4

Employment issues
Focus statement
In this chapter we focus on the commercial and legal
aspects of employment issues. Of particular interest
are our options, rights and responsibilities in the work
environment.

In this chapter you will learn

about:
• different types of employment
• changing patterns of work
• the benefits of education and
training for employment
• the various types of employment
contracts
• unemployment
• employment relations
• legal issues relating to the workplace
• the role of unions and employer
groups
• dispute resolution
• taxation and superannuation.
4.1 The workplace
Types of employment
Getting technical An employee is a person who works for a private
blue-collar worker Traditionally a worker who performs business, a government department or other organisa-
manual labour in return for a weekly wage rather than a tion and is rewarded with a wage or salary. In Australia,
salary. Compare with white-collar worker. approximately 86 per cent of people who work are
employees. Employers are people or organisations
casual employment Often temporary work that does
not offer the same level of protection as a permanent job;
who hire others to work for them and pay them for their
although they are often entitled to a loading on top of the efforts. The self-employed are people who operate
pay rate received by a permanent worker. This is intended to their own businesses and earn their income by selling
compensate for missing out on sick leave, holiday pay and goods and services.
other benefits.
There are also those people who undertake voluntary
deregulation The removal of government regulation from and unpaid work. Technically, these people are not
an industry or a market with the aim of increasing efficiency considered employed but they do make a valuable
and improving competition. contribution to our society. Unpaid work involves no
employee A person working under the control or direction monetary transaction and covers work performed in
of another, according to a contract of employment and in the household and community. Basically, there are two
return for a wage or salary. types of unpaid work. One is unpaid household work
(for example, cleaning, shopping and child care) and
employee entitlements What an employee is legally
entitled to receive, in addition to monetary payment, in unpaid work by persons in a family business or on a
return for employment. These entitlements include annual, farm. The second type of unpaid work is volunteer
sick, parental, bereavement and long-service leave. and community work that is provided free of charge.
Examples of this kind of work are unpaid aged care and
employer A person or organisation who employs workers
volunteer work for charities.
under a contract of employment. Employers exercise
some control over their workers and are responsible for Once employed, you may find you work full time, part
the payment of wages or salaries and for providing a safe time or on a casual basis. The Australian Bureau of
working environment. Statistics (ABS) defines full-time employment as
fringe benefits Employment benefits that are additional to working 35 hours or more per week. If fewer hours
a salary or wage and legal entitlements. are worked, the employment is considered to be part
time. Casual employment, although often thought of
full-time employment Traditionally means a regular job.
Permanent work that is about eight hours a day, five days a
as the same as part-time work, is different. A casual
week and 48 weeks of the year with four weeks paid annual employee is employed on a short-term or irregular
leave. basis and is not entitled to either paid holiday leave
or sick leave. Australia has one of the highest levels of
industrial relations The relationship between employers
casual employment in the world. Latest figures show
and employees.
that more than a quarter of the workforce are casual
labour force The entire population over the age of 15 who workers.
are available for work. Made up of both the employed and
the unemployed.
part-time employment Permanent employment where
the employee works a set number of weekly working hours,
but fewer hours than a full-time employee. It is an important
factor in Australian industry, especially as many part-time
jobs are in the fast-growing services sector. Many part-time
workers receive the same benefits as those received by full-
time workers but on a pro-rata basis; that is, in proportion to
the number of hours worked.

82 [Link] Figure 4.1a What job will best suit you?

Changing patterns of work
The majority of young people, as they move towards Getting technical
the end of their education, can confidently look forward
self-employed People who earn an income from their own
to a role in the workforce for the next 30 to 40 years. work or business rather than working for another person or
Unlike their parents or grandparents, they will probably organisation and receiving a salary or wage.
have more than one occupation or career during that
time. Because of the impact of technology it is now unemployed That part of the workforce who are able and
willing to work but unable to find jobs.
predicted that an average worker in the twenty-first
century can expect to have four or five career changes unemployment Being without a job but able and willing
throughout his or her working life. In addition, a worker to work.
may experience periods of full-time work, part-time unskilled work Work that lacks specialist training or ability
work, casual work, self-employment and perhaps even and generally involves simple, manual tasks that can be
periods of unemployment. Because of this, people learned in a short time.
must have broad skills that will help them to adapt
white-collar worker A worker who is employed to do
quickly to changes in the workplace. non-manual work (such as in a professional, administrative,
A few decades ago, employed people—particularly technical or clerical position) and is paid a salary rather than
male workers—typically worked in full-time wage and a wage. This term originates from the time when men were
salary jobs with regular working hours. They often the traditional holders of such positions and wore a suit,
white shirt and tie to work.
expected to remain in the same job for a long period of
time. This situation has changed, with the emergence workforce flexibility The ability of employers and
of different forms of employment and different working employees to take advantage of different types of
arrangements. Over the last decade, there has been employment; for example, full time, part time and casual.
strong growth in casual and part-time employment, workplace flexibility The ability of employers and
and many people now have flexible working hours or employees to negotiate flexible working hours, conditions,
have a working pattern that differs from the five-day pay and entitlements.
working week.
Over recent decades the Australian labour force has
changed significantly. New technology has contributed • secondary—industries that process raw materials
to this change. Other contributing factors are: and manufacture finished goods; for example, the
production of cars, food and clothes
• the increasing numbers of women in the workforce
• tertiary—industries that distribute goods and
• sustained periods of relatively high unemployment provide services other than those provided by the
• the government’s restructuring of the economy, such quaternary and quinary sectors (see below); for
as reducing tariffs on imported goods, industrial example, supermarkets, hairdressing and travel
relations reforms (see page 93) and changes to agencies
standards and regulations in certain industries (for • quaternary—industries that provide information-
example, the banking industry) based services; for example, teaching, journalism
• the increased ability to sell our products globally and banking
due to the internationalisation of product markets • quinary—industries that provide household ser-
• the adoption of new management strategies by vices; for example, carpet cleaning, child care and
employers that emphasise workforce flexibility, restaurants.
which often means increased use of part-time and In 1966, close to 40 per cent of Australian workers
casual employees. were employed in the primary and secondary sectors.
Changes within industry sectors By 2001, just 35 years later, that proportion had
decreased to just 18 per cent. Employment has grown
Figure 4.1b (page 84) shows how employment by significantly in the services sector, especially in the
industry sector has changed since 1901. Although accommodation, cafes and restaurants industry and
the graph shows three industry sectors, industries are the property and business industry. (The property and
commonly classified into five sectors, as follows: business industry includes services such as property
• primary—industries that exploit natural resources
and produce raw materials; for example, farming
Employment issues 83
 Industry sector 1901 1921 1947 1966 1984 1990 1992 2001
16.8 9.4 6.2 5.4 5.3 4.7

1.4 1.3 1.2 0.9

Agriculture, forestry
Primary

25.5 24.4 1.2

and fishing 17.7 15.6 14.5 12.3
1.8
28.0 7.3
7.4 6.8

Contribution to total employment (%)

2.7 7.7
Mining 6.5 6.7
26.0 6.8
6.9
Secondary

21.7 8.9 7.5

Manufacturing 16.8
7.8 8.0 19.7 21.2 20.8 19.5
8.0
Construction 10.1 10.0
8.5 16.4
Transport and
7.2
communication
13.7
Services*

Wholesale and
10.2 12.1
retail trade 34.5 33.3 36.4 42.4

Community services 9.2 11.8 21.9

14.3

Personal services
13.0 10.7 7.6 6.1 6.5 7.5 8.2 6.4

*The services sector is made up of the tertiary, quaternary and quinary sectors. Size of workforce in 2001: 9 134 000

Figure 4.1b Changing structure of the Australian workforce, 1901–2001.

managers and developers; real estate agents; and All these broad patterns of industrial change have had
technical, computing, legal, accounting and marketing an effect on the jobs available today. This employment
services.) Factors contributing to this growth include shift has, in general, reduced the opportunities for
the increase in part-time and casual work and the blue-collar workers; for example, labourers, trades-
increase in services that replace work previously done people and plant and machine operators. It has also
in the home, such as child care, cleaning, gardening, increased the opportunities for white-collar workers;
maintenance and food preparation. Another important for example, managers and administrators, salespeople
influence has been the recognition that many industries and personal service workers. Employment growth has
within the services sector have the potential to earn been greatest in white-collar occupations. In the last 10
export income (that is, earn money by selling our years, the number of workers in white-collar jobs has
services to people or organisations outside Australia). increased by about 1 million while the number in blue-
For example, over the last 10 years, Australia’s tourism collar jobs has only increased by about 100 000.
and education industries have been actively promoted
overseas. This has resulted in greater tourist dollars Trends in types of employment
for Australia and an increase in full fee paying foreign A comparison of Figures 4.1d, 4.1e and 4.1f shows
students, especially tertiary students. an interesting trend: total employment and part-time
employment have steadily increased since 1990 while,
In addition to changes in the relative shares of people
in the same period, full-time employment has changed
employed in different industries, there have been
relatively little.
changes in the types of goods produced and how they
are produced. This has led to a shift in the sorts of jobs Table 4.1a shows that in the 10 years since 1991 the
that employers now offer. These jobs generally require number of people employed part time increased by over
employees with a greater level of skill. Technology half (52 per cent) to approximately 2.6 million. During
has been one of the main reasons for these changes. the same period, the number of people in full-time
Computerisation, mechanisation and automation have employment increased by only 11 per cent to about 6.6
been introduced into the workplace. The result has million. As a result, the proportion of total employment
been a reduction in the demand for labour and creation represented by part-time workers increased from 22
of new types of work. per cent in 1991 to 28 per cent in 2001.

84 [Link]
 6.8

Number of persons employed full time

6.6

6.4

(millions)
6.2

6.0

5.8
1990 1992 1994 1996 1998 2000 2002
Year
Figure 4.1c Charting the trends in employment. Figure 4.1e Full-time employment, 1990–2002.
Number of persons employed (millions)

Number of persons employed part time

9.5 2.6

2.4
9.0

2.2
(millions)

8.5
2.0

8.0
1.8

7.5 1.6
1990 1992 1994 1996 1998 2000 2002 1990 1992 1994 1996 1998 2000 2002
Year Year
Figure 4.1d Total employment, 1990–2002. Figure 4.1f Part-time employment, 1990–2002.

Table 4.1a Changes in employment status, 1991 and 2001

1991 2001
Characteristic Total employed Full time Part time Total employed Full time Part time
(’000) (’000) (’000) (’000) (’000) (’000)
Males 4432.9 4037.0 396.0 5147.0 4407.0 740.1
Females 3212.1 1926.2 1285.8 4057.6 2232.2 1825.4
Total 7645.0 5963.2 1681.8 9204.6 6639.2 2565.4
(%) (%) (%) (%) (%) (%)

Males 58.0 67.7 23.5 55.9 66.4 28.8

15–24 years 10.6 10.5 10.8 9.4 8.2 12.4
25–54 years 41.3 50.5 8.4 39.5 50.5 10.9
55 years and over 6.2 6.7 4.3 7.0 7.6 5.5
Females 42.0 32.3 76.5 44.1 33.6 71.2
15–24 years 9.7 7.8 16.3 8.8 5.8 16.6
25–54 years 29.6 22.7 54.0 31.1 25.2 46.5
55 years and over 2.8 1.8 6.1 4.1 2.6 8.1

Employment issues 85
As a student, you may already have a part-time job
or know someone who works part time. It is not How the workplace has changed
uncommon for people to work in a number of part-time • Only a quarter of all new jobs created in the 1990s were
jobs in any one week. The recent trend towards part- full-time jobs; casual and part-time jobs accounted for
time employment is a continuation of a longer-term the rest. Casual workers now make up nearly a quarter
trend and is not unique to Australia. Most comparable of the workforce.
countries show a similar increase. The large increase • Seventy-four per cent of all permanent employees
in part-time employment over the last decade has worked full time in 1988, compared with just 61 per cent
occurred at a time of significant underlying changes in in 2002. At the same time, the Australian labour force
the economy and in society more generally. Two main grew from about 6 million to more than 8 million.
reasons for the changes are the increases in: • In some industries, including retail trade and hospitality,
nearly half the workforce is made up of casual
• the demand for part-time labour employees.
• the supply of part-time labour. • Job losses have mainly occurred in industries with high
levels of full-time employment; job gains have been in
Table 4.1b Factors contributing to the industries characterised by high levels of part-time work.
increase in part-time labour • Since the late 1980s, 1.2 million jobs have been created
for women, compared with just 700 000 for men—but
Changes in demand Changes in supply
half of the new female jobs were in low-skill, low-paid
The Australian economy has There has been a large increase occupations.
been restructured and, in in the number of women
• Those still in full-time work are putting in longer hours
particular, there has been seeking part-time work. In
than have been performed by full-time workers for a
growth in the services sector. 2001, women aged 25–54
century.
It is interesting to note that 50 years accounted for almost
per cent of part-time workers half of all part-time workers (47 • Only 8 per cent of workers in permanent part-time jobs
in 2001 were employed in per cent). The main reason for have access to annual leave, sick leave, superannuation
just three service industries: this may be that part-time work and other basic entitlements.
property and business services, allows women to balance work
health and community services and family responsibilities. • Nearly a third of part-time workers want more hours.
and retail trade. These same Those who consider themselves underemployed are
industries accounted for
There has been an increase in mainly those women who are employed as casuals, aged
only 31 per cent of full-time
the number of young people under 30 and in low-paid jobs.
seeking part-time work. Part-
employment. • More than a quarter of underemployed workers are in
time employment is used as
The workplace has been a source of short-term jobs part-time jobs because they cannot find full-time work.
deregulated, leading to greater by young people (those aged
workplace flexibility. 15–24 years) while participating Full-time casual 1988
in full-time and part-time
New technologies have been 6%
education or as a stepping Part-time permanent
introduced. 7%
stone to full-time work.
Young workers represented
29 per cent of total part-time Part-time casual 13%
employment in 2001. Full-time
permanent
74%

2002
Full-time casual
9%
Part-time permanent 11%

Full-time
Part-time casual
19% permanent
61%

Figure 4.1g More women are seeking part-time jobs.

Figure 4.1h Employment by job type.
86 [Link]
What type of job is right for you? There are certain advantages and disadvantages to the
different types of employment available. A full-time job,
To answer the question ‘What type of job is right for for example, provides you with a level of job security
me?’, you will need to be armed with the answers to that is not available with a casual job. Table 4.1c
a number of other important questions. These might outlines the advantages and disadvantages of different
include: types of employment.
• What type of job or area interests me?
• Is there a lot of demand for the area I’m interested in Comprehending the text
working in?
1 Distinguish between an employee and an employer.
• Do I have the required skills or qualifications for the
2 What does being self-employed mean?
job?
3 List the five different industry sectors and give an
• Do I work well with other people or better with example of a job in each sector.
technology?
4 Distinguish between part-time and casual employment.
• Will I prefer working indoors or outdoors, in the city 5 What factors have contributed to the increase in part-
or the country? time and casual labour? Provide examples.
• What type of work best suits me—full-time, part- 6 Outline the trends in employment that have occurred
time or casual? over the last few decades.
7 What factors need to be considered when you think
• Should I start my own business?
about your own employment future?
In addition, there are the personal and social benefits of
8 Outline the features of the workforce you will eventually
working to consider. These include job satisfaction and participate in.
contributing to society by providing a good or service
and by paying taxes.

Table 4.1c Advantages and disadvantages of different types of employment

Employment type Advantages Disadvantages
Full-time work Job security Hours may be long and rigid
Employee entitlements, such as annual, sick, long-
service and parental leave
Possibility of fringe benefits, such as a car, bonuses
or profit sharing
Part-time work Employee entitlements on a pro-rata basis May not provide adequate income
Flexible working hours that may fit in better with family Few senior management positions are part time
commitments or lifestyle
Opportunity to experience more than one job at a time
or pursue other interests; for example, study
Casual work Readily available No employee entitlements, such as paid annual
leave or sick leave
Often unskilled work or using skills that can be
mastered quickly Less job security; can be dismissed at any time
Usually for a designated time frame May not provide adequate income
Paid a loading to compensate for not having leave May have to work on weekends and/or public
entitlements holidays
Self-employed* You are your own boss Responsible for all business decisions
Determine your own salary and working conditions Stress of creating and maintaining a successful
business

*For further information in relation to being self-employed refer to Chapter 15.

Employment issues 87
 5 In small groups, create a poster to illustrate how
[Link] employment trends in Australia have changed in the last
few decades.
Researching casual employment 6 Think about your job prospects in terms of what type
Activity of job (including employment type and industry sector)
would best suit you now and in the future. Then copy
Use the Australian Bureau of Statistics website and complete the following table.
<[Link]> to investigate the changes that have
occurred in casual employment during the last 15 years. Suits me Will suit me Will suit me
now in 10–20 in 40 years
years time time
Activities Type of job
1 Refer to Figure 4.1b (page 84).
7 Write an explanation as to why you are likely to have
a Describe the trends in agricultural and manufacturing more than one job over the next 30–40 years. Include
employment since 1901. Can you think of reasons a discussion on the likely future trends in employment
why each of these trends occurred? (industry and employment type).
b Identify the service sector activities that have shown 8 a In small groups, list 10 jobs: five that are
an increase since 1901. predominantly male dominated (for example,
c Identify the service sector activities that have shown mechanic) and five that are predominantly female
a decrease since 1901. dominated (for example, teacher). In your groups,
discuss why these jobs are dominated by one
d Write an explanation that describes and accounts for gender.
the trends shown in the graph.
b Conduct a class debate on the topic: In the future,
2 Study Table 4.1a (page 85). Construct column graphs changing employment patterns will mean that
comparing total employment, full-time employment and employment stereotypes based on gender will no
part-time employment in 1991 and 2001. longer exist.
3 Think about the different people listed below and what
type of employment (full-time, part-time or casual) would
best suit them. For each person, list the advantages and
disadvantages of the type of work you have chosen for Benefits of education and training
them.
a single person who likes to travel
for employment
Education and training for employment provide a range
b married person with a mortgage and no children
of personal and social benefits.
c single parent with young children
d married person with teenage children Personal benefits
e part-time university student On a personal level, receiving a good education and/or
f person over 65 years of age who isn’t ready to retire the right training will result in individual improvement
and greater personal satisfaction. It will also increase
4 Refer to the box ‘How the workplace has changed’.
your employment prospects. Government statistics
a Study Figure 4.1h (page 86). Write a series of dot
show that employment is highest among those with a
points explaining the changes that have taken place
in the structure of the Australian workforce between
degree or higher degree (85 per cent) and lowest for
1988 and 2002. those who did not complete secondary school (59 per
cent). Table 4.1d shows the link between education
b Use the dot points and the other information in the
box to write a one-page report outlining how the
and employment prospects.
Australian workforce has changed since 1988. In most cases, being employed, or having a job,
c How do these trends relate to your own knowledge of will mean a regular income and an increase in your
the workforce? consumer power. In addition, there may be a certain
d As a class, brainstorm possible reasons for these level of prestige attached to your job or there may be
trends. fringe benefits, such as a car, international travel and
discounts on certain products. Hopefully, you will have
job satisfaction and the sense of self worth that comes
from being employed and contributing to society.

88 [Link]
Table 4.1d Educational attainment and
employment experience, 1996 The government’s role in education
and training
Educational Proportion Unemploy- Mean
Our government has taken many steps to help educate and
attainment employed ment rate duration of
train people so they are more employable. At the school
(%) (%) unemploy-
level, for example, they encourage young people to stay on
ment (weeks)
at school and complete their final exams. In addition, they
Degree or 84.6 3.8 35.4 have introduced vocational courses that allow Years 11 and
higher degree 12 students to gain work-related skills.
Diploma 79.5 5.2 37.5 The government has also set up various employment and
Skilled 82.4 5.5 46.9 training schemes to assist people entering the workforce.
vocational The following are just a few of these programs and
initiatives:
Basic 69.4 8.6 49.1
vocational • Youth Training Initiative—This initiative targets 16–17-
year-olds who are unemployed. It assists young people
Completed 68.2 10.0 42.0
by providing a Youth Training Allowance and access to
secondary
vocational training.
school
• Jobtrain—This program aims to help disadvantaged job
Did not 59.0 11.4 59.6
seekers to undertake short-term vocational courses at
complete
TAFE while receiving a training allowance.
secondary
school • Jobstart—This initiative assists disadvantaged job
seekers to gain employment by giving wage subsidies
Benefits to society to employers (a government payment that covers
part of the employee’s wage). This is used as a
Our society needs a well-educated and highly skilled financial incentive for employers to hire disadvantaged
workforce; not only so we can continue to maintain the unemployed people.
high standards of living that we have achieved in the
• Skillshare—This program provides skills training and
last 50 years but also to successfully compete on the other employment-related assistance, such as help with
global stage. Many of the jobs being created require a résumés and letters of application. It targets those who
greater level of skill than is required of those that are have been unemployed for a long time, perhaps because
disappearing. The countries that want to prosper and of their ethnic or indigenous background or because of
stay ahead will be those that make sure they have a their age.
highly educated and skilled workforce that can use • New Apprenticeship Access Program—This program
technology efficiently. builds on the success of apprenticeships and
traineeships. It provides pre-vocational training,
support and assistance to help job seekers gain a new
apprenticeship or other form of employment. It may also
assist them to return to study.

Figure 4.1i Educational qualifications are important for a future career.

[Link]
New technologies are constantly being developed More on government training and
and existing technology is being updated and refined. employment schemes
Workers need to be flexible and willing to be retrained The federal government’s Department of Employment and
to keep up with technological developments and a Workplace Relations website <[Link]/> has
changing workforce. Education and training should further information on government assistance in relation to
not be seen as short-term achievements that stop at training and employment.
the end of high school or university. Rather, they are
lifelong pursuits that see 20, 30 and even 50-year-olds
retraining, seeking further qualifications and meeting
new challenges in relation to their employment. The
people who are most likely to find and keep a job,
therefore, will be those who are well educated, have
skills and are flexible and adaptable. Employment issues 89
How does this affect you?
Over the last decade, the proportion of employed Comprehending the text
people with post-school qualifications has steadily
1 Outline the personal and social benefits of education and
increased and now stands at approximately 50 per training for employment.
cent. At the same time, the proportion of unemployed
2 Explain the link between education, training and
people with post-school qualifications has increased to
employment. Support your explanation by referring to
around 30 per cent. the information in Table 4.1d (page 89).
Because of this overall increase in the proportion of 3 Outline the various employment and training schemes
the workforce with post-school qualifications, you that assist people entering the workforce.
should take some time to think about your attitude 4 Explain how the issues addressed in this section affect
towards education and training. Should you, for you personally.
example, continue your studies into Years 11 and 12
and beyond? You should also be thinking about the
subjects that you might choose in the senior school
and in the future, and the jobs that may be of interest to
Activities
you after you have completed school. 1 Copy the table below and then complete it by
researching the occupations listed. The areas where you
If you try hard to develop skills while you are at might gain skills include a current part-time job, specific
school, you will be confident of your ability to keep school subjects and extracurricular activities. (Hint: Refer
to Job Guide. Your careers counsellor or library should
on developing new skills as time goes by. You are
have copies of this publication or go to the Job Guide
also likely to be more highly paid than an unskilled website <[Link]/>.
person. As a result you will be in a stronger position as
a consumer. Occupation Required Additional Areas
education skills where you
Australia will only prosper if it can compete successfully and might gain
with other countries. One of the most important factors training these skills
that will determine whether it can compete successfully
Motor mechanic
will be how skilled its workforce is. So, as an Australian
citizen, it is important to think about the benefits of Sales assistant
education and training and develop valuable skills. Electrician

Lawyer

[Link] Accountant

Researching your career options Sales

representative

Activities Computing
support
Select an occupation that you might consider as a career. technician
Then use the Job Guide website
Construction
<[Link]/> or Myfuture website worker
<[Link]/> to answer the following questions:
Hairdresser
1 In which industry sector (see Figure 4.1b, page 84) is
your chosen job? Childcare worker

2 What are the chances of finding a job in this area? Teacher

3 What do you think the future employment prospects are Personal trainer
for this type of job?
2 Look in the employment section of a newspaper for a job
4 What qualifications are necessary?
advertisement for your chosen career. Paste this in your
5 What is the type of work involved in this job? notebook. Think about the sort of school subjects and/or
other activities that might help in gaining the necessary
6 What is the current wage or salary? qualifications and skills for this job. Write these next to
7 Where can further information be found? the advertisement.

90 [Link]
 trade union An organisation of employees that acts
Getting technical collectively for the mutual protection and assistance of the
employees and is concerned with wages and conditions of
Australian Industrial Relations Commission (AIRC)
employment.
A body established under the Industrial Relations Act 1988
(Cwlth) to prevent and settle industry disputes. workers compensation A payment from an employer to
an employee for injury or illness caused at work.
Australian workplace agreement (AWA) An enterprise
agreement that is an individual contract offered by an
employer after negotiation with an employee. It can overrule
the working conditions set out in an award or certified
agreement.
Types of employment contracts
A contract of employment is made when an employer
award A legal document that specifies the minimum offers someone a job and agrees to pay them for their
conditions under which a person is employed. It covers
work. It becomes binding when the employee accepts
matters such as wage rates, holidays, sick leave and
overtime.
the offer. (Revisit pages 23 and 24, where the elements
of a contract are discussed.) In Australia, there are
award rates The rates of pay set by an award. These are a several different types of employment contracts that
set of minimum wages that are legally binding on employers detail the different terms and conditions of employment.
and workers. Also known as award wage.
Areas such as rates of pay, fringe benefits, entitlements
certified agreement An enterprise agreement that is and workplace protection all come under the heading
negotiated by an employer and employees or by the of terms and working conditions. Many of these terms
employees’ union. and conditions are governed by law and are therefore
contract of employment A legally binding agreement mandatory and fixed (for example, the entitlement to
between an employer and an employee that sets out the four weeks annual leave per year), while others can
terms and conditions of employment. Examples of contracts be subject to negotiation between employees and
of employment are awards, enterprise agreements, the employer. Basically, employment contracts can be
Australian workplace agreements (individual contracts) and categorised as either formal or informal agreements.
common law contracts
enterprise agreement A negotiated deal about the
Formal agreements
conditions under which employees are employed within a A formal agreement is a written agreement that must
business. It can take one of two forms: an Australian work- be approved by a government authority, such as the
place agreement or a certified agreement. The Australian Australian Industrial Relations Commission (AIRC)
Industrial Relations Commission checks enterprise agree- or the Office of the Employment Advocate. A formal
ments to ensure basic minimum terms and conditions are agreement can take the form of an award or an
upheld. Also known as an enterprise bargaining agreement. enterprise agreement.
enterprise bargaining The process that employers and Until the 1990s most employment terms and conditions
employees use to negotiate a set of rules and conditions
were included in detailed statements called awards,
for their workplace and which results in an enterprise
many of which applied Australia-wide. In an attempt to
agreement. Also known as workplace bargaining, collective
bargaining, over-award bargaining and company bargaining. build more flexible workplaces, employers have moved
towards enterprise agreements.
industrial dispute A disagreement between employers and
employees. Some common subjects for industrial disputes Awards
are wages and conditions, occupational health and safety, For over 100 years, awards have been negotiated by
unfair dismissals and environmental issues. representatives of employers and employees. About
minimum wage The lowest amount that can legally be 80 per cent of employees in Australia are covered by
paid to an employee under an award or agreement. either a federal or state award. One of the most popular
negotiation When two parties discuss what they want in
awards in New South Wales is the award that covers
order to reach an agreement. people employed by Woolworths supermarkets.

redundancy When employees are laid off on a permanent Negotiations on the terms and conditions of the
basis because their work is no longer required by the employment contract generally take place before an
employer due to economic, technological or other reasons. ‘umpire’, such as the AIRC.

Employment issues 91
 Some employers, on the other hand, may decide to offer
their workers over-award payments; that is, payments
[Link] above the award rate. They may wish to reward their
Investigating awards workers, to encourage them to work harder or they
may have given in to trade union pressure to pay over-
WageNet <[Link]> is a government database award wages.
that contains copies of all current awards and provides
information about wages and conditions of employment in Enterprise agreements
Australia for work covered by awards and agreements.
Enterprise agreements have been introduced over
the last 10 years or so with the aim of providing more
consultation between employees and employers and
An award sets out the minimum terms and conditions
greater flexibility in the workplace. There are two types of
for a particular industry and includes:
enterprise agreements: Australian workplace agree-
• rates of pay for different ages and responsibilities ments (AWAs) and certified agreements. An AWA is
• hours of work an individual written agreement between an employee
and the employer outlining the terms and conditions of
• overtime and penalty rates of pay employment, which can include the employee’s hours
• leave, including annual, sick, bereavement, long- of work, pay, annual leave and sick leave. A certified
service and parental agreement is made between an employer and a group
of workers who represent the interests of all employees
• injury and workers compensation in the workplace. The employees may be represented
• hiring and termination of employment by one or more trade unions but they do not have to
be. As long as the final agreement is supported by 65
• decision making, such as trade union involvement. per cent of the employees then a certified agreement
An award has the aim of giving all workers a minimum can be made.
wage as a safety net so they are not disadvantaged An enterprise agreement can replace an award or can
or exploited. It is, in fact, illegal for employers to pay be used with it. The people involved in enterprise
workers less than the award rate (or award wage) for bargaining can negotiate some or all of the conditions
a job. There are, however, still breaches of this law (see contained in the award. Under enterprise bargaining,
the article below). Therefore, before accepting a job, employees can negotiate conditions such as pay
employees need to make sure they will receive at least increases, more flexible working hours, leave entitle-
the minimum wage. ments, child care, training, profit sharing and grievance

Unethical retailers to be shamed in public campaign

By Geoff Strong and Angela O’Connor The Victorian secretary of the [Textile Clothing

L
obby group Fair Wear has pledged to name and Footwear Union], Michele O’Neill, said that
and shame retailers that have refused to under the code, retailers undertook to supply
sign an ethical code of conduct protecting the union with lists of suppliers and records of
clothing workers from exploitation ... contracts. This would allow the union to visit
The code, signed ... by three of Australia’s workplaces and check wages and conditions.
biggest retailers ..., is aimed at hundreds of If it was found workers were paid below award
thousands of clothing and textile workers, wages or forced to work long hours without breaks
including an estimated 340 000 outworkers. to complete orders, pressure would be applied to
Many of these [outworkers are] people [who] the retailer to drop the supplier.
work from home or in hard-to-locate factories She said the code would not instantly improve
for as little as $2 to $5 an hour. They often have the workers’ lives. ‘But the signing is another step
virtually no English and are controlled by middle in the right direction.’...
men usually of their own ethnic group ...

92 [Link]
procedures. Some entitlements, however, are not sub- introduction has met with some success, with well over
ject to bargaining because they are set down in law. 1 million employees (approximately 16 per cent of all
wage and salary earners) now covered by enterprise
Each state has its own act covering the entitlements
agreements that have been approved and registered
that are protected by law. In New South Wales, these
by the Industrial Registrar.
entitlements are specified in the Industrial Relations Act
1996 (NSW). They include:
• at least one week of sick leave per year Workplace change less than
• a working week no longer than 40 hours unless revolutionary
overtime is paid In 1996, Australia’s federal parliament passed the Workplace
Relations Act. The intention of the Act was to encourage
• pay rates not less than the award hourly rate for flexibility. Employees and employers can now use enterprise
normal hours bargaining to make workplace agreements that suit them
• minimum periods of annual, long-service, maternity best. Both formal and informal agreements are possible,
and parental leave as set down in legislation. and they can be individual or collective, union or non-
union. The government was keen to promote individually
In New South Wales, an enterprise agreement cannot negotiated employment contracts. Some people argue
come into force until it is submitted to the Industrial that this increased flexibility has led to the undermining of
Registrar to make sure it meets the requirements of the the traditional role of unions and the system of industrial
NSW Industrial Relations Act and other laws relating awards.
to specific entitlements. Once the agreement has been Has the government been successful in its objective?
approved and registered its terms and conditions By early 2003, AWAs (that is, individually negotiated
become effective. agreements) accounted for less than 2 per cent of the
workforce (around 130 000 employees). The highest
Enterprise bargaining benefits both the employee and proportions of AWAs are found in retailing, property and
the employer in a number of ways. For example: business services, government services and transport and
• it gives everyone in the workplace the opportunity to storage.
discuss and decide on working conditions An additional 1.58 million workers are covered by certified
agreements (that is, agreements negotiated as a group).
• wages and salaries better reflect the actual work
Of these, only 9 per cent were non-union agreements.
being done
• it encourages growth in productivity (output per
worker) as any growth can be clearly measured and
rewarded accordingly; for example, by payment of [Link]
bonuses
• it allows industrial disputes to be settled more Investigating formal agreements
quickly, without the need for outside intervention and employment conditions
because conditions have already been mutually
To find out more about awards visit the Australian Council
agreed of Trade Unions website <[Link]/> and for
• it provides greater cooperation and trust between enterprise agreements visit the Office of the Employment
employers and employees Advocate website <[Link]>.

• it helps tailor working conditions to the needs of the Activity

workforce, which is in the interest of employees. Undertake research and report on the topic ‘Employment
Opponents of enterprise bargaining argue that these conditions’ by accessing the ‘rights and responsibilities’ link
types of arrangements will, over time, lead to a at the website of the Office of Industrial Relations within the
NSW Department of Commerce
widening gap in rates of pay and a deterioration of
<[Link]/>. In your report,
working conditions. Some employees are more skilled consider the rights and entitlements of contractors as well as
at negotiation than others, allowing them to secure casual, part-time and full-time employees.
better conditions than those who are less effective
negotiators. They also believe that enterprise bargaining
weakens the influence of trade unions since employees
may represent themselves rather than involving the
relevant trade union. Despite these concerns, their
Employment issues 93
Informal agreements Unemployment
Informal agreements are either verbal or written As was mentioned before, as a worker you may
agreements that are not approved by a government experience one or more periods in your life where you
authority, such as the AIRC. Any rights under an are unemployed. There may be many reasons for this.
informal agreement are from the common law, which You may be in the process of changing from one job
means that this type of agreement is legally binding to another. You may have a job that is seasonal (for
in the same way as other contracts. However, formal example, a fruit picker, shearer or ski-lift operator); that
agreements are more easily enforced than informal is, where the work is only available for part of the year.
agreements. An informal agreement can cover such This type of short-term unemployment may not be a
matters as pay, annual leave and sick leave. The terms problem as you know another job is not too far away.
and conditions agreed to, however, cannot be less than However, you may find yourself unemployed because
the minimum terms and conditions of employment set of technological advances that make your job and
out in a formal agreement, such as an award, that its associated tasks and responsibilities redundant;
would otherwise apply to the job. that is, your skills are no longer needed or have been
superseded. For example, ticket collectors at train
stations have been made redundant through the
Comprehending the text introduction of automated turnstiles. The possibility
1 When does a contract of employment come into effect? of redundancy is of great concern to employees with
jobs that are labour intensive. Finally, you may simply
2 What types of employment-related issues come under
the heading of terms and working conditions? have difficulty finding a job because of the economic
climate.
3 What are the two main types of employment contracts?
Number of persons unemployed (millions)

Provide examples of them. 9.5

4 Distinguish between an award and an enterprise 9.0
agreement.
8.5
5 List some of the minimum terms and conditions that are
specified in an award. 8.0
7.5
6 Why do awards specify a minimum wage?
7.0
7 What is an over-award payment?
6.5
8 What are some of the entitlements that must be included
in an enterprise agreement? 6.0
9 Outline the advantages and disadvantages of enterprise 5.5
agreements. 5.0
4.5
1990 1992 1994 1996 1998 2000 2002
Activities Year
Figure 4.1j Total unemployment, 1990–2002.
1 Study the newspaper article ‘Unethical retailers to
be shamed in public campaign’ (page 92) and then 11
complete the following tasks:
a As a class, discuss how the ethical code of conduct 10
is supposed to work.
Unemployment rate (%)

b In small groups, highlight the key terms from the

9
newspaper article and use these to undertake
further research on the Internet or in the library for
information on the issue of below-award wages. 8
c In your group, prepare a three-minute oral presenta-
tion on your findings and present this to the class. 7
2 Conduct a class debate. Topic: All awards should be
replaced by enterprise agreements. 6

5
1990 1992 1994 1996 1998 2000 2002
Year
94 [Link] Figure 4.1k Unemployment rate, 1990–2002.
 12

Comprehending the text

Unemployment rate (%)

10 1 Explain the reasons why unemployment occurs.

2 What are some of the personal and social consequences
of long-term unemployment?
8
Men

6
[Link]
Women
Employment data
4
1990 1992 1994 1996 1998 2000 2002
Year
Figure 4.1l Unemployment rate for men and women, 1990–2002.

In the early 1990s, for example, Australia experienced a

serious recession, which meant a downturn in spending,
production and employment. As a result, thousands of
workers became unemployed. The unemployment rate
for all persons peaked at 10.7 per cent in 1993, but
by 2002 had fallen to 6.6 per cent. In 2002, however,
the unemployment rates for 15–19-year-olds (22.5 per
cent) and 20–24-year-olds (10.5 per cent) who were
looking for full-time work were higher than the average
for all age groups combined.
32

28

24 Men
Weeks

20 Figure 4.1n Census data is collected by interviewing a cross-section

of the Australian community every four years.
16
Activities
12 1 Access the Australian Bureau of Statistics (ABS) website
Women <[Link]> and update the statistical data
8 used in this section of the text. Redraw the relevant
1990 1992 1994 1996 1998 2000 2002 employment graphs incorporating the data you gather
Year from the ABS site.
Figure 4.1m Median duration of unemployment for men and women, 2 If you have access to Census 2001 Explorer software,
1990–2002. use it to generate maps of Sydney and/or your local
community showing the pattern of employment-related
Even though some sort of unemployment will occur census data, including employment, unemployment,
in any labour market, long-term unemployment can tertiary qualifications and income. Comment on the
lead to serious personal and social consequences. relationships evident.
For example, being unemployed can affect a person’s
morale. The longer a person is unemployed the more
likely it is that he or she will experience increasing
financial difficulties, boredom, declining self-respect
Activity
and a diminishing chance of finding another job. The Study Figures 4.1d (page 85) and 4.1j (page 94). Describe
greatest social consequences of unemployment are the trends in employment and unemployment since 1990.
that it leads to greater differences in the incomes
people receive as well as poverty among the ranks of
the unemployed. Employment issues 95
4.2 Employment relations
industrial action An organised, disruptive act taken by a
Getting technical group of workers, such as a strike or stop-work meeting.
affirmative action Strategies that promote equal occupational health and safety (OHS) Practices and
employment opportunity; for example, extra training for regulations concerning the physical and mental wellbeing of
women so that they are eligible for a promotion. persons engaged in work.
Australian Council of Trade Unions (ACTU) The main picket The gathering of striking workers outside their place
organisation representing unions nationally. of work.
business group A group of employers who share similar racial discrimination Discrimination based on race.
interests and common goals and which aims to promote and
represent the members’ opinions and concerns. sex discrimination Discrimination on the grounds of
gender. The Sex Discrimination Act 1984 (Cwlth) was passed
discrimination When someone is not treated as fairly as to stop people being discriminated against because of their
someone else in a similar situation or is treated differently sex, marital status, pregnancy or family responsibilities.
because they belong to a particular group or have certain
characteristics. strike The withdrawal of workers’ services in order to
pressure an employer or third party (such as a government)
dismissal When an employee’s contract of employment is to yield to demands or as a protest against terms or
terminated by an employer. In most cases, the employee is conditions.
entitled to receive notice of the dismissal and be paid for the
period of notice and any pay and leave that are owing.
employer association An organisation that represents The workplace environment
and assists employers by promoting and representing their
opinions and concerns in collective bargaining sessions You are ready to start your new job and the first day is
and before industrial tribunals, courts, commissions and fast approaching. What will your workplace environment
committees. be like? Will it be a good working environment? What
is a good working environment anyway? Look at Figure
equal employment opportunity The legal requirement
4.2a and consider what factors are needed to make
that everyone who has the necessary skills, experience and
qualifications to do a job should be given an equal chance this a good workplace environment.
of getting that job.
glass ceiling The concept of an invisible barrier that
prevents women (and others) from reaching the highest
levels of management.
green ban A refusal by employees to work, or allow work
to proceed, on a project that may result in damage to the
environment—either natural or historical.
harassment Any unwanted or uninvited behaviour that
is offensive, embarrassing, intimidating or humiliating.
Harassment is a form of discrimination.
Human Rights and Equal Opportunity Commission
(HREOC) A federal government body that was established
under the Human Rights and Equal Opportunity Commission
Act 1986 (Cwlth) and looks after issues such as human
rights, anti-discrimination, social justice and privacy in
Australia. The HREOC aims to promote a fairer society
by protecting basic human rights and ensuring that
Australia complies with its human rights obligations under
international law.

96 [Link] Figure 4.2a What factors make a good workplace environment?

Nobody wants to work in an environment where they Your relationship with your coworkers and boss will
don’t get on with their fellow workers or management, depend largely on you. Your ability to communicate
or where there is a lack of communication and your needs and wants, your ability to work as part
cooperation. Furthermore, people don’t want to work of a team and your ability to interact socially (that is,
for low wages and long hours, and don’t want to work get along with all types of people and in all situations)
in conditions that are uncomfortable or dangerous. will play a large part in how easily you fit in. Another
important feature of a good workplace environment
is the absence of bullying, sexual harassment and
discrimination.
Many of an employee’s pay and working conditions are
governed by law. Some, however, are negotiated by
trade unions or by negotiation between employees and
their employer through enterprise agreements. (More
detailed information on the role of the different parties
in the workplace can be found on pages 107—109.)
One working condition that is governed by law is
working hours. In the early 1900s Australians regularly
worked more than 50 hours a week. Trade unions
continuously campaigned for shorter working hours and
by the 1930s had achieved some important gains. This
trend for reduced hours was finally recognised by the
Commonwealth Court of Conciliation and Arbitration in
1948 when the 40-hour week was officially adopted.
For the next 30 years there was little official change. In
the 1970s, however, the unions mounted a campaign
for a 35-hour week but achieved success only in the
coalmining, oil and stevedoring (waterfront) industries.
Interestingly, however, Commonwealth public servants
meanwhile had been working a 36.75-hour week since
1902.
Figure 4.2b A safe working environment is a right that all workers By the start of the 1990s, average weekly working
should enjoy.
hours had dropped to fewer than 34 hours once public
holidays and annual leave were taken into account.
But changing work patterns, such as the growth in
part-time and casual employment, have masked an
important trend: the increase in working hours among
full-time workers.
There has been a sharp rise in the number of full-
time employees working well beyond the standard
40-hour week. There are many reasons for this, such
as the threat of losing the job by being dismissed or
being made redundant. Employees were not taking
their full annual leave entitlements and were taking
fewer ‘sickies’. As a result of enterprise bargaining,
there was also a move away from overtime and shift
penalty payments (that is, higher payments for working
certain shifts, such as a night shift). Another important
factor in this trend is the culture of professional and
management jobs, where it is expected that people will
Figure 4.2c A stressful environment is also an unsafe environment work well beyond the minimum 40 hours.
for workers.

Employment issues 97
 and adequate workers compensation in the event of an
accident or illness resulting from your work.
Comprehending the text
There is always a chance that accidents or illness will
1 List the factors to be considered when deciding whether
a workplace is a good workplace. occur in the workplace. Even though some workplaces
are more dangerous than others (for example, a steel-
2 On what does your relationship with coworkers depend? works or chemical factory), it is considered important
3 How has the length of the working week changed over that safe work practices exist in all workplaces. The
time? NSW Occupational Health and Safety Act sets out
the obligations of the employer in providing a safe
working environment in relation to employees’ physical
Activities and psychological health and safety. Examples of
ensuring physical safety in factories, for instance, are
1 In small groups, discuss which factors of a workplace
environment would be most important to you and rank the regular checking and maintenance of all machinery
them in order of importance. Consider whether your and ensuring employees wear protective clothing and
ranking of importance would change if you were the are provided with adequate training. Ensuring the
opposite sex, had a disability, were a newly arrived psychological safety of employees in a hospital emer-
immigrant, received a very high salary with lots of gency ward, for example, would involve providing staff
benefits, had family commitments or worked in a very
dangerous occupation. with stress-management training and techniques.
2 Study Figures 4.2b and 4.2c (page 97). Identify factors Employees are also expected to do their part by not
that could make these unsafe environments. engaging in unsafe work practices that are likely
3 In small groups, discuss why many full-time workers are to injure themselves or others. For example, where
working more than the 40-hour week and the impact of workers are required to lift heavy objects there are clear
this on society. guidelines about correct methods of lifting.
Each workplace is also expected to have an OHS
committee, consisting of representatives of the
The rights and responsibilities of employees and the employer who discuss possible
employees and employers unsafe practices and working conditions and ensure
Imagine that you have been able to find a job with a the workplace meets the requirements of the OHS
great workplace environment and have started on your Act.
initial career path. At this stage you should appreciate
Table 4.2a Rights of employees and
that you are entering into one of the major agreements
or contracts of your life and, as an employee, you can employers
expect to have certain rights and responsibilities. It is Employee rights Employer rights
an employer’s responsibility to ensure the employee’s You can expect from your Your employer can expect that
rights are met, and vice versa. The rights of employees employer: you will:
and employers are listed in Table 4.2a. • the minimum award wage or • attend work regularly and
adequate pay for your work punctually
Legal issues in the workplace • a fair and just workplace
free from bullying,
• fulfil your job requirements,
as outlined in your job
As discussed in the previous section, a factor in sexual harassment and specification
determining whether your workplace has a good discrimination • behave in a way that
working environment is your working conditions. • workplace protection, supports the culture of the
including safe working workplace, such as working
Many of these conditions are governed by legislation
practices, adequate workers cooperatively and happily
that protects employees and their rights. Here we compensation in the event • obey the rules of the
discuss a number of legal issues relating to workplace of an accident or illness workplace and not engage
conditions. resulting from your work, and in negligent or unsafe work
the employer’s compliance practices that are likely to
Occupational health and safety with the Occupational Health cause injury
and Safety Act 2000 (NSW)
An important legal issue in the workplace is occu- • benefits such as sick leave,
pational health and safety (OHS). As you are aware, annual leave, maternity leave
it is your employer’s responsibility to provide adequate and superannuation
workplace protection, including safe working practices

98 [Link]
Employer obligations also exist under the Workers
Compensation Act 1987 (NSW). This legislation ensures
employees are compensated (and, if necessary, rehabili- Comprehending the text
tated) in the event they are injured or fall ill in the course 1 What are employers’ responsibilities in terms of the
of their work. All employers are required to take out a health and safety of their employees?
special insurance policy to cover their employees for 2 What are employees’ responsibilities in regard to the
workers compensation. These insurance policies are health and safety of themselves and their coworkers?
administered by WorkCover.

[Link]
WorkCover NSW
For more information about how the WorkCover scheme
protects workers’ rights in relation to OHS, visit the
WorkCover NSW website <[Link]>.
Activity
Visit the WorkCover NSW website to find the answers to the
following questions:
a What is WorkCover?
b What does WorkCover do?
In your answers, include the following:
• WorkCover’s vision and objectives
• who WorkCover is responsible to
• the legislation it administers
• at least three interesting facts and figures.

Activities
1 Look at Figure 4.2d and try to find as many unsafe work
practices and hazards as you can. List them and also
outline how you could make this workplace safer.
2 There are a number of hazards that can exist in the
workplace, making it unsafe. A hazard usually falls under
one of the four categories in the table below. Copy
the table and then, in groups, brainstorm the types of
hazards that you may find in a workplace and list them in
the table.

Mechanical Physical Chemical Psychological

and
electrical
Exposed Incorrect Handling Abusive
electrical lifting acid without customers
cords wearing
protective
clothing

Figure 4.2d Hazards in the workplace.

Employment issues 99
Discrimination and anti-discrimination Three groups in particular who have experienced
laws discrimination are:
Discrimination means treating some people differently • women—Almost half of Australian workers are
from others because they happen to belong to a women. On average, however, the incomes of
particular group; for example, because they are female women are only 66 to 70 per cent of those received
or because they are from a particular ethnic group. It is by men. This is despite the laws that have been
against the law for people to be discriminated against passed in relation to equal pay for equal work in
because of their gender, pregnancy, race (including 1972, equal pay for work of equal value in 1986 and
colour, nationality, descent, ethnic or religious back- equal opportunity for women in the workplace in
ground), marital status, disability, homosexuality, age, 1999. Despite the many improvements over the last
transgender or relationship to, or association with, a decade, women are still paid lower wages then men
person of a particular gender, race or marital status, and have to accept higher levels of part-time work.
for example. Women from non-English speaking backgrounds
Discrimination in employment means treating a person are even worse off.
differently; or unfairly in the workplace. This is against • Aboriginal and Torres Strait Islander peoples—
the law and there is special legislation dealing with Discrimination against Indigenous Australians has
certain types of workplace discrimination. been occurring for over 200 years. Despite some
There are both federal and NSW laws stating that it changes in recent years, they are still heavily
is against the law to discriminate against people or discriminated against. The unemployment rate for
treat them unfairly. These laws are the NSW Anti- Indigenous Australians is five times that of other
Discrimination Act 1977 and the Commonwealth Australians. As well, few Indigenous Australians
Racial Discrimination Act 1975, Sex Discrimination are employed in management and professional
Act 1984, Disability Discrimination Act 1992, Equal positions.
Opportunity for Women in the Workplace Act 1999 and • migrants—Migrants often face language barriers
Human Rights and Equal Opportunity Commission and a lack of recognition of the qualifications they
[HREOC] Act 1986. have received from their country of origin. They
This means that in New South Wales all employees may also experience discrimination because of their
and anyone who applies for a job are entitled to race.
fair treatment from their employer or the potential
employer. In particular, the employer must provide
equal employment opportunity and not treat them
unfairly or harass them because of their:
• gender, including pregnancy
• race, including colour, ethnic or ethno-religious
background, descent or nationality
• marital status
• disability
• age
• sexuality
• transgender (commonly known as transsexuality)
• responsibilities as carers.
Despite these laws, discrimination and harassment still
exist in our workplaces, often because of traditions and
workplace cultures. (For a discussion of this, refer to
the box ‘Shifting the balance in the workplace’ on the
following page.)

100 [Link] Figure 4.2e On average the incomes of women are only 66 to 70 per
cent of those received by men.
 Prepare a five-minute oral presentation. Include in your
Shifting the balance in the presentation an explanation of what the legislation is,
workplace who the legislation protects, what the legislation’s aims
are, example(s) of that particular type of discrimination
It has been expected that one sex or the other will dominate and how to make a complaint if you encounter that type
certain workplaces. This has largely come about because of discrimination.
of the nature of the work and the perception that males are
2 In pairs, log onto the Sydney Morning Herald website
better at some tasks, while females are better at others.
<[Link]/> and, from the archives, find three
Nursing was once thought to be a career for women, articles on one of the following issues:
for example, while transportation has traditionally been
regarded as a male industry. This has often led to the a discrimination in the workplace
development of unique workplace cultures where accepted b racial discrimination or discrimination against
attitudes and patterns of behaviour may be different from Indigenous Australians in the workplace
those of the wider community. c sex discrimination in the workplace
Advances in the design of equipment, improved childcare d the glass ceiling
facilities, a new appreciation of the value of the female e equal opportunity in the workplace.
perspective in decision making and a breakdown of some
Check whether your library has copies of the relevant
traditional attitudes mean that workplaces are changing.
issues or provides access to the Sydney Morning
The balance is slowly but steadily shifting within society, as Herald’s CD-ROM archives so that you can read the
women are encouraged to apply for senior management articles. In your notebook, write a report on these articles
positions in major companies and break through what is by summarising their main points and whether the
referred to as the glass ceiling, which is the invisible barrier articles support the notion that discrimination exists in
that can prevent women from achieving promotion to senior the workplace.
business and administrative roles.

Activities
1 Study Table 4.2a (page 98). Write a report outlining the
Comprehending the text rights and responsibilities of:
1 What is meant by discrimination? a employees
2 Give examples of the different types of discrimination. b employers.
3 Outline the experience of women, Indigenous Australians 2 Study Figure 4.2e. Write a paragraph explaining the
and migrants in the workplace. issue being addressed in the cartoon.
4 List two workplaces dominated by females and two 3 Conduct a class debate on whether fairness in the
dominated by males. Why do you think each of these workplace exists. Support your arguments by reference
workplaces is dominated by one gender? to legislation and current public opinion.
4 In small groups, conduct a role-play of what a workplace
dominated by one gender would look like.
[Link] 5 Study the box ‘Shifting the balance in the workplace’.
As a class, discuss:
Discrimination in the workplace a what is meant by the term workplace culture
Activities b what might happen if women were introduced to a
1 Use the Internet to conduct research into one of the male-dominated workplace and vice versa
following pieces of workplace legislation. You may c whether, in future, discrimination in the workplace
find it useful to access the website of the NSW Anti- will decrease because of the shifting balance in the
Discrimination Board <[Link]/adb>. workplace.
a Anti-Discrimination Act 1977 (NSW)
b Racial Discrimination Act 1975 (Cwlth)
c Sex Discrimination Act 1984 (Cwlth)
d Disability Discrimination Act 1992 (Cwlth)
e Equal Opportunity for Women in the Workplace Act
1999 (Cwlth)
f Human Rights and Equal Opportunity Commission
Act 1986 (Cwlth)
Employment issues 101
Unlawful and unfair dismissal unlawful dismissal are made under the federal system
Unfortunately, at some stage in your working life, you to the AIRC. An application must be made within 21
may be asked to leave your job. Your employment can days of being dismissed.
be terminated for many reasons and in different ways. Table 4.2b Circumstances where an unlawful
The most usual way is dismissal. If you find you are
being dismissed from your job, you should be aware
dimissal application cannot be made.
of the legal issues involved. There are two types of An employee cannot make an unlawful dismissal
dismissal that are wrong: unlawful dismissal and unfair application if he or she is:
dismissal. • on a trial period of three months or less and this was agreed to
when the employment contract was entered
Unlawful dismissal happens when a person’s employ-
ment is ended for an unlawful reason. It is against the • a casual employee, unless the person has been with the
law for an employer to end a person’s employment employer for 12 months and expected to continue in the
current employment
because of:
• a trainee employed for a specific length of time
• the employee’s race, sex, sexuality, age, disability,
• not covered by a federal award and earns more than $69 200
marital status, family responsibilities, pregnancy,
a year
religion or political belief
• employed for a certain length of time or to do a specified task;
• the employee joining or not joining a trade union for example, employed as a contractor
• the employee being temporarily absent from work
because of illness or injury
• a complaint against the employer being filed by the Ali was sacked for being sick:
employee unfair dismissal?
• the employee’s refusal to make, sign, extend, Ali is studying and works part time delivering pizza. He came
change or end an Australian workplace agreement to Australia nine months ago and shares a flat with a friend.
He misses his family and finds looking after himself tiring.
• reasons that are unrelated to the employee’s ability Work is busy and it’s hard to fit in all his study.
to do the job
One day Ali is so tired and sick he can’t go to work. He
• the employee’s absence from work during parental thinks he must have caught the flu. Ali calls his boss and
leave. tells her he is sick. The next day Ali doesn’t feel any better
and so he calls in sick again—nobody wants to catch the
It is also against the law for an employer to not give flu with their pizza delivery. He goes to the doctor to get a
an employee the right amount of notice of dismissal. If sick certificate. When Ali gets home there is a message from
the correct notice is not given, the employer is legally work saying he has been sacked.
bound to pay the employee extra to cover the notice Adapted from the Lawstuff website <[Link]>
period. The employer must give:
• one weeks notice if the worker was employed for
one year or less Unfair dismissal applications
If a dismissed employee cannot make an unlawful
• two weeks notice if the worker was employed for dismissal application he or she may be able to make
between one and three years an unfair dismissal application under the state system.
• three weeks notice if the worker was employed for Unfair dismissal occurs when a dismissal isn’t illegal
between three and five years but is harsh, unreasonable or unjust. To work out if a
dismissal is unfair, all the circumstances of the dismissal
• four weeks notice if the worker was employed for must be considered. This includes considering if:
more than five years.
• the employee was given a reason for the dismissal
Unlawful dismissal applications
• the employee was given a chance to respond
All Australian employees (regardless of which state or
territory they live in) can make an unlawful dismissal • there was a good reason for the dismissal
application, except for a few instances. These excep-
• the employee was warned about any poor work
tions are listed in Table 4.2b. All applications for
performance.
Remember, employees can be dismissed if they cannot
102 [Link] do their job, fail to follow instructions or do not use skill
Table 4.2c Who can make an unfair dismissal application?
Federal unfair dismissal applications State unfair dismissal applications
A federal unfair dismissal application can be made if the employee is: A state unfair dismissal application can be made if the employee is:
• employed in the Commonwealth public sector • employed in the NSW public sector
or • covered by a NSW award or NSW enterprise agreement
• covered by a federal award or federal enterprise agreement and or
works in New South Wales. • not covered by an award or enterprise agreement and earns less
than $69 200 a year.
A federal unfair dismissal application cannot be made if the employee is:
• on a trial period of three months or less which was worked out A state unfair dismissal application cannot be made if the employee is:
when the employment contract was entered • covered by a federal award or federal enterprise agreement
• a casual employee—unless the employee has been with the • employed for a specific project for fewer than six months
employer for 12 months or more and expected to continue in the • on a trial period, which is stated in the employment contract
current employment or
• a trainee employed for a specific length of time • has been a casual employee for fewer than six months.
• not covered by a federal award or federal enterprise agreement and
earns more than $69 200 a year
or
• employed for a certain length of time or to do a specified task.

and care while working. An employer can also dismiss Unlike employees who are dismissed, employees
employees if there is no longer any work for them. If who are faced with redundancy are given the choice
someone believes they have been unfairly dismissed, of accepting the redundancy. When an employee
they need to act quickly because there are time limits decides to accept the redundancy it is known as
for making an application. As for unlawful dismissals, voluntary redundancy; that is, the employee voluntarily
unfair dismissal applications must be made within 21 accepts to be made redundant. As an incentive,
days of the dismissal. employers often provide a redundancy package that
is attractive to employees. These packages, which
Table 4.2c sets out the two types of unfair dismissal
are usually quite generous, must include the payout
applications that can be made in New South Wales.
of entitlements listed above as well as termination or
Either a federal or state unfair dismissal application can
severance pay, which is a lump sum covering wages
be made to the NSW Industrial Relations Commission.
or salary for a specified time. (This may be as little
The federal and state systems apply to different types
as two weeks salary to as much as 52 weeks salary!)
of employees.
Packages may also include other redundancy pay-
Redundancy and retraining outs, such as payment for unpaid bonuses or loss
of fringe benefits. The package may also include the
Another method of being asked to leave your job is
provision of specialised services in helping you find a
through being made redundant, which is also known
new job or even retraining.
as being retrenched. As was mentioned previously,
redundancy occurs when employees lose their jobs If the employee does not accept voluntary redun-
because their work is no longer required by the dancy, then the employer should try to redeploy
employer due to economic, technological or other the employee; that is, find the employee another
reasons. In today’s economy, redundancy is becoming job within the organisation. If this is not successful
more and more common. Almost 600 000 people were then the employee may need to accept involuntary
made redundant between 1998 and 2001. redundancy. The involuntary redundancy package is
usually less generous than the voluntary package.
Employees who are made redundant can expect to
receive all of the following:
• unused long-service leave and sick leave [Link]
• unused holiday pay and leave loading
Investigating redundancy
• termination or severance pay Go to the Australian Council of Trade Unions website
• other redundancy payments <[Link]/> and research current issues in relation
to redundancy. Be prepared to present to the class a two-
• redundancy pay from their superannuation fund. minute oral presentation on this issue.
Unused entitlements, such as leave pay, must be fully
paid out by the employer.
Employment issues 103
Comprehending the text
1 How much notice of dismissal must an employee receive
if the employee has worked for the employer for more
than five years?
2 What is the difference between unlawful dismissal and
unfair dismissal?
3 Which employees cannot make an unlawful dismissal
application?
4 What factors need to be considered before a dismissal
can be considered to be unfair?
5 What is meant by being made redundant?
6 List the entitlements that employees can expect to
receive if they are retrenched.

Figure 4.2f Big brother in the workplace.

Activities The right to privacy in the workplace is an issue that

1 Study the box ‘Ali was sacked for being sick: unfair generates a lot of debate. Recently, computer-based
dismissal?’ (page 102) In small groups, discuss whether technology has given employers the ability to conduct
Ali has been unlawfully or unfairly dismissed and what Ali mass surveillance and monitoring of their employees.
can do. Share your group’s findings with the rest of the Concern over privacy violation is now being debated
class.
more than ever within the broader community.
2 In pairs, brainstorm two other scenarios where unlawful
or unfair dismissal has or has not occurred. Write the It is generally accepted that employees have a right to
scenarios and, under each, write the following tasks: a certain amount of privacy at work. An employer may
a Has either an unlawful or unfair dismissal occurred? provide workers with an office, a desk, a locker or filing
Support your answer with the relevant facts. cabinet, and access to the computer network, including
b List all the steps the person can possibly take to storage space for employees’ files. Typically, however,
address the situation. the employer will have duplicates of any keys. Also,
Swap your scenarios and tasks with another pair and although access to the network and computer systems
complete the tasks. will be password controlled, employees should be
aware that the system administrators are usually able
to access everything on the network. In addition, there
Privacy is no automatic legal right to privacy for personal mail
delivered to a work address.
There are various federal and state acts protecting
people’s rights to privacy, including employees’ rights A recent survey of Australian companies found that
to privacy in the workplace. The preamble to the Privacy 76 per cent of companies periodically monitor email
Act 1988 (Cwlth) states: ‘A free and democratic society content and 65 per cent undertake email monitoring
requires respect for the autonomy of individuals and without notifying staff. Despite this, we are still a
the limits on the power of both the state and private long way from watching the average worker through
organisations to intrude on that autonomy ... privacy cameras, bugging conversations and analysing urine
is a basic human right ...’ Generally, this Act covers to detect drug use. Most employees, therefore, have
the collection, use, disclosure, quality and security of legitimate expectations of privacy in relation to their
personal information. (Personal information is defined telephone calls, mail, email, computer usage and desk
as any information that helps in identifying who you and locker storage. Not all aspects of employees’
are; for example, your name, address and telephone privacy are covered by legislation. Each employer has
number.) The Act also gives you rights to access and its own policy in relation to employees’ privacy and
correct your personal information. You also have the should make its employees aware of the details of the
right to make a complaint to the Privacy Commission policy.
if you think that your personal information has been
Rights regarding telephone calls
mishandled.
Tapping of telephone calls involves setting up a system

104 [Link]
to listen to or record telephone calls. Phone tapping is
regulated by the Commonwealth Telecommunications businesses see it as a way to reduce costs and avoid
(Interception) Act 1979 (Cwlth). The Listening Devices the need to employ staff who have certain skills or to
Act 1984 (NSW) covers the bugging of phone calls, keep up to date with specific legislation. The most
which is the actual act of listening to and/or recording popular forms of outsourcing probably are where a
phone calls. An employer who sets up a system to business hires an accountant to look after the financial
listen to or record employees’ phone calls will not side of its business or where a business outsources its
be in breach of the Commonwealth Act. However, payroll or human resources function.
because this area of law is complicated and difficult
Businesses can outsource to individuals (such as
to interpret, it is difficult to say whether the employer
accountants) or other businesses within or outside
will be in breach of the NSW Act. Even if listening into
Australia. As an example, some companies (including
or recording calls through bugging at work is legal, the
Nike) retain control of the design, marketing and
practice still raises privacy issues; for example, the
financial aspects of their activities, but the actual
right of employees to make private calls with some
production of their clothing and footwear is contracted
assurance that the calls will not be deliberately listened
out to firms in Asia.
to or used against them.
Outsourcing in the clothing industry is widespread
Rights regarding private mail and it is here that workers are often paid ‘piecework’
Some people complain that letters addressed to them rates; that is, a dollar amount for each garment they
at work are opened despite being marked ‘personal’ complete. The rates received are usually under the
or ‘confidential’. Many employers have a policy of minimum award rate. Exploitation of outworkers and
opening, inspecting and recording details of all mail piece-rate workers is of great concern, especially to
received at their workplace. Often the mail is opened the Human Rights and Equal Opportunity Commission
in a centralised mail room. Primarily, this policy is (HREOC). There are many concerns over outsourcing
applied so that any money coming into the business and piecework, and these include the following:
can be properly recorded and accounted for. Also, it
can safeguard against employee fraud (dishonest acts • contract prices are usually low, which means lower
undertaken for monetary gain) and limit the likelihood wage levels are usually paid to workers and poorer
of employees running their own businesses during working conditions exist
work time. • outworkers and piece-rate workers often do not
The above policies and practices are not illegal. receive sick leave, long-service leave or super-
However, if an employer has a policy of opening all annuation provisions
mail marked ‘personal’ or ‘confidential’, the Privacy • outsourcing can encourage the ‘cash-in-hand’
Commission recommends that this mail be opened in economy.
the presence of the addressee or by the addressee in
the presence of the person responsible for receipting
mail. This allows the employer to be satisfied that it is [Link]
genuinely personal mail. It also gives the addressee
some assurance that the personal mail is not being Researching piecework and
read or copied by the employer. outsourcing
Unlike items of personal property that you keep in a Activity
desk drawer or locker, the electronic messages (or
Research further the issue of piecework and outsourcing
email) you send or receive at work are not legally
by investigating current news on the web. You may want to
considered to be your personal property. Therefore, an access the following websites:
employer who owns the server or personal computer on
which your email is stored is entitled to look at or copy • NSW Office of Industrial Relations
<[Link]>
it. Many employees reserve the right to check email as
a precaution against fraud, workplace harassment or • Sydney Morning Herald <[Link]>
breaches of confidence by employees. • HREOC <[Link]>.

Outsourcing and piecework Use the information you find to produce a poster showing
the problems with this form of work.
Outsourcing is where an employer undertakes the
practice of ‘contracting out’ different areas of the
business to outside businesses or individuals. This
practice is becoming increasingly popular because
Employment issues 105
Copping it sweat launched in May 2002, to stop the exploitation of
outworkers...
By Peter Munro Several reports ... confirmed most outworkers

N
guyen spent most days working in her are employed for long periods at rates far below
garage. She started at 6am and took the award of about $12 an hour. They are often
breaks when her back started to ache from paid late, in part or not at all.
bending over the sewing machine or overlocker. They have no superannuation, no leave accrual
Sometimes, she would work until 2am, sewing and no provisions for overtime or [OHS]... Most,
together business shirt sleeves and finishing the like Nguyen, are new arrivals to Australia,
hems on women’s pants. predominantly women from Vietnam and China...
The pay was poor—about $3 an hour—but she NSW laws that came into force [in 2002] ...
kept working away in her garage. have enabled outworkers to recover a total of more
‘I didn’t dare ask for more money and fewer than $120 000 in unpaid wages and entitlements.
hours’, she says through an interpreter. ‘They The Behind the Label program also encourages
didn’t need me and I needed a job. If I didn’t do outworkers to attend vocational education and
it, another outworker would get it. The job didn’t training courses.
need me.’ Nguyen has completed an English language
Nguyen, 39, ... arrived in Australia from Ho Chi course and is halfway through a pattern-making
Minh City, Vietnam, in 2000... course at TAFE. Despite this, she refused to chase
She heard about the sewing job through a friend her employer for unpaid money and continues to
who was an outworker—someone who makes work some days in her garage. The money she did
clothes outside a factory, usually in their own home. earn helped pay for a tutor for her stepchildren,
The work was irregular. Her friend would both now studying at university.
deliver bags of fabric and Nguyen would have ‘While I’m working I feel happy. I get a little
to sew a particular part of each garment. The money’, she says...
finished garments were picked up by a middleman Carole Molyneux, the chief executive of
and delivered to either a clothing manufacturer or Suzanne Grae, ... believes there is no reason why
retailer. outworking cannot be fair, possibly by cutting
Each job had to be finished on time, even if it some links in the chain between worker and
meant Nguyen had to work 90-hour weeks with retailer. In fact, working from home has grown in
the help of her children. Her $3 an hour was a popularity in occupations from tradespeople to
quarter of the award rate. If she made a mistake accountants and can offer flexibility that is not
she would not be paid at all. typical inside an office.
Nguyen didn’t think she would ever find Tucker agrees that outworking is a legitimate
work outside her garage. ‘I can’t speak English’, form of work. However, in practice, exploitation in
she says. ‘I don’t know anybody. I don’t know the clothing industry remains a widespread and
anything—just sewing, sewing at home.’ serious industrial problem.
That vulnerability and desperate need for ‘There are advantages to people working from
money are the two things that stop outworkers home in appropriate conditions but the practical
from demanding award wages and conditions, experience is that overwhelmingly these people
says Jeremy Tucker, the manager of the Behind are exploited’, he says. ‘Our team deals with
the Label unit at the NSW Office of Industrial outworkers every day of the week and it is an
Relations... Behind the Label is the NSW anomaly [unusual] to find one who is both happy
Government’s $4 million, three-year program, and paid what they should be.’

Comprehending the text Activities

1 What pieces of legislation cover your right to privacy in 1 In small groups, pretend you run a business that has
the workplace? very high security standards, but you realise that your
employees are concerned about their privacy. Develop
2 List some of the areas where your privacy in the a policy on privacy that can be displayed in your
workplace may be breached. workplace.
3 List some of the legal issues surrounding email at work. 2 As a class, read the article ‘Copping it sweat’. Discuss
the legal aspects of outsourcing and piecework and
what the NSW Office of Industrial Relations has done to
stop the exploitation of workers in the clothing industry.
106 [Link]
The role of trade unions and Union action, however, can sometimes mean labour
is withheld for reasons other than those listed above.
employer groups In the 1970s, for example, the Builders’ Labourers
As a member of a workplace, you will come across a Federation (which has since been deregistered) banned
number of different parties who all have a role to play. the demolition of historic buildings in The Rocks area in
As an employee you will have to interact with your Sydney and instituted what are called green bans.
coworkers and employer on a daily basis. You may
have dealings with the union representative or be a
member of the union. Your employer may have dealings
with one of many so-called employer groups. These
include various employer associations (for example,
if a business sells clothes it may belong to the Retail
Traders Association) and specific business groups. A
business group is made up of businesses that come
together because of similar interests; for example, the
Business Women Networking Group. Each of these
parties has important roles to play in your employment
relations.

Trade unions
A trade union is a group of workers who unite to promote
and defend wage rates and working conditions through Figure 4.2h The arrest of builders’ labourers during the green bans
common ideals and actions. The use of combined to save Sydney’s historic Rocks precinct in the 1970s.
strength and unity gives a union a lot of power, which
it can use when dealing with employers or promoting a
particular point of view on broader social issues.
The main aims and objectives of trade unions are to:
• improve the wages of workers
• provide job security, especially against unfair
dismissal by an employer
• gain better working conditions; for example, work
hours and leave provisions
• provide the widest possible range of benefits for its
members.

Figure 4.2i The Rocks today: one of Sydney’s most popular tourist
precincts.

The first Australian trade unions were formed in the

1830s as craft-based organisations (groups of people
from the stonemason, printing and carpentry industries).
The aims of these unions were the protection of workers
and improvement in working conditions. Hours of work
in these early times could range from 50 to 90 hours a
week and working conditions were often unsafe with
poor light and uncomfortable premises. In 1856, a
group of building workers gained a work agreement
that gave them a 48-hour week. Since that time, trade
unions have continued to campaign for a reduced
working week.

Figure 4.2g Trade unions seek to improve the working conditions of

their members. Employment issues 107
 [Link]
ACTU
Find out more about the ACTU by researching its website
Figure 4.2j The logo of the ACTU. <[Link]>.
All the early unions were primarily local concerns.
They dealt with problems on an individual or company Activity
basis. The need for a larger and more effective union Choose a current workplace issue that is listed on the ACTU
movement soon became obvious as companies and website (either a ‘latest ACTU news’ item or ‘campaign
update’) and discuss this in small groups.
industries grew beyond state boundaries. In 1904 the
Conciliation and Arbitration Act (Cwlth) was passed,
and in 1927 the Australian Council of Trade Unions
(ACTU) was formed. Individual unions are affiliated Employer associations and business
(associated) with the ACTU. groups
Employer associations are in some ways similar to trade
The ACTU has had many achievements since 1927.
unions. They were originally created by employers as a
Some of these are:
counter party to unions, to represent employers in the
• an affiliated membership that has grown to well over making of awards through the federal conciliation and
4 million arbitration system; that is, through the AIRC. Today
they continue to represent employer interests and
• securing the 40-hour week in 1948
remain as associations with a lot of power. Like trade
• increasing annual leave from two to three weeks in unions, they have a formal structure, full-time officials
1963 and executive committees.
• equal pay for equal work by women in 1972 There are two types of employer associations:
• maternity leave (1973 for public sector employees • industry associations—these cover particular industries
and 1994 for all employees)
• umbrella associations—these cover a diverse range
• the Prices and Incomes Accord in 1983. (Commonly of industries.
referred to as the Accord, it dealt with issues such
Employer associations have a number of roles. They
as wage claims, price levels and taxation.)
provide representation for employers at National
Union membership has declined because economic Wage Case hearings and provide advice (especially
restructuring contributed to a decline in the heavily to small business) on such matters as awards, unfair
unionised manufacturing sector and the expansion of dismissals and discrimination. They provide a forum for
industries in which the rate of union membership has discussion of issues (for example, maternity provisions)
traditionally been low. Although union membership on a national level. Employer associations also conduct
has been steadily declining since its peak in the 1950s research into industry issues and are very active in
(when 60 per cent of the workforce were unionised) to lobbying (that is, applying pressure) for legislative and
around 25 per cent in 2003, unions continue to be a institutional change in respect to their industries.
strong force in a number of industries.
Some examples of powerful Australian employer
Attitudes to trade unions vary, with those considered associations are the:
‘anti-union’ claiming that workers have good wages
• National Farmers Federation
and conditions and that the introduction of enterprise
bargaining means that unions are no longer relevant • Metal Trades Industry Association
because workers can now negotiate as individuals. • Australian Chamber of Commerce and Industry
Those considered ‘pro-union’ argue that unions
are needed to maintain those hard-won wages and • Business Council of Australia.
conditions. Indeed, there could be more improvements. Business groups are groups of business enterprises
Many pro-unionists see workers’ right to strike as or businesspeople that have combined to pursue
being necessary to protect and improve their working common goals. These goals may be the pursuit of free
conditions. trade and less government intervention or better work
practices. Business groups do not necessarily play
108 [Link]
an adversarial role against unions or only represent and/or grievance committee in the workplace. If
employers as employer associations do. Their main the grievance cannot be satisfactorily resolved
aims and objectives include the promotion of collective internally then the parties involved may refer it to
bargaining and the provision of specialised services to external conciliation or arbitration.
both employers and employees.
• negotiation—This involves the parties discussing
The activities of business groups are wide and varied. the work issue and making compromises in order to
For example, they aim to: reach an agreement. As with grievance procedures,
negotiations can occur internally at the workplace
• promote industry, trade and commerce
but they can also be conducted at an industry, state
• promote unity of purpose and action by employees or national level.
in all matters affecting their welfare and interests
• conciliation and arbitration—When a work issue
• represent employers, industry, trade and com- cannot be resolved it may be referred to a third
merce before courts, tribunals, commissions or party, such as the AIRC. Conciliation involves the
committees appointment of a conciliation commissioner. The
commissioner hears both sides of the issue and
• represent the interests and views of employers,
helps the parties come to an agreement. If an
industry, trade and commerce at government level
agreement cannot be reached then arbitration is
• provide advice on workplace issues; for example, used as a last resort. Arbitration is where the issue
dismissals, training, equal employment opportunity/ is brought before a judge (or panel of judges) of
affirmative action and safety laws and procedures the AIRC. Arguments from the parties are heard
• provide information on laws, awards and regulations; and a judgment is made. Arbitration is in a formal,
for example, anti-discrimination legislation courtlike setting and witnesses may even be called
to give evidence. Once the judgment (called an
• provide assistance with negotiation of enterprise order) is handed down it becomes legally binding
agreements on all parties.
• improve the relationship between employers and • mediation—In some instances where a work issue
employees cannot be resolved a neutral, objective third party
• provide advice on industrial relations changes. other than a conciliator or arbitrator may be used. The
third party (mediator) helps to organise confidential
Resolving disputes discussions in a non-threatening environment away
from the workplace. The mediator is independent of
Today, employees and trade unions generally work in
the parties but agreed upon by them. Examples of
relative harmony with employer groups. Preliminary
mediators include the HREOC and the NSW Anti-
discussions on work issues generally lead to further
Discrimination Board.
negotiations and compromise by both parties before an
agreement is reached. However, sometimes employees • common law action—Any employee or employer
(or unions) and employers do not agree. When this can opt to raise a workplace issue in the Australian
happens, an industrial dispute can arise. Officially, an court system. However, this is a costly process,
industrial dispute exists when workers withdraw from both in terms of money and time.
work or place bans on work. It is important to realise
that before a matter ends up as a dispute, lengthy
discussions and negotiations have usually taken
place.
In general there are five ways to resolve disputes over
work issues:
• following grievance procedures—Most businesses
have formal processes to handle workplace
grievances or complaints. Often this will involve the
employee presenting his or her grievance, in writing,
to the supervisor. If the supervisor cannot resolve
the issue, the grievance may be referred to more Figure 4.2k The final blow—strike action.
senior management and, ultimately, be referred
to a meeting between the employee, employer
Employment issues 109
 Step 4: If the employer again rejects the employees’ terms, another
stopwork meeting is called where more drastic action is discussed. It
may be decided to ask other trade unions to boycott the company’s
products until the dispute is settled or, more likely, call a strike.

Step 3: The union representative takes the results of the meeting to the employer, who will then discuss its own
options. The employer may decide to accept the employees’ terms or reject them and undertake its own action.
Actions the employer may take include:
• a lockout, which is where the employer literally locks up the workplace and lets no-one enter
• black-listing a few key employees (that is, the ringleaders), thereby making it difficult for those employees
to find employment elsewhere in that industry.
The union representative reports the employer’s decision to the employees.

Step 2: The union representative reports back to the workers. If their terms have been rejected, the workers ask for a
stopwork meeting. At the meeting, all workers vote to accept the employer’s decision or go ahead with further industrial
action. This could mean go-slow or work to regulation campaigns, work bans (bans on particular duties) and/or overtime bans
(ban on working overtime).

Step 1: Workers have a grievance and complain to the union representative. The union representative takes
these grievances and the terms for resolution to the employer, who accepts or rejects the terms.
Figure 4.2l Possible steps in an industrial dispute.

A strike is where employees withdraw their labour from When an industrial dispute is in an essential industry
the workplace. Strike action will only occur when there (such as public transport or hospitals) it can cause
has been a majority vote of all union members at the considerable disruption in the community. In such
stopwork meeting. cases, the parties to the dispute may seek a solution
through the AIRC. In some extreme cases, the state or
There may be times when certain members and non-
federal government may also intervene, trying to bring
members of a union disagree with a strike action and
the parties to the negotiating table.
decide that they want to continue to work. Often this
may lead to verbal and/or physical abuse as the non-
striking workers try to cross the picket line and enter
the workplace. Therefore, it is not unusual for the Activities
police to be called to control such incidents. Union 1 Write a report on the role of unions, employer associa-
members and non-members who work during a strike tions and business groups in promoting employees’
rights, employers’ rights and flexibility in the workplace.
are sometimes called scabs.
2 Your class is unhappy that your teacher is suddenly
making you do four hours of homework a night. In
Comprehending the text small groups, carry out a role-play. Select a union
representative from your group. Follow the four steps
1 a Define the term trade union. in an industrial dispute illustrated in Figure 4.2l by
approaching your teacher (who will play the equivalent of
b List the main aims and objectives of trade unions.
an employer’s role) to find a compromise.
2 What is the ACTU?
3 Select one of the employer associations listed on page
3 On a time line, list the history of trade unions and their 108. Undertake Internet research. Present a short oral
major achievements. report outlining the sector it represents, its organisational
structure, its aims and objectives and any recent
4 Account for the decline in trade union membership. successes.
5 Define the following terms: stopwork meeting, go slow 4 Prepare a brochure to be given to union members
or work to regulation, overtime bans, lockout, black-list, explaining their right to strike and the various dispute
picket line and scabs. resolution strategies available.

110 [Link]
4.3 Taxation and superannuation
‘The only sure
Getting technical things in life are
assessable income All money earned from personal work death and taxes’
and returns on investments.
Figure 4.3a The Australian Taxation Office collects taxes on behalf of
group certificate A form that is used for taxation purposes
the federal government.
and shows an employee’s gross (before tax) pay, net
earnings (after tax and other deductions but not personal Table 4.3a Overview of the different types of
deductions), tax and other deductions. Each employee taxes in Australia
receives a group certificate from his or her employer at the
end of the financial year. This certificate must be included in Tax Description Liability to pay
the employee’s income tax return. Income tax A federal Payable by the
income tax A government tax charged on what a person government tax person or company
levied on salary and who earns the
or company earns from work or business each year.
wages income
The amount of income tax a person or company pays is
dependent on how much they earn. GST A tax on goods and Payable by
services (currently businesses but
personal deductions An employee’s work-related 10 per cent of the passed on to
expenses; that is, expenses incurred in the course of price of the good or consumers and
earning an income. service) included in the
superannuation The money put aside during an prices we pay
employee’s working life for use when the employee retires. Excise duty A tax applied on Payable by
tax A compulsory financial charge that is imposed by the production businesses but
of certain goods, passed on to
governments on such items as income, goods and property
such as cigarettes, consumers and
and is used for public spending and administration.
alcohol and petrol included in the
prices we pay
Payroll tax A state tax on Payable by
Taxes businesses with a businesses at a rate
wages bill over of approximately 6
Taxes are the compulsory payments that are made
$600 000 per cent of the total
to governments by individuals, businesses and other
wages bill
groups. Taxes are the main source of revenue, or
income, for a government. In Australia, federal taxes Stamp duty A state tax on Payable by the
certain transactions, purchaser of the
are collected by the Australian Taxation Office (ATO) such as the sale of asset
on behalf of the federal government. The government a house or car
then spends this income on public goods and
Rates A local government Payable by the
services. The largest spending area for the federal tax on the value of a owner of the
government is social security and welfare. Other areas property property
of spending include defence, health and education, to
Capital gains tax A federal Payable by the
name just a few. The relationship between taxation, government tax on seller of the asset
income and government-funded services is shown in the money someone
Figure 4.3b (page 112). receives when they
sell an asset that
Most taxes are federal taxes, but there are also state they purchased
and local government taxes (see Table 4.3a.) In Australia after 19 September
the largest source of income for the government comes 1985
from income tax. Every individual and company is Fringe benefits tax A federal Payable by the
liable to pay income tax and must complete an income government tax on employer
fringe benefits paid
tax return each financial year. A financial year is from
to an employee
1 July to 30 June.

Employment issues 111

 The process of paying income tax
Most income earners pay tax out of their wages or
salary before they receive it. The employer deducts the
tax from the money to be paid to the employee and
sends the money directly to the ATO. This is known as
the PAYE system of income tax. (PAYE stands for pay
as you earn.)
At the end of the financial year (30 June), each
employee receives a group certificate showing how
much the employee earned for the year and how much
tax has been deducted. The employee then sends the
Figure 4.3b The government uses the taxes paid on income to fund group certificate to the ATO together with a completed
government services, such as welfare and education. tax return, which is a form showing relevant details,
including income, personal deductions and other
deductions. The ATO then processes the return and
Comprehending the text checks to see if sufficient tax has been paid. If the
1 What are taxes? employee has not paid enough tax, the ATO will notify
the employee of the amount owing and when it needs
2 Why are taxes needed?
to be paid. If too much tax has been paid, the ATO will
3 List the various taxes. Against each one, note whether pay the employee a tax refund.
you or someone in your family pays that particular tax.
A Tax Pack (see Figure 4.3c) is used by employees
when completing their tax return and is available at
newsagents. It contains tax return forms and gives
Activities step-by-step instructions on how to fill in a tax return.
1 Draw up a table with the heading ‘Could our society If you require help with your tax return, you can use the
exist without taxes? If so, how?’ and the following ATO’s help line or pay a registered tax agent to fill in and
subheadings:
lodge the tax return. Before lodging the tax return you
• ‘Uses of tax money’. Under this subheading, list the
services that the government funds using taxpayers’
must sign the attached tax declaration, which basically
money. states that you have not given any false or misleading
• ‘Alternatives to taxpayers’ money’. Under this information. Tax returns can be lodged with the ATO
subheading list the possible ways society could still by post or electronically. Electronic lodgment generally
have these services without taxes. results in a tax refund cheque (or tax bill) being issued
As a class, discuss the relationship between taxation, within two weeks. Returns lodged by mail take about
income and government-funded services. eight weeks to process.
2 In small groups:
a Pretend you are the ‘government’ of your school.
Discuss and decide on a project for a new ‘public
good or service’ for your school. What is it and how
much do you think it will cost?
b You need to raise the money for this project by taxing
the members of your school. Suggest a form of
taxation that could be imposed within the school to
fund the project. How could this be enforced?
3 Find out when Australia introduced the GST and the
arguments for its introduction. In what other countries
is a GST used? You may have to undertake library or
Internet research.
4 In small groups, brainstorm the possible advantages and
disadvantages of reducing tax on income and increasing
the tax on goods and services.

112 [Link] Figure 4.3c The ATO’s 2003 Tax Pack.

 Income tax rates
In Australia, a taxpayer’s income is taxed progressively. Example: calculating tax payable
Broadly speaking, this means that as your income Background
increases your tax rate also increases. Progressive
Mr Harvey is employed as a fitter and turner in a large
taxation means that higher income earners pay more
factory. He is single and has no children. Mr Harvey has
tax than lower income earners (see figure 4.3d). This
received a group certificate from his employer and wants
is achieved by dividing incomes into groups, called to lodge his tax return. Table 4.3c shows how his tax is
tax brackets. Each bracket is taxed a certain number calculated.
of cents in the dollar or taxed at a set percentage. The (Note: This example uses the tax rates for the year ended 30
higher the tax bracket, the greater the number of cents June 2003.)
(or the higher the percentage of tax) that must be paid.
Table 4.3b details the tax brackets of our progressive Table 4.3c Mr Harvey’s 2003 tax calculation
tax system for the financial year ending 30 June 2003. Income details $
Table 4.3b Tax rates for 2002–03 Salary from Machinery World 25 656
Interest (earned from savings and investments) 101
Taxable income Tax on this income* Travel allowance 498
$0–$6000 Nil Clothing allowance 150
Total assessable income 26 405
$6001–$20 000 17 cents for each $1 over
$6000 Deduction details $
$20 001–$50 000 $2380 plus 30 cents for each Safety boots 175
$1 over $20 000 Safety glasses 90
Subscription to fitters and turners’ association 90
$50 001–$60 000 $11 380 plus 42 cents for each Total allowable deductions 355
$1 over $50 000
Credit details $
Over $60 000 $15 580 plus 47 cents for each
$1 over $60 000 Tax instalment deductions 4 315
*The above rates do not include the Medicare levy of 1.5 per cent of
an employee’s taxable income. What is Mr Harvey’s assessable income?
Mr Harvey’s assessable income is $26 405. This figure is
The rate of tax within each of these brackets is called made up of salary from his employer, interest and both the
the marginal rate of tax. For Australian residents, travel and clothing allowances. Several types of receipts are
the first tax bracket—from $0 to $6000—has a zero not assessable income for taxation purposes. Some of the
marginal rate of tax. Tax is applied to every dollar after more obvious receipts that are not income are listed below,
this figure. This tax-free amount is called the tax-free with examples:
threshold. • capital receipts (money received from selling a car—
note that these will be included in capital gains tax
Companies paid income tax at a flat rate of 34 per cent
calculations)
during the 2000–01 financial year, and 30 per cent for
the 2001–02 financial year onwards. • damages (money earned from winning a court case)
• windfall gains (money received from winning a radio
Someone’s taxable income is their assessable income
contest)
less their allowable deductions. The following box
provides an example of calculating the amount of tax • receipts from hobbies (earnings from selling vegetables
at a monthly garden market).
payable for an individual earning a wage or salary.
40 000 What are Mr Harvey’s allowable deductions?
35 000 Mr Harvey’s allowable deductions are $355. This figure
30 000 is made up of the safety boots and glasses as well as
Tax paid ($)

the subscription to the fitters and turners’ association.

25 000
An employee is entitled to claim the cost of clothing and
20 000 equipment used in the course of employment as long as
15 000 they are not used privately as well. Also, if Mr Harvey had
10 000 made a donation to an approved charity, this would have
been included in his allowable deductions.
5 000
0 >>>
6 10 20 30 40 50 60 70 80 90 100
Income ($'000)
Figure 4.3d Progressive tax rates. Employment issues 113
What is Mr Harvey’s taxable income?
Activities
Mr Harvey’s taxable income is $26 050. This figure
is calculated by subtracting his deductions from his 1 a Using the progressive tax rates given in Table 4.3b
assessable income ($26 405 – $355). (page 113), calculate the amount of tax payable for
two people earning $30 000 and $65 000, respectively.
Table 4.3d shows the steps to follow when calculating the
b What tax is payable under a flat tax system?
amount of tax payable by/refundable to Mr Harvey.
2 Which tax system do you think is the most fair: flat or
Table 4.3d Calculating Mr Harvey’s tax progressive? Why?
payment/refund 3 Obtain a copy of an income tax return and, using Mr
Harvey’s details, fill out the return.
Step 1: calculate taxable income
Assessable less allowable equals taxable
income deductions income
$26 405 – $355 = $26 050
Superannuation and the obligations
Step 2: calculate tax payable on the taxable income
of employers
Superannuation is a special way to save throughout
Taxable multiplied tax rate equals tax on taxable
your working life so you have some money put aside
income by income
for when you retire. As the population gradually ages,
$26 050 x (in this case = $2380 + $1815 increasing importance is being placed on the provision
$2380* + = $4195
30%* of
of retirement income through superannuation. This
$6050†) is because, as the population ages, the number of
retirees will grow and it will be increasingly difficult
* Derived from Table 4.3b. † Calculated as $26 050 – $20 000.
to provide aged pensions for more and more people.
Step 3: calculate total tax payable
The concern is that there will be fewer people in the
Tax on plus Medicare equals total tax workforce paying taxes to support the increasing
taxable levy (1.5% payable number of aged people.
income x $26 050)
$4195 + $390.75 = $4285.75
For many people, their employer makes most, if not
all, of their superannuation contributions under the
Step 4: calculate refund or amount owing (Note: If the Superannuation Guarantee Scheme. This scheme was
amount calculated is negative, the ATO will provide a refund. If
the amount is positive, that amount must be paid to the ATO.) introduced by the federal government in 1992 at 3–4
Total tax plus any less tax equals refund
per cent of a person’s wage or salary. (This increased
payable HECS credits or to 9 per cent in 2002–03.) Basically, the employer is
and amount required by law to deposit money into a superannuation
SFSS owing fund on the employee’s behalf. The fund is usually
liability ‡ run and managed by another business but the fund
$4285.75 + $0 – $4315 = –$29.25 account is in the employee’s name. (Think of it as being
The amount refundable to Mr Harvey is $29.25. like having an account with a bank.) Superannuation is,
‡ HECS is the federal government’s Higher Education Contribution therefore, closely linked to employment.
Scheme. SFSS is a voluntary loan scheme known as the Student
Financial Supplement Scheme.
The nature of an employee’s job and the amount of the
wage or salary received can affect the person’s ability
to accrue sufficient superannuation for retirement. In
turn, this may influence the age at which the person
can afford to retire. This is of great concern to our
Comprehending the text federal government. In addition to increasing the
1 What is the PAYE system of tax? Superannuation Guarantee Scheme to 9 per cent,
in 2003–04 the federal government introduced a co-
2 What is meant by the term progressive taxation?
contribution scheme. This scheme applies to low
3 What is meant by the term tax-free threshold? income earners and tries to encourage these people
to make personal contributions by matching dollar for
dollar every personal contribution made up to $1000 in
a given year.

114 [Link]
 wants to contribute, how long the money stays in the
fund and how much interest it earns. The law says that
an employer must make superannuation payments for
an employee at least once a year. The employer must
pay at least 9 per cent of the employee’s usual wage
into the superannuation fund.
Superannuation is not taken out of a person’s pay.
It is an extra benefit on top of the pay. For example,
if you earn $300 each week, your employer will pay
about $27 extra into your superannuation fund for each
week you work. When you start work, your employer
should give you an application form to fill out to join a
Figure 4.3e Make sure your super contributions are sufficient to
retire on. superannuation fund.

Who is eligible for superannuation? When can superannuation be accessed?

Most employees in Australia are eligible for super- Generally, someone cannot access their superannuation
annuation, including full-time, part-time and casual until they retire from the workforce after the age of
workers. An employee is not eligible for superannuation, 55. The savings are ‘preserved’, which means they
however, if he or she: cannot be touched until the person reaches retirement
age. However, in certain special circumstances
• earns less than $450 in any month it may be possible to access the superannuation
• is under 18 years of age and works 30 hours or before retirement. One such example is if someone
fewer each week experiences financial hardship, which means they
must have received a Commonwealth income support
• is paid to do domestic/private work for 30 hours or payment for the last 26 weeks and show that immediate
fewer each week. family living expenses cannot be met.
Because of these factors, most young casuals do
not receive superannuation. However, for any type of
employment, if the job is covered by an award then Comprehending the text
the employer may have to pay larger amounts (that is, 1 What is meant by the term superannuation?
greater than the current 9 per cent) into the employee’s
2 Why is superannuation becoming such an important
superannuation fund. An award may also oblige an issue in relation to retirement?
employer to pay superannuation for workers who earn
3 Make a list of employers’ obligations towards their
less than $450 a month. employees in relation to superannuation.
Can employees make their own 4 What factors make someone ineligible to receive
contributions? superannuation?
Workers can also make their own payments into
their superannuation fund if they want to. Their
money is looked after by the superannuation fund Activities
so it can grow. The money will keep growing until 1 Survey your parents and relatives to determine
the employee retires. Upon retirement, the money is whether they:
paid to the employee either in one big amount (often a receive employer superannuation contributions
referred to as a lump sum payment) or in lots of small b make their own personal contributions.
amounts. Approximately 35 per cent of full-time and
part-time employees make personal contributions 2 As a class, discuss whether there appears to be a
relationship between age, job status and personal
to superannuation. In comparison, the proportion of superannuation contributions.
casual employees making personal contributions to
superannuation is just 6 per cent. 3 In groups, brainstorm the advantages and disadvantages
of superannuation as a savings/investment option.
How much will employees receive?
The amount of superannuation an employee will
receive depends on how much the employer puts into
the superannuation fund, how much the employee
Employment issues 115
Chapter review
Activity 1: mindmap With the remaining letters, copy and complete the
sentences below.
When thinking about your job prospects, a number of
questions will need to be answered, such as: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _often occur in the
workplace. They are, however, usually resolved
• Should I further my education?
through negotiation between employees and
• What type of job is best for me? employers and with the help of trade unions and
employer associations.
• What does it mean to be under an award? What
other options are there? Activity 3: literacy task
In small groups, brainstorm all the factors you should
Study the figures below. Write at least three
think about if you had to answer these questions in an
paragraphs outlining the factors you consider
essay. Write down the answers in point form.
important in achieving a good workplace environment.
Include in your answer the following:
Activity 2: wonderword
Copy the wonderword below and then complete a a description of what each figure shows
it using the following words. The words can run b whether you think each figure portrays a good
vertically, horizontally, diagonally and backwards. working environment, and why or why not
trade unions ACTU enterprise c reference to issues such as OHS, privacy and lack
of discrimination.
business group awards
strike wages meeting
law working conditions
go-slow pay scabs
sit-down bans agreement
contract picket line negotiation
AIRC

W C S S E N I S U B
W O R K I N G I T A
G N I T E E M T E N
O D S C A B S - S S
P I N A W A R D S T Figure a

I T E G R A D O L R
C I G R O U P W A A
K O O E K C I N W D
E N T E R P R I S E
T S I M A C T U K U
L Y A E P E S I S N
I A T N A I R C E I
N P I T L T P U G O
E G O - S L O W A N
C O N T R A C T W S

116 [Link]
Figure b