analyse these is to consider the ease of negotiations with the associated union. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 5 Activity 1.3 Class Discussion Consider how your organisation rates in the above objectives. What objectives do you feel have been achieved, and which haven't been achieved? WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 6 2. DEVELOPING AN INDUSTRIAL RELATIONS PLAN No matter the size of an organisation it should have an industrial relations plan. The size and depth of this plan will be influenced by the size of the organisation, the type of industry it is involved in, and obviously the current legislation, relating not only to industrial relations, but also workplace health and safety, equal employment opportunity and anti-discrimination. Current Industrial Relations Legislation The Federal Government introduced The Fair Work Act in 2009. The workplace relations system is designed to balance the needs of employees and employers to ensure Australia is competitive and prosperous, without taking away workplace rights and basic conditions.3 The Fair Work Act contains 10 National Employment Standards. The National Employment Standards comprise 10 legislated employment conditions covering essential conditions such as: ff Maximum weekly hours of work ff The right to request flexible working arrangements ff Parental leave and related entitlements ff Annual leave ff Personal/Carer's leave and compassionate leave ff Community service leave ff Long service leave ff Public holidays ff Notice of termination and redundancy pay ff Provision of a Fair Work Information Statement, which details the rights and entitlements of employees under the new system and how to seek advice and assistance. Another element created in the new act is the creation of modern awards by the Australian Industrial Relations Commission. . Modern awards are industry or occupation-based and have streamlined and simplified thousands of awards. Special provision has been made to modernise enterprise awards on a case by case basis and integrate them into the new system. In deciding whether to make a modern enterprise award, both enterprise specific and broader industry factors are relevant. Modern awards build on the National Employment Standards and may include an additional 10 minimum conditions of employment, tailored to the needs of the particular industry or occupation. These include minimum wages, types of employment, arrangements for when work is performed, overtime and penalty rates, annualised wage or salary arrangements, allowances, leave related matters, superannuation and procedures for consultation, representation and dispute settlement.4 3. www.workplace.gov.au 4. www.deewr.gov.au WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 7 Below is an example of an industry award. General Retail Industry Award 2010 Summary In early 2011, the Fair Work Ombudsman (FWO) in conjunction with the National Retail Association (NRA) commenced a national education campaign on changes to the General Retail Industry Award 2010. The campaign has been funded by the Australian Government through the Fair Work Ombudsman's Shared Industry Assistance Projects (SIAP) Grant Program, which aims to better inform employers (particularly small to medium businesses) about changes to modern awards applicable to their industry sector. Following a competitive selection process, NRA was one of 15 successful organisations selected to deliver the education campaign in conjunction with the FWO. All Employees 1 Coverage1 The General Retail Industry Award 2010 (Retail Award) coverage includes, but is not limited to: Shop Assistants Delivery drivers delivering from the shop Warehouse employees where the warehouse is attached to the retail shop Clerical employees working in a shop Visual Merchandisers Bakers Supervisors Assistant Shop Managers Managers Employees working in a store cafeteria Trolley collectors (where employed by a retail establishment) establishment The Retail Award does not cover: shops 1.1 Stand-alone General butchers Retail Industry defined Stand-alone nurseries 2 means the sale or hire of goods or services to final consumers for personal or General Retail Industry Clerical functions performed away from the retail establishment household consumption including: Warehousing and distribution functions performed away from the retail establishment Food retailing, supermarkets, grocery stores; Fast food operations Department stores, soft goods retailing; Restaurants, cafes,clothing hotel andand motels. Furniture, houseware and appliance retailing Community pharmacies Recreational goods retailing; Pharmacies in hospitals and institutions providing an in - patient service Personal and household goods Motor vehicle retailing and motorretailing; vehicle fuel and parts retailing Household equipment repair services; Retail activities conducted from a manufacturing or processing establishment other than seafood processing Bakery shops establishment Customer information and assistance provided by shopping centres or retail complexes; Hair and beauty establishments Labour hire employees engaged toinperform work covered by the Retail Award; and Hair and beauty work undertaken the theatrical, amusement and entertainment industries Newspaper delivery drivers employed by and a newsagent, Building, construction, installation, repair maintenance contractors engaged to perform work at a retail 21 Classifications3 Clause 4 1. Retail Employee Level 1 - Indicative roles WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 Shop Assistant Clerical Assistant 8 3 Award Flexibility4 Refer to NRA's Individual Award Flexibility Agreement fact sheet for more information. 4 Spread of Ordinary Hours5 All Shops Excluding Newsagents & Video Shops Monday to Friday, inclusive Saturday Sunday 7.00 am - 9.00 pm* 7.00 am - 6.00 pm* 9.00 am - 6.00 pm* Monday to Friday, inclusive Saturday Sunday 5.00 am - 9.00 pm* 5.00 am - 6.00 pm* 5.00 am - 6.00 pm* Newsagents *Note that for retailers who trade beyond 9pm Monday to Friday or beyond 6pm on Saturday or Sunday, ordinary hours will cease at 11pm Monday to Sunday. Video Shops Monday to Friday, inclusive Saturday Sunday 5 7.00 am - 12 midnight 7.00 am - 12 midnight 9.00 am - 12 midnight Breaks6 Hours worked Less than 4 hours 4 hours but less than 5 hours 5 hours but less than 7 hours Rest break No rest break One 10 minute paid rest break One 10 minute paid rest break Work 7 hours or more but less than 10 hours Two 10 minute paid rest breaks, with one taken in the first half of the work hours and the second taken in the second half of the work hours. Two 10 minute paid rest breaks, with one taken in the first half of the work hours and the second taken in the second half of the work hours. Work 10 hours or more Meal break No meal break No meal break One unpaid meal break of at least 30 minutes but not more than 60 minutes One unpaid meal break of at least 30 minutes but not more than 60 minutes Two unpaid meal breaks each of at least 30 minutes but not more than 60 minutes An employee cannot be required to take a rest break or meal break within one hour of commencing or 4 Clause 7 5 Clause 27 6 Clause 31 4. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 9 ceasing of work. An employee cannot be required to take a rest break(s) combined with a meal break. No employee can work more than 5 hours without a meal break. The time of taking rest and meal breaks and the duration of meal breaks form part of the roster and are subject to the roster provisions of the Retail Award. 5.1 Breaks between work periods An employee must be given 12 hours rest period between completion of work on one day and commencement of work on the next day (work includes any reasonable additional hours/overtime). Where there is no sufficient rest period, the employee is paid at 200% the employee's ordinary rate until they have received such a rest period. This rest period may be reduced by agreement of both parties to no less than 10 hours. 6 Posting of Award7 Employers must ensure that copies of the Retail Award and the NES are available to all employees e.g. via a notice board or through electronic means (such as an intranet), whichever is more accessible. 7 Allowances (effective as at 1 July 2010) Meal allowance Special clothing uniform Excess travelling cost 7 Clause 6 An employee required to work more than one hour of overtime after the employee's ordinary time of ending work, without being given 24 hours notice of the requirement to work the overtime, will be either provided with a meal or paid a meal allowance of $15.27. Where such overtime exceeds four hours a further meal allowance of $13.82 will be paid. No meal allowance is payable if the employee could reasonably return home for a meal within the period allowed. Where an employee is required to launder any special uniform, dress or other clothing, the employee will be paid an allowance as follows: Full time employees: $6.25 per week Part time & casual employees: $1.25 per shift Employers must provide employees with the special uniform, dress or other clothing or the employee is to be reimbursed if they have purchased these items. If an employer requires an employee to move temporarily from one shop to another for a period not exceeding three weeks, all additional transport costs incurred will be reimbursed by the employer 5. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 10 Travelling time reimbursement If an employee is required to work at a place away from their usual place of employment, for all time reasonably spent in reaching and returning from such place (in excess of the time normally spent in travelling from their home to their usual place of employment and returning), the employee will be paid: (a) travelling time at the ordinary rate (except on Sundays and public holidays where it is paid at 150%); and (b) any fares reasonably incurred in excess of those normally incurred in travelling between their home and their usual place of employment. Where the employer provides transport from a pick up point, an employee will be paid travelling time for all time spent travelling from such pick up point and return thereto. Transfer of employee reimbursement Where any employer transfers an employee from one township to another, the employer will be responsible for and will pay the whole of the moving expenses, including fares and transport charges, for the employee and their family Transport allowance Where an employee is required by the employer to use their own motor vehicle in the performance of their duties the employee must be paid an allowance of $0.74 per kilometre. Transport of employee reimbursement Where an employee: (a) commences and/or ceases work after 10.00 pm on any day or prior to 7.00 am on any day; and (b) the employee's regular means of transport is not available; and (c) the employee is unable to arrange their own alternative transport then the employer will reimburse the employee for the cost of a taxi fare from the workplace to the employee's usual place of residence. The above does not apply if the employer provides or arranges proper transportation to and/or from the employee's usual place of residence, at no cost to the employee. This provision does not apply to shift workers or employees who elect to provide their own transport. Cold work disability Employees principally employed on any day to enter cold chambers and/or to stock allowance and refill refrigerated storages such as dairy cases or freezer cabinets will be paid an allowance per hour, while so employed, of 1.3% of the standard rate. Employees who are required to work in a cold chamber which is below 0 degrees Celsius will be paid an additional 2% of the standard rate per hour. The standard rate for calculating hourly allowances means the standard weekly rate for a Retail Employee Level 4 divided by 38. First Aid Allowance Employees who: Recall Allowance Hold the appropriate first aid qualification; and Are appointed to perform the first aid duty will be paid an extra 1.3% of the standard rate each week. The standard rate means the weekly rate for a Retail Employee Level 4 Employees recalled back to work following the end of their shift or on their rostered day off will be paid for their hours worked (including their travel time to and from work) with a minimum payment of 3 hours on each occasion. 6. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 11 Liquor Allowance Higher Duties District Allowance 8 Employees who hold a liquor licence under a relevant State or Territory law will be paid an additional 3.1% of the standard rate per week. The standard rate means the weekly rate for a Retail Employee Level 4 This is limited to those who hold the liquor licence for the business in which they are working Employees who work for 2 hours or less during a day or shift performing duties that attract a higher rate of pay are to be paid at this higher rate for the actual hours worked only. Employees who work for more than 2 hours during one day or shift performing duties that attract a higher rate of pay are to be paid at this higher rate for the entire day or shift. Employers in the Northern Territory and Western Australia will continue to be paid the district allowances that they were entitled to under their previous award/NAPSA. This will only apply until 31 December 2014. An employee in the County of Yancowinna in New South Wales (Broken Hill) will in addition to all other payments be paid an allowance for the exigencies of working in Broken Hill of 4.28% of the standard rate. The standard rate means the weekly rate for a Retail Employee Level 4 Public Holidays8 Public holidays are outlined in the National Employment Standards An employer and10a majority of employees may agree to substitute another day for a listed public holiday. 10 Superannuation If this occurs then employees working both days need tolegislation, elect whichemployees day they will In addition to the requirements under superannuation guarantee arereceive entitledpublic to be holiday paid penalty rates. If an employee works either the actual day or the substituted day (but not both) then the superannuation for: public holiday penalty applies to the day they work. (a) Previously, Paid leave; some and awards and NAPSAs (for example the Retail Industry Award (State) NAPSA public holiday to full and part were not ordinarily rostered (b) Queensland) Absences duegave to workplace injurybenefits or illness, provided thattime the employees employee iswho receiving workers to work on the day on which public holiday fell. byFrom 1 January 2010 only employees who would compensation payments andaremains employed the employer. This requirement to pay ordinarily work onis the daytoonthe which holiday are entitled to payment for that public holiday. superannuation limited first a52public weeks of the falls absence. For example, if an employee works a Tuesday to Saturday working week, they will not be entitled to any benefit for public 11 holidays which fall on a Monday. 11 Shift Workers 9The penalty Accident ratesPay set 9out below represent the rates that will apply when the Retail Award comes into full effect. These are subject to transitional provisions whichpay phase in any increases (orterms decreases) over 5made increments An employee is entitled to accident in accordance with the of an award under from the 1 July 2010. The National Retail Association provide further in relation to theprior to 27 Workplace Relations Act 1996Wage (Cth) Summaries that would have applied to information the employee immediately transitional penalty are applicable. March rates 2006,that a notional agreement preserving a State award that would have applied to the employee immediately prior to 1 January 2010 or a Division 2B State award that would have applied In order to betoa the shiftemployee worker animmediately employee must engaged as a shift worker. This means that the prior be to 1specifically January 2011 shift worker provisions do not apply to who regular employees whoShop, are performing hours. For example, employers were applying the Distributiveadditional and Allied Employees Association - Victorian Shops Interim Award 2000 immediately prior to 27 March 2006 would not have had an Shift workers - othertothan baking production employees obligation pay accident pay under that award after that date. However, the obligation to pay Shift work means a shift after 6.00pmwith on the onemodern day andaward beforefrom 5.00am on the2010. next. It does not accident paystarting would at beorreintroduced 1 January include a shift which starts and finishes on the same day within the spread of ordinary hours. This entitlement will continue until 31 December 2014. All time between commencing time and ceasing time is counted as time worked. 8 Clause 34 workers 9Shift Clause 21 are paid the following penalties, based on the ordinary permanent rate of pay: When work performed Midnight Sunday to Midnight Friday Saturday Sunday 7. Permanent employees 130% 150% 200% Casual Employees 155% 175% 225% Shift workers - baking production employees A baking production employee who commences a shift at or after 2:00 am and before 6:00 am will be entitled to an early morning shift allowance of |12.5% for casuals) forAUSTRALIAN the shift. PACIFIC COLLEGE WORKBOOK 2016 (37.5% YOUNG RABBIT PTY LTD, BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 A baking production employee who commences a shift prior to 2:00 am will be entitled to a night shift allowance of 12 FULL- TIME TEAM MEMBERS A full time employee is defined as an employee who is engaged to work an average of 38 hours per week. Hours of Work Within the spread of hours full time employees are to be rostered: An average of 38 hours per week (Monday to Sunday) in any four week period So that hours are worked continuously except for rest pauses and meal breaks - no split shifts For a maximum of 9 hours per day, except on one day per week where a maximum of 11 hours may be worked So that they have two consecutive days off each week, or three consecutive days off in a two week period. This requirement can be set aside if the employee requests this and the employer agrees. Any such agreement must be in writing and may be terminated by the employee by giving 4 week's notice. On no more than 6 consecutive days (inclusive of overtime). Employees Regularly Working Sunday Employees regularly working Sundays must be rostered to have three consecutive days off each four week period including a Saturday and Sunday Employees may request to work other arrangements. Any agreement to this effect must be recorded in writing and may be terminated by the employee by giving 4 week's notice. Rosters Employer is required to exhibit staff rosters on a noticeboard showing the following: o The number of hours to be worked each week o The days of the week when work is to be performed o The start and finish time for each day Rosters must be retained for 12 months. Due to unexpected operational requirements, an employee's roster may be changed by mutual agreement prior to the employee arriving at work. Minimum 7 days notice to make a permanent change to an employee's roster, however, if an employee disagrees with the roster change then 14 days notice will be given to allow time to resolve the dispute. Where an employee's roster is changed with the appropriate notice for a once only event caused by circumstances not amounting to an emergency and the roster reverts to the previous pattern the following week, the extra work performed is paid at overtime rates. Penalties The penalty rates set out below represent the rates that will apply when the Retail Award comes into full effect. These are subject to transitional provisions which phase in any increases (or decreases) over 5 increments from 1 July 2010. The National Retail Association Wage Summaries provide further information in relation to the transitional penalty rates that are applicable. Monday to Friday (6pm to ordinary ceasing time - see span of ordinary hours) - 125% of the permanent rate Saturday (ordinary hours - see span of ordinary hours) - 125% of the permanent rate Sunday (all hours) - 200% of the permanent rate 9. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 13 Public holidays (all hours): o 250% of the permanent rate; or o An equivalent day or equivalent time off without loss of pay; o An additional day or equivalent as annual leave Overtime Working more than 38 hours per week Where an employee's roster is changed with the appropriate notice for a once only event caused by circumstances not amounting to an emergency and the roster reverts to the previous pattern the following week. Working outside the spread of hours in paragraph 4 (above) Working over nine hours in one day (N.B one day per week the employee can be rostered for 11 hours) 150% for first 3 hours and 200% thereafter (All hours worked on a Sunday are paid at 200%) 150% for first 3 hours and 200% thereafter (All hours worked on a Sunday are paid at 200%) 150% for first 3 hours and 200% thereafter (All hours worked on a Sunday are paid at 200%) 150% for first 3 hours and 200% thereafter (All hours worked on a Sunday are paid at 200%) If an employee elects, and the employer agrees, they can be given time off in lieu of overtime, with the time off calculated at the appropriate penalty rate. For example if the penalty rate is 150% and the employee works an hour's overtime, he/she would be entitled to 1.5 hours off, which must be taken within 4 weeks of accruing. If it is not taken within 4 weeks it is to be paid out to the employee. Alternatively, the employer and employee may agree for the overtime to be paid as annual leave calculated at the additional penalty rate. Annual Leave/Leave Loading Annual leave is payable in accordance with the National Employment Standards (See the NRA's Annual Leave Fact Sheet). During a period of annual leave an employee will receive a loading calculated outlined as follows: Employees who would have worked on day work only had they not been on leave17.5% of the Award rate OR the relevant weekend penalty rates, whichever is the greater but not both. Annual leave loading is payable on termination. An employer may direct an employee to take a period of annual leave, by giving at least four weeks' notice: As part of a close down-down of its operations; or Where more than 8 weeks leave is accrued. Other Leave Community Service Leave is payable in accordance with the National Employment Standards Personal/carer's leave and compassionate leave is payable in accordance with the National Employment Standards, however additionally: Casual employees are entitled to be not available for work or to leave work to care for a person who is sick and requires care and support or who requires care due to an emergency. Such leave is unpaid. A maximum of 48 hours absence is allowed by right, with additional absence by agreement only. 10. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 14 Payment of Wages Wages will be paid weekly or fortnightly according to the actual hours worked each week or fortnight or may be averaged over a period of a fortnight. Employers who, prior to 1 January 2010, paid particular classifications of its employees on a monthly basis may continue to do so. However, no employee at level 3 or below can be paid monthly and must be paid either weekly or fortnightly. Notice of Termination by Employer Period of continuous service Notice period Less than 1 year 1 week 1 year but less than 3 years 2 weeks 3 years but less than 5 years 3 weeks 5 years and over 4 weeks An additional 1 week if the employee is over 45 and has at least 2 years continuous service. Written notice must be provided to the employee. An employee who is required to work their notice period must be allowed up to one day's time off without loss of pay for the purpose of seeking alternative employment. The time off is to be taken at times convenient to the employee after consultation with the employer. If an employee is paid in lieu of notice they are entitled to be paid at their full rate of pay - which is the amount that they would have expected to be paid had they worked during the notice period - including allowances, penalty rates, loadings, incentive payments, bonuses and other separately identifiable amounts. Notice of Termination by Employee Period of continuous service Less than 1 year 1 year but less than 3 years 3 years but less than 5 years 5 years and over Notice period 1 week 2 weeks 3 weeks 4 weeks If an employee fails to give the required amount of notice then an amount equivalent to the notice they should have given may be withheld from monies owed to the employee. 11. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 15 PART- TIME TEAM MEMBERS Regular part time employees are defined as an employee who: Works less than full time hours of 38 per week; and Has reasonably predictable hours of work. Normal Working Hours Hours to be worked continuously except for rest pauses and meal breaks Min 3 consecutive hours per shift. Maximum 9 hours per day except on one day per week where a maximum of 11 hours may be worked At the time of first being employed, the employer and the part-time employee will agree, in writing, on a regular pattern of work, specifying at least: 1. the hours worked each day; 2. which days of the week the employee will work; 3. the actual starting and finishing times of each day; 4. that any variation will be in writing; 5. that the minimum daily engagement is three hours; and 6. the times of taking and the duration of meal breaks. Any agreement to vary the regular pattern of work must be made in writing before the variation occurs. Rosters A part-time employee's roster, but not the agreed number of hours, may be altered by the giving of seven days notice in writing or in the case of an emergency, 48 hours, by the employer to the employee. The rostered hours may be altered at any time by mutual agreement. Rosters will not be changed from week to week, or fortnight to fortnight, nor will they be changed to avoid any Retail Award entitlements. Penalties The penalty rates set out below represent the rates that will apply when the Retail Award comes into full effect. These are subject to transitional provisions which phase in any increases (or decreases) over 5 increments from 1 July 2010. The National Retail Association Wage Summaries provide further information in relation to the transitional penalty rates that are applicable. Monday to Friday (6pm to ordinary ceasing time - see span of ordinary hours) - 125% of the permanent rate Saturday (ordinary hours - see span of ordinary hours) - 125% of the permanent rate Sunday (all hours) - 200% of the permanent rate Public holidays (all hours): o 250% of the permanent rate; or o An equivalent day or equivalent time off without loss of pay; o An additional day or equivalent as annual leave 12. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 16 Overtime Working in excess of the employee's agreed rostered hours in a week (without their prior written agreement to vary) Working outside the spread of hours in paragraph 4 (above) Working over nine hours in one day (N.B one day per week the employee can be rostered for 11 hours) 150% for first 3 hours and 200% thereafter (All hours worked on a Sunday are paid at 200%) 150% for first 3 hours and 200% thereafter (All hours worked on a Sunday are paid at 200%) 150% for first 3 hours and 200% thereafter (All hours worked on a Sunday are paid at 200%) At the employee's election and with the employer's agreement, an employee may be granted time off at the appropriate overtime rate in lieu of payment to be taken within 4 weeks. For example if the penalty rate is 150% and the employee works an hour's overtime, he/she would be entitled to 1.5 hours off. Alternatively, the employer and employee may agree for the overtime to be paid as annual leave calculated at the additional penalty rate. Annual Leave/Leave Loading Annual leave is payable in accordance with the National Employment Standards (See the NRA's Annual Leave Fact Sheet). During a period of annual leave an employee will receive a loading calculated outlined as follows: Employees who would have worked on day work only had they not been on leave17.5% of the ordinary rate OR the relevant weekend penalty rates, whichever is the greater but not both. Annual leave loading is payable on termination. An employer may direct an employee to take a period of annual leave: As part of a close down-down of its operations; or Where more than 8 weeks leave is accrued. Other Leave Community Service Leave is payable in accordance with the National Employment Standards Personal/carer's leave and compassionate leave is payable in accordance with the National Employment Standards, however additionally: Casual employees are entitled to be not available for work or to leave work to care for a person who is sick and requires care and support or who requires care due to an emergency. Such leave is unpaid. A maximum of 48 hours absence is allowed by right, with additional absence by agreement only. Payment of Wages Wages will be paid weekly or fortnightly according to the actual hours worked each week or fortnight or may be averaged over a period of a fortnight. Employers who, prior to 1 January 2010, paid particular classifications of its employees on a monthly basis may continue to do so. However, no employee at level 3 or below can be paid monthly and must be paid either weekly or fortnightly. 13. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 17 Notice of Termination by Employer Period of continuous service Notice period Less than 1 year 1 week 1 year but less than 3 years 2 weeks 3 years but less than 5 years 3 weeks 5 years and over 4 weeks An additional 1 week if the employee is over 45 and has at least 2 years continuous service. Written notice must be provided to the employee. An employee who is required to work their notice period must be allowed up to one day's time off without loss of pay for the purpose of seeking alternative employment. The time off is to be taken at times convenient to the employee after consultation with the employer. If an employee is paid in lieu of notice they are entitled to be paid at their full rate of pay - which is the amount that they would have expected to be paid had they worked during the notice period - including allowances, penalty rates, loadings, incentive payments, bonuses and other separately identifiable amounts. Notice of Termination by Employee Period of continuous service Less than 1 year 1 year but less than 3 years 3 years but less than 5 years 5 years and over Notice period 1 week 2 weeks 3 weeks 4 weeks If an employee fails to give the required amount of notice then an amount equivalent to the notice they should have given may be withheld from monies owed to the employee under the award or the NES. 14. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 18 CASUAL TEAM MEMBERS A casual employee is an employee engaged as such. Hour of Work Minimum 3 hours work per day Casual Loading 25% subject to transitional provisions (See NRA's Modern Award Wage Summaries). Penalties The penalty rates set out below represent the rates that will apply when the Retail Award comes into full effect. These are subject to transitional provisions which phase in any increases (or decreases) over 5 increments from 1 July 2010. The National Retail Association Wage Summaries provide further information in relation to the transitional penalty rates that are applicable. No evening penalty Saturday (7:00am to 6:00pm) - 135% of the permanent rate (inclusive of casual loading) Sunday (all hours) - 200% of the permanent rate Public holidays (all hours): o 275% of the permanent rate; or o An equivalent day or equivalent time off without loss of pay; o An additional day or equivalent as annual leave Overtime No overtime rates apply to casual employees The Fair Work Ombudsman (FWO) and the NRA is committed to providing useful, reliable information to help you understand your rights and obligations under workplace laws. The information contained in this publication is: general in nature and may not deal with all aspects of the law that are relevant to your specific situation; and not legal advice. Therefore, you may wish to seek independent professional advice to ensure all the factors relevant to your circumstances have been properly considered. This information was published on 8th of March 2011.The FWO does not accept legal liability arising from or connected to the accuracy, reliability, currency or completeness of this information. 15. Source: http://www.nra.net.au/images/SIAP-GeneralRetailIndustryAward2010-SummaryFINALlogo.pdf WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 19 Activity 2.1 Class Discussion Discuss the working conditions and adherence to the Fair Work Act at your workplace. Workplace Health & Safety The most recent comprehensive legislation covering Occupational Health & Safety was passed by the Australian Parliament in 2011. The Work, Health and Safety Act 2011, a Federal Act, replaces numerous State & Territory Acts, and is now in place in a majority of states and territories in Australia. The main object of this Act is to provide for a balanced and nationally consistent framework to secure the health and safety of workers and workplaces by: a. protecting workers and other persons against harm to their health, safety and welfare through the elimination or minimisation of risks arising from work or from specified types of substances or plant, and b. providing for fair and effective workplace representation, consultation, cooperation and issue resolution in relation to work health and safety, and c. encouraging unions and employer organisations to take a constructive role in promoting improvements in work health and safety practices, and assisting persons conducting businesses or undertakings and workers to achieve a healthier and safer working environment, and d. promoting the provision of advice, information, education and training in relation to work health and safety, and e. securing compliance with this Act through effective and appropriate compliance and enforcement measures, and f. ensuring appropriate scrutiny and review of actions taken by persons exercising powers and performing functions under this Act, and g. providing a framework for continuous improvement and progressively higher standards of work health and safety, and h. maintaining and strengthening the national harmonisation of laws relating to work health and safety and to facilitate a consistent national approach to work health and safety in this jurisdiction.5 5. http://www.legislation.nsw.gov.au/maintop/view/inforce/act+10+2011+cd+0+N WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 20 The Act covers self-employed people as well as employees and employers. According to the act: Employers: The PCBU (persons conducting business or an undertaking) must meet its obligations, so far as is reasonably practicable, to provide a safe and healthy workplace for workers or other persons by ensuring: ff safe systems of work ff a safe work environment ff accommodation for workers, if provided, is appropriate ff safe use of plant, structures and substances ff facilities for the welfare of workers are adequate ff notification and recording of workplace incidents ff adequate information, training, instruction and supervision is given ff compliance with the requirements under the work health and safety regulation ff effective systems are in place for monitoring the health of workers and workplace conditions. PCBUs must also have meaningful and open consultation about work health and safety with its workers, health and safety representatives and health and safety committees. PCBU must consult, cooperate and coordinate with other PCBUs with whom they share duties.6 A worker must, while at work: ff take reasonable care for their own health and safety ff take reasonable care for the health and safety of others ff comply with any reasonable instruction by the PCBU ff cooperate with any reasonable policies and procedures of the PCBU. Activity 2.2 Class Discussion 1. Does your workplace adhere to Workplace Health & Safety laws? 6. http://www.workcover.nsw.gov.au/newlegislation2012/Employersandbusinesses/Pages/ dutiesofapersonconductingabusinessorundertaking.aspx WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 21 2. How do Australian Workplace Health & Safety laws differ from those in your country? Equal Employment Opportunity (EEO) Equal Employment Opportunity means equal access to jobs and benefits and services for all employees and prospective employees in the workplace. EEO aims to ensure fair and equitable outcome in all areas of employment which relate to: ff Recruitment ff Selection, permanency and promotion ff Conditions of employment ff Opportunities for training and development ff Access to information ff Management and supervision to staff Equal Employment Opportunity is about: ff Fair practices in the workplace ff Management decisions being made without bias ff Recognition and respect for the social and cultural backgrounds of all staff ff The best person is recruited and / or promoted ff Training and development are linked to employee needs ff The workplace is efficient and free of harassment and discrimination7 Equal Employment Opportunity aims to redress past disadvantage by improving employment outcomes for EEO groups (women, Aboriginal and Torres Strait Islander people, people from racial, ethnic or ethno-religious minority groups and people with a disability). 7. www.lawlink.nsw.gov.au WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 22 Anti-Discrimination and Equal Employment Opportunity The first anti-discrimination bill was introduced into NSW Parliament in 1976. Over the years this bill has been developed and amended to the present bill which was passed in 2009. The grounds of discrimination that could affect employment covered by law in NSW are: ff Age discrimination ff Carer's responsibility discrimination ff Disability discrimination ff Homosexual discrimination ff Marital or domestic status discrimination ff Race discrimination ff Sex discrimination ff Transgender discrimination8 It is also against the law to treat someone unfairly because of a friend, partner, or spouse. For example it would be against the law not to employ someone because of the race of their spouse. Anti-Discrimination applies to: ff The recruitment process ff The terms and conditions of employment ff Dismissal, retirement or redundancies Benefits of following EEO and anti-discrimination laws: ff The best person gets the job and the best employees are promoted ff The right employees are trained in the right skills, and each employee's skills are developed to reach their full potential ff You don't end up in court fighting discrimination or harassment claims Activity 2.3 What would be the consequences of not following EEO and anti-discrimination laws? List 3 8. www.lawlink.nsw.gov.au WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 23 Evaluating Your Options When an organisation is formulating their industrial relations policies, they must evaluate options in terms of cost-benefit, risk analysis and current legislative requirements. We have already considered the current legislative requirements, so let's consider cost-benefit and risk analysis. Cost Benefit Analysis Cost benefit analysis is weighing up the positive and negative impacts of the policy. The cost benefit to an organisation of their industrial relations policy can be measured in a number of ways. These include: ff Productivity measures - a number of industrial relations policies include productivity measures where workers are rewarded for higher productivity. The higher the increases in productivity the more successful your policy has been in terms of cost benefits. Conversely, stagnant or reduced productivity would indicate that your present policy has not been successful. ff Days lost to industrial action - any organisation that is losing days due to industrial action would consider their industrial relations policy to be unsuccessful in terms of cost-benefit. While the militancy of your workforce or the union might impact upon this factor, it must be remembered that workers do not give up a day of work, and the subsequent pay lightly. A high number of days lost to industrial action generally reflects the workforce's unhappiness with the industrial relations policy of the organisation. The costs of industrial action includes lost production, strained relations with employees and depending upon the cause of the industrial action, damage to the company's reputation. ff Absenteeism - an alternative way that an employee can voice their unhappiness with working conditions is through absenteeism. The two types of absenteeism are: Involuntary absenteeism, mostly due to illness Voluntary absenteeism, which may be due to a variety of reasons such as the individual's attitude to work, their personal level of job satisfaction or organisational issues such as stress, conflict and the nature of their work. The costs of absenteeism include the financial costs of paying the worker while not producing, juggling other workers to cover the absent worker, and costs associated with related overtime, and production losses. ff Labour turnover - Closely related to absenteeism, labour turnover is also a reflection of a worker's dissatisfaction with their job. The costs of labour turnover include the cost of hiring and training of a new employee. The benefits are the removal of a dissatisfied employee, and the injection of enthusiasm and potential new ideas of the new employee. WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 24 While the cost-benefits of an industrial relations policy can be measured, there are numerous other advantages of an industrial relations policy. The below list is provided by the NSW government: Well-written workplace policies: ff are consistent with the values of the organisation ff comply with employment and other associated legislation ff demonstrate that the organisation is being operated in an efficient and businesslike manner ff ensure uniformity and consistency in decision-making and operational procedures ff add strength to the position of staff when possible legal actions arise ff save time when a new problem can be handled quickly and effectively through an existing policy ff foster stability and continuity ff maintain the direction of the organisation even during periods of change ff provide the framework for business planning ff assist in assessing performance and establishing accountability ff clarify functions and responsibilities.9 Risk Analysis The requirement to complete a risk analysis of an organisation's industrial relations policy will depend upon the industry, the nature of your workforce and / or union, and the nature of industrial relations in the past. The process of risk management and analysis involves the following five steps. Each of these five steps is interrelated and needs to be clearly linked to the development of contingency plans and policies. The implementation of these steps is dependent on managers who need to analyse and recommend actions on the data they have available to them. Step 1 - Identify the potential risks Management needs to identify the potential forms of industrial conflict which could occur in their organisation as a result of the planned changes in their industrial relations implementation plan. Step 2 - Analyse and evaluate those risks Next, management needs to analyse and evaluate the probability that their employees may engage in industrial conflict and the form/s this conflict may take. Step 3 - Develop a risk control plan This step involves the formulation of a risk control plan or a contingency plan. The management team needs to decide the action they will take, should they be faced with industrial conflict. There should be a variety of contingencies to manage each form of industrial conflict. 9. http://www.industrialrelations.nsw.gov.au/oirwww/Employment_info/Managing_employees/Workplace_policies_ and_procedures.page WORKBOOK | 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | MANAGE INDUSTRIAL RELATIONS_V6.2 25 Step 4 - Analyse the funding required to handle the risk If applicable, a budget should be determined for each contingency within the risk control or contingency plan. Step 5 - Risk administration The process of risk management should be reviewed on a regular basis. The reason for this is that factors affecting the organisation change over time. These factors include: ff size and scope of your organisations operation ff nature and composition of your employees ff industrial relations environment and associated legislation within which your organisation needs to comply ff domestic and international economies within which your organisation operates.10 Developing the Policy as a Team Like most workplace policies and procedures it is best to approach the development of an industrial relations policy as a team. Different, even conflicting views ensure that all aspects are considered, and a more balanced policy is created. Initially management should be involved in the formulation of the policy, but ideas and feedback from staff should also be encouraged. Staff involvement promotes awareness and ownership of the policy, and also may a