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...
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