Q&A Final Assessment - Coles Smeaton Grange Case Study PDF

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Summary

This is the assignment for the Q&A final assessment in MGMT2705 Industrial relations course. The case study was on the Coles Smeaton Grange strike and the Coles 2020 enterprise agreement....

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COLES&SMEATON&GRANGE&EBA&Q&A

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Coles&Smeaton&Grange&(UWU)&Regional&Distribution& Centre&& Enterprise&Agreement&2020&& Word!Count:!2235!Words! ! 1

What!are!the!key!trends!affecting!industrial!relations!in!the!grocery! distribution!sector?!Is!mass!retrenchment!the!only!option!for!managers! dealing!with!significant!workplace!restructuring?! On!November!19!2020,!350!workers!from!the!Coles!Smeaton!Grange!Distribution! Centre!walked!out!of!their!job.!This!was!to!protest!Coles’!actions!towards!the! impending!closure!of!the!distribution!centre,!and!the!treatment!of!the!worker’s! rights!in!terms!of!redundancy,!wages,!and!other!entitlements!(Workplace!Express,! 2021).!The!resulting!3!month!lock!out!and!union!negotiation!to!follow!sparked! discussion!over!the!future!of!grocery!distribution!centres!and!serves!to!highlight! the!growing!industrial!relation!problems!in!this!industry.! ! The!supermarket!industry!and!grocery!distribution!sector!has!been!constantly! changing!and!evolving!since!back!to!the!1970s,!where!a!significant!boom!in!the! number!of!supermarkets,!their!size!and!range!of!stock!started!to!occur.!The! significant!increase!in!competition,!and!the!race!to!capture!a!large!market!share! caused!supermarkets!to!strive!to!cut!costs!and!increase!efficiency!within!their! distribution!centres.! ! There!are!many!key!factors!and!trends!which!have!affected!industrial!relations! within!these!distribution!centres,!and!significant!discussion!needs!to!be!made! regarding!the!future!of!this!industry!and!its!workers.! ! New!technological!advancements!have!dramatically!changed!the!face!of!the! grocery!distribution!sector,!leading!to!an!increase!in!engineered!standards!and! computer-controlled!management.!First!applied!in!grocery!distribution!in!1989,! engineered!standards!provide!a!platform!for!which!management!can!measure! employee!output,!monitor!job!assignments,!and!set!times!for!individual!tasks! (Elliott!&!Long,!2015).!These!standards!have!had!a!significant!negative!impact!on! 1

workers,!with!expected!levels!of!performance!and!outputs!increasing,! individualisation!of!tasks!and!has!led!to!the!exacerbation!of!workplace!hostility! between!management!and!employees.!Computer!controlled!management!also! paved!the!way!for!the!“digital!arena”!and!increased!competition!within!the! workplace,!creating!a!toxic!competitive!culture!and!pushing!an!individualised!task! mindset!within!workers!(Elliott!&!Long,!2015).!This!computer!management!and! engineered!standards!are!quite!detrimental!to!workers,!as!within!this!system!there! is!a!high!amount!of!job!simplification!and!individualisation,!where!there!is! allowance!for!growth!and!development!of!intellectual!skills.!Workers!are!rewarded! purely!in!terms!of!productivity!and!output!levels,!rather!than!being!encouraged!to! think!creatively,!collaborate!with!team!members!and!present!new!ideas!for!job! efficiency.! ! Another!trend!which!has!been!identified!within!many!large!grocery!supply!chains! is!a!decline!in!safe!work!practices,!with!employees!at!the!bottom!of!the!supply! chain!bearing!most!of!the!risks!(Lloyd!&!James,!2008).!Increasing!pressures!on! supply!chain!and!production!demands,!as!corporations!attempt!to!cut!costs,!leads! to!unsafe!work!practices!and!regulation.!To!reach!expected!levels!of!performance! and!provide!results,!employees!have!turned!to!taking!short!cuts!within!the! workplace,!to!avoid!time!consuming!work!tasks!(Wright!&!Lund,!1996).! Furthermore,!managers!work!to!reduce!labour!costs!through!intensified!systems! of!work,!unstable!work!patterns!and!working!time.! ! An!increase!in!deregulation!seen!from!the!shift!towards!neoliberal!labour!policies! since!the!1980s!has!also!influenced!this!industry.!These!legislations,!aimed!at! supporting!profits!and!increasing!employer!control!in!the!workplace,!has!seen!a! decline!in!enterprise!agreements!in!the!private!sector,!and!allowed!large! corporations!to!exploit!workers!and!manipulate!employees!in!the!name!of!profit! (Stanford,!2019).! ! Mass!retrenchment!is!a!highly!controversial!and!counterproductive!solution!to! address!these!trends!and!the!need!for!increased!productivity!in!a!competitive! market.!By!making!irrational!decisions!when!it!comes!to!industrial!relations,!

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corporations!only!lend!themselves!towards!conflict,!reputational!damage,!and! possible!legal!backlash.!From!the!perspective!of!employees,!withdraws!of!labour,! such!as!strikes,!used!to!be!a!popular!bargaining!tactic!to!improve!wages!and! working!conditions,!however!this!may!need!to!adapt!to!new!changes!in!the! industry!as!well.!Strikes!have!been!successful!in!the!past!since!a!loss!of! productivity!at!distribution!centres!has!significant!consequences!down!the!line!and! hurts!company!profits,!but!as!jobs!become!more!automated,!combined!with!union! membership!decline!and!a!high!casualisation!of!jobs,!employees!may!lose!their! bargaining!power!and!ability!to!enact!change.!Hostile!solutions!from!either!side! are!clearly!not!sustainable,!and!so!companies!must!look!towards!facilitating! discussion!and!collaboration!with!employees!and!unions!in!the!future.! ! For!example,!the!individualisation!and!simplification!of!workplace!tasks!has!meant! that!when!certain!jobs!such!as!packing,!driving,!lifting!becomes!automated,!there!is! an!increase!in!employee!redundancy.!A!solution!would!be!to!diversity!employee! jobs!and!daily!tasks,!to!allow!and!encourage!the!opportunity!for!growth!and! development!of!many!different!skills.!By!empowering!workers!with!the!skills!and! knowledge!to!adapt!within!a!constantly!evolving!industry,!it!promotes!a!positive! culture!encouraging!creativity!and!risk!taking,!which!will!ultimately!lead!to!higher! productivity,!more!efficient!production,!and!more!positive!workplace!culture.! ! Furthermore,!increased!regulation!and!legislation!may!also!be!a!solution!to!this! ever-growing!problem.!The!key!driver!behind!company!motivations!to!decrease! costs!and!increase!productivity!levels!is!the!need!to!thrive!in!a!highly!competitive! industry,!and!increase!market!share!as!much!as!possible.!Government-led! initiatives!to!reduce!the!power!and!control!of!oligopolies!in!the!supermarket! industry!can!hopefully!tackle!issues!such!as!mass!exploitation!and!retrenchment!of! workers!in!pursuit!of!maximising!profit!margins.! ! The!supermarket!and!grocery!distribution!sector!is!constantly!evolving!due!to!a! number!of!key!internal!and!external!trends,!and!thus!needs!a!significant!amount!of! industrial!relations!reform!to!ensure!fair!and!equitable!outcomes!for!all! stakeholders!involved.!

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Clauses!6!and!7!relate!to!workplace!discrimination!and!harassment.!Clause! 6.2,!for!example,!stipulates!that!the!Company!will!operate!‘without!regard! for’!a!range!of!personal!attributes!that!are!often!the!subject!of!discriminatory! behaviour.!The!clause!alleges!that!these!attributes!‘are!not!related!to! individual!performance!and!the!ability!to!perform!and!develop!in!the! workplace.’!Why!might!this!clause!fail!to!protect!workers!who!suffer! discrimination!in!the!workplace?!! ! Clauses!6!and!7!offer!protections!against!discrimination!and!harassment!for! employees!with!a!range!of!attributes,!however!these!aren’t!sufficient!to!counter! past!discrimination!against!groups!that!have!been!historically!marginalised!and! disadvantaged.!If!companies!operate!without!regard!for!personal!attributes,!and! affirmative!action!clauses!are!not!implemented,!then!it!leaves!open!the!possibility! for!employees!to!be!disadvantaged!in!many!ways.!For!example,!employees!with! physical!disabilities!may!need!special!provisions!such!as!access!ramps!or!shift! break!accommodations,!or!employees!who!practice!different!religions!need! recognition!of!holidays!such!as!Ramadan!or!Hanukkah.!! Furthermore,!employment!targets!should!be!met!for!minority!ethnic!groups!and! women!to!ensure!a!diverse!and!equal!workplace.!By!not!regarding!for!personal! attributes,!the!expectation!can!be!said!that!all!workers!will!be!treated!the!same!as! the!typical!employee,!often!referred!to!as!the!“ideal!worker”.!The!apparent!“equal! treatment”!of!all!workers!by!not!regarding!for!special!needs!further!contributes!to! the!unfair!treatment!of!employees,!essentially!failing!to!recognise!accommodations! needed!to!protect!those!who!are!more!vulnerable!to!workplace!discrimination.!It! has!also!been!highlighted!that!treating!people!as!individuals!and!valuing!diversity! is!a!key!step!to!promoting!business!equality!and!achieving!business!goals!(Dickens,! 1998).! ! ! ! ! !

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Is!business!viability!a!valid!concern!when!consideration!is!given!to! compliance!with!workplace!laws?! ! Business!viability!is!an!assessment!of!its’!survival,!usually!in!relation!to!financial! performance!and!position.!Factors!such!as!gross!margins,!cash!flows,!asset/liability! positions!and!liquidity!all!contribute!towards!this!measurement,!with!an!overall! focus!on!profitability!(ATO,!2021).!A!key!business!strategy!to!increase!gross! margins!and!boost!profitability!is!to!reduce!overall!costs,!such!as!employee!wages! and!superannuation.!When!the!pathway!to!achieve!this!profitability!is!dependent! on!reducing!wages!to!a!point!of!non-compliance!with!workplace!laws,!it!is!highly! unethical,!illegal,!and!non-justifiable.!! ! Employers!under!the!national!system!of!workplace!laws!must!comply!with!the!key! legislations!of!the!Fair!Work!Act!(2009)!and!Fair!Work!Regulations!(2009),!as!well! as!the!National!Employment!Standards,!Modern!Awards!and!Enterprise! Agreements!(Admiraal,!2020).!While!employers!may!consider!the!cost!of! compliance!with!workplace!laws!when!formulating!their!business!strategy,!the! expectation!that!they!follow!all!laws!is!a!non-negotiable,!and!they!face!both! monetary!penalties!and!reputational!damage!for!non-compliance.!Concerns!may! be!needed!when!addressing!and!analysing!business!viability!to!prevent! Phoenixing,!however!this!burden!should!not!fall!on!to!employees.! !

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Clause!38.2.3!stipulates!that!the!parties!to!the!agreement!have!agreed!that!it! shall!be!the!responsibility!of!all!team!members!to!observe!and!follow! Company!policies!as!issued!or!changed!from!time!to!time.!It!is!further!agreed! that!Company!policies!will!be!issued!to!the!workforce!at!the!sole!discretion! of!the!Company!and!that!it!shall!be!the!Company’s!responsibility!to! reasonably!promulgate!these!policies!with!adequate!notice!to!effected![sic]! team!members.!Do!you!think!this!clause!is!fair!to!employees?! ! This!clause!can!be!interpreted!many!ways,!and!the!unclear!definitions!and! expectations!set!upon!employees!is!not!fair.!Clause!38.2.3!states!“…it!shall!be!the! responsibility!of!all!team!members!to!observe!and!follow!company!policies!as! issued…”.!The!Merriam!Webster!dictionary!contains!both!transitive!and! intransitive!verb!definitions!for!the!word!observe,!where!the!former!is!defined!as! conforming!one’s!actions!(i.e.,!failing!to!observe!the!law),!and!the!latter!is!to!take! notice!and!make!a!watchful!observation.!Within!Clause!38.2.3,!if!the!transitive!verb! definition!is!taken,!the!words!observe!and!follow!mean!similar!things,!so!it!can!be! reasonably!expected!that!employees!are!only!responsible!for!complying!with! directions.!However,!if!observing!is!to!mean!taking!watchful!notice,!then!the! responsibility!of!staying!up!to!date!with!company!policies!falls!onto!the!Coles! workers.!The!confusion!of!these!two!definitions!has!the!potential!to!disadvantage! employees!if!clear!expectations!are!not!set!when!it!comes!to!staying!informed! about!company!policies.!!! ! Furthermore,!Clause!8.1.3!presents!a!counterintuitive!approach,!stating!“...where! the!Agreement!makes!provision!for!alteration!of!any!of!the!matters!referred!to! herein,!an!alteration!shall!be!deemed!not!to!have!significant!effect.”!Since!Clause! 38.2.3!makes!the!provision!for!alteration!of!company!policies,!this!allows!Coles!to! deem!any!policy!changes!insignificant,!potentially!eliminating!adequate!notices! that!employees!are!entitled!to.! ! ! !

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Do!Clauses!19.1.6!and!19.1.12!raise!concerns!about!the!firm’s!OHS! commitments?! ! Clause!19.1.6!outlines!the!minimum!break!of!10!hours!between!shifts!for!full!time! workers,!however!this!can!present!potential!OHS!problems!when!it!comes!to! workplace!fatigue!and!the!resulting!unsafe!work!practices.!“A!guide!for!managing! the!risk!of!fatigue!at!work”!(Safe!Work!Australia,!2013)!argues!a!minimum!of!12! hours!between!shifts!is!needed!to!prevent!workplace!fatigue,!as!time!is!needed!for! commuting,!meals,!and!sleep.!! ! Clause!19.1.12!presents!further!problems,!where!it!allows!casual!and!part!time! workers!to!be!rostered!for!split!shifts!in!one!day,!with!the!minimum!engagement! being!2!hours.!In!addition!to!workplace!fatigue,!split!shift!rostering!can!be! detrimental!to!employee!health!and!wellbeing,!as!it!can!lead!to!a!cost!of!changed! lifestyle,!family!disruptions,!diminished!social!interactions!and!diminished!quality! of!life.!In!a!review!article!addressing!the!Legacy!of!the!1972!Robens!Report,! Professor!David!Walters!states,!“While!work!organisation,!working!time,!work! intensity!and!work-life!balance!are!arguably!outside!a!technical!interpretation!of! ‘health!and!safety’,!they!are!clearly!part!of!the!holistic!definition!of!work! environment”!(Walters,!2003).!! ! Furthermore,!arguments!have!been!made!that!employees!should!have!the!ability! to!refuse!tasks!they!believe!pose!a!threat!to!their!health!and!wellbeing.!No!such! clauses!have!been!made!in!the!Coles!EA,!meaning!that!if!an!employee!is!rostered! for!an!irregular!split-shift!pattern!that!is!detrimental!to!their!physical!or!mental! wellbeing,!they!have!limited!grounds!to!refute!such!rostering.! ! ! ! ! !

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Give!two!reasons!why!unions!might!oppose!wage!incentive!payments!or! other!forms!of!‘at!risk’!rewards!as!outlined!in!Clause!36?! ! There!can!be!many!different!reasons!unions!may!oppose!the!implementation!of! incentive!payments!or!rewards.!Firstly,!it!may!encourage!employees!to!cut!corners! and!take!larger!risks!with!their!work,!possibly!causing!OHS!standards!to!be! breached.!When!incentive!or!‘at!risk’!rewards!are!measured!by!time!performance,! productivity,!or!target!KPI’s,!employees!may!be!tempted!achieve!their!target! results!by!any!means!necessary,!and!if!not!carefully!monitored!by!managers,!then! bad!or!risky!behaviour!is!rewarded.!An!example!of!this!would!be!delivery!drivers! speeding!on!the!road!to!reduce!travel!time!and!increase!their!pay!ratio.!! ! Secondly,!wage!incentive!payments!and!rewards!create!the!potential!for! discrimination,!further!creating!a!hostile!and!inequitable!work!environment.! Performance!rewards!distributed!on!a!gender!basis!can!be!unfairly!assessed,!as! women!are!seen!as!less!worthy!of!organisational!investment!due!to!perceptions!of! unreliability,!family!responsibilities!and!low!labour!force!attachment!(Dickens,! 1998).!Furthermore,!incentives!which!reward!long!hours,!flexibility,!work!focus! and!commitment!are!heavily!biased,!as!these!sorts!of!achievements!are!recognised! more!often!in!men!than!women.!! These!incentives!can!be!a!source!of!discrimination!for!many!other!groups!of! people,!such!as!those!with!disabilities!or!from!different!ethnic!backgrounds,!as! they!are!usually!rewarded!at!the!discretion!of!managers!and!are!hard!to!monitor! for!biases!and!favouritism.!!

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Numerous!clauses,!including!Clauses!5.4!and!39,!are!written!in!the!language! of!‘continuous!improvement’!–!greater!efficiency,!productivity,!and!shared! interests.!From!an!industrial!relations!perspective,!might!the!goals!outlined! in!39.2!be!internally!contradictory?! ! While!the!language!of!the!Smeaton!Grange!enterprise!agreement!is!promising!and! strives!to!achieve!fair!and!equitable!working!conditions!for!employees,!the! language!and!content!of!the!overall!agreement!does!seem!to!be!contradictory!and! without!good!faith!for!workers!in!mind.!! Clause!39.2!outlines!a!goal!to!improve!productivity!and!prosperity!for!the!company! through!innovations!in!work!practices!and!technology.!This!statement!sounds! perversely!counterintuitive,!as!an!agency!problem!has!arisen!where!prosperity!and! competitiveness!of!a!company!is!often!driven!by!increasing!profit!margins!through! lowering!employee!wages,!increased!workplace!automation,!and!low!quality!costeffective!working!conditions.!! Coles’!initial!goals!of!working!on!improving!technology!and!productivity!was!the! leading!cause!for!the!Smeaton!Grange!employee!strike!and!lockout,!as!the!overall! transition!towards!automated!distribution!centres!is!leading!to!the!imminent! closure!of!5!warehouses!containing!more!than!2000!employees!(Workplace! Express,!2021).!This!directly!contradicts!statements!in!clause!5.4,!stating!that!Coles! is!“ensuring!all!team!members!benefit!from!improved!competitiveness!and! prosperity!of!the!company”!(Coles!EA!5.4.4).!! Workplaces!are!encouraged!to!uphold!values!of!unitarism,!where!the!goals!of! management!and!employees!unite!for!the!long-term!benefit!of!the!company.!While! it!is!often!extremely!difficult!to!achieve!complete!harmony!between!an! organisation,!management,!and!its!employees,!workplaces!can!improve!relations! by!showing!a!higher!level!of!commitment!and!value!towards!its!employees!through! their!enterprise!agreements.! ! ! ! !

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References 9News!Staff,!2020.!Row!between!Coles,!workers!over!South!West!Sydney!distribution! centre.![online]!9news.com.au.!Available!at:! .! Allan,!C.,!Dungan,!A.!and!Peetz,!D.,!2010.!‘Anomalies’,!Damned!‘Anomalies’!and! Statistics:!Construction!Industry!Productivity!in!Australia.!Journal!of!Industrial! Relations,!52(1),!pp.61-79.! Dickens,!L.,!1998.!What!HRM!means!for!gender!equality.!Human!Resource! Management!Journal,!8(1),!pp.23-40.! Elliott,!C.!and!Long,!G.,!2015.!Manufacturing!rate!busters:!computer!control!and! social!relations!in!the!labour!process.!Work,!Employment!and!Society,!30(1),! pp.135-151.! Lloyd,!C.!and!James,!S.,!2008.!Too!much!pressure?!Retailer!power!and!occupational! health!and!safety!in!the!food!processing!industry.!Work,!Employment!and! Society,!22(4),!pp.713-730.! Loudoun,!R.!and!Harley,!B.,!2001.!Industrial!Relations!Decentralisation!and!the! Growth!of!12-Hour!Shifts!in!Australia.!Journal!of!Industrial!Relations,!43(4),! pp.402-421.! Osborne,!K.,!2021.!Coles!Smeaton!Grange!depot!workers!reach!agreement!with! supermarket!giant.![online]!Campbelltown-Macarthur!Advertiser.!Available!at:! .! Peetz,!D.,!2012.!Does!industrial!relations!policy!affect!productivity?.!Australian! Bulletin!of!Labour,!38(4),!pp.268-292.! Safe!Work!Australia,!2013.!Guide!for!Managing!the!Risk!of!Fatigue!At!Work.![online]! Safe!Work!Australia.!Available!at:! .! Stanford,!J.,!2019.!A!turning!point!for!labour!market!policy!in!Australia.!The! Economic!and!Labour!Relations!Review,!30(2),!pp.177-199.! Walters,!D.,!2003.!Workplace!Arrangements!for!OHS!in!the!21st!Century.!Australian! OHS!Regulation!for!the!21st!Century,![online]!Available!at:! .! Workplace!Express,!2021.!Indefinite!lockout!for!Coles!warehouse!workers.![online]! Workplaceexpress.com.au.!Available!at:! .! Wright,!C.!and!Lund,!J.,!1996.!Best-Practice!Taylorism:!'Yankee!Speed-Up'!in! Australian!Grocery!Distribution.!Journal!of!Industrial!Relations,!38(2),!pp.196212.! ! 10...