Discuss Todd’s (2012) Assertation That It Is Questionable Whether These Changes to the Industrial Relations System Would Enhance Productivity
Multiple employer associations express concerns regarding the Fair Work Act 2009, highlighting weaknesses primarily based around productivity and flexibility. The leading employer associations including the Australian Chamber of Commerce and Industry (ACCI) and the Australian Industry Group (AI group) “have been conducting a public campaign calling for substantial changes to be made to the Fair Work Act” (Todd 2012 p. 345). This paper will discuss Todd’s (2012) assertation that it is questionable whether these changes to the industrial relations system would enhance productivity. I will argue that these changes are an attempt by employer associations to protect managerial prerogative and reduce labour costs rather than enhancing productivity.
Productivity is the ratio of output to input. “It is basically a measure of the effectiveness and efficiency of your organisation in generating output with the resources available” (Spring Singapore 2011). Many employers and employer associations have expressed concerns regarding Australia’s declining productivity over the last decade, linking this decline directly to the Fair Work Act 2009.
The AI group has identified a number of issues with the Fair work Act which they believe have contributed to this decline in workplace productivity. They want legislation and “industrial instruments which do not impose barriers to productivity improvement such as clauses which impede outsourcing, or restrict the use of contractors, or prevent individual flexibility arrangements being negotiated with employees” (Ridout 2011). They also state that union power and penalty rates should be reviewed.
The ACCI has called for a significant “suite of changes to national workplace regulations in order to support fairness, productivity and competitiveness” (Anderson 2012). These align with the major areas of change proposed by the AI group as outlined above.
There is a notable productivity gap apparent between Australia and other
Productivity is the ratio of output to input. “It is basically a measure of the effectiveness and efficiency of your organisation in generating output with the resources available” (Spring Singapore 2011). Many employers and employer associations have expressed concerns regarding Australia’s declining productivity over the last decade, linking this decline directly to the Fair Work Act 2009.
The AI group has identified a number of issues with the Fair work Act which they believe have contributed to this decline in workplace productivity. They want legislation and “industrial instruments which do not impose barriers to productivity improvement such as clauses which impede outsourcing, or restrict the use of contractors, or prevent individual flexibility arrangements being negotiated with employees” (Ridout 2011). They also state that union power and penalty rates should be reviewed.
The ACCI has called for a significant “suite of changes to national workplace regulations in order to support fairness, productivity and competitiveness” (Anderson 2012). These align with the major areas of change proposed by the AI group as outlined above.
There is a notable productivity gap apparent between Australia and other