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1. Systems Theory, ‘Web or Rules’,
and the Fair Work Act
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2. Definitions
 Dunlop’s Systems theory, key concept: functionalist or
structuralist perspectives of society
 The macro-sociological, social system or order view of
society
 Functionalism: nature and goals of a theory
 Teleological - concerned with goals a system serves
 Mathematical - co-variation between variables
 Configurational - interdependence between elements of a
system; seeks to examine how and what each contributes to
the whole
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3. Definitions
 DS theory based on works of Parsons (social system), which adopted
an inherent bias in favor of order and stability.
 Dunlop: at any stage of its development, an industrial-relations system
has four elements:
i. Actors - the parties involved
ii. Contexts - nature of industrial relations differs from one context to
another
iii. Body/bodies of rule - governing the actors through ‘substantive and
procedural rules in the context
iv. Ideology - binding the various elements of an industrial-relations
system together
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4. Dunlop’s Systems theory
 Actors defined based on product and labor markets, technology, and
distribution and/or balance of power in wider society
 Key factor: implications on workplaces and individuals
 Context defined by technology, budgetary and market factors, and
balance of power in society
 Premise: the larger environment… shapes the conduct of and the rules
established by workers, employers and the state
 Body of rules (Web of Rules) governs the workplace (context) and
interactions between people in it
 Ideology: beliefs held by actors in a context, that integrate and/or bind
the system together as a single entity; must be “sufficiently consistent
or compatible to permit a common set of ideas which recognize an
acceptable role for each actor”
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5. ‘Web of Rules’
 Governs relationship among other elements of industrial relations
 Divided into substantive and procedural rules.
 Substantive rules set and define terms and conditions of employment.
 Procedural rules focus on procedures for resolving conflicts between
parties and interpretation of rules made in disagreement between
parties
 Other rules concern negotiations, management prerogatives, joint
consultations, as well as conditions of service.
 Mainly made within the organization (internally) to guide the behavior
of the parties involved.
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6. Substantive Rules of the Act
 Basic mandatory obligations for employers, conditions under which a
person or institution is considered an employer.
 Provides responsibilities of employers and employees within its
definitional framework
 Rules on the minimum national employment standards -
minimum/maximum number of hours an employee can work in a
week, accompanying conditions, etc.
 Base rate of pay – “rate of pay payable to the employee for his or her
ordinary hours of work”
 Not including monetary allowances, loadings, penalty and/or overtime
rates and incentive-based bonuses and payments, etc.
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7. Procedural Rules of the Act
 Address issues on relationship between employers and
employees and/or between employer and employer.
 Rules on ‘how’ to terminate employment and make an
‘unfair termination’ claim - reinstatement and/or
compensation.
 Termination must be made in writing, specifying date and
reason.
 Employee required to make an ‘unfair dismissal’ claim
within 14 days of employment termination.
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8. Procedural Rules of the Act
 Settlement of small claims: provides capacity for employees
to pursue claims as little as less than $20,000
 Others: ‘agreement making’ and ‘good faith bargaining’.
 Collective Bargaining: where employees, employers, and
their representatives bargain over an enterprise agreement.
 Good faith bargaining: all parties present – employer
permits good faith bargaining in agreement to negotiate or
initiate an enterprise agreement.
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