INDUSTRIAL RELATIONS — AN IMPORTANT ASPECT OF HYDROCARBON EXPLORATION AND DEVELOPMENT IN AUSTRALIA

Abstract

The unique Australian system of controlling industrial relations matters was created in the early 1900's against a background of disastrous national strikes in the 1890's and during the formation of the Commonwealth of Australia.

The Australian Constitution was framed to include specific powers to protect the country and the general public from the consequences of industrial disputes between employers and employees by requiring conciliation processes to be followed and, if they failed, for compulsory arbitration of the dispute.

The division of powers between the Commonwealth and State Governments causes complications and inconsistencies and has highlighted the intrusion of political considerations into industrial relations problems.

The Commonwealth and most State Governments have created systems based on registered organisations of employers and employees. Registration is intended to create rights and obligations and to result in responsible bodies being subject to the enforcement procedures of the arbitration tribunals. Registration also delineates the scope of membership coverage and the industries in which the registered bodies may operate. In theory, there should be no overlapping of registered constitutions and therefore no demarcation or "jurisdictional" type disputes. A major problem has been created by registration based on crafts or occupations instead of on an industry basis. This has resulted in up to 15 or more unions having members in, even, medium sized establishments.

The recent trend has been towards amalgamations of employer and employee organisations and the formation of "peak" employer and employee councils-the CAI and the ACTU. The activities of these Councils is leading to a centralised system of wage fixation and towards common standards of conditions of employment with deviations only to meet special circumstances. This tends to cause any change in wage rates or conditions of employment in any one area to "flow" into other areas and industries on a "comparative wage justice" basis.

The expansion of onshore exploration and development of the hydrocarbons industry into offshore areas has resulted in more unions becoming involved in the industry, with inconsistencies between land based and maritime unions in approaches to construction and production work.

Much work will be required by employers and their organisations within the hydrocarbons industry to overcome the industrial relations difficulties that will arise at interfaces between them and other well established industries.