freshfirst canning company

HRMT20007: Human Resource Management (Term 2, 2012)

Assessment task 1—Business report

Case study: FreshFirst Canning Company

Student Name : Harun KAYA

Student ID : s0234274

E-mail : [email protected]

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1.0 Abstract

The objective of the paper is to develop a report for the CEO of the FreshFirst Canning Company in

order to provide the organization with a suitable terms and conditions to induce the regulations and

practices of the organizational system in accordance to the Fair Work Act 2009. The company is opening

a new plant in Queensland where the management wants to integrate the practice which is governed by

highly committed work system which in turn would facilitate in reducing the employee turnover rate and

absenteeism in the manufacturing unit. There are 180 vacancies for the new plant and the HR department

has to prepare suitable employment terms and conditions in respect to Fair Work Act 2009 to help the

company to gain its objective.

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ContentsAbstract 2Introduction 4Industrial Relations & HRM Concerns 5A Comprehensive Overview 6Analysis of the Situation 9Recommendations 12

Terms and Conditions of Employment 12Rights and duties of the employer and the employee 14Compliance and Enforcement 15Administration 16

Conclusion 17Bibliography 18

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2.0 Introduction

FreshFirst Canning is planning to start with their new Greenfield site in Queensland; the company has

180 vacancies for their new manufacturing unit and got 500 applications. As a major part of the HR

functions, the department needs to incorporate the best terms and conditions for the employment for their

new plant for motivating the employees towards high performance and to reduce the turnover and

absenteeism rate in the company to attain the objective of high-committed work system for the

organization.

The current concerns regarding in the industrial and employee relations and the human resource

management in the organization of FreshFirst Canning is being elaborated in the paper. This is being

followed with a comprehensive overview of literature based on the terms and conditions of employment,

rights and responsibilities of the employees, employers and the organization, the compliance and

enforcement and the administration. An inclusive analysis of the situation is being done in relation to the

integration of the Fair Work Act 2009.

The reports conclude with the recommendations in respect the framing of the policies and practices for

the employee relation and employee management in the new manufacturing site for FreshFirst Canning.

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3.0 Industrial Relations & HRM Concerns

FirstFresh Canning Company with the strategic perspective to grow, aims to set up a new manufacturing

unit is Queensland. For a job vacancy of 180 employees the company needs to develop a Human

Resource management system that leads to the creation of a workforce that is highly committed to their

work within the organization as well as towards the company. It is very important for the company to

ensure this because prior to this the HR policies of the company is its other plants were not that effective

which led to the unionization of the employees. This unionization of the employees created a number of

troubles for the company which hampered the efficiency and effectiveness of the company. Also the

company needs to overcome the traditional assembly-line organization of work so that they can overcome

the barrier that they experience due to the traditional approach. Along with this the company has a

centralized system to control which makes it further difficult for the company to work efficiently.

With the new manufacturing unit the company aims to overcome all these barriers so that it can have a

new organizational culture that is free of unionism as well as has a modern outlook. For the same the

main Human Resource Management Concerns for the FreshFirst Canning Company for the Queensland

manufacturing unit can be categorized under five heads. They are the terms and conditions of the

employment, compliance and enforcement of the act, defining the rights and duties of both the employers

and the employees and finally the administration of the act. The FWA 2009 provides for the security and

functional ability to perform their duties in the most effective manner (Waugh, 2010).

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4.0 A Comprehensive Overview

Terms and conditions for employment can be considered one of the critical aspects defining the

employment contract. The terms and conditions of the company help to provide the necessary

information to the potential as well as existing employees about the job that they are agreeing to continue

with (Felfea, Schmook, Schyn, & Six, 2008). The terms and conditions offer a base for the company as

well as the employees to understand the regulations and rights of the individuals at work. It sates about

the different employment conditions like the working hours, number and type of leaves granted to the

different employees, the promotional details, resignations etc. The terms and conditions of employment

help the organization to implement a better structural framework for the employee management and

maintain the industrial relations (Moyane, Strydom, Young, & Jordaan, 2009). The employees are better

aware of their rights and duties regarding their employment like the hour of regular work, overtime

conditions and benefits, health and safety in the workplace, the code of conduct at workplace and the

responsibilities, number of holidays, retirement entitlements etc. The terms and conditions are also critical

in dealing with the trade union and obliging with the laws and regulations to induce harmonious

employee employer relations (Frick & Malo, 2008). Terms and conditions is often regarded as the

statutory subject matter of collective bargaining.

It is the basic duty of the employer to provide for safe working conditions to the employees. It is his duty

to ensure that the workplace should have all the amenities that would provide for smooth and safe

working conditions. (Tshoose, 2011). The employer should also ensure that the right employee in placed

in the right job so that the efficiency of the employee can be used and a safe organization structure can be

created. The employer must very clearly state the terms and conditions of work in the employment

contract. It is the duty of the employer to ensure that proper communication channels are present in the

organization (Kadlecová & Svobodová). He must also ensure the provision of the right and the complete

information required by an employee. He is not to practice any form of discrimination in the organization

(Kadlecová & Svobodová).

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HRMT20007: Human Resource Management (Term 2, 2012)It is also the duty of the employee to ensure to take right and corrective measures while at work and keep

the safety guidelines in mind while working. (Tshoose, 2011). In case the employee encounters or

predicts any unsafe situation then he or she must immediately report for the same so that immediate

actions can be taken. The employee has the right to payments for his or services and also the right to avail

the leaves and holidays.

The compliance and the enforcement of the laws and regulations which have been decided by the

management also form critical functions in order to ensure the accomplishment of the objectives. The

compliance and the enforcement reinforces the regulatory acts of employment absolute in the workplace

and also provide the interface for the jurisdictions as well as the power of the court to intervene to assure

the rights to the employees (Twomey, 2007). Regular auditing and interventions from the government and

official authorities protects the interest of the employees and enforces the laws into the system. The

memorandum of understanding can be considered as a vital document which summarizes the mutual

understanding between the different parties like the government officials, statutory authorities etc to

induce the different employment acts successfully into the organizational system (Fine & Gordon, 2010).

The Memorandum of Understanding is critical as it illustrates the roles and responsibilities of different

interested parties involved in the industrial relation to carry out the compliance and enforcement. In case

of Australia, the Memorandum of Understanding subsists amongst the Office of Fair and Safe Work

Queensland along the other government bodies and statutory authorities.

Administration of the Human Resource Management comprises of the overall system which provides for

the creation and maintenance of the work system wherein the employees of the organization are able to

perform their duties and also develop a high level of commitment towards the organization. It is

important to have proper administration of the human resources as the employee adds on to the assets of

the firm thus enhancing the value of the firm. (Veltri & Silvestri, 2011). Proper administration of the

human resource provides for a working environment that is productive (Veltri & Silvestri, 2011). It is

possible through enhanced commitment of the employees. It is important for the organization to develop

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HRMT20007: Human Resource Management (Term 2, 2012)and abide by rules and regulations that would help the company to administer the human resource in a

better way.

5.0 Analysis of the Situation

As the FreshFirst Canning Company is opening its manufacturing unit for the first time in Queensland it

is important for the company to abide by the rules and regulations of the land. Not only this, but it is

important for the company to attract skilled, efficient and effective workforce for the success of the

company. To overcome the problems faced by the company in the other manufacturing units the company

plans to implement the Fair Work Act 2009. The main clauses of the Act that are covered for the purpose

of this report are the terms and conditions of the employment, compliance and enforcement of the act,

defining the rights and duties of both the employers and the employees and the administration of the act.

The advantages and disadvantages of each are mentioned in the below section to provide a clear picture

related to the application of the Act.

The terms and conditions of employment definitely helps the organization of FreshFirst Canning to

induce a proper workforce planning and staffing in the organization in relation to their objective of

attaining the high-commitment work system in their new Queensland plant of manufacturing. The terms

and conditions of the Fair Work Act 2009 would help the company to align their business practices with

the National Employment Standards which in return would help to strengthen the legal and regulatory

obligations of the company and better protect the employee rights (Catanzariti & Byrnes, 2009).

Further with the help of the proper implementations of the terms and conditions of the Fair Work Act

2009 the workplace determinants in regards to the employment conditions like, hours of working, health

and safety etc which is applicable to all the national systems of workforce is also being enforced in the

new plant of FreshFirst Canning. This would help the company to incorporate the National Employment

Standards at different levels of working units so as to motivate the employees for high commitment of

work and reduce the absenteeism, accidents etc in the workplace.

The terms and conditions of employment also help to decide the management of FreshFirst Canning on

the different employment conditions of employees. The maximum hours weekly hours entitled for the

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HRMT20007: Human Resource Management (Term 2, 2012)employees to work, determining on the average working hours in the manufacturing unit, the

establishment of the award or agreements based on the working hours etc can be determined with the

support of the Fair Work Act 2009 (Gollan, 2009). This would also induce the advantage of establishing

the flexible working arrangements in the organization in alliance to the state and territory legal

obligations in the organizations.

When the organization is recruiting employees, it is critical to decide on the leave entitlement of the

workforce on different ground. The parental leaves and the similar entitlement for the employees can be

determined by the company along with the payment related for leaves; this benefits the employees to

recognize the paid and unpaid leaves in this context. Moreover with the implementation of the Fair Work

Act 2009 in the new manufacturing unit of Queensland for FreshFirst Canning Company, the annual

leaves as well as the public holidays available for the employees are also being established. One of the

critical disadvantages of inducing the Fair Work Act 2009 into the organizational system of FreshFirst

Canning is the increased intricacies in the management and union practices.

One of the advantages of the application of the FWA is that the employees will be able to develop a

representative body that would help them to provide a platform where they can voice their industrial

interest and also refer to the problems faced by them within the organization. IT also ensures the

employee and the employer to take and implement necessary action to resolve the problem as soon as

possible practically. FWA takes strict actions against the employer in case the rules and regulations are

not adhered to. This helps to create a sense of responsibility in the employer minds and think thoroughly

before taking any decision. The FWA empowers both the employee and the employer giving them the

rights to be exercised as and when the situation demands. Another advantage is that it very clearly

provides for the role to be performed by each member of the organization thus helping them to overcome

all types of confusion (Minister's House of Representatives, 2009).

The main disadvantage of the application of the FWA is that it would lead to formalization of the entire

organization and at time may also lead to delay in decision making as the solution to disputes in an

organization requires to formal procedure to be followed which may take more time than the usual. Along

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HRMT20007: Human Resource Management (Term 2, 2012)with this as the human beings are resistant to change it can be possible that the employers do not welcome

the FWA easily (Mitchell, Gahan, Stewart, Cooney, & Marshall, 2010).

With the introduction of the FWA in the company, the administration of the company would become very

efficient and effective and improve in due course of time. It is so because a formal body comprising of the

President, the Deputy President, the Commissioners, and 4 to 6 Minimum Wage Panel Members would

be supervising human resource system of the company as well the overall working strategy of the

company (Minister's House of Representatives, 2009). This would provide for an impartial body that

would scrutinize the human resource management system of the company.

The main disadvantage by the implementation of the FWA would be from an organization with straight

forward policies the entire system would become very complicate as well as formal. It is so because ea lot

of processes would require to be maintained. Not only would this but the application of the FWA add on

to the costs of the company. It is so because it would be required on the part of the company to incur the

costs to maintain the members of the FWA body. The company will also incur costs with respect to the

maintenance of the standards as per the requirements of the FWA.

6.0 Recommendations

Based on the above discussion, certain recommendations on the management practices of FreshFirst

Canning can be given related to the Fair Work Act 2009;

6.1 Terms and Conditions of Employment

With the help of the Fair Work Act 2009 the company requires to establish the National

Employment Standards into the new unit of the Queensland. The policies and practices regarding

the maximum weekly hours for the employees can be settled.

The average working hours and the flexible working arrangements can be also determined for the

company to let their potential employees provides with more information related to their

employment.

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HRMT20007: Human Resource Management (Term 2, 2012) The different annual leaves, public holidays, parental leaves and similar entitlements, community

and long service leaves etc can be decided better for the workforce of the company.

The decision making regarding the notice of termination for the employees along with the

conditions of the redundancy payments can also be framed with the help of the act.

The company can also provide the employees with the Fair Work Information Statement to the

new employees to better understand the management practices of the FreshFirst Canning.

The criteria for the modern awards, yearly reviews and auditing process for the recognition,

general provisions related to the modern awards can be also determined with the help of the terms

and conditions of employment with the help of the Fair Act 2009.

The terms and conditions also help to determine the enterprise agreement between the employers

and employees for the organization of FreshFirst Canning. This would also facilitate the company

in letting the employees know about their bargaining and representational rights in the system

along with the understanding of the role of trade union (Acton, 2011).

In accordance to the Fair Work Act 2009, the new employees that the organization of FreshFirst

Canning is planning to employ would also get the idea about the variations and the termination of

the agreement of enterprise. The mandatory obligations related to the enterprise agreement can

also be illustrated to the employees to make them more aware of their rights and responsibilities.

The company of FreshFirst Canning can also benefit from the Fair Work Act 2009 with the

understanding of the general function of the act in the collective bargaining sessions for the

company.

Workplace determinations can be considered another critical aspect that is required by the

company to assure their potential employees to develop a high committed workforce for their

working system.

The several industrial actions and the workplace related determinations which cover up the

operational, coverage and interactions between the management and the employees can also be

worked out with the help of the Fair Work Act 2009.

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HRMT20007: Human Resource Management (Term 2, 2012) The aspects of minimum wages for the potential workforce in the factories and the annual wage

review policies and practices can also be determined by the FreshFirst Canning organization.

The issues regarding the equal remuneration order along with the other general terms and

conditions of employment can also be implemented into the system of new site of FreshFirst

Canning in Queensland.

6.2 Rights and duties of the employer and the employee

Employer

It is the duty of the employer to ensure that the employee is treated on fair grounds. The employer will not

take any adverse action against the employee in case of his or her termination. He will perform all the

duties in case of an injury of the employee. It is the duty of the employer to ensure that no harm is being

caused to the employee when he is at work or in the organization premises. The employer must set for

proper systems where in the employee record their correct entry and exit time from the organization. This

would help the employer to understand the proper working hours of an employee and thus provide for his

or her appraisal accordingly.

Employee

The employee is also not allowed to take any adverse action against the employer. The adverse actions

are a cessation of work or any kind of industrial action against the employer. The employee has to take

proper measures and follow the instructions while doing the work so that hazards can be prevented and a

safe working culture is established (Legal City, 2012). Each employee within the organization must carry

their identity cards as well as work permit certificate provided by the company when in the premises. This

would ensure that there are no fake workers in the organization.

Both Employer and Employee

Both the employer and the employee are not allowed to practice coercion or undue influence with regards

to work or the working conditions. Both the parties are to declare all the facts and figures related to the

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HRMT20007: Human Resource Management (Term 2, 2012)employment contract and the terms and conditions so that there is no scope for misrepresentation. It is the

duty of the employer and the employee to respect the employment contract and adhere to the same.

If the above recommendations are being implements then the organization is sure to have a system

wherein the rights and duties of the employees as well as the employers are known to each other. This

will provide for an efficient and effective working culture leading to the development of the work

commitment of the employees as well as the employers

6.3 Compliance and Enforcement

The different civil remedies and the general provisions available to the employees in regards to the

Fair Work Act 2009 can needs to be demonstrated well in the policies and regulations of the

FreshFirst Canning

The jurisdictions and power of different courts which are related to the industrial actions and the

employee relations for the organization also gets elaborately described in the same.

6.4 Administration

In order to develop a high work commitment into the system the company first needs to develop a

mechanism wherein the Fair Work Act is completely integrated in to the working system of the company.

If this integration is established then the employees would be assured that in case of a problem or a

discrepancy on the part of the company they can easily approach the High Court for justice. The

implementation of the FWA would ensure that proper rules and regulations are being followed in the

company and the employees are being taken care of. Along with this the FWA provides for the

employment standards, the entry and the exit rights, the safety norms in the work place, the rights and

duties of the employers and the employers, fair treatment in the workplace, minimum working hours and

payments for the same, the information rights, bargaining power of the employees, the process to solve

industrial disputes etc (Minister's House of Representatives, 2009). All these guidelines ensure for a safe

and a systematic working condition. Application of the FWA ensures that the employers have to make

proper policies and lay down the procedures to abide by the act. This in turn ensures the employees that

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HRMT20007: Human Resource Management (Term 2, 2012)they are in the right organization. Thus the application of the norms under the FWA helps in enhancing

the work commitment of the employees leading to a development of a high-commitment work system.

7.0 Conclusion

The paper makes and attempts to understand the present status for the organization of FreshFirst Canning

while they are trying to open a new site in Queensland which would adapt to the high commitment work

system for the employees to motivate them to perform better and to reduce the employee turnover rate as

well as the absenteeism in the organization. The concerns of the company regarding the industrial

relations and human resource management for recruiting and selecting an efficient workforce show the

importance of integrating the Fair Work Act 2009 into their organizational system.

The analysis of the situation for the company in regards to the different distinctive aspects of the human

resource management and the regulatory aspects of the employment has highlighted the advantages of

incorporating the Fair Work Act 2009 into their system to achieve their objectives. The paper concludes

with definite recommendations regarding the policy framing for the new site of Queensland for FreshFirst

Canning in terms of their current industrial relations and human resource management concerns.

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8.0 BibliographyActon, J. (2011). Fair Work Australia: An Accessible, Independent Umpire for Employment Matters. The Journals of Industrial Relations , 53 (5), 578-595.

Catanzariti, J., & Byrnes, M. (2009). Fair Work Act: A User-Friendly Guide. Australia: Thomson Reuters Australia.

Felfea, J., Schmook, R., Schyn, B., & Six, B. (2008). Does the form of employment make a difference?—Commitment of traditional, temporary, and self-employed workers. Journal of Vocational Behavior , 72 (1), 81–94.

Fine, J., & Gordon, J. (2010). Strengthening Labor Standards Enforcement through Partnerships with Workers’ Organizations. Politics & Society , 38 (4), 552-585.

Frick, B., & Malo, Á. (2008). Labor Market Institutions and Individual Absenteeism in the European Union: The Relative Importance of Sickness Benefit Systems and Employment Protection Legislation. Industrial Relations: A Journal of Economy and Society , 47 (4), 505–529.

Gollan, J. (2009). Australian industrial relations reform in perspective: Beyond Work Choices and future prospects under the Fair Work Act 2009. Asia Pacific Journal of Human Resources , 47 (3), 260–269.

Kadlecová, T., & Svobodová, E. The Rights and Duties of the Employer and the Employees in the Czech Republic. Czech: Weinhold Legal.

Legal City. (2012). You and Your Rights. SA: Legal City :: Your Online LEGAL Partner .

Minister's House of Representatives. (2009). Fair Work Act 2009. Australia: Minister's House of Representatives.

Mitchell, R., Gahan, P., Stewart, A., Cooney, S., & Marshall, S. (2010). The Evolution of Labour Law in Australia: Measuring the Change. Australian Journal of Labour Law , 23, 1-31.

Moyane, K., Strydom, L., Young, L., & Jordaan, B. (2009). Understanding the Basic Conditions of Employment Act. Cape Town: Juta & Co. Ltd.

Tshoose, I. C. (2011). Employer’s Duty to Provide a Safe Working Environment. Journal of International Commercial Law and Technology , 6, 165-175.

Twomey, D. (2007). Labor & Employment Law: Text and Cases. Ohio: South Western Cengage Learning .

Veltri, S., & Silvestri, A. (2011). Direct and indirect effects of human capital on firm value: evidence from Italian companies. Journal of Human Resource Costing & Accounting , 15, 232-254.

Waugh, B. (2010). Trade Unions and the Freedom of Association –A Comparative Analysis of Work Choices and the Fair Work Act 2009. Melbourne: Melbourne Law School.

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