The 1904 Industrial Conciliation and Arbitration Act and 1988 Industrial Relations Act (IRA) both have set a strong precedent for workers' rights and the right to create and form unions. From an ER standpoint these laws and compliance requirements are also constrictive as they are one-size-fits-all in approach.
Role of Stakeholders- the Government, Unions, Workers,
Both Australia and Germany are comparable in the depth and sophistication of systems, processes and procedures to support stakeholders. Of the two, Germany ahs been architecture far more to support and protect the unionized work. The German Trade Union Confederation, combined with the German series of laws to protect the worker has lead to protectionist approaches when it comes to allowing new businesses into Germany. MNCs looking t expand into Germany have a formable challenge, and union membership has grown to 35%. Despite these forces of economic turbulence, Germany still leads all nations with more regulations regarding economic activities (77) compared to Sweden (39) who by many is considered the most unionized country in Europe.
Unlike Germany, Australia continues to see a decline in union membership, down from 59% in 1959 to 21% in 2009. The country has a very comprehensive series of systems and processes in place to manage stakeholder rights from an ER perspective. Starting with the ACTU and progressing to the 1990s merger of 360 different unions and the continual encouragement of workplace activism, the Australian approach to managing stakeholders is the most progressive amount the three nations analyzed in this paper. The Fair Work Act of 2009 combined with the Business Council of Australia, ACCI, MTIA and ACM seek to provide stakeholders with an active voice in the management of ER standard and compliance.
Bargaining
The German approach to bargaining is also based on a foundation of alliances with labor unions and the use of frameworks based on societal corporatism and co-determination. Bargaining is also managed through unions including the support for German ER practices on the regional and district or community level. Legislation is defined in the Works Constitution, CO-Determination, Collective Agreement and Social Security Acts as well.
The Australian systems also allow for significant bargaining and negotiations based on the tenants and laws of the Fair Work Act of 2009 (FWA). This Act continues to be foundation to the development of effective compliance and governance of ER practices by both Australian-native enterprises and MNCs operating in the nation. The FWA empowers Australian employees to collective bargaining rights and also requires employers to interact with them in good faith, making contractually binding commitments and covenants in writing. Australian unions have had a long-term significant impact on ER best practices throughout Australia.
Labour Laws
Of the two nations, Germany has far more restrictive labor laws designed to limit the potential for MNCs to constrict or overtake their economy. German labor laws are designed to give unions and the worker the final right over deciding the ethicacy or legality of foreign investment. This is a particularly challenging aspect of their economy, and makes entering the market difficult. Managing foreign workers in Germany using best practices in ER as defined from a global context will even be difficult given the structure of their labour laws, and the architecture of multi-tiered layer of unionization that exists. Unlike Australia, unionization is strong in Germany and continues to grow in the face of economic and political uncertainty.
The Labour laws in Australia on the other hand are much more oriented towards a shared level of responsibility and arbitration. The Australian ER reform includes the ACTU/Federal ALP Government accord passed in 1983 and 1993 and the Industrial Relations Reform Act of 1993. The Workplace Amendment (Work Choices) Act of 2005 and Fair Work Act of 2009 all support the more progressing nature in ER relative to Germany.
China vs. Australia
Comparative Analysis Chinese vs. German Economic & Employment Systems
Chinese is in the middle of an abrupt transition form a centrally planned, highly communistic economic to a free market one. The paradox of the CCP being a central planner has direct implications on their approach to defining worker rights and the role of an ER professional in this nation. While the CCP continues to selectively invite MNCs to operate in the Chinese economic and employment systems today, their approach is more oriented towards being still focused on the egalitarian ideal of their political system. The central planning focus includes the concepts of the Iron Rice Bowl and the HuKou systems to ensure long-term employments. Particularly challenging...
Based on a Westminster style of democracy, Australia is more advantageous from an ER perspective, as it has shifted responsibility to enterprises and unions to cooperate with one another. The Australian approach also shifts responsibilities to states as well. The one caveat of this from an ER planning perspective is that the dominant political party will determine which balance of ER emphasis the government has, depending on political preference. In recent electrician it has swung back to a more unified, national focus.
History
China's history is dominated by a Confucian mindset regarding harmony of social relationship. The revolution in 1949 lead to the formation of the Chinese Communist Party (CCP) which has been continually challenged from an ER standpoint to arbitrate between the needs of workers and the reality of the country needing to complete on a global level of commerce. In 1978 the CCP attempted to more fully enact a strong platform for planned economic growth with its Open Door Policy; a policy credited with breaking down barriers holding the nation back previously. At present the CCP is more collaborative than ever with MNCs, as the nation seeks to bring greater wealth the nation through its favorable trading balances.
Australia has a significantly different history, having been founded as a British colony and gaining independence in 1901. The historical aspects of the nation with regard to ER show its value for worker's rights and the recognition of how critical it is to create a country legal and economic system that promotes growth. From an ER standpoint Australia is the most progressive of all three included in this analysis.
Role of Stakeholders- the Government, Unions, Workers,
Both countries carry significant power in terms of negotiating, managing and requiring compliance from their own corporations and those of foreign nations. The costs of operating an enterprise in both can be very high for an Australian firm for example. The role of the state and local government in China is to enforce their laws of employment levels, CCP employment and union requirements and support for the All-China Federation of Trade Unions. Stakeholders in China are subservient to the monopoly model the CCP attempts and often succeeds in creating.
Bargaining
Chinese bargaining includes provisions for Collective Contracts as legislation was passed in 1994 supporting this area of ER. The Chinese system is unique globally in that it also supports tripartite consultation systems and support region-based and industry wide contractual negotiations. All of these factors are elements of the CCP framework of harmonization across the country's economy. China also has a very structured, rigid Resolution System that includes phases for arbitration, mediation, litigation if necessary, and a series of decision points for managing illegal activity and its eradication from the economic system.
The Australian systems also allow for significant bargaining and negotiations based on the tenants and laws of the Fair Work Act of 2009 (FWA). This Act continues to be foundation to the development of effective compliance and governance of ER practices by both Australian-native enterprises and MNCs operating in the nation. The FWA empowers Australian employees to collective bargaining rights and also requires employers to interact with them in good faith, making contractually binding commitments and covenants in writing. Australian unions have had a long-term significant impact on ER best practices throughout Australia.
Labour Laws
China is very clear on its use of labour laws, with a country-wide precedent set in 1995 with their Labour Law of China. This was the first employment law enacted by the CCP. There is also the Labour Contract Law passed in 20087 that require all employers to provide employees a written contract within a year of employment, and fines employers who do not do this. There are also labor dispatch providers and support for verbal contracts in the Labour Contract Law of 2008. In 1993 China based the Enterprise Minimum Wage Regulation and amended it in 2004 to serve as a framework for the countries' growing economy.
The Labour laws in Australia on the other hand are much more oriented towards a shared level of responsibility and arbitration. The Australian ER reform includes the ACTU/Federal ALP Government accord passed in 1983 and 1993 and the Industrial Relations Reform Act of 1993. The Workplace Amendment (Work Choices) Act of 2005 and Fair Work Act of 2009 all support the more…
