Employment and Work Futures PDF

CORE STUDY 3 Employment and work futures 3.1 Overview Numerous videos and interactivities are available just where you need them, at the point of learning, in your digital formats, learnON and eBookPLUS at www.jacplus.com.au. 3.1.1 Introduction How many times have you been asked, ‘What do...

CORE STUDY 3 Employment and work futures 3.1 Overview Numerous videos and interactivities are available just where you need them, at the point of learning, in your digital formats, learnON and eBookPLUS at www.jacplus.com.au. 3.1.1 Introduction How many times have you been asked, ‘What do you want to do when you leave school?’ For many young people, this is a difficult question. There are just so many possible pathways in education, training and work. Joining the workforce starts you on an exciting journey; a journey filled with opportunities, excitement, satisfaction, personal fulfilment, and sometimes frustration and disappointment. It is likely you will change careers a number of times over your working life. Also, because the world of work is constantly changing, you may one day end up working in a job that has not yet been invented. Throughout your career, you will gain some job-specific skills and you will likely need to do some additional training. However, you will also need cross-over skills such as communication, problem-solving and resilience. Embracing learning is one of the ways you can ensure that you will be successful in the ever-changing world of work. Planning for your future career begins now! CONTENT FOCUS On completion of this topic, you will have: investigated the contribution of work to the individual and society and the changing nature of work examined how individuals may derive an income, and the changing rights and responsibilities of workplace participants analysed a range of perspectives in their consideration of employment and work futures. 112 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5  Resources Video eLesson Employment and work futures (eles-3508) Digital documents Key terms glossary (doc-32666) Worksheet 3.1 Start up! (doc-32693) eWorkbook Customisable worksheets for this topic (ewbk-0860) 3.2 Work and wellbeing 3.2.1 Economic and wellbeing benefits of work Can you imagine what life would be like if you couldn’t afford to pay the water bill, have a working fridge or buy groceries? Or if you couldn’t pay for any transport and worried about how to pay for the roof over your head? Having access to these things is only possible if you (or your parents, carers or guardians) work to earn an income to pay for them. Life would be quite different from what it is today if people did not work. Food production would stop, and people would begin to starve. Other supplies such as electricity, gas and clean water would dry up. The very nature of society would change, as would Australia’s ability to trade with other countries. This makes you (and your parents, carers or guardians) an important part of the economy because you all contribute money whenever you choose to buy goods and services to satisfy your needs and wants. The money spent has come from the income earned from working – your family has been involved in production. A major economic benefit of work is that workers pay taxes to the government. The government will then redistribute these funds and provide the collective wants that the society desires such as education, health, roads, railways, and social welfare such as the aged pension. 3.2.2 Work to earn a living How many times have you heard the saying, ‘Money doesn’t grow on trees’? As you get older, the importance of money and its uses becomes clearer. For example, you need money when you catch up with friends and plan a day out to the movies, ice skating, rollerblading, visiting the art gallery or any other exciting or interesting activities. You need money to fund your lifestyle. So where does the money you need come from? If you said your parents, carers or guardians, you know that the money comes from them going to work. Once you leave school, chances are you will enter the workforce if you haven’t already started working while at school. Being part of the workforce will enable you to start earning money, which you can then use to buy things that you want. Earning a living is often the primary reason that people work. It is, however, not the only one. Going to concerts with friends is just one of the Jobs provide income that is used to buy goods many activities for which you need money. and services TOPIC 3 Employment and work futures 113 3.2.3 Why do people work? Imagine for a moment that you are unbelievably rich. You have so much money that you will never have to worry about working to earn more. What would you do? Most likely you are imagining a life of non-stop fun. Now it’s time for a reality check! Even the wealthiest people in the world often choose to work. This is because there are many personal benefits to be gained from working aside from financial benefits. Non-financial benefits of working Financial benefits of working Opportunity to use your skills and abilities in a Earning an income positive way Exchanging money for goods and services Meeting and mixing with new people Being a consumer Doing something you love and are passionate about Having the ability to buy what you need and want Increasing your self-esteem and confidence Creating and maintaining a good standard of living Developing your natural strengths and talents for your family Being part of a group or a team Making friends Contributing to the Australian economy Being happy 3.2.4 Benefits of work The main reason that people work is to be paid — to receive an income — but there are other reasons too. Let’s look at some of the most common ones. To earn money To improve To add to living superannuation standards To be able To gain to manage a status and household prestige Benefits of work To have To obtain disposable self- income satisfaction To help To make others friends To earn money To survive, we must have money. Most people sell their labour to an employer and receive an income in return. The worker becomes the employee, while the person paying for their work is the employer. The most common forms of income are wages and salaries. While earning money, many workers will struggle to maintain some degree of balance between work and leisure, known as the work–life balance. This need for work–life balance is important to many workers and can form the foundations of a good life and a worker’s sense of wellbeing. 114 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5 To improve living standards Imagine a teenage girl who has just Earning money is important for most workers, but achieving a received her first pay packet from a work–life balance is necessary for wellbeing. part-time job. On her way home, she decides to visit a shopping centre and buy new clothes. The income from her job has allowed her to improve her standard of living and given her a brand new wardrobe. Working generates an income that enables consumers to satisfy their needs and wants. What if those needs and wants are intrinsic? That describes something inside the individual that will motivate them to want to go to work — for example, to be happy, to have a good life, to feel valued for the work they perform, and to pass on their knowledge and skills to the next generation. The quality of the work is also important to employees. Studies of modern values have revealed few employees want to be wasting their life contributing to questionable or immoral work. After all, many hours are spent working, and people want them to count for something. To gain status and prestige The type of work a person does is often The work of a heart surgeon is well remunerated because of the used to measure that person’s status and high level of training and skill needed to perform the job. prestige within our society. In other words, their status comes from their occupation. The value we place on a person’s job determines his or her income. For example, to be a heart surgeon requires an intense level and length of training, with a very specific skill set needed. As such, heart surgeons receive high incomes. This is partly due to the education and training needed to become a surgeon as well as their high skill level and specialisation. Historically, society has tended to place a lower value on work in what are referred to as the ‘caring professions’, such as childcare, nursing and aged care. For this reason, salaries for people who work in these areas have generally been lower than in many other fields. These roles have traditionally been filled by women, and this provides another reason for the disparity that is often seen between the relative wages of men and women in Australia. This attitude is slowly changing, with wage rises being fought for and won in many of these areas. In a 2016 survey that asked Australians to rate professions in terms of their perceived ethics and honesty, nursing emerged as the number one ranked TOPIC 3 Employment and work futures 115 profession. This was the 22nd year in a row that nurses were recognised as number one in ethics and honesty. Doctors were ranked second in the survey and school teachers ranked fifth. To obtain self-satisfaction Two hundred employees of a factory were asked to write down the most important aspect of their work. The responses revealed that it was not money: 67 per cent of the employees said that knowing they had done the job well and received some praise from the supervisor were the most rewarding aspects. Both job satisfaction and self-satisfaction were seen as important. This doesn’t mean that money is not important; it is. However, there are many other rewards you can get from a job. To make friends The social aspects of work increase its value. On Social interaction is one of the key reasons that average, employees spend more time at work with their people work. co-workers than they do at home with their families (not including sleep time). Work provides the opportunity to meet other people and make friends. Sometimes workplaces have social clubs that employees can join to make friends and have fun, and participate in organised activities aimed at increasing the sense of staff connectedness and satisfaction. To help others Voluntary workers play an essential role in our society. Many people in the local community work for voluntary agencies such as country fire brigades, Meals on Wheels or the State Emergency Volunteers, such as lifesavers, receive no Service. They receive no financial payment, but do payment for their work but offer their services to it for pleasure and the satisfaction of being able the community freely. to help others. To have disposable income Many people work in order to pay the bills and survive. However, most people work for an enjoyable life. A disposable income is funds that are available to be spent after all taxes, bills and compulsory costs of living are paid for. This surplus income can then be spent in any manner desired; that is, disposed on fun, holidays and hobbies. Paying for needs is ideal, but being able to pay for wants is a luxury that most aspire to. To be able to manage a household Managing a household is not easy. Many people find the costs of day-to-day living stressful, so having a job enables ease in paying compulsory expenses first, but also then having surplus funds left over to be disposed of in any desired manner. Disposable income normally goes on luxuries and wants such as hobbies and pastimes, technology and travel. 116 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5 To add to superannuation Often, people want to make their retirement as carefree as possible. They make mature decisions about their money, pay off all their bills, have savings and still realise that even after disposable income has been spent, they could put more into their future. Many people make choices to add extra funds into their superannuation, so they have more available when they are no longer working. Adding more into superannuation now can have tax advantages. Resources Digital document Worksheet 3.2 Work and wellbeing (doc-32831) 3.2 Activity: Research and communication 1. Conduct a small survey of your family and friends to find the reasons they go to work. Present your information in a table similar to the one shown. What are the top three reasons people work? Present your results to the class and discuss your conclusions. Reasons for working Person 1 Person 2 Person 3 Person 4 2. You have been hired by a voluntary agency such as Lifeline to prepare a float display in a forthcoming street procession. The display must raise the status of the agency’s volunteer workers. Work in groups to design and present a float display for your selected voluntary agency. Consider your message, costumes, roleplay actions, banners, decorations and music. Incorporate constructive feedback provided by the class when deciding how you could improve a future display. 3. Using online resources, prepare a list of five volunteer agencies that operate in your area. Present this as a database or spreadsheet, including contact details, addresses and purpose of the organisation. 4. In pairs, decide whether you would work if you were so wealthy that it was not necessary. Give two reasons for your decision. 3.2 Exercise: Knowledge and understanding To answer questions online and to receive immediate feedback and sample responses for every question, go to your learnON title at www.jacplus.com.au. 1. What benefit can you see working would bring to your life? 2. What benefit has working brought into the life of someone you know? 3. List three examples of voluntary work. 4. Look at the reasons given in this section for why people work. Do you agree with them? Explain your answer. 5. For each of the following occupations, write one positive benefit and one negative consequence of the career choice. Compare your list with other class members. Athletes Firefighters Bankers Plumbers Computer programmers Police Doctors Scientists Entertainers Teachers 6. Describe some of the economic benefits from the government imposing taxes on workers. Fully worked solutions and sample responses are available in your digital formats. TOPIC 3 Employment and work futures 117 3.3 Workplace participants 3.3.1 Who is in the workplace? You could be forgiven for assuming that the Australian workplace involves only two groups of people — employers and employees. Our nation’s work environments are much more complex than this simple relationship. Trade unions and governments have a significant impact on the nature of Australian workplaces. The ways in which these groups function and interact with each other form the basis of Australian work environments and, on a larger scale, our country’s economy. In this subtopic, we identify and examine the participants in the Australian workplace. The major participants in the Australian workplace Employers Major participants Goverments in the Employees Contractors Australian workplace Trade unions 3.3.2 Employees In the coming months, many of you will enter the Australian workforce for the first time. Some of you probably already have. Whether you flip burgers at the local fast-food shop, stack shelves at the supermarket or work in some other retail business, you are part of the Australian workforce. An employee is someone who works for another person or entity in return for financial compensation. This work may vary in a number of ways including the nature of the work completed, the level of responsibility and the time spent completing the work. Whether you work as a server at the drive-through at McDonald’s or as the company’s chief executive officer (CEO), you are an employee of McDonald’s. Although their roles and responsibilities differ greatly, both the server and the CEO undertake specific jobs and are paid for their time and effort. 118 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5  As of February 2019, more than A McDonald’s server. Their job may be very different from that of 12.7 million Australians were working the CEO, but both are employees of the same company. as employees. This figure equates to just over half of Australia’s total population. Casual, seasonal, part-time and full- time employment are all included in this calculation. An increasing number of employees are looking for more flexible working conditions. It is estimated that just under 31 per cent of Australia’s workforce are employed on a casual or contract basis. Although this kind of work provides employees with more flexibility, casual work does not come with the same rights and benefits as part-time or full-time employment. The different types of employment are discussed in section 3.4.3. Contractors Another way that businesses can hire workers for labour is through contracting. This is becoming more and more popular as businesses realise specific skillsets are only needed at certain times. This enables businesses to get the best help they need in specialist areas, but also cut costs. For example, Target stores need visual merchandisers to design window displays at peak periods such as Christmas. Each Target store, therefore, contracts the work of the visual merchandiser to complete the required window display, and then pays them for their contracted time, rather than employing them as full-time employees. Contract work can also last for set periods of time; for example, to assist when a full-time employee is on maternity leave, a contracted employee may fill in for six months. 3.3.3 Employers A diverse range of employers exists within Australia. As at June 2018, there were more than 875 000 employing businesses in Australia. The majority of these were micro businesses with only one to four employees. The full breakdown of employing businesses in Australia is shown in the following table. Number of businesses (by size) in Australia as at June 2018 Number of businesses Business size Number of employees in Australia Small 1−19 823 551 Medium 20−199 50 338 Large 200+ 3855 Total 877 744 Source: Data derived from ABS 8165.0 — Counts of Australian businesses, including entries and exits (June 2013 to Jun 2018) From the smallest self-run business to the largest multinational company, all employers in Australia are a safe workplace subject to the same responsibilities and requirements. These include the provision of: adequate financial compensation for work completed TOPIC 3 Employment and work futures 119  necessary and relevant education contributions to superannuation The Fair Work Commission is Australia’s national workplace and training essential rights to employees relations tribunal. (such as adequate breaks and supervision). A number of government organisations hold employers to these responsibilities. The most influential of these is the Fair Work Commission (FWC). There have been several versions of the FWC including Fair Work Australia and the Australian Industrial Relations Commission. The Fair Work Commission is Australia’s national workplace relations tribunal Source: © Commonwealth of Australia (Fair Work Commission) 2018 and is responsible for administering the provisions of the Fair Work Act 2009. The Commission’s powers and functions include setting the national minimum wage and minimum wages in modern awards, approving, varying and terminating enterprise agreements, and dealing with unfair dismissal, anti-bullying and general protections claims. The Commission does not enforce compliance with the Fair Work Act. The Fair Work Ombudsman’s role includes enforcing compliance with the Act and educating people about fair work practices, rights and obligations. 3.3.4 Trade unions Much progress has been made for working conditions and improved rights due to actions of unions. These bodies were strong in reaching change and improving conditions to be what they are today. The history of trade unions can be traced back to the merchants guilds of the Renaissance. In those organisations, workers who held the same job banded together to organise their industry, set prices, agree upon standard practices and protect the rights of their members. Australian trade unions play a similar role. They are organisations of workers who actively seek better pay, safer working conditions and increased job security. It is not compulsory for workers in a particular industry to join a union, although it is strongly encouraged by union members. A union with a large number of active members can place more pressure on governments and employers than a smaller union. This pressure usually takes the form of industrial action, which can include strikes and work bans. Industrial action can be brief and isolated, or it can continue for days or weeks — even years in extreme cases. The longest industrial action in Australia occurred in 1946 and lasted for three years. It started when Aboriginal pastoral workers in Western Australia’s Pilbara region refused to work until they were properly paid and provided with safe working conditions. Participation in industrial action is one way in which trade unions can affect the Australian workplace. Through this mechanism, they can be a crucial part of the Australian working environment. 120 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5  Teachers protesting for higher wages and better conditions at the Rod Laver Arena in Melbourne Trade unions: early beginnings The Industrial Revolution began in England over 220 years ago, in the late eighteenth century. This revolution changed the way people lived and worked. People who once used to work as farm labourers moved to the towns and began to work in factories where conditions were very harsh. Men, women and children were forced to work long hours in noisy, dirty and dangerous workplaces. Small children were often sent down coal mines or up chimneys (as chimneysweeps). Accidents often happened around machinery, but there was no compensation or sick leave. If a person was injured, someone else took their job. It was illegal to join with other workers to discuss how you could try and improve your working conditions. However, this did not stop workers from forming these illegal ‘associations’ as they were known. These associations were the beginnings of trade unions. COMFACT The first workers to form a trade union were six farm labourers from the village of Tolpuddle in Dorset, England. In 1834, they were arrested and sentenced to seven years’ transportation. Over the years, they became known as the Tolpuddle Martyrs. TOPIC 3 Employment and work futures 121  Children were cheap labour in coalmines. Ellison Jack, an 11-year-old girl coal-bearer, Report of the Commission of Mines, 1842 Role of trade unions A trade union is an organisation that looks after workers in a particular job or industry. Members pay a fee to finance the union’s operations. The working conditions experienced by many of today’s employees are the result of past trade union action. By joining together, workers were able to approach employers and bargain with more strength for improved pay and conditions. Australia, for example, was the first country to legislate the eight-hour working day. protect the interests of union members; for example, by undertaking campaigns and negotiations for Unions generally aim to: improve the working conditions of members; for example, by monitoring health and safety increased pay rates ensure fair treatment of employees at work; for example, by preventing unfair dismissals promote quality of life issues; for example, by limiting work hours. attend local union meetings Usually, each individual workplace will elect a voluntary union representative who will: keep members informed and assist them with work-related issues organise meetings at the workplace represent the members in negotiations with the management. Trade unions have helped employees to improve conditions in a large range of areas relating to their 1902: The first workers’ compensation law was established in Western Australia. employment. The following achievements have helped shape our society into what it is today. 1908: The Pastoral Workers Award, established by the Australian Workers Union, was the first award in Australia. Since then, awards have been the cornerstone of setting out terms of working conditions 1920s: Paid sick leave was introduced. Prior to this, workers went to work sick or stayed home for millions of employed workers. 1936: A campaign by the printing workers led to the beginning of paid annual leave. without pay. 1947: Penalty rates (extra money for working outside of normal hours) were established after unions 1951: New South Wales became the first state to introduce Long Service Leave. raised the issue with the Arbitration Commission. 1969: The principle of equal pay for women was adopted by the Australian Conciliation of 1971: The Australian Workers Union fought for protection against unfair dismissal. Arbitration Commission. (Attempts to achieve this principle can be traced back to the end of the 1940s.) 1973: The first annual paid leave with a 17.5 per cent leave loading was achieved by the Metal 1973: Industrial action was taken to fight for the demand of proper meal and rest breaks. Prior to this, industry. workers had to go a whole day without a break. 122 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5  1980s: Trade unions were successful in banning the use of asbestos as part of their fight for safe working environments. 2011: After a long campaign, the Paid Parental Scheme was introduced, entitling parents of children born or adopted after 1 January 2011 to 18 weeks’ pay on the National Minimum Wage. 2011: The trade unions’ ‘Stand Up For Super’ campaign led to an increase to the compulsory Superannuation Guarantee, at the time set to increase to 12 per cent by 2019. (Prior to 1986, only a select group of employees were entitled to superannuation. Trade Unions battled for this to become an entitlement for all.) The union movement conducts campaigns on issues that affect their members. Despite all of these achievements, however, the number of workers belonging to trade unions is declining. Reasons for this include enterprise bargains, laws that are unfriendly towards unions and stifle their ability to take action, hostility from upper management and young people not seeing the point of joining. In order to increase memberships, unions are now offering other services such as cheap personal loans, free legal services, discounted goods and services as well as private health care plans. 3.3.5 Employer associations Employers also have found it necessary to join together to protect their common interests. The Australian Industry Group (AIG) is a peak industry association, representing about 60 000 businesses. Other important associations include the Australian Chamber of Commerce and Industry, the Business Council of Australia (BCA) and the Australian Retailers Association (ARA). These and other associations have as their main advocate for their industry to be a career of choice roles to: represent employers in dealings with trade unions give advice and assistance on a wide range of issues such as taxation, industrial relations and lobby governments with their memberships’ views. employment legislation In some cases, an employers’ association will negotiate with a union to establish a new set of pay and conditions. At other times, an association will represent its members before an industrial relations tribunal. These services are a great benefit to all members, especially small business owners. TOPIC 3 Employment and work futures 123  Employers’ associations have always been involved in lobbying governments. Over the years, they have set up a number of research offices to provide economic and industrial advice to their members and the public. Their representatives often appear in the media to present and discuss the employers’ views on current workplace and economic issues. Logos for the Australian Retailers Association, and the Australian Industry Group. The ARA employ more than 1.2 million people across Australia and continue to advocate for retail to be a career of choice. 3.3.6 Governments If support isn’t possible through trade unions or employees associations, federal, state and local government agencies can also provide support. Governments play a crucial role in the Australian workplace. By setting and enforcing employment standards, our governments are one of the most important components of the Australian working environment. The regulation of minimum wages, leave and superannuation entitlements are just some examples of these standards. Government projects both create and sustain employment in Australian states and territories. All three levels of government are involved in the planning and implementation of new projects. Regardless of whether these projects involve the construction of new infrastructure or the creation of new training programs, they will generate jobs. Although private enterprise also generates jobs and helps set standards in certain industries, governments often have greater power and influence over job markets. Resources Digital documents Worksheet 3.3 The eight hour day (doc-32694) Worksheet 3.4 ‘The labourer is worthy of his hire’ (doc-32695) Weblinks Australian Council of Trade Unions (ACTU) Worksite Australian Retailers Association 3.3 Activity: Research and communication 1. Research an industrial action in Australian history. Write a summary of the dispute, answering the following questions: (a) What was the dispute about? (b) Who was involved in the dispute? (c) What kind of industrial action was taken? (d) How was the dispute resolved? 2. Set up a class debate to consider the topic: ‘Trade unions should not be allowed to call a strike.’ Share roles so that those not debating are involved either in assisting with research or in running the debate, and keeping notes on the arguments of both sides. 3. Use the Australian Council of Trade Unions (ACTU) Worksite weblink in the Resources tab and access the ‘Q & A Quizzes’ section of the site. Select and complete four separate quizzes. How would you rate your knowledge of the topics quizzed? Write down two things you learned from doing the quizzes. 4. Research one employer association referred to in the text by using one of the three Employers’ association weblinks in the Resources tab. Find out the number of members, the association’s aims and the services it provides. 124 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5  3.3 Exercise: Knowledge and understanding To answer questions online and to receive immediate feedback and sample responses for every question, go to your learnON title at www.jacplus.com.au. 1. What proportion of Australia’s population is currently employed in casual, part-time or full-time work? 2. When did the first trade unions begin and what was their purpose? 3. What is the main role of governments in the Australian workplace? 4. Suggest reasons why someone would choose: (a) casual work over part-time/full-time work (b) part-time/full-time work over casual work. 5. Explain the role of the Fair Work Commission. 6. Copy the table in section 3.3.3 and add a column titled ‘Percentage of all Australian businesses’. For this new column, you will need to take each category of business and calculate the percentage of Australian businesses that fall into that category. For example, what percentage of Australian businesses have 1–19 employees? Complete this calculation for each category in the table. 7. Describe the role played by trade unions in the workplace. 8. Explain the benefit to employees of joining a trade union. 9. Analyse how governments may assist in maintaining a work environment that benefits all parties. 10. ‘The bigger the business, the easier it is to manage the workplace.’ Do you agree with this statement? Justify your response. 11. Read Ellison Jack’s comments in section 3.3.4 and then answer the following questions. (a) Ellison Jack makes the statement, ‘I have had the strap when I did not do my bidding.’ Explain what you think she means by this. (b) Approximately how many hours did Ellison Jack work each day? (c) Explain why people had to endure these poor working conditions. (d) Outline how a trade union could have helped to improve the conditions for Ellison Jack. 12. Choose two items from the list of achievements of trade unions and explain why each achievement is of importance in our society. 13. What is the main difference between trade unions and employers’ associations? 14. List the main roles of: (a) trade unions (b) employers associations. 15. What gives a trade union and employer association their strength? 16. Why do you think young people are deciding not to join trade unions? 17. Many people say that trade unions have outlived their purpose — with working conditions greatly improved, there is no longer the need for trade unions. Do you agree or disagree with this statement? Justify your answer. Fully worked solutions and sample responses are available in your digital formats. 3.4 Types of employment and work arrangements 3.4.1 Paid and unpaid work Paid work is defined by the Australian Bureau of Statistics as People who work or are looking for performing services for one hour or more per week in return work are part of the labour force. for receiving money or income, while unpaid work comprises those tasks performed without receiving an income. Jobs such as cooking, cleaning and gardening are all work, but you cannot argue that you are employed when you are cleaning your room! Household chores do not earn an income, although your parents may reward you with pocket money for performing them. In the world of Economics, pocket money is not considered an income. Other examples of unpaid work are family duties, school work, voluntary work and community service. TOPIC 3 Employment and work futures 125 3.4.2 Types of employment Once you gain employment, you can be employed in many ways. A variety of employment contracts and types of employment are available, as shown in the following table. Type of work Features Full-time Continuing, ongoing employment Number of hours per week is 38 or more A range of entitlements received Part-time Ongoing employment Number of hours per week is fewer than 38 Number of hours may be fixed or variable Entitlements received on a pro-rata basis Casual Employed on an hourly, or ‘as needed’, basis No permanent weekly roster Hours vary from week to week; for instance, 10 hours one week and 3 hours the next May work for more than one employer. No access to entitlements but a loading received to compensate Self-employed An individual who works for himself or herself Each type of employment option has advantages and disadvantages. Karl Gerstenberg — full-time nurse ‘This is my first full-time job. I work 40 hours per week over a five-day cycle. Sometimes I also work overtime. I get additional pay for working more than my allocated hours. The hourly rate is also higher if I work at night or on weekends. Although I have to spend more time at work than in my previous part-time job, I enjoy earning a higher income. This has made it easier to start saving on a regular basis. As well, I am entitled to a wide range of non-wage benefits, especially paid holiday leave and long service leave. However, the greatest benefit is the job security. The main disadvantage of full-time work is not having time for my hobbies but I guess the extra money makes up for that.’ Virginia Dimitriados — part-time fashion designer ‘Part-time work suits me. I can earn some money on a regular basis but, because I am taking a TAFE course, I need time to study. As a part-time employee, I have job security because I work regular days and regular hours but for fewer days or hours than a full-time employee. As a part-time employee, I receive a number of entitlements on a pro-rata (proportional) basis. For example, I work three days per week so, therefore, I am entitled to three-fifths of the non-wage benefits available to full-time employees. However, part-time work does have a few disadvantages. Firstly, because I work fewer hours, I receive a smaller weekly pay and 126 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5 reduced entitlements compared to full-time employees. Secondly, I do not receive the loading paid to casual staff. Overall, while I’m studying, part-time employment offers better conditions than casual employment. An added benefit is that I’m presently able to work in the industry I want to have a career in. I’m studying fashion while I work with fashion, gaining real hands-on experience and training alongside my study.’ Sally Nicholson — casual checkout operator ‘As a casual worker, I am employed on an hourly basis. The main disadvantages of casual employment are that I do not receive a range of entitlements (non-wage benefits), such as long service leave or sick leave, and the lack of job security. If there is no work for me to do, I can be dismissed at one hour’s notice, or with one hour’s pay instead of notice. However, to compensate, I am paid a loading; that is, extra pay, on top of the normal full-time rate. As well, I have the flexibility to agree or refuse to work at a particular time. If I have agreed to take a job, I can take a few days unpaid leave if needed for emergencies such as my children getting sick, or illness or death within the family. While this job provides me with some income, because it is not regular, I am finding it difficult to obtain a home loan. If both myself and my employer agree, my employment status can be changed to permanent. Some places have a process that allows this to happen when you have worked for them for a specific period of time. This is different for each workplace though, so it’s important to find out what rights you have.’ Anderson Tubino — works from home ‘I’ve recently moved to Australia but still wanted to keep working for my boss in Brazil. I consider myself to be a crucial part of his business because I am in prototypes and design. So, my boss pays me to work from home. I’ve set up a small space where I can make the products and experiment with their creation but most of my work is actually just paperwork online and can be done anywhere. I recently travelled to China for a wedding and was able to check design mock-ups online and video conference while out and about. I really like the flexibility of my work and appreciate my boss being able to provide this opportunity for me. Sometimes I struggle with motivation of a morning, to get up and get focused on work because the comfort of my home is so relaxing. What I like best, though, is being able to help my son get ready for school each day. I don’t have to travel to work so I am available as a family man in the mornings and afternoons. Working from home gives me freedom and a lifestyle I enjoy.’ Grace Bernardini — self-employed landscape gardener ‘Being self-employed gives me the freedom and flexibility to work where and when I want to. I especially like making business decisions and being responsible for the business’s success. Creating an idea in my head and seeing it actually appear out there, that’s huge to me. I get enormous satisfaction from creating designs that delight my clients. There are also some tax advantages to being self-employed. However, being your own boss does have a number of disadvantages. I have no guaranteed income each week and, consequently, a lack of financial security. I have to pay for all my own entitlements and if I am ill, I earn no money unless I have some insurance. Risks are involved but hopefully the rewards will be greater.’ TOPIC 3 Employment and work futures 127 Maria Noel Machado — traineeship ‘I got a job as a receptionist at a local business. They realised I was great within the role and wanted me to train further to be the Business Administration Manager. I was then placed on a traineeship, (where you combine employment and training in order to gain a qualification) where I went to a private college for two years, part-time, while I was still working and getting paid. It’s great! I love that the theory I am learning matches what I am doing as part of my job. My workplace is really supportive too, and always provides me with learning opportunities and understands that I am still learning. Even better is that I have a job while I study, and I will be promoted when I finish my training, as well as being fully qualified.’ James Scott — apprenticeship ‘I knew I wanted to work in the trade industry, but I didn’t realise how easy it would be! Upon leaving school I saw a job online that a plumbing company needed apprentice workers. I didn’t really know what this meant, so I went along to the job interview and asked. Basically, the workplace pays for me to learn on the job as an apprentice (training that involves following and studying a qualified practitioner of a trade e.g. plumber). I work alongside more experienced employees for four years, gaining knowledge that they share with me. I also go to TAFE one day per week, and get paid to be there! I have to pass my TAFE assessments, but my workplace is really good and allows me time to prepare for them. I get paid slightly less than if I were fully qualified but this isn’t too bad, because I know my boss is paying for all my costs of learning, giving me equipment for learning and setting me up for my career.’ 3.4.3 The labour force and its workers Australia’s labour force is made up of people who are working and people who are actively looking for employment, whether it is full-time, part-time, casual or seasonal. The labour force is made up of people aged 15 and over who are either employed (including self-employed people) or unemployed. People not pensioners regarded as part of the labour force include: people with a physical or mental disability who are unable to work full-time students who do not work full-time carers who look after children or other family members volunteers working without pay in institutions such as the State Emergency Service and charities. A small percentage of the labour force (5.1 per cent in January 2019) is unemployed. This group is still included in the statistics on employment rates in Australia. be aged 15 years or over To be considered employed, you must fulfil all these requirements: have worked for at least one hour in the week, or have a job even though you were not at work in have received pay, profit, commission, or payment of some kind for your work. the week In Australia we have industry-wide awards that set out the minimum wages and working conditions for all employees in an entire industry or occupation. These awards also set out the award hours, which are the minimum weekly hours of work that a person covered by that award must be given. 128 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5  The employment relationship Employees provide their labour (time, skill and effort) to businesses. Employees Employers Employees receive income in return for their labour. 3.4.4 Voluntary work Voluntary workers play an essential role in our society. Many people in the local community work for voluntary agencies such as rural fire services, surf lifesavers and state emergency services. They receive no financial payment. They do it for pleasure and the satisfaction of being able to help others. Just because volunteers do not receive an income does not mean that the job they do is any less valuable. Alex Varen — volunteer ‘I wanted to contribute a bit more to my community. I only go to uni two days per week and I also work another two days. I realised that volunteer work was a nice way for me to give back to the people who helped me so much. So I signed up to be a volunteer lifeguard. I get about one shift per week, which is normally on a weekend. This suits me because I can enjoy the beach, and get to keep fit and active as well as helping out where needed. I think I got the desire to volunteer from my mum — she volunteers at a homeless shelter two nights per week. She always told me how rewarding it is to give and expect nothing back, and she is right! I love the satisfaction I get from assisting others with my skills and being a good citizen.’ 3.4.5 Forms of income Wages Wages are what an employee receives in exchange for their labour or services. Normally, a wage is a fixed regular payment, paid in increments. If working casually, a wage will be paid per hour; if working part- or full-time, it will be paid per week, fortnight or month as part of a salary. Salaries A salary is the total package of remuneration paid to an employee. Salaries tend to include your base pay, as well as superannuation, leave allowances and any other elements of finance such as bonuses. TOPIC 3 Employment and work futures 129 Commission A commission is another form of payment for a job or service. However, commissions mostly are percentages or ‘cuts’ of a bigger sale and are an incentive for that sale. Commissions are largely used in sales; for example, when reaching targets that boost business income, the business then shares a portion back with the employee who made the sales. Profits People who operate their own business are self- employed. They make their own income from the profit of the business. Profit is calculated by subtracting the expenses of a business from its revenue. This is given by the below equation: Profit = Revenue − Expenses Dividends A dividend is a sum of money paid regularly by a company to its shareholders out of its profits (or reserves). Some people use dividends as their main form of income and live off their investment dividend payments. Resources Digital document Worksheet 3.5 The workplace (doc-32832) 3.4 Activity: Research and communication 1. Undertake a quick survey of the class as to what type of work each student wants to do when they are no longer at school. Research the type of income and state the current pay rates that would be received. Present this information as a table. 2. Conduct a survey of your family and friends on the hours they work. Present your information in a table and discuss your conclusions with the class. 3. (a) Locate ten volunteer agencies that operate within your community. The Yellow Pages and the internet may help to get you started. (b) Choose one of the agencies and research the benefits that they provide. 4. If you had the opportunity to be a voluntary worker, what would you do and why? 3.4 Exercise: Knowledge and understanding To answer questions online and to receive immediate feedback and sample responses for every question, go to your learnON title at www.jacplus.com.au. 1. How does the ABS define work? 2. Why do you think the ABS definition requires a minimum of one hour of work per week? 3. Distinguish between paid and unpaid work. 4. Why is remuneration important for someone who is working? 5. Are the following statements true or false? (a) Pocket money is a form of income. (b) If you work only three hours per week, you are not employed. (c) A full-time employee works, on average, about 38 hours per week. 130 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5  6. Explain the difference between the following. (a) Casual work and part-time work (b) Paid and unpaid work 7. Tom stays home and looks after the house and children all week, and Janet works as a doctor. Who is working? Explain your answer. 8. Complete the statements by selecting the correct words from the following list. risks service pro-rata fewer freedom self-employed sick flexibility security (a) Casual employment offers ____________, but does not provide job ____________. (b) Part-time employees work regular but ____________ hours than full-time workers and receive entitlements only on a ____________ basis. (c) Full-time employees have the benefit of entitlements such as paid ____________ leave and also long ____________ leave. (d) ____________ people have the ____________ to work where and when they want to, but face greater ____________ than other types of employment options. 9. Which 16-year-old employee, performing the same duties, will receive higher hourly payments from her or his employer? (a) Casual employee (b) Part-time employee Justify your answer. 10. In your notebook or on your computer, construct and complete a table like the one below. The first answer has been filled in for you. Employment options available Casual Part-time Full-time Self-employed Advantages 1. Paid a loading Disadvantages 11. How is a profit calculated? Think of your local area and name three individual people who would earn a profit. Fully worked solutions and sample responses are available in your digital formats. 3.5 The nature of work 3.5.1 Choosing careers Even as a teenager, you have probably been asked the question, ‘What do you want to do when you grow up?’ From a young age, some people have a strong interest and desire to work in a particular job. In many cases, this interest comes from observing a parent, carer or guardian, sibling or family friend who works in a particular industry. Other people spend much of their teenage life and young adult life trying to decide exactly what they would like to do for work. In the contemporary Australian workforce, people may change their mind about what they want to do for work many times in their working lives. Choosing a career is a significant decision. It is natural for people to feel confused, unsure and nervous about making such a decision. A common tool people use to help them determine the type of work that may be suited to them is a ‘personality and career aptitude test’. This tool aims to identify the strengths, weaknesses, interests and personality traits of a particular person in order to suggest industries or occupations that may suit them. While these tests are useful, they are just one of many tools that young people can use to help determine the type of work they may be suited to. Parents, carers or guardians, siblings, friends, teachers, career counsellors and employment agencies may also provide useful information. TOPIC 3 Employment and work futures 131 3.5.2 Changing industries Within Australia, you can generally be employed Farming — primary production in a wide range of occupations, in a variety of different industries. An industry refers to a group of businesses involved in similar or related work. An occupation relates to the work or activities that a person performs in order to earn a living. However, over the last 100 years, the work people do has changed a lot. New occupations and industries are constantly being created as the Australian economy responds to influences such as technology, globalisation and sustainability. The three main types of industries are primary, secondary and tertiary. The nature of work within these industries is changing a lot and employees need to be aware of their dynamic role within Manufacturing steel frames — secondary production the workforce. Primary industry A primary industry is one that produces raw materials (for example, fresh fruit) from what nature has provided. All types of farming, mining, fishing, grazing and forestry are primary industries. Primary industries provide all our food. Hence, the work of employees in these industries is essential. As well, approximately 60 per cent of all Australia’s exports are primary industry products. Secondary industry Secondary industry include all workers involved in turning raw materials into finished or semi- finished products. For example, iron ore, coal and limestone are turned into steel — a semi-finished product. Steel is then used to manufacture cars and steel-framed houses — finished products. Dentistry — tertiary industry Tertiary industry People who work in tertiary industry provide a service to others (for example, retailers, dentists, bankers and solicitors). The number of employees in tertiary industries has grown so rapidly since the 1960s that it has been broken down into the quaternary industry and quinary industry. 132 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5 Quaternary industry The quaternary industry is made up of service industries that deal with processing information and knowledge. The ability to connect people online is one of the reasons this sector has grown. The sector includes technology jobs such as network specialists and IT professionals, along with services such as financial advisors, libraries and education. Quinary industry The quinary industry is made up of domestic services, many of which were once carried out by people within their own homes. Hospitality, childcare, domestic cleaning and home maintenance services are examples of quinary industry services. They include both paid and unpaid workers. IT consultant— quaternary industry Hospitality — quinary industry 3.5.3 Changes in occupations In 1900, nearly one-third of our labour force worked in primary industries, mainly farming and mining. Since then, the proportion of primary industry workers in the labour force has dwindled to about 3 per cent. Because of improved methods of farming and mining, and the use of mechanical equipment, fewer workers are needed to produce our food supply and minerals. For a long time, many of those who left the farms and mines moved into jobs within secondary industries. They took factory jobs in the city. In recent years, however, the proportion of the labour force needed to do factory work has been decreasing and is presently about 17 per cent. This is because many factory jobs have been eliminated by technology, especially automation. As opportunities for employment have decreased in some occupations, they have increased in others. In fact, about 80 per cent of the labour force consists of people working in service industries. This growth in employment in service industries is expected to expand rapidly during the next two decades because of advances in computing, especially telecommunications, as well as social and lifestyle changes. 3.5 Activity: Research and communication 1. The ‘Job Outlook’ website is an initiative of the Australian government’s Department of Employment. The website identifies a range of industries in the Australian economy and provides useful data about the characteristics and trends in different industries and occupations. Use the website to research two industries and present current trends within these industries in a table. 3.5 Exercise: Knowledge and understanding To answer questions online and to receive immediate feedback and sample responses for every question, go to your learnON title at www.jacplus.com.au. 1. Explain how the occupations of the labour force changed over the past century. 2. Use a table to list which industry each of the jobs below belongs to. Lawyer, chef, farmer, dentist, carpenter, computer operator, real estate agent, tow-truck driver, factory hand, cleaner, teacher, child carer, welder, journalist, newsreader, miner, secretary, surgeon, writer, machinist TOPIC 3 Employment and work futures 133  3. Use the table below to answer the questions that follow. Proportion of employment by industry in Australia 1900–2020 (%) Year Primary Secondary Tertiary 1900 34 20 46 1940 21 25 54 1980 8 21 71 2000 5 21 74 2020 (est.) 3 17 80 Source: Data derived from ABS statistics. (a) In which year was the proportion of people employed in the following industries at its highest and lowest? (i) Primary (ii) Secondary (iii) Tertiary (b) Which industry experienced the greatest increase and which suffered the greatest decline in employment over time? (c) Which industry was the most stable, with regard to employment over time? 4. In small groups, brainstorm these questions. (a) Why has the tertiary sector grown so rapidly over the past 100 years? (b) What does this tell you about future employment prospects? 5. With a partner, compile a list of tertiary jobs that are essential for the production of a reality tv show. Place the letters ‘Qt’ next to those jobs that would be classified as quaternary and the letters ‘Qn’ for those jobs in the quinary sector. What conclusions can you draw from the list? Fully worked solutions and sample responses are available in your digital formats. 3.6 Patterns of employment People are dynamic, as are workplaces. This means the nature of work is constantly changing to better meet the needs of the economy, of businesses and of society. 3.6.1 Participation rates When your grandparents worked, the majority of the Australian workforce was male. Most of these men were the ‘breadwinners’ — supporting their wives and families until retiring in their sixties. Women often ‘retired’ from the workforce when they married, and it was relatively uncommon for a woman to work if she had young children. Today, the two-income family is more common, with women continuing to work throughout the period of having dependent children. Employment is more likely to be part-time or casual and there have been significant changes in the types of jobs in which people are employed. The labour force today is well educated, and employees increasingly want more challenging, interesting work. Many feel driven to build their career through a succession of jobs in a range of different businesses. They want to be more involved in the decision-making process, and to make decisions for themselves. Employees want greater responsibility for their own actions and want to initiate tasks without being ordered to. With this shift in the way people approach their careers, human resources management has become increasingly important within the business world — emphasising the value placed on finding the right person for a particular role. In this subtopic, we will explore these and other changes to the Australian workforce and work patterns. 134 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5 The changing roles of women and men One of the most significant changes seen in the Australian workforce has been the increased participation of women. As mentioned, in the past it was common for women to leave the workforce when they had children, and often they never returned to paid work. This is no longer the case. Overall, the number of women in the work- place has risen rapidly in recent decades — women now comprise approximately 47.0 per cent of the workforce and have a participation rate of 61.1 per cent. The participation rate measures an economy’s active labour force and is the sum of all employed workers divided by the working age population. It refers to the number of people who are either employed or are actively looking for work. On average, the labour force participation rate of women is still lower than that of males; however, the gap has narrowed slightly over the years. This rise reflects increasing educational levels as well as women choosing to work longer instead of retiring. The following graph shows the change in workforce participation rates from January 1980 to January 2019. Labour force participation rates for men and women Participation rates 85.0 80.0 75.0 Male participation rates down 10% 70.0 over the past 40 years 65.0 Percentage 60.0 55.0 50.0 Female participation Males rates up 40% 45.0 Females over the past 40 years 40.0 80 85 88 91 94 97 01 04 07 10 13 16 19 82 n– n– n– n– n– n– n– n– n– n– n– n– n– n– Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Source: Adapted from Australian Bureau of Statistics, Labour Force, Australia, 2019 (cat. no. 6202.0). TOPIC 3 Employment and work futures 135  As women have entered the workforce The increased participation of women in the workforce has in greater numbers and continued to work created the need for formal childcare after having children, the need for formal childcare has increased. This has led to the growth of the childcare industry and has created significant new job opportunities in this area. Another significant change has been an increase in flexible work options, offering benefits such as parental leave (for both women and men) and part-time work, which allows greater flexibility to juggle the demands of work and parenthood. The following figure shows the proportion of males and females in the employed Australian labour force in May 2018, and their average weekly earnings. Proportion of males and females in the paid workforce in 2018, and their average weekly earnings All employees in May 2018 Males Females 49.9% 50.1% Average weekly earnings = $1525.40 Average weekly earnings = $1053.30 Source: Australian Bureau of Statistics, www.abs.gov.au/ausstats/[email protected]/mf/6306.0 Female employees slightly outnumber males, but as can clearly be seen, women’s average weekly earnings are significantly lower than that of men. This can be explained to some extent by looking at the differences in full-time and part-time participation rates. It is important to make sure women are not being discriminated against and that ‘glass ceilings’ as an unacknowledged barrier to advancement in a profession of a particular group (e.g. female), are shattered to allow equal opportunities for all genders. COMFACT A study in 2017 found that among Australia’s 200 largest companies, only 12 (6 per cent) have female chief executive officers (CEOs). Ironically, 7 per cent of the CEOs are called Andrew. This means you are more likely to gain a high leadership position within these companies if you are called Andrew than if you are a woman. Participating full-time, part-time and causally An employee is considered to work full-time if their hours of work equate to 38 hours or more per week, or they work the agreed or award hours for a person in their occupation or industry, and the work is ongoing. An employee is considered to work part-time if they work less than 38 hours a week in ongoing employment, where the number of hours they work is either fixed or variable. The following figure shows that in May 2018 there were more full-time employees (60.2%) than part- time employees (39.8%), and as would be expected, average full-time earnings ($1699.20/week) were 136 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5 significantly higher than average part-time earnings ($668.30/week). However, 54.6% of females were employed on a part-time basis, compared with only 24.9% of males; that is, the majority of male workers (75.1%) were employed full-time, which accounts for much of the disparity in average weekly earnings between men and women. The proportion of full-time and part-time employees in May 2018, and their average weekly earnings Total employees in May 2018 Full time Part time 60.2% 39.8% Average weekly earnings = $1699.20 Average weekly earnings = $668.30 Males Females Males Females 75.1% 45.4% 24.9% 54.6% Average weekly Average weekly Average weekly Average weekly earnings = $1810.90 earnings = $1515.60 earnings = $666.00 earnings = $669.30 Source: Australian Bureau of Statistics, www.abs.gov.au/ausstats/[email protected]/mf/6306.0 Casual workers make up approximately 20 per cent of the labour force. Some industries — such as the retail and hospitality industries — employ a large proportion of their workers as casuals. Some casual employees, especially the young, find it difficult to gain full-time employment. Their working life is often dominated by periods of part-time and casual work. Consequently, they have few opportunities for promotion and are usually retrenched first if the business is experiencing financial difficulties. These people will sometimes experience long periods of unemployment. Exploitation of these employees can also occur. However, some casual workers do not want to work additional hours and like the flexibility this type of employment provides when balancing their work and personal lives. 3.6.2 Hours of work In today’s work environment, there is a perception that people will be available outside of traditional work hours due to technology-enabled connectivity. They are generally working longer hours than ever before. While in some industries this may indeed be the case, Australian Bureau of Statistics figures show that since the 1980s there has actually been a decline in the average hours worked by Australians — from 35 hours average in the 1980s, to 32.9 hours average in 2011. The following figure depicts this change. TOPIC 3 Employment and work futures 137  The average number of hours worked by employed Australians shows an overall decrease from 1980 through to 2011. Hours worked by employed Australians 36 35 2011 32.9 hours 34 per week Hours 33 1980s average 1990s average 2000s average 35 hours 34 hours 33 hours 32 31 30 1980 1985 1990 1995 2000 2005 2010 Source: Adapted from Australian Bureau of Statistics, As a Matter of Fact, 2012 (cat. no. 1393.0). Most recent data available at time of publishing The change in average work hours can in part Changes to trading hours have had a significant impact be attributed to the significant increase in part- on the hours of work for many Australians. time employment during this period. Part-time roles now exist in almost all industries, and are particularly prevalent in the retail and hospitality sectors. Apart from the change in the number of hours worked, there has also been a significant shift in the times that people work. Where once the world of work was largely framed around the 9-to-5 workday, this is no longer the case. For example, changes to retailing regulations have created a demand for employees to work vastly different hours to those of the past, with weekend and late-night trading now allowing businesses to operate well outside 9-to-5, Monday-to-Friday hours. Similarly, venues such as bars, restaurants and nightclubs are now able to stay open much later, creating a need for staff who are willing and able to work shifts into the early hours of the morning. Consumer demand has also created a need to provide call centre staff in certain industries from early in the morning until late in the evening. Thus, employees working in such fields may work a range of hours that are significantly different to what was once the case. 138 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5 3.6.3 Work–life balance Many employees are requesting work arrangements that improve work–life balance. Employers are also recognising the cost savings and benefits of ‘family friendly’ workplace practices to motivate and retain skilled staff. Some work–life balance initiatives include workplace childcare, family leave and home-based work. Australia’s national paid parental leave scheme should also improve work–life balance for some families. The government-funded scheme commenced in 2011, providing payment for 18 weeks within the first year after the birth of the child. Additional changes were made in 2012 when it was decided that dads and partners were also entitled to two weeks paid parental leave. Flexible working conditions Flexible working conditions are patterns of work that Work is creeping further into employees’ allow employees to balance work, life and family private lives. obligations more effectively. For example, some employer–employee agreements allow opportunities for home-based work, which gives employees more flexibility during working hours. Many businesses also offer permanent part-time work, job-sharing and flexible working hours in order to retain skilled and valued staff. However, some employees (other than those who choose part-time work) are finding that flexible working hours and permanent part-time work may not be as beneficial as they had hoped. Many employees now work 12-hour shifts, broken by days off, as part of their industrial agreements. Others have lost their weekends and the opportunity to enjoy time off with their work, life and family obligations. These difficulties have arisen because employees and employers may have a different meaning for the term ‘flexibility’. For example, an employee may view flexibility as providing her or him with an opportunity to rearrange work hours to better suit lifestyle and family commitments. However, an employer may see flexibility as the introduction of longer shifts or the scrapping of penalty rates for weekend work. 3.6.4 Availability of jobs In the late 1960s, almost half of Australia’s labour force was employed in production industries such as mining, manufacturing, construction, electricity, gas and water, agriculture, forestry and fishing. In 1997, some thirty years later, that proportion had decreased to 28 per cent. During the same period, service industries grew substantially. These include: property and business services, accommodation, cafés and restaurants, culture and recreational services, personal and other services, health and community services, retail, education, transport and communication, trade and finance, and insurance. This trend continues today, and is a major factor in shaping the ongoing changes seen in the Australian workforce. 3.6.5 Job security A major concern for employees is the threat that they may lose their job. Job security is the likelihood that an employee will keep his or her job, and not face unemployment either through being made redundant or dismissed. In the past 20 years, employees have faced continuing employment cutbacks, automation, downsizing, increased competition from imports and non-unionised domestic companies. Job security can no longer be taken for granted. It is a significant issue for many Australian workers. TOPIC 3 Employment and work futures 139 3.6.6 Career lengths In Australia the national average tenure in a job is 3.3 years. Job tenure by age group in Australia Anecdotal evidence suggests that members of Generation X are likely to change jobs about 11 times during their Age group Average job tenure working life. It is anticipated that this figure may double for Generation Y or Generation Z and increase even further for Under 25 1 year, 8 months Generation Alpha. Research has found that the reason for changing jobs varies 25–34 2 years, 8 months social reasons – response to life events, such as from person to person, but may include: 35–44 4 years economic reasons – wanting to obtain better having children 45+ 6 years, 8 months career-related reasons – wanting to gain further working arrangements Average 3 years, 4 months Source: The Household, Income and Labour career experience other personal reasons – a desire to gain new experiences. Dynamics in Australia (HILDA) Survey, workplace inclusion/exclusion or bullying Department of Employment a lack of opportunity to change jobs Possible reasons may include: Today’s workers change jobs far more security often than they did in the past. This convenience trend is expected to continue. feeling valued in a role liking the people they work with a faster commute (quick to get to and from work) the need to build/consolidate retirement (superannuation) funds. 3.6.7 The impact of technology on the nature of work Technological advances are causing the nature of work to change. New jobs are being created, while others are made redundant. The so-called ‘information revolution’, brought about by the use of new communication technologies, has led Through advances in technology to massive changes in the way people work. One area of employers can now easily access concern is the ‘always available’ trap: checking emails and potential employees from around the SMS messages during downtime, such as when commuting or world. holidaying. This has extended the working day. People’s digital footprint and their interactions on the web have also blurred the lines between their personal lives and their work lives. While technological change improves productivity, it can result in an unprecedented invasion of personal time, which has a negative effect on work–life balance. 140 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5  CASE STUDY When will the self-service machines win? The man who invented the self-service checkout system, Dr Howard Schneider, was laughed at when he first pitched his machine to a supermarket chain in the 1980s. Back then, the idea of replacing humans with an object appeared ridiculous. Moving forward to today, we can see how much the world has changed. The rollout of self-checkout systems is steadily increasing in Australia, even though some shoppers find them frustrating and difficult to use. Messages about unexpected items in the bagging area or the inability to locate pomegranates in the fruit category can lead to frustration and irritability and thus also customer dissatisfaction. Other people love the new invention because it provides convenience when they just ‘pop in’ for a few items. However, the machines are yet to provide a win for the stores, because they have to still ‘staff’ the self-checkout areas to provide help with working the systems and in an attempt to combat theft. For the moment, it appears that the machines have not replaced the necessity of humans in this scenario. However, newer modules are already being built with increased scanning accuracy. Who knows what this will mean for job security in this industry in the future? 3.6.8 Globalisation as a changing factor Another aspect of advancing times is globalisation. This is the process of businesses or other organisations developing international presence or starting to operate on an international scale. When expanding overseas, some employment opportunities will go overseas too. For example, overseas call centres first began because Australian customers wanted to call for support about products and services outside of their own working hours. This meant it was ideal for the call centre to be located in another country, where the times for workers there matched up with times that Australia people were not working. Globalisation increases ease in operations, reduces costs for consumers and assists with international trade success. Resources Weblink Hours of work 3.6.9 Sharing economy This is an economic system whereby goods and After launching their ride-sharing platform in 2012, services are shared between individuals either for Uber launched UberEATS, a food delivery platform, free or for a fee. Generally, it will involve using in Sydney in 2016. some form of an online platform. It brings many benefits, including cheaper goods and services, extra income for providers, and provides flexible employment opportunities for workers. The sharing economy is often criticised as it tends to treat workers as individual contractors, which can lead to lower wages and poorer working conditions. Firms in the sharing economy also frequently cause problems for traditional businesses. For example, Uber has had an enormous impact on the traditional taxi industry. Examples of firms in the sharing economy include Airbnb, Uber, GoGet, and oBike. TOPIC 3 Employment and work futures 141  CASE STUDY Airbnb Airbnb began in 2008 when two designers had some spare space and decided to share this with three travellers looking for a place to stay, by acting as ‘hosts’ during their stay. Now, millions of hosts and travellers use Airbnb so they can list their space and book accommodation options anywhere in the world. This concept of sharing allows the everyday person to ‘share’ their spare house, room or bed, and then share in a payment for the use of it. Contemporary businesses are able to assist individuals who want to share. As such, Airbnb is now an extremely lucrative company, allowing all involved to benefit from this new outlook. Resources Digital document Worksheet 3.6 work patterns (doc-32696) 3.6 Activity: Research and communication 1. Using the case study ‘When will the self-service machines win?’ as a starting point, brainstorm the effects technological advancements have had on our society. 2. As a group, discuss why Airbnb is a good setup for the following participants. (a) The visitor (b) The host (c) Airbnb 3. Select a service that could be shared. Design a poster and a 30-second digital advert for your ‘shared economy’ business venture. 4. Discuss the following statement: ‘The value of work is a personal thing’. 5. Use online resources (such as the Hours of work weblink) to find and examine information on average hours worked by Australians. Describe the changes in working hours from the 1980s to today. Have they increased, decreased or remained the same? 3.6 Exercise: Knowledge and understanding To answer questions online and to receive immediate feedback and sample responses for every question, go to your learnON title at www.jacplus.com.au. 1. Are the following statements true or false? (a) The number of females in the labour force has increased over the last 30 years. (b) This subtopic was about the changes in traditional work patterns. (c) Work–life balance initiatives are becoming common in workplaces. 2. Identify some things that employees want from their job in today’s society. 3. Summarise three points from the ‘Women in the workplace’ section. 4. Why do many businesses offer ‘family-friendly’ workplace practices? 5. List four factors causing job losses. 6. Why do employers and employees sometimes hold conflicting views with regard to flexible working hours and part-time work? 7. Outline two effects of technology on work patterns. 8. What are the advantages and disadvantages to employees of flexible working conditions? 9. Describe some of the advantages and disadvantages of the shared economy. 10. Examine the graph showing labour force participation rates for men and women. Discuss how participation rates of women have changed from 1980 to today. 142 Jacaranda New Concepts in Commerce Fourth Edition NSW Stages 4 & 5  11. Review the figures showing proportion of men and women in the paid workforce in 2018, and the proportion of full-time and part-time employees in 2018. Consider the information shown in these figures with other factors discussed in this subtopic and explain why the average weekly earnings for women are lower than they are for men. Fully worked solutions and sample responses are available in your digital formats. 3.7 SkillBuilder: Analysis and interpretation of data 3.7.1 Tell me Tables and graphs can provide a wealth of information clearly and concisely; to get the most from them, it is important to analyse them closely. Line graphs are very useful for showing trends (patterns of change over time) and comparing data. When analysing a line graph, first examine the heading — what does it tell you about the data contained in the graph? Examine the key, which identifies what each of the lines on the graph represents. Then look closely at the vertical and horizontal axes, they show you the variables as numbers, percentages, years and so on. When reading line graphs, find points on the graph where two variables meet to obtain specific information. For example, in the following graph showing part-time employees as a percentage of total employees, we can see that about 20 per cent of all people employed in 2002 worked in casual roles. The trend lines on a line graph show an overall picture of what is happening; that is, whether a particular variable has increased, decreased or remained steady over time. Examine these lines closely — what changes do you see? If there has been change over time, has it been steady and gradual, or perhaps sudden and erratic? When examining a line graph, note down any patterns that you identify. You will then be ready to complete your interpretation, which involves writing a paragraph or two to summarise the information you have found in your analysis of the data. 3.7.2 Show me Examine the following graph. Casual share of total male and female employees, 1992–2016 Casual share of total male and female employees, 1992–2016 35 30 30 25 27 Percentage 20 23 15 14 10 5 Males Females 0 92 94 96 98 00 02 04 06 08 10 12 14 16 19 19 19 19 20 20 20 20 20 20 20 20 20 Source: ABS, Australian Labour Market Statistics, cat. no. 6105.0 (estimates for 1992 to 2004): ABS, Characteristics of Employment, cat. no. 6333.0, (estimates for 2005 to 2016) TOPIC 3 Employment and work futures 143  The graph’s title tells us that the data provided relates to the proportion of all employed people who were employed on a casual basis during the period 1992 to 2016. Looking at the key, we can see information is provided about men and women as part of the total employed population. The green line shows the percentage of all employed females who were employed casually, and the blue line shows the percentage of all employed males who were employed casually. Looking at these lines on the graph, we can clearly see that the percentage of females employed casually is significantly higher than that of males.