Industrial Action

Industrial Relations Act 1990

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This legislation safeguards workers' rights during industrial actions by:

• Allowing employees to voice their concerns and protest if their legitimate demands are not met by employers.
• Ensuring that all ballots are conducted in secret, protecting employees from any pressure or intimidation to strike against their wishes.
• Offering protection from arrest and prosecution for those who strike, as long as they follow the proper procedures.
• It sets the rules for industrial disputes and strikes.

Types of Industrial Action

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There are various types of industrial action

1. Official strike
2. Work to rule
3. Overtime ban
4. Token stoppage

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5. Official strike: A strike is when employees refuse to conduct their normal work duties. Union members may receive strike pay from their trade union during a strike.
6. Work to rule: Workers only complete the tasks outlined in their employment contract. They do not complete any additional work. This slows down services and reduces production output.
7. Overtime ban: Workers refuse to work any overtime, which results in work not getting done and the company losing income. At peak times, such as in a toy shop at Christmas, this can lead to significant losses for the company.
8. Token stoppage: Workers stop working for a short period, such as one day, to signify that further work stoppages will come in the event management does not reach an agreement with workers.

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Official Strikes

Consequences of Strikes

Strikes have various effects on different stakeholders.

• Employers lose revenue and may lose business due to stoppages and work reductions.
• Employees lose income and may feel anxious about their job security.
• Consumers may be forced to switch to a different company as a result of a business not operating due to strike action.
• Investors in the company will receive a reduced dividend due to reduced profits.
• The government will receive less taxes as a result of reduced income and corporate tax receipts. Large and prolonged strikes can impact the governments ability to fund public services.

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