\fThe changing nature of work and employment Chapter 2 Cengage Learning Australia hereby permits the usage and posting of our copyright controlled PowerPoint slide content for all courses wherein the associated text has been adopted. PowerPoint slides may be placed on course management systems that operate under a controlled environment (accessed restricted to enrolled students, instructors and content administrators). Cengage Learning Australia does not require a copyright clearance form for the usage of PowerPoint slides as outlined above. Learning objectives 1. Identify the environmental drivers of changes to work and employment in Australia and globally. 2. Describe the contemporary changes to work and employment. 3. Describe the organisation of work and employment . 4. Explain how the employment relationship has changed. 5. Identify different types of employment categories and employment contracts. 6. Differentiate between employees and contractors. The interlinked drivers of change to work and employment Computer power - improvements in hardware computing power and free software quality are driving changes in a range of industries. Networks and the internet - millennials and Gen Z retain only 10 per cent of work-related knowledge and look majority up on the internet and intranet (Howe & Strauss 2009; Myers & Sadaghiani 2010). Work involving research therefore done differently and can be questionable. Technological automation and robotics - technology getting cheaper and it increases productivity. Fewer employees needed: computer modelling in R&D, manufacturing, engineering, design and architecture and even libraries. The interlinked drivers of change to work and employment, cont... Globalisation - a 'process of rapid economic, cultural and institutional integration among countries, driven by liberalisation of trade, investment and capital flows, technological advances and pressures for assimilation toward international standards' (Kim & Kim 2003, p. 341). Leads to growth in 'informal workforce' - casual or day labourers, outsourced contractors, employed by informal organisations. Called the 'Precariat' by Standing (2011). The interlinked drivers of change to work and employment - Australia 1. Key initiatives in Australia in the 1980s, such as progressive tariff reductions and floating of dollar tied to industry restructuring plans, led to pressure for lower costs, including labour costs. 2. Led to dilemma of how to continue to increase living standards, with the result that productivity improvement and structural efficiency (Chapter 13) were seen as critical to achieve ongoing increases. 3. To achieve productivity increases, a move to enterprise bargaining (Chapter 13) and flexibility (Chapter 4) was made in the early 1990s and continues today. Diversifying social values Social business model and social reporting - globalisation has promoted diversification of social values which have influenced development of social business model, where profits might support a social good in community and greater stakeholder engagement (Waller 2011). Consumers worldwide more aware and informed about products and can easily get info on company's environmental policies, sustainability, employment practices and community duties. Consumer awareness and ethical production Ethical food production - consumers increasingly interested in how and where food is produced. (Hobbs 1996; Harper & Makatouni 2002; Schrder & McEachern 2004). Ethical clothing manufacturing - since mid-1990s, critical media coverage and increasing academic research on poor workplace practices and use of child labour in some countries has raised consumer awareness. Result = numerous multinational companies criticised (Islam & Deegan 2010). Have led to consumer boycotts and consumer and public pressure to change (Also countries: South Africa/apartheid and other countries - see pp. 41-2). The labour market There are three key issues to consider in Australia's labour market. McCrindle (2012) identifies these as the 'three Gs': geographical issues generational issues gender issues. Geographical issues Skill shortages = 'difficulties in filling vacancies which require trained employees with technical skills and other behavioural attributes, including reliability, ability to work without supervision and stability of employment' (Green, Machin & Wilkinson 1998 cited in Jerrard, Donohue, Kimberley & Cooney 2008, p. 58). Labour shortage = occurs when vacancies are not filled because of poor wages and working conditions (Jerrard et al. 2008). Unemployment = Fluctuations in labour market and economy have greater effect on lower skilled and lower educated workers. Often in remote communities or communities with low socioeconomic status groups. Frequently Indigenous Australians. Also new migrants or refugees. Labour participation rate - Australia Generational Workforce now a combination of five different generations with different values and expectations (Waller 2011): Traditionalists, Silent or Greatest Generation (born 1925-45) Baby Boomers (born 1946-64) Gen X (born 1965-76) Gen Y or 'Millennials' (born between 1977-95) Generation Zen or Gen Z or Digital Natives (born from 1996). List of descriptors of each generation from key academic and popular articles Generations - the challenge Understanding how work is done differently by different generations and maximising performance of each generation while also understanding customer needs and interactions from different generations. McGuire, Todnem By and Hutchings (2007) argue failure to acknowledge and adjust for generational differences and values negatively affects employee productivity, innovation and corporate citizenship, resulting in increased employee turnover and reduced retention (Chapters 8 and 10). Unemployment is a generational issue Gender issues Increasing female participation - Rise in female participation in paid employment is a long run global trend and each successive cohort has higher participation rate than previous cohort. However, female labour force participation in Australia remains low in comparison with other OECD countries (Charlesworth 2013). Gender - Australia Strong growth of employment in service industries - hospitality, tourism, retail and admin services = more jobs with flexible work via part-time and casual work (McCrindle 2012). Access to paid maternity leave and child care has widened (Connolly et al. 2011). Main barrier to higher female workforce participation is effective marginal tax rate regime, cost of childcare after tax = powerful disincentive to many mothers (Charlesworth 2013). Economic and political systems Liberal market economies (LMEs) = market economies where relations between firms and other actors mainly driven by competitive markets, such as supply and demand, and labour markets are fluid. Coordinated market economies (CMEs) = market economies where firms engage in more strategic interaction with trade unions, suppliers of finance and other actors, and rely more on non-market relationships. LMEs and workplaces Relationships between firms and other actors mainly driven by competitive markets. Labour markets fluid - workers have incentives to invest in generic transferable skills to take to other jobs. Trade unions relatively weak, employment protection low - wage setting a matter of contract between workers and individual employers. However, enterprise bargaining gives stronger role to unions. Decision-making in firms usually unilaterally carried out by senior management and strong influence by employers on government policy. LME e.g. countries Examples of countries that pursue the LME model to varying degrees include the USA, the UK, Ireland, Canada, Australia and NZ (Hall & Gingerich 2009). Predominantly the 'Anglo-Saxon' countries. CMEs and workplaces Firms engage in more strategic interaction with unions, suppliers of finance and other actors. Stronger employer associations and unions = a tripartite approach with government to policy formulation. Stronger unions, effective works councils and high levels of employment protection operate. Managers have less opportunity for unilateral decision-making (Chapter 3). Labour markets less fluid and job tenure longer for employees who also receive industry-specific training on collaborative basis from Govt, unions and employer associations (Hall & Gingerich 2009). CMEs usually have a history of social democratic governments. CME e.g. countries Germany Austria Japan South Korea Sweden Norway Finland Denmark Belgium The Netherlands Switzerland Other government systems Social democracy Political system in which social justice and equality is achieved through government policies within the framework of a market economy. Socialist market economies Economic systems in which means of production or capital publicly or collectively owned (e.g. state-owned) and allocation of resources follow rules of market. Contemporary changes to organisation of work and employment A shift in labour market composition towards the service sector, although historical patterns, degree of change and wider ramifications vary from country to country. Negative deindustrialisation in UK, USA and Australia (for e.g.) and positive deindustrialisation in Germany and Sweden (for e.g.) where is often state-driven industrial policy (Stuart et al. 2013). Has led to 'post-industrialised development' and new forms of work arrangements. Contemporary changes to organisation of work and employment, cont... Led to a push to advanced work systems or high performance work systems (HPWS) in industrialised countries and some have developed own approaches: Japan = lean production and just-in-time manufacturing Sweden = the sociotechnical system Germany = diversified quality production system (Boxall & Macky 2009) all gave rise to HPWS. Contemporary changes to organisation of work and employment, cont... Emphasis on services shifts focus onto emotional labour and emotional intelligence rather than hard or technical skills (Stuart et al. 2013). Services productivity therefore more difficult to measure. Distinctions between paid work and unpaid domestic activity increasingly blurred. Many jobs, usually regarded as semi-skilled and skilled, can be done from anywhere due to advances in computing, networks and technology. Increase in number of unskilled/low skilled jobs, usually done by women, employed at home on piece-work rates (Delaney, 2004). Contemporary changes to organisation of work and employment, cont... Organisations may have internal workforce made up of employees and managers and external workforce including temp staff, independent contractors, those working for contractors, volunteers, work placement students and trainees. Switch to external workforce with high degree of 'precariousness' boosted by significant increase in number of self-employed people - a direct result of state privatisations. Different terms for 'non-standard' employees fixed-term employment contracts temporary work in-house temps dispatched employees temporary agency workers leased employees short-term contracts project work secondments maternity/paternity leave relief on-call work zero-time work, part-time work training contracts mini-jobs semi-autonomous workers dependent-independent contractors casuals permanent casuals The differences between contractors and employees Summary The key drivers of changes to work and employment are technology, globalisation, diversification of social values and economic factors such as resources booms and busts. The labour market in Australia is influenced by geographic, generational and gender issues. Economic and political systems influence the types of market economies and employment arrangements. There has been a push towards advanced work and high performance systems. Contemporary work arrangements include strong use of contract and temporary workers, as well as part-time and casual labour. Flexible employment forms can leave workers excluded from entitlements given to permanent workers, such as paid leave