Employers might be required to consult employees on various issues before making important decisions. This may happen if the Labor government embraces the Europe way. This will mean that it will be a requirement for employers to provide information to employees through works councils. If this system is implemented in Australia, it will mean that there will be severe sanctions that will be imposed on employers who do not adhere to these rules. This means that in case works councils are incorporated then they will need much support from the government through policies and laws.
Many scholars however argue that the current political environment may not sufficiently cater for this. This could lead to greater rise in employee’s rights at the workplace. As works councils begin to be established in Australia, these will improve employee representation at the workplace. This according to arguments of many scholars will lead to a decline in unions. This means that workers rights will be an issue that will be dealt with great importance.
According to the experience in United States, many argue that courts cannot be relied on to safeguard employee’s rights but rather other supportive organizations like works councils need to be put in place. .
So the argument is that in case unions support works councils then they can be more effective in representing employees. The government on the other hand can also help in success of works councils in their role of representing employees. This shows that government support is important in this case. Works councils have a role to play in the management of employment relationship in Australia. Many of the Australian business are characterised by a dual structure. In this structure there are works councils and unions.
At the broad industrial level, there is usually the negotiation between employer’s associations and unions concerning collective bargaining. Works councils in this case help by establishing a level participation through a developed mechanism. The functions of works councils are very different from those of unions that are established at the work place. One of the major roles of works councils is communication fostering between management and employees. They greatly help in building cooperative and trustful industrial relations at the workplace.
The main role of works councils is not to redistribute establishment surplus but it is aimed at creating it. Works councils normally use their codetermination rights in accomplishing their goals. This is used as it seeks negotiations that are carried out informally with management at the work place. This means that just like unions, councils help in employment growth through its monopoly role and its voice. Most works councils are normally mandated by law. The other role of works councils is enhancing the employee’s voice at the workplace. This is normally implemented through the monopolistic nature of works councils.
These organizations help in enhancing the relations between employers and employees. This helps in explanation of market outcomes. Works councils also help in management of employment relationship in Australia by helping workers or employees to protect their created quasi rents. There is however a negative relationship between employment growth and unions in Australia. Most of the employment effects of employee representation are normally biased regressively in OLS. This is because in case of a crisis, then employees are likely to demand representation.