STUDIES IN IR/ER
CHANGES IN IR/ ER IN
GERMANY AND AUSTRALIA
GROUP MEMBERS :
Bulou Amalaini Korologa 2004001063
Leanne Suliano 2017140913
By the end of this presentation, students should be able to:
? Understand the background of the two countries
? Understand the legal, political and IR systems of the two countries
? Discuss the major Labour market philosophies, legislations and legal
? Discuss the recent trends and shifting issues in IR/ER in Germany and
The evolving nature of the IR and ER systems of each country are ever
changing, to accommodate this new up rising issues in HRM new
policies and ligations must to made and adapted. This research essay
has a focus on the differences of two countries which are Germany
and Australia. The paper will further discuses on the comparative
analyse point to where these differences lay in the industrial system of
INTRODUCTION: This research it is primarily based particularly on the main features of Employment/
Industrial relations of both Germany and Australia. What makes them different form
each other. As the Trade Union movement and growth of all these countries have
shown signified decline over the years. But on the other hand the countries have
created and adapted different policies and legations to combat the issues on IR and
ER, which denotes the presents of Trade Unions.
MAJOR CHANGES OCCURRING IN THE FIELD
OF IR/ ER IN GERMANY AND AUSTRALIA:
Globalization – globalization is represented by the opening up
of markets due, in large measure, to foreign direct investment
consequent upon the lowering of investment barriers in
practically all countries. Many of the changes taking place can
be traced to globalization.
Outsourcing – enables an enterprise to concentrate on its core
Increased Part -time and temporary Workers – especially in
women, elderly and students.
Technological Changes – replacing manual labour, e.g. Robots
Greater employee involvement and participation
RECENT CHANGES IN AUSTRALIA
The contemporary developments and adjustments in Australia’s Employment
relations and Industrial relations are summarized to these seven predominant
• Focus on ‘sustainable’ phrases in company bargaining
• Unions reinventing themselves to live applicable
• Unions the usage of fitness and safety as an commercial lever
• Focus on workplace crisis control
• Increased scrutiny round administrative center bullying and harassment
• Employers will reply to new whistle blower legal guidelines
• More dynamic administrative center regulators: Fair Work Ombudsman
and Australian Building and Construction Commission
OTHER CHANGES IN AUSTRALIA:
? POLITICAL CHANGES –
The authorities of Australia is understood for the democracy that it
has, this prevents one institution human beings taking of the state’s
strolling and functioning. It turned into as soon as too dominated with
the aid of Britain. A federal authorities is to representing every
kingdom. The government makes use of policies and legislations to its
core, for its private sector. (Cooper and Patmore, 2016).
OTHER CHANGES IN AUSTRALIA:
? Minimum Wages – The national minimum wage is currently $18.93
per hour or $719.20 per 38 hour week (before tax). Casual
employees covered by the national minimum wage also get at least a
25% casual loading
? Shift from Collective to Individual Bargaining – presently more
and more workers are opting for individual representation
rather than collective representations, thus the decrease in
trade union density. There is a shift from centralized
bargaining to a decentralized level of bargaining, i.e.
RECENT CHANGES IN GERMANY:
The cutting -edge and destiny issues affecting Employment Relations in Germany
Introduction of HRM – HRM has also come to Germany – but isn’t limited the position
of works councils, however delivered more conversation channels at place of job.
Technological Advancements – growth in unemployment
Global shift of Production – bad effect – loss of jobs
Reducing working works – 35 hours/week
Labour Market Flexibility e.g., work hours – for operating women.
Increase in element -time, causal employment and
Decline in Trade Union Density.
Also the Combining opposite forms of political economic device. (Socialist VS
Capitalist), it had plenty of effect on ER/IR –workers shape both facet combing
together. The FDGB (The Free German Trade Union Federation) from the former
socialist part of East Germany had 9.6 million members -It became dissolved in
1990 all it is individuals joined the DGB.
POLITICAL CHANGES IN GERMANY
In January 1933, Adolf Hitler became appointed Chancellor of Germany. The Nazi
Party then started to get rid of all political opposition and consolidate its power.
Hitler fast mounted a totalitarian regime. Beginning inside the past due Nineteen
Thirties, Nazi Germany made increasingly more competitive territorial demands,
threatening war if they had been not met.
Germany has an ” Einheitgenerkschafen ” exchange union machine that are for all
employed human beings regardless what work and political belonging. The Social
Democratic Party become at the upward push in 1945 in which alternate unions
have been anticipated as to be later fashioned in to a political party.
OTHER CHANGES IN GERMANY
? Public sector employment
Germany is one of 25 OECD countries that reported an anticipated decrease in
public employment levels as a result of planned reforms . A fiscal consolidation
plan that began in 2011 includes up to 10 000 jobs cut from the federal
administration by 2014 — a goal that had already been reached in 2012 .˜ The
government is not permitted to dismiss civil servants when it seeks to restructure .
Public employment as a percentage of the labour force, 11 .5 % in 2011 , is
substantially below the OECD average of 15 .1 % . Similarly, compensation of
public employees as a percentage of GDP, 7 .9 % in 2010 , is below the OECD
average of 11 .3 % .
Due to the decrease in the public sector employment there was a shift to
privatization of national utilities .
CONTEMPORARY CHANGES IN GERMANY:
? Increased Flexibility
Increased flexibility was in terms of employment . The flexibility
labels that the workers were given pay rise, the working hours
were reduced .
There was training coordinated which provided the workers with
acquired skills and knowledge . This made Germany to be
competitive in the outside world .
The average yearly working hours in Germany, 1 814 hours in
2010 , is above the OECD average of 1 745 hours . This is
driven by more weekly work hours and is partially offset by
several extra days of annual leave . The average number of sick
days taken per year is 16 .32 days and a medical certificate is
only required after three days of illness .
DECENTRALIZATION OF GERMANY
Central HRM unit
Personnel, budget and pay
and dismissal delegation:
No Central HR unit exists
Pay systems and budget allocation are managed centrally,
with some control delegated to ministries on the latter issue.
Bonuses are set centrally, with some latitude given to
ministries in application.
The distribution of posts is managed by ministries
The post classification system, contract duration, career
management and dismissal following misconduct are managed
Recruitment is managed by ministries
The code of conduct and equal opportunity issues are
Working conditions and performance appraisal are
managed by ministries, with some central co -ordination in the
flexibility of working conditions.
RECENT CHANGES AUSTRALIA :
? Technological Advancement – the technological
era has influenced employment in Australia whereby there
is a decrease in employment but an increase in
productivity and performance, e.g. surveillance cameras
and detection devices replaced security personnel but
were more influential.
? Employee Participation – workers are more involved in
decision making in various levels of the organizations, e.g.
through OHS Committees, LMCC Committees, Open Door
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Strong representatives and independent employers and workers organizations are necessary
for the smooth transitions from traditional to modern IR/ER practices. This will guarantee a
genuine social dialogue amongst representatives of governments, employers and workers.