Hey guys,
I've been practising sacs for my upcoming sac for employee management. One of the 8 markers is
How would the marks in this question be allocated? And could someone give a definition of awards and agreements as I'm still a bit unsure about that in particular.
Hi
How whilst i would not know what exactly the marking would be, I can imagine the structure would be something along the lines of 2 strengths and 2 weaknesses for both Award wages and agreements, and then an overall opinion on what side is better.
Whilst a definition is not necessary to answer this question, it can help. Award wages are the minimum standards set by the Fair Work Comission that no business within a paritcular industry offer employees terms lower than, it sets out a "safety net" for employees. Agreements however are negotiated between the employer association and the union and are ratified by the Fair Work Comission, the terms fo the agreement must be larger than the terms set out in the award wage.
In terms of the answer, you could strucutre it something like this
An advantage of award wages includes that they set out the minimum national working conditions. This is a strength as it acts as a safety net for employees, preventing them from being exploited by their business as there are legal reprcussions for doing so. Another advantage is that if everyone in the business is paid on the same award, then conflcits between employees over pay do not arise, increaseing the overall productivity of the business.
However, only paying employees the minimum can signficantly demotivate employees as they feel as if they are not valued by the business. This is a weakness as it ensures that employees are less productive, therefore increasing staff turnover and signficantly damaging the profits of the business. Another disadvantage is that just because there are legal limitations for a business to pay more than the award wage, the enforcement of these laws can be time consuming, as seen in the 7/11 pay dispute where employees had been underpaid the terms of the award wage for at least 5 years.
An advantage of agreements is that legally they must be larger than the terms fo the award wage. This is an advantage when compared to award wages as it shows employees are vlaued by the business therfore becoming more productive to the business. Another advantage includes that agreements can be easily changed to suit the needs and wants of the employees in a business, therfore improving overall morale within the business and increasing productivity.
However because agreements differ from business to business within an industry, conflict can arise between employees and management, demanding to be paid better terms if another business is offering better in their agreement, therfore decreasing productivty. Another disadvantage includes that agreements can be expensive for business to maintain. This is can be a problem if the business is undergoing a crisis with a signficant decrease in profits, causing employees to lose motivation.
Overall however, because agreements are above the national standards, employees are valued under agreements and are therefore more productive. Therefore agreements are a more effective method of wage determination when compared to award wages
Hope that helps!
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