HR managers fear rising legal bills and pattern bargaining under Fair Work regime: Survey

A survey of 1,002 human resources managers has found that 57% believe the Rudd Government’s new Fair Work industrial relations regime will result in the return of industry-wide pattern bargaining by unions.

The survey, conducted by Australian Human Resources Institute also revealed that 54% of HR managers believe that Fair Work will lead to an increase in their legal bills, while two thirds say the new regime tilts the power balance towards employees rather than employers.

HR managers have also raised concerns about more onerous records keeping, with 50% saying this will increase under the regime.

IR lawyers have warned employers that they need to improve record keeping around performance reviews, job descriptions and dispute resolution if that want to protect themselves from claims of unfair dismissal or discrimination.

The good faith bargaining provisions contained in the Fair Work Act are also making HR managers nervous. While 47% believe the provisions will force employers and employees to behave properly in workplace negations, 32% say employers will be “held to ransom” under the new laws.

Most positively, four out of five respondents said their organisation has taken steps to prepare for the National Employment Standards, which will be in force at the start of 2010, and 72% believe new Standards will not result in significant changes to terms and conditions for their employees.

Almost 80% of respondents said the new unfair dismissal laws will not deter their organisation from employing people, while 73% said the new dismissal laws will not deter their organisation from restructuring.

The national president of the Australian Human Resources Institute, Peter Wilson, who will present the results of the survey to Federal Workplace Minister Julia Gillard at a conference today, says that while the survey reveals HR managers are optimistic about certain parts of the laws, there are clearly areas of “disquiet”.

“The Government still has a big job to do in educating business and selling the new bargaining regime, the unfair dismissal laws and the modern awards,” Wilson says.

AHRI was one of 18 organisations recently awarded contracts to roll out Fair Work training.