The steel industry in the world has, in the recent past, had its fair share of challenges. The Australian steel industry, in particular, is an embodiment of such problems. Among other obstacles, such industries face climate change challenges, human resource and constraints associated with the raw materials.
Looking back at history, however, the steel manufacturing in Australia has never had it smooth. The genesis of the trouble that has plagued the industry ever since is the inauspicious beginning following the 1840’s discovery of iron deposits at Iron Knob, SA. As a result of poor quality of the iron ore and the coke, the steel imports from Britain presented stiff competition. As such, the Australian industry stalled in the 1870s. But at the onset of the twentieth century, the industry rose from the dust due to the increasing demand for steel. Among other steelworks that went into operation at the time include the Port Kembla industry in the New South Wales. But as such events as the first world war set in, the demand for steel overly burgeoned almost tripling the initial demand. As such, most of the aspects and factors of production in a larger industry were overlooked. Staffing, production, availability of raw materials and market availability were some of the overlooked aspects at the time. Such negligent would later come to haunt the Australian steel industry leading to the closure of some of the most steelworks.
The challenges, primarily human resource, are the basis for the following discussion
Table of Contents
1.0. Introduction
2.0. History of the Steel Industry
2.1. Port Kembla Steelworks
2.2. Importance of the Steel Industry in Australia
3.0. The Global Financial Crisis and its Effects on the Steel Industry
3.1. Role of Unions
3.2. Closure of the Company
3.3. What an expatriate manager must prepare for
4.0. Conclusion
Research Objectives and Themes
This report aims to investigate the critical human resource management challenges facing the Port Kembla steelworks, contextualizing them within the historical and economic landscape of the Australian steel industry to understand the factors driving the plant's potential closure.
- Historical evolution of the Australian steel industry and the Port Kembla plant.
- Impact of the Global Financial Crisis on steel demand and production costs.
- The complex influence of trade unions on organizational operations and labor disputes.
- Human resource management strategies for navigating periods of economic downturn and potential retrenchment.
- Management competencies required for expatriates leading companies through industrial crises.
Excerpt from the Book
3.1.Role of Unions
Trade Unions are efficient and detrimental in the same measure; depends on which side you are viewing it from (Hobbs 2008). In the real sense, trade unions are the only tool that employees have to lobby for most of the changes including a better working environment within their organizations. Unlike their un-unionized counterparts, unionized workers enjoy better wages, job security and enhanced access to benefits. In the US, for instance, the average weekly earnings of full-time unionized salary and wage workers was $917 compared to the $717 for nonunion workers (John 2011). A similar situation was witnessed in Australia even though the figures are not exactly the same. In the same year, Erik (2013) found out that 93 percent of union workers were entitled to medical benefits in comparison to the 69 percent for those workers not in the union. Here, it is important to note that the steel industry in the US consists of all the groups of employees mentioned. Nonunion employees are absorbed “at will” and so they can be fired without any watertight justification at all. On the other hand, a unionized worker can only be fired for “just cause.” In other words, the misconduct must be gross enough to warrant such dismissal. But still, employers look at unions as a threat to the growth of the companies. Notably, organizations think workers can use the unions to lobby for untenable salary increments and working conditions that would harm a business. In as much as this is true, it is never the case for most of the part. But still, the fact is that “power in numbers” may or may not be a threat to an organization depending on how it is handled.
Summary of Chapters
1.0. Introduction: This chapter introduces the potential closure of the Port Kembla steelworks, attributing the crisis to human resource issues and poor management practices.
2.0. History of the Steel Industry: This chapter reviews the historical development of the Australian steel sector, highlighting the establishment of Port Kembla and its economic significance.
3.0. The Global Financial Crisis and its Effects on the Steel Industry: This section explores how the 2007 financial crisis, coupled with fluctuating raw material costs, negatively impacted the global and Australian steel markets.
3.1. Role of Unions: This chapter analyzes the dual role of trade unions as advocates for worker benefits and potential obstacles to necessary organizational restructuring.
3.2. Closure of the Company: This section examines the specific implications of the proposed job cuts at BlueScope and the resulting impact on the workforce and the regional economy.
3.3. What an expatriate manager must prepare for: This chapter outlines the essential management skills and human resource approaches required to navigate a company through a period of crisis and structural change.
4.0. Conclusion: The final chapter summarizes the urgency of addressing human resource challenges as a necessary step toward reviving the struggling steel industry.
Keywords
Port Kembla, BlueScope Steel, Human Resource Management, Steel Industry, Australia, Global Financial Crisis, Trade Unions, Retrenchment, Labor Relations, Workforce, Economic Downturn, Management, Industrial Relations, Recruitment, Retention.
Frequently Asked Questions
What is the primary focus of this report?
The report focuses on the human resource management challenges currently threatening the viability of the Port Kembla steelworks in Australia.
What are the central themes discussed in the text?
The core themes include industrial history, the impact of global economic crises on localized manufacturing, the role of labor unions, and the strategic management of workforce reductions.
What is the main objective of this study?
The objective is to identify and analyze the HR challenges facing the steel plant to determine how management can navigate the threat of closure.
Which methodology is employed in this research?
The author uses a qualitative analysis approach, examining historical industrial data, labor market comparisons with the US, and current management scenarios to assess the situation.
What is covered in the main section of the document?
The main section details the history of the steel industry, the economic pressures caused by the Global Financial Crisis, the influence of the Australia Workers Union (AWU), and the leadership challenges for managers in crisis.
Which keywords best characterize this work?
Key terms include Port Kembla, Human Resource Management, trade unions, BlueScope Steel, and economic crisis.
How does the author view the role of trade unions in the current crisis?
The author views unions as a "necessary evil" that provides essential advocacy for workers but simultaneously complicates the industry's ability to restructure and remain competitive.
What specific advice does the report provide for an incoming manager?
The report suggests that an incoming manager must adopt an objective yet moderate approach, focusing on leadership development, transparent communication regarding necessary changes, and maintaining staff motivation despite the financial crisis.
- Quote paper
- Jonathan Deaux (Author), 2015, Human Resource Management Issues at the Port Kembla Steelworks, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/379528
