The other role of works councils in management of employment in Australia is to reduce personnel turnover at the workplaces. This is normally done through ensuring that workplace conditions are improved. Employees will want to stick or stay in a working environment where there are good working conditions. This greatly limits employees moving from job to job in search of greener pastures. Works councils also help in limiting employers in engaging in opportunistic behaviour. Such behaviour may include increasing the employees’ working hours etc.
Unless employees have a strong organization that represents them then most employers just take advantage of them. Works councils greatly help in wage negotiations between employers and employees though this organization has no legal powers over this. Employers view works councils as organization that will help in minimizing employee turnover and also effectively inform employees on employer’s feedback. They concur that some of its role may have negative influence on their operations. There are very many alternative forms of employee representation apart from unions.
These alternatives can be used to build labour policy initiatives. This can be through collective representation of employees. This can be done through interplay of labour market intermediaries like unions. There should be a legal
Works councils in Germany operate by giving employees a collective voice and bargaining power concerning various issues that affects them. They operate by allowing employees to be part and parcel of decisions made at workplace. Works councils in Germany are supported by Works Constitution Reform Act. They seek to protect employees’ interests. Scholars suggest that works councils be established by legalisation in Australia because the degree of unionisation therein is declining with time. If works councils can be established by legislation then problems of employee representation will be greatly solved.
Scholars suggest that if works councils are established by legislation in Australia, then these bodies will have power and more voice they will be protected by the law. If this is implemented then it will greatly affect council of works efficiency and effectiveness. There are various arguments for and against establishment of works councils in Australia. Some people argue that works councils will enhance employee voice and collective bargaining their power. Others still argue that they will face out unions in Australia and that the main problem in Australia is not employee representation.
The current government is not for establishment of works councils while employers fear that their power at establishments will be reduced. Unions may be faced out with establishment of works councils. The role of works council in management of employment relationship in Australia is to increase worker representation and fostering effective communication between employees and employers among others.
Addison, J. (2007): Do Works Councils Inhibit Investment? Industrial and Labour Relations Review 60; pp; 187-203. Addison, J. (2006): Works Councils in Germany; Their Effects on Firm Performance; Oxford Economic Papers 53; pp. 659-94