Discuss about the Role Of Fair Work Ombudsman In Australia.
The Employment relations and workplace relations in Australia set a safety net of minimum conditions and terms of employment and a variety of workplace responsibilities and rights. In this country, employment system is the combination of common law, legislation, legally binding agreements and awards. Australia has a syndicate of state and federal laws that addresses several issues such as; working hours, workplace conditions like occupational safety and health, compensation, industrial action and annual leaves. Australian employment relation system, i.e. the Fair Work System started on 1st July 2009 and it was established by the Fair Work Act 2009. This system includes the most of the workplaces in Australia (Bamber, Wales, Lansbury and Wright, 2015). This act created an independent agency that was named as Fair Work Ombudsman (FWO). This essay discusses the effectiveness and role of Fair Work Ombudsman in Australian system of employment relations. It is playing an effective role in developing better relationships at Australian workplaces.
In Australia, employment and workplace relation laws are sanctioned by the Commonwealth Parliament. The practical implementation of the Fair Work Act is overlooked by the Fair Work Ombudsman and Fair Work Commission. The Fair Work Ombudsman (FWO) is an independent and statutory agency that is created under Fair Work Act, 2009 (FW Act). The Fair Work Ombudsman and current head of this agency is Natalie James. She was appointed on this position by the Government-General on the July 15 2013 (Shaw, McPhail & Ressia, 2018). The FWO is assisted by staff, which helps with the advisory functions and work and performance of workplace compliance, developed under Fair Work Act. Fair Work Ombudsman has its offices all over Australia, which are situated in major cities and local areas of all territories and states.
The Fair Work Ombudsman of Australia plays an independent and vital role in the enhancing productive workplace relations and making sure that workplaces are complying with different employment and workplace laws. Its free services include education and advice related to fair work practices and enquiry of alleged breaches. The major role of this office is to promote productive, cooperative and harmonious relations at workplaces (Pocock, Charlesworth, and Chapman, 2013). In addition to this, it monitors, investigates, analyzes and enforces the compliance of employment laws of Australia. There are five specific acts of FWO and these services are provided without charging any fees. These services include;
In this way, staff at this office is committed to give advice, on which people can rely and helping the employees and employees to resolve the workplace issues. It also hires Fair Work Inspectors, who are empowered to search and apply enforcement of Australian workplace laws’ compliance (Fair Work Ombudsman, 2018). These laws and regulations include: different provisions of Fair Work Act, 2009, National Employment Standards, Contractors Act, 2006, orders of Fair Work Commission and different agreements. To avail the information about the obligations and rights at workplace, the people can go to the website, i.e. www.fairwork.gov.au. The employees, who think that they are illegally discriminating by employer, can request assistance from the office of Fair Work Ombudsman (Wells, 2009). There are some pending things, which need to be included under the entitlement of Fair Work Ombudsman such as minimum wage, fine on infringement, employment checklist etc. In this way, Fair Work Act, 2009 gives protection of various rights like workplace rights, right to become free from unlawful discrimination, right to involve in industrial operations etc.
From the above content, it is critically analyzed about Fair Work Ombudsman that it has both positive and negative impacts on the organization and its workplace. However the challenges of FWO are very few, as it offers various benefits to both employees and employers. The office of Fair Work Ombudsman (FWO) is very favorable for developing and maintaining effective relationships between employees and employers (Hardy & Howe, 2015). The FWO provides employers and employees free advice and information on working conditions, pay, working obligations and rights. By complying with the employment laws and Fair Work Ombudsman practices, employers develop the flexibility to attain a balance between family responsibilities and work for all the workers. It is providing various benefits to the employees and employers such as increased productivity and efficiency, job satisfaction, decreased absenteeism and work-life balance (Bray, Waring, Cooper & Macneil, 2018).
The Fair Work Act, 2009 includes the entitlements that an employer should give its employees to help the employees and employers to attain work-life balance. Work life balance is not always good for the employees and employers, as it reduces the communication and innovation at workplace. For example, if the people are working from their home or they have flexible working hour, then it can reduce their effectiveness and productivity of employees. Fair Work Ombudsman is very effective for the workplace environment as it reduces the employee discrimination and enhances equality (Charlesworth, and Macdonald, 2015). Apart from these benefits, the changes in the pay equity and discrimination are disadvantageous for women particularly. As compared to the employees in other nations, Australian employees possess minimal rights of flexible working hours.
In Australia, Fair Work Ombudsman is making efforts to reduce the burden of rules and regulations on individuals and businesses. It comprises of cutting via excessive red tape and enhancing the efficiency of stakeholders and employees. In Australia, there are various organizations such as; Seven Eleven, Coles and McDonalds, which signed on with the Fair Work Ombudsman (James, 2018). 7-Eleven, Australia’s largest convenience and petrol retailer has signed a compliance deed with Fair Work Ombudsman that will establish a standard for franchising in Australia. In the tear 2016, The Fair Work Ombudsman a report on the results of its enquiry into franchise network of 7-eleven. The inquiry of the agency was encouraged by the allegations of non-compliance with the federal legislations of employment and workplace. It was found that various franchisees of the organization have been falsifying the data and records to cover the underpayment of wages to employees (Fair Work Ombudsman, 2017). FWO has an important engagement with the 7-eleven office between the duration of 2009 and 2014 and estimated to see enhancements in compliance. The report of agency stated that they had various issues about the accuracy of records and wages. Organization and its employees have not supported the investigations at 7-eleven. Due to this investigation, the organization has focused on its workplace equality and compliance and taken various steps to rectify the situation. However, it has improved the working conditions at 7-Eleven, but it has affected the brand image of the company. This is the major reason that there was a decrease in the customer base of 7-Eleven Company. Moreover, Caltex is a petroleum brand of Chevron Corporation that has breached the workplace laws for three quarters according to the report of FWO. The latest compliance activity report of Fair Work Ombudsman shows that non-compliance rate at Caltex is 76% in Caltex network. After the inspection of FWO, this organization has announced that it aims to transform its franchised service stations to the organization’s stores by mid-2020. FWO ordered Caltex to engage in the offer of compliance of employment and workplace laws, so that it can operate its business honestly and openly (Ferguson, 2018).
McDonalds is another organization that has partnered with Fair Work Ombudsman to enhance the workplace processes at its restaurants all over Australia. It has made employment compliance a higher priority by validating a compliance deed with FWO. By this, organization has made sure that over 90,000 employees at its restaurants are paid equally and correctly (New, 2015). The report of FWO analyzed that McDonalds is providing a comfortable working environment and conditions to its employees. Young employees are the major people, which are having significant benefits from partnership between FWO and McDonalds. After the conclusion of first Deed, McDonald’s approached FWO and committed to continuous compliance with the employment and workplace laws. After the investigation, Ms. James stated that first Deed saw undertake of McDonald’s self-regulated, responsive compliances processes, which have enhanced the manner, in which it manages employment relations both externally and internally (Fair Work Ombudsman, 2014). This initiative has given a great opportunity to McDonald’s for development in the different areas of its business that had a positive effect on relationships with staff and lower level employees. In comparison to 7-Eleven, McDonald’s has emphasized on its employees and conditions. It has also hired a staff member, who handles inquiries from workers about their rights and wages. In this way, Fair Work Ombudsman is very effective in case of McDonalds in Australia (Marin-Guzman, 2018).
In addition to above companies, Coles is the first supermarket chain that has worked with Fair Work Ombudsman to overcome the exploitation of trolley collectors. The FWO alleged that Coles came to know that trolley collection workers at its stores were not paid appropriate minimum wages and but organization did not take any action. The FWO has welcomed the findings of enhanced wage compliance and responsibility in trolley collection network of Coles. The third report of the company shows that there was significant decrease in the complaints about the salaries of trolley collection employees. The head of Fair Work Ombudsman Natalia James stated that Coles Company should be admired for positive outcomes as trolley collectors are receiving fair wages and treatment (Fair Work Ombudsman, 2018). When Coles has agreed to back pay its employees, then Ombudsman has withdrawn its legal processes. It has affected the job satisfaction level of its trolley collectors. In this way, partnership with Fair Work Ombudsman was effective for Coles Organization. Thus, it can be stated that FWO has positive impact on the organization and its workplace. Due to this, companies are able to establish a work culture of compliance in their perspective sectors. Sometimes, the report of FWO may have adverse impact on the customer behavior that ultimately affects the brand reputation of organization. Moreover, they can experience the employee turnover due to discrimination and lower morale. This is the major reason that majority of the workplaces in Australia are working with the cooperation of the Fair Work Ombudsman and developing a culture of employment laws’ compliance (Giammetta, 2014).
Thus, it can be concluded that Fair Work Ombudsman is an agency of Australian Government, which serves as a central body for free information and advice on employment relation system. This agency also examines the complaints at workplace and applies the compliance with employment laws. It is a body that is working for the benefits of Australian employers and employees. There are various functions and activities, which are practiced by this agency. This agency is very effective for Australian employment relations. It is hereby recommended that FWO should include some more activities and services, which can improve the workplace conditions. The organizations should work for the benefits of employees and provide equal opportunities to all the employees.
References
Bamber, G.J., Wales, N., Lansbury, R.D. and Wright, C.F., 2015, International and Comparative Employment Relations: National regulation, global changes. Australia. Allen & Unwin Publications.
Bray, M, Waring, P, Cooper, R & Macneil, J 2018, Employment relations: Theory and practice, 4th edn, Australia, McGraw-Hill Education.
Charlesworth, S. and Macdonald, F., 2015. Women, work and industrial relations in Australia in 2014. Journal of Industrial Relations, 57(3), pp.366-382.
Fair Work Ombudsman, 2014, Young workers to benefit from partnership between McDonald’s and the Fair Work Ombudsman, available from https://www.fairwork.gov.au/about-us/news-and-media-releases/2014-media-releases/april-2014/20140409-mcdonalds-pcd. on 13 March 2018.
Fair Work Ombudsman, 2017, Statement on 7-Eleven, available from https://www.fairwork.gov.au/about-us/news-and-media-releases/2016-media-releases/april-2016/20160409-7-eleven-presser on 13 March 2018.
Fair Work Ombudsman, 2018, Underpayments drop as trolley collection undertaking continues, available from https://www.fairwork.gov.au/about-us/news-and-media-releases/2018-media-releases/february-2018/20180207-coles-eu-3rd-annual-report-mr. on 13 March 2018.
Fair Work Ombudsman, 2018, Welcome to the Fair Work Ombudsman website, available from https://www.fairwork.gov.au/ on 13 March 2018.
Ferguson, A 2018, ‘FWO report on Caltex is a shocker’, Australian Financial Review, p. 40.
Giammetta, D., 2014, Coles works with Fair Work Ombudsman to stamp out trolley collector exploitation, North Shore Times.
Hardy, T & Howe, J 2015, ‘Chain reaction: A strategic approach to addressing employment noncompliance in complex supply chains’, Journal of Industrial Relations, vol. 57, no. 4, pp. 563-584.
James, N 2018, ‘Trolleys, taskers and algorithms: challenges for today’s regulators in tomorrow’s labour market’, Address to AIRAANZ Conference 13 March 2018. Available at URL: https://www.fairwork.gov.au/about-us/news-and-media-releases/speeches.
Marin-Guzman, D 2018, ‘FWO criticised over pursuit of Myer contractor’, Australian Financial Review, P. 5.
New, S., 2015. McDonald’s and the challenges of a modern supply chain. Boston. Harvard Business Review.
Pocock, B., Charlesworth, S. and Chapman, J., 2013. Work-family and work-life pressures in Australia: advancing gender equality in “good times”?. International Journal of Sociology and Social Policy, 33(9/10), pp.594-612.
Shaw, A, McPhail, R & Ressia, S 2018, Employment relations, 2nd edn, Australia Cengage Learning.
Stewart, A., 2011. Fair Work Australia: The Commission Reborn?. Journal of Industrial Relations, 53(5), pp.563-577.
Wells, J., 2009, A right to flexible work – why a strong legislative standard is required to provide for quality, permanent part time work in Australia, IIRA World Congress, Sydney.
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