Industrial relations plan

Order instructions
Upon implementation of the Colesworths industrial relations plan negotiations with the
workers break down over pay & conditions. Presently the workers:
• Are required to work a 38 hour week
• Receive a base wage based on years of service and position
• In addition are paid 10% commission on sales over $10 000 per month (e.g. if the
staff member makes $12 000 worth of sales per month, in addition to their base
wage, they earn an extra $200)
• Receive penalty rates on their base wage of 25% for Saturdays and 100% for
Sundays (e.g an employee on a base rate of $160 per day will receive $200 for
Saturdays & $320 for Sundays)
• Are entitled to 20 days annual leave
• Are entitled to 10 days of personal leave (sick, carer & compassionate leave)
The management offered workers:
• A 3% increase in base wages
• A reduction in penalty rates of 12 ½ % for Saturdays plus one day TOIL (time
off in lieu) and 50% on Sundays plus one day TOIL
• A 2 ½ % increase in commission on sales
• Working hours, annual leave and personal leave arrangements remain the same
Workers have demanded:
• A 7 ½ % increase in base wages
• Penalty rates remain the same with no TOIL
• A 5% increase in commission on sales
The forecasts are:
• Sales for Colesworths will increase by 10% in the next financial year
• Profit margins for Coleworths will increase by 5% in the next financial year
• The inflation rate for Australia is predicted to be 3.94% in the next financial year
• The unemployment rate for Australia is predicted to be 6.2% in the next financial
1. How could you use conflict management techniques to manage this dispute?
Discuss the following:
a. Dispute resolution procedures (2 marks)
b. Legal remedies (1 mark)
2. Which of the grievances do you think would be the easiest to alleviate or
eliminate? Why? (3 marks)
3. What are the main issues in the dispute? (3 marks)
4. As a retail company, who might you approach for expert or specialist advice?
Provide two (2) options. (2 marks)
5. What trade union may some of the workforce be members of? (1 mark)

6. In regards to your negotiations with the workers:
a. What is your best outcome? Why? (6 marks)
b. What is your worst outcome? Why? (6 marks)
c. What will be your negotiation strategy? (3 marks)
d. What timeframes would you place on reaching agreement? (It is now 3
months until the present agreement expires) (2 marks)
7. How will you advocate the company’s position? (4 marks)
8. If your negotiations fail what tribunals or courts are available to you to
determine a resolution? (2 marks)
9. Your negotiation skills have paid off and an agreement between the
company and the workers has been signed. How will you document and
certify the agreement? (2 marks)
10. A couple of workers who voted against the agreement (it was accepted
due to majority vote) have unofficially protested against the agreement
by regularly calling in absent on their scheduled weekend shifts. What
remedial action could be taken?

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