Reference no: EM133498039

Scenario:

Maritime unions are seeking to increase the pressure on Australia's biggest tugboat operator, Svitzer. They have described Svitzer's attempt to terminate its enterprise agreement (EA), after two (2) years of deadlocked bargaining, as an "embarrassment".

Svitzer applied for the Fair Work Commission (FWC) to terminate its EA, which passed its nominal expiry date in 2019, and which the company argues is no longer fit for purpose.

Svitzer's management is frustrated with employment relations in the maritime industry and the operational constraints this imposes. The company noted it had held around 50 meetings to try to make necessary changes to fixed crew levels, rosters, and pay rates.

Svitzer sees its employment relations problems as originating with: "a power imbalance resulting from unions' misuse of industrial laws".

According to the company: "The maritime industry is characterised by high levels of union membership, regular threats of overt and covert industrial action, and enterprise agreements that are prescriptive and that restrict the efficient deployment of labour."

Svitzer contends that any attempt to renegotiate the now-expired agreement would be "lengthy, with no viable means to bring the negotiations to a fair conclusion." This, the company says, "denies us the stability we are seeking from making a new agreement."

The National Secretary of the Maritime Union of Australia (MUA), Paddy Crumlin, sees the situation very differently, however. He said this week that Svitzer workers and union members affiliated with the International Transport Federation (ITF) were dismayed by management's strategy, given Svitzer's parent company,
Maersk, had just announced a $22 billion profit.

According to Mr Crumlin: "Seafarers and dockers condemn Svitzer's actions. We want Maersk to bring them into line, recognising their existing commitments to freedom of association and collective bargaining. Svitzer is an embarrassment to Maersk."

Crumlin also referred to the involvement of Svitzer's tugboat employees in a dramatic rescue operation to save a cargo ship in treacherous seas off the coast of Sydney.

"Events like this demonstrate the importance of skilled, experienced workers operating in a dangerous, essential industry," Mr Crumlin said. "It is high time for Svitzer to secure the jobs and conditions of these employees."

Question:

How was 'employment relations' defined in this course? Using the scenario details, give two examples that fit within this definition and explain why each is relevant.