AWARD RESTRUCTURING IN THE HYDROCARBONS INDUSTRY — PROGRESS AND PROSPECTS

Abstract

Award restructuring is the most significant development in industrial relations reform in recent times. The process evolved from the Australian Industrial Relations Commission's concern for the economy and recognition of the need for micro-economic reform. It encourages a fundamental review of work practices, award structures, union coverage and the organisation of the workforce with a particular focus on the enterprise. Award restructuring has particular relevance to the upstream hydrocarbons industry in which stability, labour flexibility, efficiency, skill development and multi-skilling are of critical importance.

It is acknowledged that the potential for change in the hydrocarbons industry is not as great as in most other industries. Award regulation in the industry is relatively new; it has been established with close regard to the needs of the industry and it has evolved to enable a greater enterprise focus prior to the adoption of award restructuring by the Australian Industrial Relations Commission (AIRC). Nevertheless, there are a number of changes which can give rise to greater efficiency and productivity and these need to be developed. It may be that an innovative approach is required in view of the unique circumstances of the industry.