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Labor Government Considers Collective Agreements Rather Than Individual-Level Agreements Are the Most Efficient and Productive Form of Workplace Arrangements for Business

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Within the present paradigm successful businesses are more profitable and productive because they implement effective human resource management strategies and leadership. They encourage employee involvement in decision making and create a fair workplace environment (Boedker, et al., 2011). The employment contract or agreement is an important element of employment relations and it determines the pay, conditions of employment and way work is performed (Loudoun, et al., 2009). This paper will define collective and individual agreements, analyse the differences between them, examine the role of employee voice, trade union involvement and the role of the State and regulation of the industrial relations system. It will consider the impact of the agreements upon both employees and outcomes achieved by businesses and will make the argument that the most efficient and productive form of workplace arrangements for business are collective agreements.
Collective Agreements
Collective agreements are formal contracts that are negotiated between an employer and a group of employees that stipulate the terms and conditions of employment. This type of agreement exists in a more centralised industrial relations system, and this system is based upon compulsory conciliation and arbitration, a system that has been established since the Conciliation and Arbitration Act of 1904. Collective agreements exist in a pluralist work relations environment. The pluralist theory identifies that there are different sources of authority and loyalty within organisations and that these sources may have differences of interest. Some interests may be in common between the employer and employees, but where there is a perception of inequality conflict can inevitably arise (Loudoun, et al., 2009).
Collective Agreements recognise employee representation (trade unions) in collective bargaining which

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