Industrial Relation

It is no doubt to say that the relationship between employee and employer is mutual advantage for both sides. Indeed, the employee is deemed as the most important element in implementing main objectives for the employer in each organization. However, this relationship is not completely in harmony in reality which still existing dispute between both sides, especially is negative in wage, commission and benefits for the employee. Indeed, majority of the employers merely concentrate on their lucrative profit by reducing wage, benefit of the employee that is considered as most costly expenses in production cost. Moreover, the employer has adequate sufficient components to cause negative pressure for the employee in particular situation such as possible to fire staffs without specific reasons if a conflict appears, so on. To prevent those kinds of activities, the government has to intervene in the relationship between both parties that is to balance the power of the employee and employer and especially is creating fair working environment. Typically, Work Choices 2005 was one of solutions to handle this issue above that was a type of industrial work relation formed by Australian government. However, this legislation could not provide enough necessary right to the individuals, especially was for the employee's benefits so that the Government modified this resolution by more suitable alternative from Australian labor party which was Fair Work Act 2009. Particularly, it is deemed as an independent arbitration that might give essential rights to the employee and flexibility for the employers. Importantly, it basically created a productive and competitive workplace without taking away the basic workplace conditions and rights, moreover balanced the interests between the employee, union and employer as well. From these sufficient elements above, the Australia government officially established an organization called Work Fair Australia (FWA) on 1 July 2009, in order to implement enactments of the Fair Work Act 2009 (Fair Work Australia .n.d.).

The Fair Work Australia (FWA) system was designed with main objective in order to ‘replace all existing tribunals, bodies and agencies created by the Howard government' and ‘provide one top shop for information advice and assistance in settling grievances and disputes' (Sappey et al. 2009, p. 234). Indeed, the FWA had responsibility to replace disharmony Industrial Relations systems including in the Australian Fair Pay Commission (AFPC), the Workplace Ombudsman (WO), the Australian Industrial Relations Commission (AIRC) and the Workplace Authority (WA). Moreover, the FWA was definite successful in implementing its key tasks and also possible to handle previous issue of Work Choice IR effectively in setting ‘framework to drive the productivity improvement necessary for creating more jobs and creating the standard of living all Australian workers' (Australian Government 2005, p.6,