Effects of Work Choices Act on Rio Tinto - Case Study Example

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Effects of Work Choices Act on Rio Tinto

Trade unions will find it more difficult to service their existing members, recruit new members and organize industrial action. This legislation also clearly shifts the balance of the power in the employment relationship more towards the employer. This will be most obvious in businesses with 100 employees or less, where employers will have the right to dismiss workers almost at will. Most importantly, if offered an AWA, the only real alternative for many employees will be to quit.
This entails the creation of the Australian Fair Pay Commission which will be responsible for establishing and varying the federal minimum wage, all other wages specified in awards, and casual pay loadings. The abolition of the no-disadvantage test will be implemented. Its replacement by the Australian Fair Pay and Conditions Standard covering just five basic conditions: award rates of pay, maximum ordinary hours of work, annual leave, personal and carers leave, and parental leave. These five conditions will be the only award conditions which cannot be varied or excluded in a workplace agreement. Further, in the event of the termination of an agreement it is these five minimum conditions that the parties fall back to. There are major changes in the nature and operation of federal awards. ...Show more

Summary

This information brief memo presents a description of the current situation facing the Rio Tinto Mining Corporation vis-vis the Workplace Choices Act and it presents the options available to top management on how to derive benefits from the Workplace Choices Act.
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