Love Me Tender – How IR Is A Key Point Of Difference

SS
Seyfarth Shaw LLP

Contributor

With more than 900 lawyers across 18 offices, Seyfarth Shaw LLP provides advisory, litigation, and transactional legal services to clients worldwide. Our high-caliber legal representation and advanced delivery capabilities allow us to take on our clients’ unique challenges and opportunities-no matter the scale or complexity. Whether navigating complex litigation, negotiating transformational deals, or advising on cross-border projects, our attorneys achieve exceptional legal outcomes. Our drive for excellence leads us to seek out better ways to work with our clients and each other. We have been first-to-market on many legal service delivery innovations-and we continue to break new ground with our clients every day. This long history of excellence and innovation has created a culture with a sense of purpose and belonging for all. In turn, our culture drives our commitment to the growth of our clients, the diversity of our people, and the resilience of our workforce.
Are we in the beginnings of a cyclical upswing in industrial action in Australia? And if so, what does it mean for those involved in competitive tender processes?
Australia Employment and HR

Are we in the beginnings of a cyclical upswing in industrial action in Australia? And if so, what does it mean for those involved in competitive tender processes?

Data from the ABS indicates that the last spike in industrial disputes occurred in September 2012, with around 110,000 working days lost. The sense that there may be another spike coming correlates with the enterprise agreement life cycle, as enterprise agreements typically expire after 3 or 4 years. Many businesses are currently engaged in, or planning for, negotiations for the next round of agreements.

In this climate, the potential impact of industrial action is particularly troubling for those employers who engage in competitive tender processes in order to win work. Organisations who put work out to tender are increasingly adopting sophisticated assessment criteria, which include many aspects of the tenderer's business strategy – rather than just looking at price. One of the criteria that often has a high priority is how industrial relations risk (especially the risk of industrial action) will be managed and reduced. There is an expectation, if not a requirement, that tenderers will have a comprehensive plan to minimise the impacts of industrial action, and that innovative solutions will be designed by tenderers for that purpose.

Principals often award tenders for many years which means that the management of industrial relations risk requires tenderers to 'play the long game' in managing and pre-empting industrial action risks that might arise during the course of the contract.

In this context, tenderers need to think deeply about how they best position themselves in a competitive tender process. This requires careful consideration of the options that are available to get the work done. Traditional models of engaging employees might no longer be enough to convince the principal that the tenderer is trying to minimise employment risk. Demonstrating capability and innovation in managing industrial relations risk means looking afresh at workforce models, including:

  • creating solutions to the problem of enterprise agreements expiring during the course of a project;
  • rethinking reliance on one 'supplier' of labour and considering how multiple sources of supply might be engaged – to help minimise disruption to, or delay in, labour supply that might arise from industrial action; and
  • outsourcing some of the IR risk to other entities or stepping outside the traditional workforce engagement models.

While you might wonder if the current industrial landscape is really that tumultuous, or you may feel a touch of schadenfreude at the industrial action going on elsewhere (confident that your ship is secure), now is the time to think proactively about your system for managing industrial relations risk to differentiate your offer from competitors.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More