The effect of FWA on Industrial relations at Oz clothing In order to comprehensively answer the above question it is imperative to note the key roles of Fair Work Australia (FWA).The organization seeks to act as a referee in dispute resolution between any two conflicting parties. It also seeks to solve work place matters even as it looks at industrial action within the various industries involved.
The case facing the OZ Company is not an isolated one as many more firms including other industries have at times faced similar challenges of competition that have put them at the brink of collapse.
The company (OZ) is faced with a difficult task. it engages in labor intensive activities and this labor force is further described as low skilled. The crux of the problem is that it faces stiff competition and hence it finds itself faced with an alternative of outsourcing the labor force. The challenge in this case is that if it decides to look for labor offshore, it risks thrashing from the Clothing workers Union (CWU) and the government that has invested a lot of funds into the clothing industry so as to enable the sector offer employment to the local population. According to Czenter (2010), clothing and textile industry is one of the highest employing industries especially for the low skilled labor force in a majority of the countries. Similarly, for OZ as a company that wants to continue being in business must appreciate the role they play in the industry and should, instead of dodging reality, adapt to techniques that will see them make profit while at the same time ensure work tenure for their labor force. The FWA has a core mandate of ensuring the security of workers tenures. In this regard, it will make it its business to indulge in the affairs of OZ clothing so long as they, in any way, try to curtail the working conditions of the workers.
OZ clothing faces stiff industrial relations in as far as its case is concerned. With FWA at its neck, it has to work with the labor force it has. It is critical that other strategies other than cutting the services of the labor force must be adopted. It is essential that OZ clothing must become more innovative so that its clothing products meet the competitive threshold in the market so that they can favorably compete with those from other regions like China.
Just as (Czenter,2010) notes in her Essay , “labor market and globalization” that reduction of work force does not mean that customers will cease to demand the same level of output or even the same quality of the product, it thus becomes necessary that OZ restructure to become relevant in the market. This they can do by engaging in value addition strategy. Their clothe lines should appear to have superior to those offered in the market by other players like the Chinese. Failure to do the above would mean them losing their customers to other producers. In addition they must major in producing quality products so that they can maintain their work force while at the same time remain profitable. It is evident that FWA can have impact on OZ Clothing in as far as their industrial relation is concerned. hence, proper strategy must be adopted by Oz to counter these potential challenges.
Anamaria, Czenter. “Labor market and Globalization” Journal of human resource management