Ncic ch04

4
Employment
issues
Once you have left school, you will most probably
start looking for a job. Those people who have jobs,
plus all of those who are unemployed but looking for
a job are part of the labour force.
To be able to survive, we need money, so most
people sell their labour to an employer and, in return,
receive an income. However, if we define work as
performing an activity that produces something of
value for other people, then both paid and non-paid
work are important aspects of our society.
focus
On completion of this chapter, you will have learned about the commercial
and legal aspects of employment issues by focusing on your options, rights
and responsibilities in the work environment.
outcomes
A student can:
5.1 Apply consumer, financial, business, legal and employment concepts
and terminology in a variety of contexts
5.2 Analyse the rights and responsibilities of individuals in a range of
consumer, financial, business, legal and employment contexts
5.3 Examine the role of law in society
5.4 Analyse key factors affecting commercial and legal decisions
5.5 Evaluate options for solving commercial and legal problems and issues
5.6 Monitor and modify the implementation of plans designed to solve
commercial and legal problems and issues
5.7 Research and assess commercial and legal information using a variety
of sources
5.8 Explain commercial and legal information using a variety of forms
5.9 Work independently and collaboratively to meet individual and collective
goals within specified timelines.
glossary
arbitration: when the Industrial Relations Commission
makes a decision about a dispute between an employer
and employee, which is legally binding
award: a document that outlines an employees minimum
pay and conditions
collective wants: goods and services that are for the use
of the whole community
common law (employment) contract: when employers
and employees have the right to sue for compensation if
either party does not fulfil their part of the contract
conciliation: similar to mediation in that a third person, in
this case the Industrial Relations Commission, helps settle
a dispute by trying to get both parties to reach a mutually
acceptable solution
discriminate: to treat somebody differently or less
favourably because of her or his personal characteristics,
such as sex, nationality, religion. This type of behaviour is
called discrimination
employee: a person who works for a wage or salary
employer: a person who hires employees
employment contract: a legally binding, formal agreement
between an employee and an employer
enterprise or workplace agreement: agreements about
pay and conditions made at the enterprise/workplace level
entitlements: non-wage benefits such as long service leave
or sick leave
goods and services tax (GST): a broad-based tax of 10 per
cent on the supply of most goods and services consumed
in Australia
grievance procedures: a number of pre-determined steps

that are followed to resolve a dispute
income: money received on a regular basis from work,
property, business or social welfare payments
labour force: all those people who have jobs; that is, are
employed, plus all those people who are actively seeking
work; that is, are unemployed
loading: extra pay (often up to 20 per cent extra) on top of
the normal full-time rate to compensate casual employees
for lack of access to entitlements
mediation: when a third party helps those involved in a
dispute to reach a solution acceptable to both sides
negotiation: a method of resolving disputes where the
parties involved discuss the issues in an attempt to reach
a compromise
outsourcing: the contracting of some organisational
operations to outside suppliers
participation rate: the proportion of people aged 15 or over
employed or actively looking for work
pieceworkers: people who are paid according to the
number of items they make
redundancy: when a particular job a person is doing is no
longer required to be performed, usually due to
technological changes
superannuation: a way of saving so an employee has some
money in retirement
taxes: the part of our income taken by the government to
pay for collective goods and services
unemployment: when people are trying to find work but
have so far been unsuccessful
4.1
Types of employment
The ever-changing nature of work has resulted in a
greater range of employment options available.
Each type of employment option has advantages
and disadvantages.
Karl
Gerstenberg
full-time nurse
Sally Nicholson casual

checkout operator
As a casual worker, I am employed on an hourly
basis. The main disadvantages of casual employment are that I do not receive a range of entitlements (non-wage benefits), such as long service
leave or sick leave, and the lack of job security. If
there is no work for me to do, I can be dismissed at
one hours notice, or with one hours pay instead of
is, extra pay,
notice. However, to compensate I am paid a loading; that
lity to agree
flexibi
the
have
I
well,
As
rate.
e
full-tim
on top of the normal
es me with
provid
job
this
While
time.
ular
partic
a
at
work
to
or refuse
lt to obtain
difficu
it
g
findin
some income, because it is not regular I am
the law, if
to
e
chang
a
of
se
becau
that
a home loan. I was recently told
I may
year
one
than
more
for
basis
r
regula
a
on
job
Im employed in this
sal
dismis
unfair
be eligible for some entitlements such as access to
protection and long-service leave.
Virginia Chung
part-time
costume designer
Part-time work suits

me. I
can earn some mone
y on a
regular basis but, be
cause I
am taking a TAFE co
urse, I
need time to study
. As a
part-time employee,
I have
job security because
I work regular days
and
regular hours but for
fewer days or hours tha
na
full-time employee. As
a part-time employee,
I
receive a number of en
titlements on a pro-ra
ta
(proportional) basis.
For example, I work thr
ee
days per week so, the
refore, I am entitled
to
three-fifths of the no
n-wage benefits avail
able
to full-time employe
es. However, part-tim
e
work does have a few
disadvantages. Firstly,
because I work fewer
hours, I receive a small
er
weekly pay and red
uced entitlements co
mpared to full-time em
ployees. Secondly, I
do
not receive the loadin
g paid to casual sta
ff.
Overall, while Im stu
dying, part-time emplo
yment offers better
conditions than cas
ual
employment.
This is my first full-time

job. I work 42 hours per
week over a five-day cycle.
Although I have to spend
more time at work than in
my previous part-time job,
I enjoy earning a higher income. This has made
it easier to start saving on a regular basis. As
well, I am entitled to a wide range of non-wage
benefits, especially paid holiday leave and longservice leave. However, the greatest benefit is
the job security. The main disadvantage of fulltime work is not having time for my hobbies but
I guess the extra money makes up for that.
Jamahl Nessari
e
self-employed landscap
gardener
me the freedom
Being self-employed gives
and when I want
and flexibility to work where
business decisions
to. I especially like making
businesss sucthe
for
and being responsible
advantages to
tax
e
som
cess. There are also
ver, being your
being self-employed. Howe
is no guarber of disadvantages. There
own boss does have a num
security. I
of
lack
a
tly,
and, consequen
anteed income each week
then I earn
entitlements and if I am ill,
have to pay for all my own
s involved
e insurance. There are risk
no money unless I have som
l be greater.
but hopefully the rewards wil
A high proportion of casual employees are in the

15 to 25 age group.
The casualisation of the labour force has meant
many workers do not have long-term job security.
Over the last decade, part-time employment
increased by 50 per cent and now makes up about
30 per cent of total employment.
Full-time employees are required to work at least
35 hours a week.
102
New Concepts in Commerce
Voluntary and unpaid work

Voluntary workers play an essential role in our
society. Many people in the local community
work for voluntary agencies such as bush fire
brigades, Meals on Wheels and state emergency services. They receive no financial payment. They do it for pleasure and the
satisfaction of being able to help others.
Just because volunteers do not receive an
income does not mean that the job they do is
any less valuable. Yet because they do not
receive an income, they are often undervalued
in our society. If paid jobs become less available, our society may begin to value voluntary
work more highly and give these workers the
recognition they deserve.
Volunteer bush firefighters
4 In your notebook or using a word-processing package,
UNDERSTAND
1 Outline the difference between:
(a) casual and full-time employment

(b) paid and unpaid work.
2 Complete the statements in your notebook by
selecting the correct words from the list below.
(a) Casual employment offers
but does
not provide job
.
(b) Part-time employees work regular but
hours than full-time workers and
only receive entitlements on a
basis.
(c) Full-time employees have the benefit of
entitlements such as paid
leave and
long
leave.
(d)
people have the
to
work where and when they want to but face
greater
than other types of
employment options.
risks
fewer
sick
service
freedom
flexibility
construct and complete a table like the one below.

The first answer has been filled in for you.
Employment options available
Casual
Advantages
Part-time Full-time Self-employed
1. Paid a
loading
Disadvantages
COMMUNICATE
5 In groups of four or five, identify the disadvantages
for employees locked into casual employment for long

periods. Select a spokesperson to present your
groups ideas to the rest of the class.
6 Outline which employment option you would prefer
after you leave school. Share your answer with the
rest of the class.
INVESTIGATE
7 Prepare a list of ten volunteer agencies that operate
pro-rata
self-employed
security
3 Which 16-year-old employee, performing the same
duties, will receive higher hourly payments from her

or his employer?
(a) Casual employee
(b) Part-time employee
Justify your answer.
within your community. You may need to refer to the

Yellow Pages.
8 If you had the opportunity to be a voluntary worker,
what would you do and why?
WORKSHEETS
4.1
4.2
Jobs for all

Types of employment
103
Employment issues
4.2
Changing work patterns
Traditional work patterns are changing rapidly.
The idea of a job for life is disappearing and
employees in the future will tend not to have a
clear career path. Many people today have periods

as full-time employees followed by periods of
casual, part-time or contract (self-employed) work.
OLD VIEW
NEW VIEW
Job
Work
OLD VIEW
NEW VIEW
Employee
Vendor
OLD VIEW
NEW VIEW
False sense
of security
Sense of personal
control
Old and new approaches to work
104
OLD VIEW
NEW VIEW
Employment
Employability
OLD VIEW
NEW VIEW
Job titles
Competencies
OLD VIEW
NEW VIEW
Career ladder
Career lattice
OLD VIEW
NEW VIEW
Portfolio
career
One career
105
Employment issues
Many changes in work patterns today are driven

by the desire of businesses to reduce labour costs
and improve productivity. Some changes include:
the rapid growth of contracting out or outsourcing
a preference in many businesses to have a smaller
permanent workforce and to hire casual
employees as a flexible workforce to meet demand
at peak times
flexible working hours and arrangements
including telecommuting.
Demographic changes
The number of women in the workplace has risen
rapidly in recent decades women now comprise
45 per cent of the workforce and have a
participation rate of 70 per cent.
Employers are recognising the cost savings and
benefits of family friendly workplace practices in
order to motivate and retain skilled staff. Women
have also been attracted to the flexibility offered by
the many casual and part-time jobs available.
Casualisation of the labour force

One of the most important changes to work patterns
in the last 20 years has been the significant increase
in casual employment. Casual workers currently make
up approximately 25 per cent of the labour force, with
some industry sectors such as retail and hospitality
employing almost half their labour force as casuals.
Some casual employees, especially the young, find
it difficult to gain full-time employment. Their
working life is often dominated by periods of parttime and casual work. Consequently, they have few
opportunities for promotion and are usually
retrenched first if the business is experiencing financial difficulties. These people will sometimes experience long periods of unemployment. Exploitation of
these employees can also occur.
Casual employment is
most common among
young people
The Australian workforce is ageing and health and

superannuation costs related to age will increase,
requiring employees to plan for these future
expenses. Consequently, the Federal Government is
recommending that employees consider extending
their working life rather than retiring early.
Prepare a bar graph

A bar graph allows you to see differences quickly, and
to detect trends. Bar graphs are often drawn up from
data in tables.
Step 3: Divide up each bar in accordance with table data.

Step 4: Give each category a different colour. Colour
bars and add a matching key.
Look at the following table and then complete the tasks.
Teenage spending habits

Item
% of income
1992
2002
Year
Food
Clothes
Entertainment
1992
2002
29
51
20
Percentage of males and females in the

Australian labour force
18
33
49
Key
Food
Clothes
Entertainment
0
20
40
60
80
100
Teenage spending habits (% of income)
Step 1: Draw two bars 100 mm long and 20 mm

wide within a horizontal and a vertical axis.
Each 1 mm represents 1%.
Step 2: Label axes and graph.
Year
Male (%)
Female (%)
1984
1994
2004
62
57
55
38
43
45
(Source: Australian Bureau of Statistics, 6202.0.55.001,

Labour Force, Australia)
(a) Convert this data into a bar graph with three

separate bars one for each year. Carefully label
the graph and provide a key.
(b) What trend do these statistics reveal?
(c) What reasons can you give for this trend? Discuss
your answer with the rest of the class and list
points on the board.
106
Technological change
The so-called information revolution has led to
massive changes in the way people work. The main
changes are:
work can be contracted out to people working
from home
there is a marked decrease in the number of
people employed in manufacturing industries
and a corresponding increase in the information
and services industries
ongoing training programs are needed
new jobs are being created using new technologies,
while others become outdated.
job sharing, which allows two employees to share

the hours required for one job
lengthening of shifts to 10 hours.
Conflicting views are emerging from employees
(other than those who choose part-time work) about
the benefits achieved from flexible working hours
and permanent part-time work. Many employees
now work 12-hour shifts, broken by days off, as part
of their industrial agreements. Others have lost
their weekends and their ability to enjoy time off
with their families.
These difficulties have arisen because employees
and employers may have a different meaning for
the term flexibility. For example, an employee may
view flexibility as providing her or him with an
opportunity to rearrange work hours to better suit
their lifestyle and family commitments. However,
an employer may see flexibility as the introduction
of longer shifts or the scrapping of penalty rates for
weekend work.
UNDERSTAND
1 Are the following statements true or false?
2
3
Technology changes the work people do.
4
Flexible working conditions and

hours
Flexible working conditions are patterns of work

that allow employees to balance work and family
responsibilities more effectively. For example, some
employeremployee agreements allow opportunities
for home-based work, which gives employees more
flexibility during working hours. This is becoming
more practical as electronic methods of communication and other technologies improve. Many businesses also offer permanent part-time work in order
to retain skilled and valued staff who have family
commitments.
Flexible working hours are a common feature in
many workplaces and may take the form of:
flexitime, which allows employees to nominate
starting and finishing times to suit their needs
maxiflex, which allows employees to build up
sufficient hours or overtime to take time off
(a) This section was about the changes in traditional

work patterns. (T/F)
(b) Many employees will have more than one career
during their working life. (T/F)
(c) The number of females in the labour force has
increased over the last 30 years. (T/F)
(d) Flexible working arrangements are becoming
common in workplaces. (T/F)
Outline two effects of technology on work patterns.
What has been the impact on work patterns of an
increase in the female participation rate in the
workforce?
Why do many businesses offer family-friendly
workplace practices?
Examine the old and new approaches to work on
pages 104 to 105. Briefly describe three of the
changes to work patterns.
Why do employers and employees sometimes hold
conflicting views with regard to flexible working
hours and part-time work?
What are the advantages and disadvantages to
employees of flexible working hours?
COMMUNICATE
8 In small groups, roleplay a meeting between
management and employees where management

wants to introduce a new roster of four-day, 10-hour
shifts and remove weekend penalty rates. You may
wish to video the roleplays and view and discuss
them as a class.
WORKSHEETS
4.3
107
Employment issues
Work patterns
4.3
Benefits of education and
training for employment
I cant wait to leave school, said Zara. I want to
leave as soon as I turn 15. Get a job, earn some
money and have fun. No more rules, uniform or
homework! What Zara didnt realise was that
without educational qualifications and further
training, she would find it very difficult getting and
keeping a job. If she wanted a good job, she would
have to change her attitude towards learning.
Lifetime of learning
One of the most frequent
questions people ask
school students is What
do you want to do when
you leave school? It is
often a very difficult question to answer, especially
when the labour force is
changing so rapidly. Whatever your answer to this
question, as an employee
you will be required to continually undertake workplace training a lifetime
of learning.
Over the last 30 years,
there has been a steady
decline in the demand for
young, unskilled, full-time
employees. Most employers
today prefer to hire people
who are either semi-skilled
or skilled. Employees who
have undertaken training
and gained skills will be in
greater demand than
those who are unskilled.
They will receive higher
incomes and be offered
opportunities for promotion. Their training
will have given them
the ability to better
adapt to and cope with
change,
and
the
chance
to
gain
improved job satisfaction.
Skilled jobs
Amahl decided she wanted to be a telecommunications technician. After completing year 12 she
was offered an apprenticeship with a large communications company. Part of her training was onthe-job training. She was shown what to do by
another technician and then carried out the task
herself. Another part of her
training required her to
attend the local Technical
and Further Education college and study particular
subjects required by her
employer. She also had to
obtain a specialist licence
through the Australian
Telecommunications
Authority. She learned
many skills over the
three years and was promoted to team leader not
long afterwards.
Jobs such as Amahls,
which require specialist
training and qualifiA telecommunications
cations, are referred to
technician an
example of a skilled
as skilled jobs.
job
Semi-skilled
jobs
A truck driver
an example of a
semi-skilled job
Antony was offered a

drivers job with a local
trucking company. He
had
little
previous
experience. To be able to
drive large trucks he had
to obtain a Class 4
licence. This
required
some training over a
couple of months. Antony
was happy with his job but
his employment prospects
were somewhat limited.
A job such as Antonys,
which requires some training
and qualifications, is referred
to as a semi-skilled job.
108
Unskilled jobs
Andrew wanted a job where he could work outdoors. After leaving school at 15, he was not interested in undertaking any more study. He saw in the
paper that a local construction company required a
person to act as a general labourer on a building
site.
This was the type of job that suited Andrew. He
could start straight away and did not need any
qualifications apart from being fit and healthy.
However, in the long term, his job prospects were
limited due to his lack of skills.
Jobs such as this, which require very little
training and no formal qualifications, are referred
to as unskilled jobs.
UNDERSTAND
1 Identify three benefits to employees of undertaking
workplace training.
2 Classify the following jobs into skilled, semi-skilled
and unskilled:
Carpenter
Taxi driver
Farm labourer
Cleaner
Secretary
Teacher
Dentist
Machine operator
Call centre operator
Fork-lift operator
Charity collector
Chemist
Librarian
Sales assistant
Fruit picker
3 After reading this spread, what advice
would you give Zara?
4 During times of recession and high
unemployment, in which of the three job
categories mentioned in activity 2 do you
think more people would be retrenched?
Why?
5 It is becoming more important for
employees to undertake training. Explain
why this statement is true.
6 If you were Tai, would you agree to
undertake the Certificate in Food Retail
course? Why?
INVESTIGATE
7 Locate the employment section of a
Labouring an unskilled job
Tai, crew trainer at McDonalds

Tai started part-time work with McDonalds when
he was a year 10 student. He found the job interesting and he certainly liked pay day. He was keen
to learn, and undertook some on-the-job training
courses. The store manager was very impressed
with Tais range of skills and work performance.
After eight months he offered Tai the position of
crew trainer.
Tai was pleased to take on this added responsibility. It meant he could help train younger
employees. As well, it was another formal qualification he could add to his work portfolio. The
manager also suggested to Tai the possibility of
undertaking the Certificate in Food Retail course if
he wanted to work full-time. This traineeship
would provide Tai with a nationally recognised
qualification that would give him greater job
security and a higher income.
Tai gained a lot of personal satisfaction from
knowing that his training provided him with more
job opportunities.
(b)
(c)
(d)
(e)
major newspaper, then complete the

following tasks.
(a) Find five jobs for each of these
three categories: skilled, semi-skilled
and unskilled. Justify your
categorisation.
Write down the wage or salary paid for each of
the jobs. Find it out, if it is not stated.
Decide which job requires the highest level of
skill.
Decide which job requires the lowest level of
skill.
Employees with higher levels of training receive
higher incomes. Is this statement
supported by these advertisements?
COMMUNICATE
8 Design a creative poster aimed at 15-year-old
students who may be thinking of leaving school.

Highlight the benefits of staying at school to gain
skills that will be useful in a job. Display your poster
in the classroom.
9 Arrange for your schools career adviser to come to
your class and inform you about post-secondary
training courses.
WORKSHEETS
4.4
109
Employment issues
A job interview
4.4
Types of employment contract
The employment contract
When you begin your first job, both you and your
employer have entered into an employment
contract. This is a legally binding, formal agreement between an employee and an employer.
Every employer and employee is bound by a contract of employment. There are three important
elements to these contracts: offer, acceptance and
consideration.
A business can place a job advertisement in a
newspaper, put up a sign in the window or
approach you personally and offer you a job. If you
decide to apply for the position and your application is successful, you will be asked to attend a
job interview. During the interview you are
informed about the terms and conditions that apply
to the job. This is the offer. If you agree to these
terms and conditions you make the acceptance.
That is, you agree to take the job.
The consideration, from the companys point of
view, is that it has to supply the wage and other
conditions offered. In return, the employees
consideration is to supply the labour. Consideration refers to the benefits that both parties will
receive.
A contract does not have to be written. It can be a
verbal (or spoken) contract. It is generally safer to
have a written contract, especially if one of the parties to the contract does not fulfil their side of the
contract. There is an old saying, verbal contracts
are not worth the paper theyre written on!.
At the beginning of your employment there is
normally a good relationship between you
and your employer. It is what happens from there

that determines how the relationship develops. If
both parties to the contract fulfil their obligations,
a positive relationship will be maintained. Sometimes, though, this working relationship can sour.
You may feel your employer is not fulfilling all her
or his obligations. Of course, the employer may
feel the same about you. When these situations
arise, you may need the help of someone from outside the business. This person can help determine
who is liable under the terms of the contract.
Read the employment contract thoroughly before you

sign it. If there is something you do not understand
then seek advice from a family member or a solicitor.
Remember, once you have signed the contract you
must abide by all its conditions.

There are four different types of employment contract.
Award
All jobs have a set of minimum terms and conditions, which make up the award covering that
particular job. The award outlines the minimum
conditions on such issues as: pay rates; holidays;
sick, long service and maternity leave; overtime
rates; and contracts of employment. Some
employers will provide above-award payments,
especially if they wish to attract more workers
A job offer can be made in several ways
110
Types of
employment contract
Employer
Employee
Enterprise
agreement
Award
Individual workplace
agreement
Common law
contract
to their business or if they want to hold on to their

existing staff. Awards have the following advantages
and disadvantages.
Awards
Advantages
Set a minimum for pay and
conditions
Cover all employees
performing a similar job
Protect employees from
exploitation
Disadvantages
Inflexible may not suit
all employees
Prevent recognition of
individual initiative
pay and conditions of people employed in that

workplace. This type of agreement is usually
referred to as a Certified Agreement (CA). It can
either replace an award or act as an add-on agreement to awards. Enterprise agreements must be
approved by the Industrial Relations Commission
(IRC) to ensure that employees are not disadvantaged compared to the award conditions. Enterprise
agreements have the following advantages and
disadvantages.
Enterprise agreements
60 per cent of Australias workers are covered by

either state or federal awards or enterprise
agreements. Awards normally cover industries and
types of job. Agreements usually cover workplaces or
specific jobs.
Enterprise agreement
Imagine all the students in your Commerce class
sitting down with your teacher and negotiating a
set of conditions for your class. Apart from the
essential conditions such as completing all the
work and respecting each others opinions, you
might negotiate a homework-free month in return
for one extra assessment task. You have just
entered into an enterprise agreement.
Since the introduction of the Australian Workplace Relations Act 1996, enterprise agreements
have started to replace awards as an alternative
method of determining employee pay and conditions. An enterprise agreement is a negotiated
arrangement between an employer and a union or a
group of employees. The agreement deals with the
Advantages
Disadvantages
Consultation with and

involvement of employees
Possibility of improved pay
and conditions
Access to training
Greater flexibility
Undermine award
standards, with some
employees working longer
hours
Possibility of job losses
Greater inequity in wage
rates between employees
Individual workplace agreement

Imagine if your Commerce teacher and you came to
an agreement about your conditions of work for this
subject. These conditions would apply only to you.
The new contract would do away with the classroom conditions agreed to in the award and enterprise agreement. For example, the new agreement
may offer you a classroom (employment) package
that includes more homework in return for the
right to attend only two Commerce lessons each
week.
Under federal workplace laws, this type of contract is referred to as an Australian Workplace
Agreement (AWA). Such contracts are signed individually and are secret; that is, not open to public
scrutiny. It is therefore possible for employees who
perform the same job with the same employer to
have different individual agreements. However, no
111
Employment issues
employee can be forced into signing one of these

agreements. All individual workplace agreements
must be approved by the Employment Advocate
(EA) to check that employees are better off overall
than the award that applies to them.
Recently, individual workplace agreements have
come under criticism from trade unions. They
believe that by abandoning the protection of
awards, employees may be exploited by signing a
contract with inferior working conditions.
Common law contract

Common law contracts cover employees who are
not under any agreements. They are more common
among professional and managerial employees.
Such contracts may be written or verbal agreements
and many are not supervised by the IRC or the EA.
Employers and employees have common law
rights to sue for compensation if either party
does not fulfil their part of the contract. Common
law contracts have the following advantages and
disadvantages.
Common law contracts
Advantages
Analyse a cartoon
Right to sue for

compensation if the
employment conditions are
not met
Flexibility to suit the varied
needs of individuals
Include informal
arrangements
Individual initiative
rewarded
In small groups, examine the cartoon below and write

a paragraph summarising what you think is the
cartoonists message. Consider the audience for
whom the cartoon is intended.
Disadvantages
No union representation
Possible exploitation of
employees due to unfair
bargaining positions
Expense of any court case
Rights and entitlements of

employees
There are a number of minimum conditions to which
all part-time and full-time employees have access
their rights and entitlements. Casual employees
have the same rights as part-time and full-time
employees. However, they usually do not have access
to any entitlements such as long service or sick leave.
Employees rights
Awards versus individual workplace agreements
Individual workplace agreements have

following advantages and disadvantages.
the
Wages set by an
award or agreements
A safe and healthy
workplace
A discrimination-free
workplace
A pay slip showing the
total amount and how
the pay was calculated
No requirement
to undertake illegal
activities
Employees entitlements
Annual leave minimum
4 weeks paid holiday leave
Sick leave up to 510 days when
proof of sickness is provided
Paid public holidays if the
business closes (does not
apply to p.t. employees)
Long service leave usually
after 10 years of continuous
employment
Other leave provisions such as
parental leave, bereavement leave
Individual workplace agreements

Advantages
Increased pay
Flexible work
arrangements
Individual initiative
rewarded
Disadvantages
These rights apply to

casual, parttime and
fulltime employees
Possible reduction in
entitlements
Abandon the protection of
an award
Possible exploitation of
employees due to unfair
bargaining positions
Casual employees
do not have access to
these entitlements
Rights and entitlements of part-time and full-time

employees
112
those not debating are involved either in assisting

with research or in running the debate and keeping
notes on the arguments on both sides.
UNDERSTAND
1 Examine the job advertisements shown on page 110
and list what is being offered in each.

2 List the benefits (consideration) that the employer
4
5
7
8
and employee receive under each of these

employment contracts.
Which of the contracts for the jobs offered would be
easier to enforce in a court of law? Give reasons for
your answer.
What is an award? Under what circumstances may
an employer offer above-award conditions?
Explain the difference between an enterprise
agreement (CA) and an individual workplace
agreement (AWA).
Determine whether the following statements are
true or false.
(a) The majority of Australian workers are covered by
awards or enterprise agreements. (T/F)
(b) Since the introduction of the Australian Workplace
Relations Act 1996, enterprise agreements have
started to replace awards. (T/F)
(c) Individual workplace agreements must be
approved by the IRC. (T/F)
(d) Casual employees have access to all the
entitlements available to part-time and full-time
employees. (T/F)
What type of employee is usually covered by
common law contracts?
Which type of employment contract would you
prefer to:
(a) accept as an employee?
(b) offer as an employer?
Give reasons for your answer.
Trade unions argue that individual workplace
agreements can exploit some workers because
of their unfair bargaining position. Outline why
you agree or disagree with this view. Share your
answer with the rest of the class.
E-LEARNING
14 Using Jacarandas website www.jaconline.com.au/
commerce click on weblinks and access the student

section of the Australian Council of Trade Unions
website. Go to Job Union Match and select a job.
Record the award conditions for this particular job.
Note such aspects as training required, starting wage,
name of the award, hours worked and representative
trade union. Next, go to Fact Sheets and read about
unfair dismissal.
15 Use www.jaconline.com.au/commerce to investigate
workplace relations for young people. Select
weblinks and go to the WageNet link for this textbook
and then to the factsheet for young workers. Select
a topic that interests you and prepare a brief report
on what you learned.
COMMUNICATE
10 Draw a series of cartoons to show the rights to
which all employees are entitled. Display your

cartoons around the classroom.
11 Draw a picture showing what happens during
an enterprise agreement bargaining session.
Your picture can be a cartoon or a collage.
12 In small groups, decide which type of employment
contract you would prefer if you were a:
(a) casual sales assistant
(b) full-time clerk
(c) full-time senior manager.
Justify your choice and then share your answer with
the rest of the class.
13 Set up a class debate to consider the following
topic: Individual workplace agreements benefit both
the employer and employee. Share roles so that
WORKSHEETS
4.5
The language of work
113
Employment issues
4.5
Unemployment
Over the last decade, the level of unemployment
has steadily declined. However, in our economy
there is a certain amount of unemployment, even
during periods of economic prosperity.
To be counted as unemployed in our society, a
person must be:
without work
available to begin work
actively seeking employment.
Unemployment can result from:
people leaving their jobs and going in search of
others
some jobs being seasonal; for example, fruit
picking
a fall in consumer spending which reduces the
demand for workers
the introduction of technology.
The cost of unemployment to the individual and
society is high.
Interpret a line graph

Graphs make it easier to compare and interpret data.
It would be much harder to absorb these data
if described in words. To interpret graphs
properly, however, you need to know what to
look for.
Read the labels on both axes before interpreting
information.
Is the graph line rising or falling? If so, is it doing
so sharply? Check the axes to see what this
means.
Does the graph line show a consistent trend over
time, or are there some unusual trends?
%
13
11
9
7
The total labour force is made up of all those people

who have jobs; that is, are employed, plus all those
people who are actively seeking work; that is, are
unemployed (employed persons + unemployed
persons).
The unemployment rate is calculated by using the
formula:
5
Aug
1993
Aug
1997
Aug
1999
Aug
2001
Aug
2003
Unemployment rate 19932003
Number unemployed 100
Total labour force

1
For example:
Aug
1995
500 000
100
= 5.6%
9 000 000
1
Full employment
Full employment is one of the main Federal Government economic objectives. The acceptable target for
full employment would allow for an unemployment
rate of between 4 and 5 per cent. In effect, this
policy is saying that even when the level of economic activity is high and the economy is expanding,
of all those eligible people who are seeking work,
jobs will not be available for 4 or 5 per cent. In a
labour force of approximately 9 million, if between
360 000 and 450 000 people were unable to find a
job, the economy would still be said to have
achieved full employment.
Look at the line graph showing Australias

unemployment rate and answer the following
questions:
(a) What was the unemployment rate in:
(i) August 1993?
(ii) August 2003?
(b) In which years was the unemployment rate above
7 per cent?
(c) In which two-year period did the unemployment
rate decrease the most?
(d) Describe the trend in Australias unemployment
rate over this ten-year period.
(e) Suggest some reasons for the change in the
unemployment rate.
Full-time school students who do not have part-time

jobs, though they may be 15 years or older, are not
considered part of the labour force because they are
not available for full-time work. They are therefore not
considered to be unemployed.
114
Personal costs of unemployment
Poverty Without a job, there is

no regular income. Social welfare payments only maintain a
person at a level below the poverty line. With few savings,
there is little left over for the
costs involved in job-seeking.
Long-term unemployment can
strain family relationships and
harm the welfare and education
of children.
Boredom With plenty of time

but limited by a shortage of
money, many unemployed
people become frustrated and
bored. This can sometimes lead
to vandalism, crime and other
anti-social behaviour.
Loss of self-esteem Our society

places a lot of importance on
the type of work a person does.
A person who is unemployed
can often lose self-confidence.
The suicide rate among
unemployed people is ten
times higher than the average.
Loss of skills The longer a

person is unemployed, the
more difficult it becomes to find
a job. While not working, they
are not acquiring new skills or
practising their existing skills.
With advances in technology,
employers may view long-term
unemployed people as lacking
necessary work-related skills.
Lack of motivation or sense of
achievement often makes it difficult to overcome this hurdle.
Unemployment is a fact of life

for some!
Ridicule and prejudice Being

unemployed may affect how
others in society view people.
Often seen as dole-bludgers
they are frequently the object of
ridicule and prejudice. The
media can often reinforce such
attitudes by implying that the
unemployed are to blame for
their situation.
Discrimination Being out of the

labour force for long periods of
time can go against a person
applying for work. An employer
may unintentionally discriminate against such a person and
not even give them an interview.
Poor health The emotional and

financial pressures can have an
enormous negative impact on a
persons physical and mental
health.
115
Employment issues
Isolation Many unemployed

people end up feeling they are
not accepted as part of society.
This may cause them to become
depressed, ill or hostile. Feeling
helpless and hopeless, some
people withdraw from mainstream society. This makes it
even harder to find employment
and results in the vicious cycle
of long-term unemployment.
Jonathan Miller is an 18-year-old who is desperate for a job.

He lives at home with his mother and two brothers.
Jonathan has been looking for a job for the last ten months.
He left school at the end of year 11 because the work was
getting too hard. Jonathan enjoyed working on his older
brothers car and wants a job as a mechanic.
Jonathan visited every auto business in his town but not one
had anything to offer. He was starting to feel as if there was
something wrong with him. He rewrote his rsum three times
but all he ever got was rejections. Getting an apprenticeship
and a steady job is all he wants. He believes he would make a
good employee. His school references are good. He is keen to
learn and does not mind working hard.
Securing a steady job will depend on Jonathans ability to
acquire training and work experience. He has already realised
this. Why wont someone give me a chance? Perhaps I should
enrol in a TAFE course to gain some extra skills. Then I would
have something extra to offer an employer.
116
Social cost of unemployment

Those who experience periods of long-term unemployment suffer economically and socially. Combined, the individual costs are felt by the whole of
society. Families may have to relocate to other areas
in search of work. Family members may become
separated in the process. Societys living standards
are reduced and production of goods and services
decreased, while government spending on social
welfare payments increases. Overall, societys
quality of life and economic stability are diminished.
Voluntary employment
If you are unemployed for a length of time, it is
worth considering some form of voluntary work for
a number of reasons:
Good work habits. It can be very easy to get out of

the habit of getting up and going off to school or
work, being responsible for a certain amount of
effort each day and sticking to a time schedule. Voluntary work will help you to keep good work habits.
Improving your employability. An employer is
more likely to employ you because you have
shown that you have:
(a) the initiative to try to help yourself
(b) a basic willingness to work
(c) not become lazy, careless or selfish
(d) a feeling of responsibility to society in
wanting to contribute in some way.
If you are prepared to work without payment,
an employer reasons that they will not have too
much trouble getting you to work for money.
UNDERSTAND
1 Complete this sentence: To be classified as unemployed a person must be . . ..
2 Copy and complete the following table and then answer the questions.
Country
Number of people
employed
3 500 000
4
5
6
Number of people
unemployed
Labour force
200 000
1 500 000
1 600 000
56 250 000
Unemployment rate %
17 250 000
1 900 000
2 750 000
(a) Which country has the:

(i) largest
(ii) smallest
number of people unemployed?
(b) Which country has the:
(i) highest
(ii) lowest
unemployment rate?
(c) What is the benefit of expressing the
unemployment rate as a percentage figure?
Write a letter to a local newspaper outlining your
concerns about the level of youth unemployment. You
may wish to use a word-processing package to write
the letter. In your letter, refer to the following points:
effects of unemployment on the individual and
society
unemployment and young people.
In what ways might long periods of unemployment
go against you when applying for a job?
Why is it often difficult for unemployed people to find
things to fill in their time?
Imagine you are in Jonathan Millers situation. What
would you do to:
(a) improve your chances of getting a job?
(b) find other avenues of employment?
(c) overcome any unintentional discrimination by
employers?
COMMUNICATE
7 In groups of four or five, prepare a list of all the
effects of unemployment on the individual and on

society. Present your information in a table similar to
the one below. Alternatively, prepare this as a
PowerPoint presentation.
Unemployment
Effect of unemployment on
individuals
Effect of unemployment on
society
8 In groups of four or five, provide some solutions to
the high level of youth unemployment. Select a

spokesperson to present your groups ideas to the
rest of the class.
9 Write and perform a song or poem, aimed at year 10
students, which expresses the feelings of long-term
unemployed people.
INVESTIGATE
10 Research the latest level of unemployment.
117
Employment issues
4.6
Legal issues relating to the
workplace
Most businesses that are successful in the long
term:
abide by the range of laws affecting the employment contract
adopt ethical workplace practices.
Employers must ensure their workplace is safe and

that machinery is regularly inspected and maintained. They must also provide protective clothing
and adequate training. Committees have been set
up in most workplaces to enforce the OH&S rules.
Occupational health and safety

Each year in Australia approximately 600 people
are killed at work. On top of this, more than
650 000 workers suffer some form of workplacecaused injury or disease. A recent safety poster
carried the warning, WORK IS A HEALTH
HAZARD. This is only too true.
FATAL ACCIDENTS
AT WORK
FORKLIFT FATALITY
A forklift truck driver aged 21 received fatal head
injuries at Westmead when the forklift slid on a concrete floor and overshot the edge of the loading dock,
catapulting the driver head-first into a truck parked
nearby.
SILO COLLAPSES
A farmhand aged 21 had just opened the chute of a
silo at Gulgong when the silo, containing 60 tonnes of
wheat, collapsed, crushing him to death beneath it.
ROOF PLUMBER DIES
An apprentice roof plumber aged 19 received a fatal
shock when the mobile aluminium scaffold he was
helping to position tilted and touched overhead
powerlines at Whalan.
Employees also have a duty to perform their jobs

safely. They must follow safety instructions and
report any situation they think may be dangerous.
A major development in recent years has been the
introduction of the smoke-free workplace.
About 5.2 million workdays are lost each year due to

workplace-caused injury or disease. In recent years,
the total cost of Australias workplace injuries has
been over $6 billion.
Anti-discrimination
Workplace accidents are most common in construction,

manufacturing and retailing industries.
In New South Wales, the Occupational Health

and Safety (OH&S) Act 2000 outlines the legal
requirements for employers and employees.
For many years, discrimination in the workplace

was widespread. Women found it difficult to gain
promotion. They were often limited to clerical or
sales assistant jobs. Pay rates for females have
been, and still are, below the pay rates for males in
118
comparable occupations. Older employees or married women were sometimes dismissed or forced to
retire to be replaced by younger, lower-paid
workers. Many migrants and Aborigines found it
difficult to secure permanent employment.
Beginning in the late 1970s, several federal and

state laws were passed aimed at ending these kinds
of discrimination. Two of the most important pieces
of legislation in this area are:
1. Anti-Discrimination Act 1977 (NSW). This Act
makes it unlawful to discriminate against an
employee on the basis of age, race, sex, marital
status, religious beliefs, intellectual or physical
disabilities, or sexual orientation.
2. Affirmative Action (Equal Employment Opportunity for Women) Act 1986 (Cth). This federal
government Act requires businesses to promote
equal opportunity for women in their employment by establishing affirmative action programs. These programs consist of written plans
to hire, train and promote groups of people who
were formerly discriminated against.
Unfair dismissal
One important obligation of an employer that is
covered by government regulations concerns the
termination of employment. Any termination of
employment that is considered harsh, unfair or
unreasonable is illegal.
An act of discrimination
I
HAD BEEN employed by Top Line Printers
for twelve years. During this time, I worked at
written advice that my work was unsatisfactory.

However, the supervisors decision was final
and I was dismissed. I think it is unfair.
a number of different jobs in the factory. In my

last position as a clerk, I received a very poor
assessment from my supervisor. He complained
about my performance and warned me that if I
did not improve I may be dismissed.
Prior to my job as a clerk, I worked in the
graphic design section of the company.
Because I am a creative person, I enjoyed this
work and received many favourable comments
from the customers. However, for economic
reasons, the graphic design section was closed
and all the employees were given other jobs
within the company. I was given a clerks job
in the personnel record section.
One Friday afternoon, I was called into my
supervisors office. I was told that another
supervisor had complained to him about my
poor performance and that my services were
no longer required. I was not aware of any
other complaint. I had never been given any
119
Employment issues
Redundancy and retraining

Redundancy occurs when a job a person is doing
is no longer required to be performed, usually due
to technological changes. Therefore, unless the
existing employee can be retrained for another job,
they will be made redundant. Redundancy can be
either voluntary or involuntary.
Voluntary redundancy occurs when the business
wishes to reduce either the size or nature of its
workforce and decides how many employees should
be let go. Employees are then informed of the situation and given the opportunity to nominate themselves for voluntary redundancy. Employees who
choose voluntary redundancy are offered a redundancy package: a payout of a sum of money. If too
few employees volunteer, the business may be
forced to decide which employees will be made
redundant involuntary redundancy.
Between 1811 and 1816, during the early stages of

the Industrial Revolution, members of organised
bands of craftsmen destroyed newly introduced
machinery in the Midlands and the north of England
on the grounds that it took away their skills and
livelihoods. Their leader was said to be Ned Ludd, and
the group became known as Luddites. Today, people
who resist new technology are called Luddites.
As new technology is introduced, employees must

be retrained, especially those whose existing skills
are no longer required. Training and development
means changing the employees attitudes and
behaviours. It may involve teaching them specific
skills, and allows existing employees to continually
upgrade their skills.
Privacy
When you are employed, chances are that someone
is monitoring your performance and behaviour.
Many businesses monitor employee telephone conversations, Web hits, keystrokes, completion time
and emails. Some companies use closed-circuit television cameras to watch employees. Call-centre
operators have some of their phone calls listened to
for training purposes. Sometimes employees have to
use a log-off code whenever they leave their desks.
This type of monitoring raises a number of ethical issues. Critics claim that a businesss right to
know is offset by the workers right to privacy to
be left alone. There is growing concern over
invasion of privacy. For example, is it an invasion of
privacy if a business:
uses computer surveillance to keep track of
employees every action?
performs genetic screening to deny employment

to people whose future health problems might
disadvantage the business?
demands drug and alcohol testing of employees?
listens to phone calls and checks Web hits to
determine whether they relate to the job or are
being made for private purposes?
Businesses have the right and, to some extent,
the obligation to protect themselves against
theft, misuse of company resources and unsafe
work practices. However, these goals should not be
achieved at the expense of personal privacy. Getting
the right balance between employer and employee
rights can sometimes be difficult.
Outsourcing
A trend rapidly gaining support throughout the
business world and government establishments is
outsourcing; that is, the contracting of some organisational operations to outside suppliers. For
example, school cleaning is outsourced to private
companies.
Outsourcing has had a profound impact on
employees. Many businesses have rearranged their
workforces to employ a minimum full-time staff and
to use as many people from outside the business as
possible on a contract, casual or part-time rate,
or piecework. Those in favour of outsourcing argue
that resources are used more efficiently and it
provides employment opportunities. Opponents
argue that it results in less job security and lack of
employee entitlements.
Piecework
Pieceworkers are people who are paid according
to the number of items they make. This method of
payment is often used in the textile and electronic
industries. The advantage of such a scheme is that
it encourages effort and rewards those who are
efficient. However, it is not suitable for jobs that
require time and care.
Outsourced pieceworkers
120
Recently a lot of piecework in the textile industry

has been outsourced. This has resulted in thousands
of mainly migrant women throughout Australia
being employed by clothing companies at very low
piece rates. Many of these companies are producers
of expensive designer label outfits. These workers do
not have access to normal award conditions, workers
compensation, overtime and sickness benefits. They
frequently work 70 to 80 hours per week.
To combat the possible exploitation of outsourced pieceworkers in the fashion

industry, the FairWear campaign was created by a collection of churches, community
groups and trade unions.
FairWear campaign logo
12 Look carefully at the cartoon showing outsourced
UNDERSTAND
1 What do the letters OH&S represent?
2 Examine the photo of the construction site on page
4
5
8
9
118. List the possible health and safety dangers you

can see.
Cut out and paste in your notebook a job
advertisement in which the company claims to be an
EEO employer. What does the company mean by
this?
Explain the difference between voluntary and
involuntary redundancy.
What is meant by the term:
(a) outsourcing?
(b) piecework?
Under what circumstances could it be acceptable for
a business to check on an employees:
(a) criminal history?
(b) HIV/AIDS status?
Share your answers with the rest of the class.
Substance abuse is becoming a problem in
many workplaces where employees experience
stress. Should employers have the right to drug
test employees? Give reasons for your answer.
Describe the possible impact of outsourcing on
employees.
Imagine you had a job making hamburgers. Would
you rather be paid by the hour or a piece rate? Why?
13
14
15
16
INVESTIGATE
17 Research a particular health or safety issue in the
workplace. Examples include industrial deafness,

asbestosis and repetitive strain injury. Prepare a
news item that will be read on the evening news.
Read your report to the class.
COMMUNICATE
10 Imagine that you have just been made redundant.
Predict how the redundancy could affect you.

Share your answers with other members of the
class.
11 You are a business owner with 20 long-serving
employees. Fierce competition is threatening the
survival of your business. Sales and profits are
declining due to the lower production costs of
your competitors. You could compete if you
introduce new technology. However, this will
mean ten employees will become redundant. In
small groups, formulate the criteria you will use to
decide who should stay and who should go.
Present and justify your criteria to the rest of the
class.
pieceworkers. Is the cartoonist portraying a negative

or positive impression of outsourced piecework?
How can you tell?
Design a pamphlet alerting employees and
employers to the dangers that may be present in a
workplace of your choice. You may wish to use
desktop publishing software to present the
pamphlet with text and graphics.
Imagine you have just been refused a job because of
your gender. Write and perform a poem or rap song
expressing how you feel about this.
Arrange to interview a member of your schools
OH&S committee. Inquire into:
(a) the committees role
(b) how accidents and near misses are recorded
(c) what authority the committee has in terms of
making recommendations.
Set up a class debate to consider the following topic:
Equal employment opportunity (EEO) unfairly
discriminates against males. Share roles so that
those not debating are involved either in assisting
with research or in running the debate and keeping
notes on the arguments on both sides.
E-LEARNING
18 Research the following by using www.jaconline.com.au/
commerce and clicking on weblinks to access the NSW

WorkCover link for this textbook:
(a) the role of WorkCover
(b) obligations of employers under OH&S legislation
(c) how a workplace can be made safer
(d) some recent prosecutions.
19 To find out more about the FairWear campaign,
go to www.jaconline.com.au/commerce, click on
weblinks and then go to the FairWear link for this
textbook.
WORKSHEETS
4.6
Discrimination and OH&S
121
Employment issues
4.7
The role of unions and
employer groups
Trade unions
Early beginnings
The Industrial Revolution began in England over
200 years ago, in the late eighteenth century. This
revolution changed the way people lived and worked.
People who once used to work as farm labourers
moved to the towns and began to work in factories.
The working conditions in early factories were
harsh. Men, women and children had few rights.
They were forced to work long hours in noisy, dirty
and dangerous workplaces. Accidents often happened around machinery, but there was no compensation, sick leave or unemployment benefits. If a
person was injured, someone else took their job.
The first workers to form a trade union were six farm

labourers from the village of Tolpuddle in Dorset,
England. In 1834, they were arrested and sentenced
to seven years transportation. Over the years, they
became known as the Tolpuddle Martyrs.
Role of trade unions

The main roles of trade unions are to:
protect the rights of members
maintain and increase wages
improve working conditions.
The working conditions experienced by many of
todays employees are the result of past trade union
action. By joining together, workers were able to
approach employers and bargain with more
strength for improved pay and conditions.
During the last 20 years, the number of Australian
workers belonging to a trade union has steadily
declined. In 1982, the total Australian union membership was 57 per cent of all employees. In 2004, it had
fallen to 23 per cent. Part-time and casual employees
under the age of 25 and female workers have the
lowest level of union membership, with middle-aged
and older male workers the highest level.
Today, only 18 per cent of teenage workers are union

members.
Children were cheap labour in factories and mills. As this

1853 illustration shows, they were often badly treated.
It was illegal to join with other workers to discuss

how you could try to improve your working conditions.
However, this did not stop workers from forming these
illegal associations as they were known. These
associations were the beginnings of trade unions.
The main factors responsible for the decline in

trade union membership include:
an increase in the number of casual employees
the downsizing of public sector (government)
employment
the contracting out of many jobs
a shift away from heavy manufacturing to more
clerical, non-unionised employees.
With falling membership rates, the unions now
need to adapt to changing circumstances to survive.
Some of the current services offered by various unions
(in an attempt to maintain and increase membership)
include cheap home loans, free legal services,
discounted goods and services and income protection.
122
A trade union workplace safety rally, sparked by the

death of a young construction worker.
Employers associations
Employers also have found it necessary to join
together to protect their common interests. The Australian Chamber of Commerce and Industry (ACCI)
is the peak employer association, representing about
350 000 businesses. Other important associations
include the Australian Industry Group and the
Australian Retailers Association (ARA). These and
other associations have as their main roles to:
represent employers in dealings with trade unions
give advice and assistance on a wide range of
issues such as taxation, industrial relations and
employment legislation
lobby governments with their memberships views.
UNDERSTAND
1 List the main roles of:
2
3
4
(a) trade unions

(b) employers associations.
Briefly outline the changing role of trade unions and
employers associations.
What is the main difference between trade unions
and employers associations?
Many people say trade unions have outlived their
purpose. With working conditions greatly improved,
there is no longer the need for trade unions. Do you
agree with this statement? Justify your answer.
Why might an employer want to join an employers
association?
COMMUNICATE
6 Why do you think young people are deciding not to
join trade unions? Report your answer to the rest

of the class.
7 Set up a class debate to consider the topic: That trade
unions should not be allowed to call a strike. Share
roles so that those not debating are involved either in
assisting with research or in running the debate and
keeping notes on the arguments on both sides.
INVESTIGATE
8 Refer to the Yellow Pages for your area. Look up
Logos for the Australian Chamber of Commerce and

Industry, and the Australian Retailers Association
In some cases, an employers association will negotiate with a union to establish a new set of pay and
conditions. At other times, an association will
represent its members before an industrial relations
commission. These services are a great benefit to all
members, especially small business owners.
Employers associations have always been involved
in lobbying governments. Over the years, they have
set up a number of research offices to provide
economic and industrial advice to their members and
the public. Their representatives often appear in the
media to present and discuss the employers views on
current workplace and economic issues.
the section that lists unions. Approximately how

many are there in your telephone district? List the
names of three that you find interesting. What is it
that makes you interested in these unions?
9 Contact one of the unions in order to find out more
information. Enquire about the number
of members, the unions aims etc.
E-LEARNING
10 Access one employers association referred to in
123
Employment issues
the text. Inquire about the number of members,

the associations aims and the services it provides.
To help you, go to www.jaconline.com.au/
commerce, select weblinks and click on the
employers associations link for this textbook.
4.8
Resolving disputes
Resolving workplace disputes can be time consuming and very expensive, especially if a court case
is involved. Due to the adversarial system, court
cases often result in one party winning and the
other party losing. For this reason, many argue that
court cases may not be the most appropriate way to
settle some types of workplace dispute. So, over the
past 20 years, alternative methods have been set up
to help resolve disputes. The main methods, in the
order in which they normally occur depending on the
seriousness of the dispute, are:
grievance procedures
negotiation
mediation
conciliation and arbitration.
they want to reach an agreement that satisfies all

those involved. Consequently, some give and take
may be required in an attempt to reach a compromise solution. Successfully negotiating a resolution to a dispute usually results in all the parties
feeling good about the decision and committed to the
end result.
Unfortunately, popular Australian culture places
a high value on winning winners are grinners
and shames losing. Our cultural obsession with
winning, while sometimes a desirable quality, can
be an obstacle to effective negotiation. A winwin
approach is preferable.
If negotiation fails to resolve the dispute, the next
alternative is mediation.
Grievance procedures
Grievances are complaints that an
employee has formally recognised
with a manager or union representative. Grievances usually occur
when an employee thinks they have
been unfairly treated.
To reduce the risk of these lowlevel complaints blowing out to
become a major confrontational
issue, most businesses have developed a system of grievance procedures: a number of predetermined
steps that are followed to resolve a
dispute. In most cases, the problem is
resolved after discussions between
the people involved. For example,
you may think it is unfair that a A negotiated decision
work colleague is always given first
choice when selecting work times on a new roster.
You decide to inform your supervisor of your grievance. The supervisor would then follow the set proNegotiations can occur at an industry level; for
cedures to negotiate a solution to everyones
example, when a trade union and an employers
satisfaction.
association negotiate a new industry wage
agreement. The best outcome of negotiations occurs
Negotiation
when both parties win a winwin solution.
Negotiation is a method of resolving disputes
where the parties involved discuss the issues in an
Mediation
attempt to reach a compromise. Referring to the
previous example, you could negotiate with your
Mediation occurs when a third party helps those
work colleague to reach a compromise regarding the
involved in a dispute to reach a solution acceptable
selection of work times on a new roster. The superto both sides. Mediators do not act for either of the
visor or manager then formally recognises the
parties, nor do they advise or decide who is right or
negotiated agreement. Effective negotiators are not
wrong. Their main role is to encourage the parties to
motivated by trying to beat the other person. Rather,
examine all the issues. Discussions are confidential
124
and held in a non-threatening environment. The

main advantage of mediation is that:
both parties will feel that they have achieved
something by themselves
it provides a winwin solution where no one is
seen to lose.
Mediation is becoming a popular method of
resolving disputes because it reduces the risk of the
dispute becoming worse, avoiding expensive legal
costs or disruptive industrial action.
If mediation fails to resolve the dispute, the next
alternative is to have the case heard in a court, the
Industrial Relations Commission, which has the
power to conciliate and arbitrate.
An arbitrated decision
Conciliation and arbitration

Conciliation is similar to mediation in that a third
person, in this case the Industrial Relations
Commission, helps settle a dispute by trying to get
both parties to reach a mutually acceptable solution. A
teacher conciliates when she or he assists two students
to settle a dispute by offering advice and suggestions.
If no solution is reached and the dispute continues,
the teacher now has to resort to arbitration. The
teacher decides what will happen, makes an order
and the students must obey. When the Industrial
Relations Commission arbitrates it makes a decision
that is legally binding; that is, both the employer and
employee must accept the decision.
The main disadvantage of arbitration is that both
parties may feel they have lost some control over
the process and the final outcome compared to a
mediated or conciliated decision.
A conciliated decision
COMMUNICATE
8 In small groups, roleplay a mediation session to
UNDERSTAND
1 What is meant by the term grievance process?
2 Explain the difference between:
3
4
5
6
7
(a) negotiation and mediation

(b) conciliation and arbitration.
What is the similarity between mediation and
conciliation?
Why is mediation becoming a popular method of
resolving workplace disputes?
If you were in dispute with a classmate about sitting
in a specific seat, would you prefer your teacher to
mediate or arbitrate? Why?
Briefly outline the possible benefits of a negotiated
resolution both for employers and employees.
What is the advantage of a winwin solution when
resolving a dispute?
resolve a dispute between two students who both

want the same library book. You may wish to video
the roleplays and view and discuss them as a class.
9 Rebecca and her employer are in disagreement over
the sick leave entitlements of her award. She wants
to be able to take three days off without having to
produce a doctors certificate. Her employer wants it
to stay as one day only.
Your class has been asked to help settle the
dispute. Conduct a roleplay to try and resolve this
conflict using conciliation. After this, conduct a mock
trial and arbitrate on this disagreement. Elect a panel
to act as the arbitrator and have class members
present arguments for both sides.
10 Create a rap song or poem explaining the meaning
of mediation and describing a situation in which it
applies.
125
Employment issues
4.9
Taxation and superannuation
Taxation
As a member of a democratic society, you have
certain basic rights. You have the right to free
speech, the right to an education, the right to vote
and many other rights. You also have obligations.
One of the most important obligations you will have
as an adult is the obligation to pay taxes.
They include schools, hospitals, national parks,

defence forces, social welfare payments and police. To
pay for these goods and services, the government
needs to raise money, which it does through taxes.
Taxes, therefore, are both necessary and important.
By providing these services, the government plays an
important role in helping to look after our quality of
life.
Reasons for taxes

Many people complain about paying taxes and feel
they would be better off without them. However,
there are some goods and services that are provided
for the whole community and available for everyone
to use. These are called collective wants: goods and
services that are mostly provided by governments.
Governments provide these collective goods and services but they belong to the whole community because our taxes
are used to pay for them.
126
Each year, the federal treasurer outlines the

governments budget for the next year. This details all
the items on which the government intends to spend
money (government expenditure) and the taxes it will
rely on to raise the money (government revenue). For
the 200203 federal budget, total expenditure was
$168.2 billion and total revenue $175.5 billion.
Types of taxes
Governments in Australia receive their income from
taxes and charges on people. The Federal Government of Australia raises about half its money
(revenue) through personal income tax, where a percentage of each Australian workers earnings is given
to the government. Income tax rates vary according
to income. For example, a person earning $52 000 per
annum pays $11 772 in tax. They pay no tax on the
first $6000 they earn, 17 per cent on amounts earned
between $6001 and $21 600, and 30 per cent on
amounts earned between $21 601 and $52 000.
PAYG income tax rates from July 1 2004
Taxable income
Tax rate
Tax amount due
$0$6 000
0%
$0
$6 001$21 600
17%
up to $2 652
$21 601$58 000
30%
up to $13 572
$58 001$70 000
42%
up to $18 612
$70 001 +
47%
over $18 612
The Federal Government also gains revenue from:

company taxes paid by businesses out of their
profits
excise duty, a special tax placed on cigarettes,
alcohol and petrol
customs duty, a tax on imported goods.
Since 2000, Australia has also had a Goods and

Services Tax (GST). This is payable on most goods
and services sold, with the major exception of fresh
food. The GST is a tax that is applied at each stage
of production but paid by the final consumer. Ten
per cent of the price of each purchase is returned to
the Federal Government in GST. This money is then
passed on to the state and territory governments.
Other governments in Australia also raise their
own income. Each state government imposes taxes
on businesses; for example, payroll tax, gambling
tax and stamp duty (which is paid as a percentage
on the sale of a house). They also receive income
through tolls on roads and from traffic fines. Local
governments raise the bulk of their income through
rates. These are fees placed on each property
within their council.
Processes of paying taxes

Employment declaration
When you start a new job, you should complete an
employment declaration form. The Australian Taxation Office (ATO) will use the information you provide
on this form to determine the amount of tax automatically deducted from your pay. If you have more than
one job, you must complete a form for each employer.
Income tax return
An income tax return has to be completed and
returned to the ATO at the end of the financial year.
Tax returns can either be lodged electronically or
mailed. The ATO will then check your return to
determine whether you have paid enough tax. If you
have not, you will have to pay more tax. If you have
paid too much tax, the ATO will give you a refund.
All the information submitted on the tax return
should be correct. Any wrong information, failing to
include all your income or being unable to document your expenses are all offences that could
make you liable for a fine or paying extra tax. Also,
make sure you record your tax file number (TFN)
correctly. This is a number issued by the ATO to
identify taxpayers.
This cartoon sums up how many people feel about governments increasing taxes.
127
Employment issues
Many people complete their tax returns themselves. Others have specialised tax agents or even
accountants to do it for them.
An important message for school students about

income tax. If you have a casual or part-time job, have
a look at your next pay slip to check how much money
is taken out of your pay as tax. Remember, though,
that the government only keeps this money once you
start earning a certain amount. If you earn less than
this, the tax that you have paid is given back to you
when you submit an income tax return.
Superannuation
Why should you worry about retirement at this
stage of your life? Well, imagine what your life would
be like if you had no regular income when you eventually retire. Your lifestyle would suffer. What you
need is a long-term investment plan superannuation that lets you save for your retirement.
Employee's
superannuation
contributions
What is superannuation?
Superannuation (super) is money that you save
for your retirement. Your super contribution
(money) is regularly deducted from your wage or
salary and placed into a special type of investment
account known as a super fund. Your employer will
also deposit their contribution into your super fund.
These funds are then invested to increase their
value before they are paid to you when you retire.
Since 1992, when the Federal Government passed
the Superannuation Guarantee Act 1992, it has been
compulsory for employers to contribute part of an
employees wage or salary to a super fund. The
amount is currently 9 per cent. The government also
encourages employees to make personal contributions. It does this by allowing some contributions to
be tax deductible. Over time, these contributions
have a snowballing effect. The longer you leave your
money, the more it grows. However, you can only
access your superannuation once you reach a certain
age (generally between 55 and 60), unless you are
facing severe financial hardship.
Employer's
superannuation
contributions
Superannuation
Fund
Interest and
repayments
Invested
to increase
the value of
the fund
$
Contributors
receive a payment
on retirement
Superannuation funds are invested to earn interest.
128
Advantages and disadvantages of

superannuation as a saving/investment
option
As with all saving and investment plans, there are
advantages and disadvantages.
Superannuation as a saving/investment option
Superannuation
is a nest egg to
be used upon
retirement.
A superannuation contribution rate of 12 per cent of

the average persons pay will create about $1 million
by the time they are 60 years old.
Advantages
Disadvantages
A forced saving scheme

The money is automatically
deducted and invested
The value increases over time
It allows you to maintain your
lifestyle into old age
You can change super funds,
under certain circumstances
You are given the right to
select which investment
options you prefer
Your super fund stays active
even when you change
employers
Most people have to wait

until they are 60 before they
can access their super funds
Super fund investments may
lose value over time
The government does not
guarantee the safety of super
funds
Administration and
management fees are
charged by the super funds
Taxation must be paid on
certain lump sum payments
11 Complete a mock PAYG tax return form by using the
UNDERSTAND
1 Why do governments tax people?
2 Which tax raises the most revenue for the Federal
Government?
3 What is meant by the term superannuation?
4 Why do young people often regard superannuation
as irrelevant?
5 How does the government encourage people to
contribute to superannuation?
6 What is the obligation of employers towards
employees in relation to superannuation?

7 Collect pictures of three collective wants provided
by the government and paste them into your

notebook. Underneath each, write a short statement
explaining how it improves your quality of life.
8 We would all be better off if we did not pay taxes but
provided for our own needs and wants.
What do you think? Share your answer with the
rest of the class.
9 Imagine you are an accountant for two income
earners: Michael who earns $25 000 per annum and
Tai who receives $58 000 per annum.
(a) Explain to Tai why his entire salary is not taxed at
the 42 per cent rate.
(b) Calculate the tax payable in each case.
10 Collect from a local newsagent an employment
declaration form. Assume you are about to start
working as a sales assistant at Sales Galore,
15 Hunter Street, Huontown, 2356.
Complete the form using your personal details.
Your TFN is 759 886 240.
following details:
Name: Robert Polosak
Address: 2 High Street, Bigga 2497
Date of birth: 18-5-1981
Occupation: Engineer
Tax File Number (TFN): 371 958 137
Income: $51 085
Interest on term deposit: $2215
Deductions:
Journals $435
Computer use $860
Lighting/power office $1105
Safety equipment $792
Conference fees $1185
12 A friend has come to you for advice about
superannuation. Outline the advantages and
disadvantages of superannuation as a saving/
investment option.
COMMUNICATE
13 PAYG income tax is a progressive tax; that is, the
proportion paid in tax increases when income

increases. As a class, discuss whether this type of
tax system discourages people from working.
Record your responses. Prepare a statement
summarising the main points.
E-LEARNING
14 To find out more about e-tax, go to
www.jaconline.com.au/commerce, choose weblinks

and click on the ATO link for this textbook.
WORKSHEETS
4.7
4.8
Taxation and the ATO website

Topic test employment issues
129
Employment issues
Check & challenge

The workplace
Employment relations
1 Match the terms below with the correct defi-
7 The following words have been scrambled.
Unscramble them and use each one in a sentence.
nitions:
Terms
(a) employer
(b) entitlements
(c) labour force
(d) employee
(e) casual employment
(f) participation rate
(g) award
(h) part-time employment
(i) loading
cyandrdeun
wroepicek
ycrpiva
nita-nimisdcrtainoi
8 Why would businesses continually train their
staff?
9 What is the role of a trade union in the work-
Definitions
(i) A person who hires employees
(ii) The proportion of people aged 15 or over
employed or actively looking for work
(iii) An extra amount paid to casual
employees to compensate for not having
access to a range of entitlements
(iv) The seller of labour
(v) All those people aged 15 or over who have
a job as well as those unemployed
(vi) Holiday, sick and long service leave are
examples of this
(vii) A document that outlines an employees
minimum pay and conditions
(viii) Working regular days and regular hours
but less than full-time employees
(ix) To be employed on an hourly basis
2 Lara is asked to work an extra four-hour shift.
4
5
siunon
ainnigertr
nngtiateooi
demitanoi
The overtime rate is time-and-a-half. She is

normally paid $15.00 per hour. What will be
her total income for this shift?
Your stockbroker purchases $10 000 worth of
shares in U-Bute Enterprise Limited on your
behalf. She charges you a commission of 2.5 per
cent. How much will you have to pay for her
services?
Explain what is meant by entitlements.
Provide examples of entitlements.
(a) List three skilled jobs.
(b) List three unskilled jobs.
(c) Which of these two types of jobs will usually
result in higher incomes and promotion?
Why?
What is an award? Under what circumstances
may an employer offer above-award conditions?
place?
10 Briefly outline the main aims of the Antidiscrimination Act 1977 (NSW) and the Affirmative Action (Equal Employment Opportunity
for Women) Act 1986 (Commonwealth).
11 What health and safety obligations does an
employer have towards her or his employees?
12 Explain the difference between conciliation and
arbitration.
Taxation and superannuation

13 Why do governments need money?
14 What kinds of goods and services are funded by
taxation?
15 Explain why the goods and services provided
by the government are not free.

16 Apart from income tax, the Federal Govern-
ment gains revenue from which other sources?

17 What is the purpose of an employment declar-
ation form?
18 Why is superannuation considered a saving/
investment option?
Employment contracts
19 List the four different employment contracts.
20 Explain why both the employer and the
21
22
23
24
employee should be familiar with the award or

contract conditions covering a job.
Outline the three elements of an employment
contract.
Explain the difference between an award and
an Australian Workplace Agreement (AWA).
List the advantages and disadvantages of
common law contracts.
List the rights of all employees.
130
Taxation issues
25 Every day, some form of tax is imposed on
almost everything we do. Outline three types of

tax that are imposed by governments.
(a) Why are taxes so necessary?
(b) Undertake a quick survey of three people in
your community and ask them the
following questions:
Do you believe that you pay too much tax?
What changes do you think could be
made to the taxation system?
26 Do you think the cost of government is likely to
increase in the future? Why?
27 The government sometimes increases taxes or
reduces them to bring about a preferred economic outcome. Do you think an overall reduction
in taxes would result in a decrease or increase
in the level of economic activity? Explain.
Legal issues relating to the

workplace
28 Do you think it is fair or unfair to abolish pen-
(a) What effect has the technology shown here

had on the jobs people perform?
(b) Predict what type of workforce will exist in
30 years time. Justify your answer.
(c) What school subjects do you think will best
prepare you for your future working life?
Give reasons for your answer, and then
compare it with those of other class
members.
Training and work opportunities

32 Research the latest income statistics to find out
the difference between male and female

incomes. The annual Year Book Australia, published by the Australian Bureau of Statistics, is
a good place to start.
33 What does the
following illustration
suggest about the
relationship between
education, work
opportunities and
changing work
patterns?
alty rates of pay? Give reasons for your answer.

Present arguments from both the employers
and employees point of view.
29 Males under 25 years of age account for 30 per
cent of work-related deaths. Suggest reasons why
accident numbers within this group are so high.
30 How effective do you think affirmative action
programs are in eliminating discrimination
against women in the workplace?
Technology and
work
31 Look at
this photograph and

answer the
questions
that follow.
131
Employment issues

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4

grievance procedures: a number of pre-determined steps

Sally Nicholson casual

Part-time work suits

This is my first full-time

A high proportion of casual employees are in the

Voluntary and unpaid work

4 In your notebook or using a word-processing package,

(a) casual and full-time employment

construct and complete a table like the one below.

Part-time Full-time Self-employed

for employees locked into casual employment for long

3 Which 16-year-old employee, performing the same

duties, will receive higher hourly payments from her

within your community. You may need to refer to the

Jobs for all

clear career path. Many people today have periods

Old and new approaches to work

Many changes in work patterns today are driven

Casualisation of the labour force

The Australian workforce is ageing and health and

Prepare a bar graph

Step 3: Divide up each bar in accordance with table data.

Teenage spending habits

Percentage of males and females in the

Step 1: Draw two bars 100 mm long and 20 mm

(Source: Australian Bureau of Statistics, 6202.0.55.001,

(a) Convert this data into a bar graph with three

job sharing, which allows two employees to share

Flexible working conditions and

Flexible working conditions are patterns of work

(a) This section was about the changes in traditional

management and employees where management

Antony was offered a

Labouring an unskilled job

Tai, crew trainer at McDonalds

major newspaper, then complete the

students who may be thinking of leaving school.

and your employer. It is what happens from there

Read the employment contract thoroughly before you

Types of employment contract

A job offer can be made in several ways

Types of employment contract

to their business or if they want to hold on to their

pay and conditions of people employed in that

60 per cent of Australias workers are covered by

Consultation with and

Individual workplace agreement

employee can be forced into signing one of these

Common law contract

Right to sue for

In small groups, examine the cartoon below and write

Rights and entitlements of

Awards versus individual workplace agreements

Individual workplace agreements have

Individual workplace agreements

These rights apply to

Rights and entitlements of part-time and full-time

those not debating are involved either in assisting

and list what is being offered in each.

and employee receive under each of these

commerce click on weblinks and access the student