Industrial relation assessment

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Powerlite Corporation |
The Industrial Relation at Malaga Division
Industrial Relation Assessment – Case Study |

Thais Pedrosa Chagas

Table of Contents
Introduction 3
Industrial Relation Policy Objectives and Practices 4
What should they do, how to communicate and how to implement? 4
Managing Conflicts and Disputes 6
What are the recommendations? 6Recommended IR Programs and Strategies 7
Improving the workplace relation 7
Bibliography 8


The Malaga division of the Powerlite Manufacturing Company had grown to approximately 900 employees by 1 July 2006 and since then has been facing problems with employee/employer relationships.
Almost all new employees were lacking in relevant industrial experience. With only fiveexceptions, on 1 July 2006, all production supervisors in the lower three levels of management had been promoted from within.
It is clear that there are hostile relations between Powerlite management and the union. Strikes were frequent as was the practice of a significant number of employees calling in sick on the morning of the same day, making the maintenance of productive capacity on these daysimpossible.
Lower levels of management suffered repeated abuses and threats from a limited number of employees. Sleeping, swinging the lead, playing cards, and even sabotage of production were not unusual.
This assignment will identify the Industrial Relation issues, the causes of the problems and the specific actions that must to be done at the Malaga Division of the Powerlite ManufacturingCompany.

Industrial Relation Policy Objectives and Practices
What should they do, how to communicate and how to implement?

Every company, especially those in the industrial area with a high proportion of blue collar employee such as Powerlite, have to establish a strong relationship with their workforce, especially with the lowest level of employees to avoid conflicts and keep the productionhigh. However, it is clear that Powerlite has a lack in Industrial Relations, missing communication with employees and inexistent IR Policies and Procedures.
Powerlite should write a clear and understandable IR Policies and Practice with the objective of what behaviours Powerlite expects from the employees and what commitment the company will establish to promote a harmonious, secure and healthyworkplace. The IR Policy objectives should include that Powerlite aims to achieve a respectful workplace environment with trust, integrity and loyalty between the top level management and the workface level. Also, Powerlite should be clear that the company complies with the legislation Fair Work Act 2009, Occupational and Health and Safety Act 2000; Equal Employment Opportunity – EEO Law; anyrelevant environmental law and with the Award Wages System (minimum wages).
In addition, an IR Policy and Practice should include conditions of employment such as a contract, job description and remuneration; how to establish an open communication between staff; compliance with Personal Protective Equipment and OH&S; assistance to employees and attitudes toward unions.
Powerlite needs todemonstrate concern about the well-being of its employees. This relationship needs to be built to improve the satisfaction for all parties. There is no better way to engage the employee and keep conflicts away than by having procedures which allow works to communicate their needs and share experience to improve as a team to get a better, productive and secure workplace.
However, developing an IRPolicy and Procedures for an organisation does not itself guarantee success. The IR Police and Procedures needs to be implemented and monitored and the HR Director and his team are the key element in the successful implementation.
The IR police and practices should be communicated properly, directly and clearly with all employees. This communication could be delivered of many different ways:...
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