Industry wide awards vs Collective agreements

[RobDog]

Just a question from the sample exam that i'm having trouble understanding.
Discuss the advantages and disadvantages of using industry-wide awards rather than collective agreements as a means of setting out workers’ terms and conditions. 4 marks.

I'm guessing for full marks i should provide a definition of both awards and collective agreements, and then 2 strengths and 2 weaknesses of awards.

I guess weaknesses would include that organisations have no input over what their employee's receive, and therefore there is less emphasis on payment rewards for increased productivty etc etc.

But what strengths are there for using awards over collective agreements? Would it include equal pay for all employees of a particular industry regardless of organisation?
Thanks.

[rambo9593]

there is a less potential for exploitation of employees as pay and working conditions are set outside the LSO, its not time consuming since there is no negotiation and it favors employees who are not in a strong  bargaining position for example migrants with poor communication skills, unskilled workers and greater union involvement so workers right are protected by a third party.

[RobDog]

there is a less potential for exploitation of employees as pay and working conditions are set outside the LSO, its not time consuming since there is no negotiation and it favors employees who are not in a strong  bargaining position for example migrants with poor communication skills, unskilled workers and greater union involvement so workers right are protected by a third party.

Excellent, exactly what i was after. Thanks heaps 

[99.96]

there is a less potential for exploitation of employees as pay and working conditions are set outside the LSO, its not time consuming since there is no negotiation and it favors employees who are not in a strong  bargaining position for example migrants with poor communication skills, unskilled workers and greater union involvement so workers right are protected by a third party.

Not really, employees can't be exploited under collective agreements as awards set out the minimum conditions of employment, so employees have to be better off in a collective agreement. Plus the agreement still has to comply with the NES. And even if employees are not in a strong bargaining position they can't be worse off under a collective agreement. But you're right about it not being time consuming.

[tashpash]

It also ensures comparative wage justice? The government also has better control over the economy as they can have influence over wage and working conditions. It also reduces the likelihood of industrial dispute as all wages and working conditions are set in stone for the whole industry and there is a formal system for settling disputes.

[RobDog]

Not really, employees can't be exploited under collective agreements as awards set out the minimum conditions of employment, so employees have to be better off in a collective agreement. Plus the agreement still has to comply with the NES. And even if employees are not in a strong bargaining position they can't be worse off under a collective agreement. But you're right about it not being time consuming.

It also ensures comparative wage justice? The government also has better control over the economy as they can have influence over wage and working conditions. It also reduces the likelihood of industrial dispute as all wages and working conditions are set in stone for the whole industry and there is a formal system for settling disputes.

Thanks for both of these.  Great responses.

[dinosaur93]

Discuss the advantages and disadvantages of using industry-wide awards rather than collective agreements as a means of setting out workers’ terms and conditions. 4 marks.

Bear in definition - Industrial wide award is cenralised and collective agreement is decentralised..

Industrial wide awards are awards certified by a external 3rd party certified by the AIRC where employees in similar industry will receive similar wage and salary regardless of having different manager. Collective Agreement the process whereby which employees are able to bind together and bargain away terms and condition at the operational level with the management. Industry Wide Awards would have advantages over collective agreement in terms of equity as employees with the similar job across Australia receives the same pay. The employees will also be able express their ideas through industrial disputes. Disadvantages on the other hands, is that most LSO's are subjected to a closed shop (where only union members are allowed to work within an industry) - this promotes unethical behaviour. Another disadvantages is that employer will decrease profitability as Awards are fixed and doesnt address the significance of flexibility. Good optimum working relationship between the employee and employers will not be address (having a 'them and us' attitude) which leads to industrial disharmony. 

[RobDog]

I award you 4/4 sir!

[rambo9593]

awards was used to be certified by the AIRC but now it is certified by Fair work Australia

[tashpash]

Aren't collective agreements negotiated between unions and the organisation? This topic has always confused me... All the terms! D:

[RobDog]

Yeah, it's a negotiation between a group of employees (may be represented by union) and employer.

[RossiJ]

I've got the advantages down pat for this question and about 2 disadvantages, but I'm not 100% happy with one them haha
SO... does anybody want to try think/give me a real good disadvantage which isn't that their less flexible and therefore may distort organisational objectives such as productivity as they cannot be tailored to meet the organisation's needs

ta xxx

[rambo9593]

could  a disadvantage be that this system is not compatible with the latest trends in market such as the generation y people requires a work- life balance and this system doesn't allow it

[RossiJ]

could  a disadvantage be that this system is not compatible with the latest trends in market such as the generation y people requires a work- life balance and this system doesn't allow it

possibly, I wouldn't use it, I would think that awards are often changed by the FWA to keep up to date with changing technology, processes, systems, procedures, policies ect ect

at least I'd hope so