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Collective bargaining and flexibility: Australia

by Nick Wailes & Russell D. Lansbury

I. The types of flexibility introduced
. . D. Working time

      2. Have arrangements for 6- or 7-day working weeks, shift work, night work, or flexible working hours spread?

As the example above suggests, and as has already been indicated in the preceding discussion, more general changes in the pattern of working time have facilitated the growth of agreements which allow the longer specification of the working week, the introduction of shift work and a spread of flexible working hours. 31 per cent of registered agreements concluded in the period 1992-3 and 22 per cent of agreements registered in 1995-1996, contained in the ADAM database, include provisions for shift work (ACIRRT, 1997, #12). While much of this decline can be attributed to the decline of shift work provisions in the public services sector, evidence from the construction industry and the wholesale/retail sectors reveals important differences between sectors.

Possible explanations for this divergent pattern could be related to the nature of the labour process but also need to take into account the greater use of external numerical flexibility in the wholesale/retail sector. Also, while only 5.3 per cent of construction agreements gave employers discretion to alter hours of work, 15.2 per cent of wholesale/retail agreements included this provision (the figure for all industries is 8.6 per cent) (ibid). Employers in the wholesale/retail sector may have been able to decrease their reliance on 12 hour shifts because of greater flexibility in determining hours of work.

Table 8. Comparisons of provisions in enterprise agreements with provisions relating to 12-hour shifts in the Construction and wholesale/retail trade sectors
Provisions for 12-hour shifts in agreements Percentage of agreements registered, 1991-1993 Percentage of agreements registered in 1996
Construction 2.3 8.3
Wholesale/retail 8.7 2.3
Source: Drawn from ACIRRT, 1997, No. 12: 20-25.

Source: drawn from ACIRRT, 1997, No. 12: 20-25

The two examples presented below demonstrate the extent of working time flexibility that has been made possible by enterprise bargaining. The first relates to shift work while the second covers most aspects of working time arrangements.

      "An employee's weekly ordinary hours of work can consist of a mixture of both day work and shift work. An employee can be required to work both day work and shift work within a 24 hour period provided the employee has received a minimum of 48 hours notice (ACIRRT, 1996, No. 11: 12).

      Each individual will be paid for a base of 2,184 hours each year from 1 December to 30 November. The structuring of hours may vary depending on operational needs, customer and market place requirements. Configuration of hours will be agreed with the people who are affected and will normally be within the following parameters:

      Each year is divided into 3 periods, commencing December 1st. There will 2 x 17 weeks equal to 714 hours each and 1 x 18 week period equal to 756 hours. A 17 week period will compromise 595 hours and 119 flexible hours. An 18 week period will comprise of 630 hours and 126 flexible hours.

      An ordinary hour is any hour worked between 5 a.m. and 7 p.m. Monday to Friday or outside these hours if the appropriate shift allowance is paid. A flexible hour is any hour worked outside 5am to 7pm Monday to Friday for which the appropriate shift allowance is not paid. Any hour worked on a Saturday, Sunday or Public Holiday is to be a flexible hour unless previously otherwise agreed between the Team leader and the Team Member(s). Any hours in excess of the period total will be paid at 1.625 times the hourly rate and any payment will be made prior to the 15th of the month following the end of the period (ACIRRT, 1997, No. 12: 10).

This rather extreme example demonstrates the types of dramatic changes in working time arrangements that have been made possible by the decentralization of bargaining in Australia. On the basis of the evidence presented above, it seems appropriate to conclude that changes introduced in the Australian industrial relations system have resulted in an almost unprecedented level of internal numerical flexibility being provided to employers. While these changes have been introduced in consultation with trade unions, the level of flexibility in working time arrangements may be detrimental to the working life of many (Heiler, 1996a).


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Updated by BC. Approved by HTPN. Last update: 01 August 2000.