Brief highlight of organization & its IR issues/s

EXECUTIVE SUMMARY (150 words)

 Brief highlight of organization & its IR issues/s

 Main parties involved

 Highlight your solutions /recommendations to the IR issues.

TABLE OF CONTENTS (100 words)

Introduction

INTRODUCTION (150 words) What your report includes.

This report discusses one of the major industrial issues (17.7% pay rise) facing one of Papua New
Guinea’s biggest State Owned Enterprise known as PNG Power Ltd. This report will give an overview
of the key information about PNG Power Ltd, and will discuss other Industrial Relation issues PNG
Power has. Including, other major issues and why this is serious, groups and individuals involved in
the Industrial Relation issues, and a brief history of how these parties have tried to solve the IR issue.
In addition, this report will investigates solutions and give recommendations to industrial relations
problems on PNG Power’s IR issue of 17.7% Pay Risebased research.

Significance of the report.

This report takes into consideration the important factors affecting the productivity and efficiency of
the employees of the PNG Power Company. And how the drastic effects of not meeting their
expectations and needs would cost the company in the long-run. This report will also look at ways in
which our government could help solve these IR issues if so ever one mat arise in time. Therefore,
this report will discuss about the current 17.7% Pay rise IR issue facing PNG Power Ltd and will look
at solutions and recommendations to solve this issue.

BODY (1 500 words)

Body
 Give an overview of key information about the organization.

PNG Power Ltd (PPL) is responsible for generating, transmitting distributing, and retailing electricity
in Papua New Guinea and providing service to individual consumers.a fully integrated power
authority responsible for generation, transmission, distribution and retailing of electricity
throughout Papua New Guinea and servicing individual electricity consumers.

PNG Power provides its services to customers in almost people in all urban centres areas and is
trying to reach out to the rural areas of Papua New Guinea. It contributes to the throughout the
country’s encompassing commercial, government, domestic, and industrial sectorsl, commercial,
government and domestic sectors. PNG Power is also given regulatory roles by the Independent
Consumer and Competition Commission (ICCC) on its behalf. Some of these responsibilities includes
certifying electrical equipment’s and models of appliances to be sold in the PNG and safety service
advisory and checks on large installations. In addition, PNG Power approves licenses for electrical
contractors. Where possible, the services extend to rural communities adjacent to these urban
centres.

PNG Power also performs a regulatory role on behalf of the Independent Consumer and Competition
Commission (ICCC). These responsibilities include approving licenses for electrical contractors,
providing certification for models of electrical equipment and appliances to be sold in the country
and providing safety advisory services and checks for major installations.

PNG Power Limited (Company No1-44680) was corporatised under Section 3 (1) of the Electricity
Commission (Privatisation) Act 2002 as the successor company to the Papua New Guinea Electricity
Commission (ELCOM). All of ELCOM’s assets, liabilities, rights, titles and personnel were transferred
to PPL.

 What other IR Issues does this organization has?

According to (-----------------), executives of PNG Energy Workers Association met the PNG Power
Management on the 31st of July,2017 to cover all the issues brought up by the Union. Due to this
event PNGEWA members agreed to continue work once their issues were solved by the board and
management of PNG Power Ltd. Some of the IR Issues raised by the Union includes;

 17.7% Pay Rise under the Enterprise Agreement 2015 that is outstanding and must be
provided to all PNG Power employees as soon as possible.
 Creation of a Consultative Committee under Section 4 (4.5) of the Enterprise Agreement
2015to specifically deal with matters under the Enterprise Agreement 2015.
 Outstanding movement of salary of grades 14 – 10 staff from band one to band two to be in
motion as soon as possible.
  The discriminatory implementation and application of the five percent CPI given by the
Enterprise Agreement 2015 seen CPI is to be dealt with as soon as possible.
 The outstanding movement of salary of grades 14 – 10 be given to only those include in the
union, who serves as a member of the Union.
 The outstanding SAP (Structure Alignment Program) 2010 be addressed as soon as possible.
 The Structure Alignment Program should be done by 2017 in the month of May and the
allocation of funds only to members of the PNGEWA as soon as possible.
 Selling of company houses and outstanding ownership of home schemes must be settled as
soon as possible.
 Recruitment process and the delegation of funds by the Board and Management of PNG
Power and should also provide plans and programs by 2017 in the month of April.

Major IR Issue and why this is serious.

 The parties involved in the IR Issues (employees, employers, Government, Trade Unions,
Customers & others)
The parties involved in the IR issue Includes the PNG Power management and executives and
the PNGEWA and its members. The PNGEWA (Papua New Guinea Energy Workers
Association) are actively seeking ways to solve issues between employees and the employers
of PNG Power.

 History of how the parties have tried to solve the IR issue -Status Que. E.g. Involvements of
Arbitration Tribunals or other legal avenues to solve the IR issue.

Arbitration is a technique used by associations to resolve and settle conflicts by a third party
who is neutral. In this case, PNG Power Management and the PNGEWA, it was the
government who was the third party who made bargains after listening to both sides of the
argument. The arbitration method is a much more cost effective form of resolving issue
raised by the PNGEWA in comparison to court.

LITERATURE REVIEW (300 words)

Literature Review
  Look at the existing literature on the IR issues you have identified, focusing on the major IR
you have identified & discuss some trends, statistics, main issues & challenges. This could be
both globally & locally.


 Citations & Referencing required here

RECOMMENDATIONS/ SOLUTIONS (300 words)

Recommendations/Solutions
 Your solutions/recommendations to the major Industrial Relations Issue.

 Include recommendations to the Government, employees, Employers, Trade Unions & other
parties involved in the IR issue.

 You can also propose a new method of solving IR issues in PNG (an IR issue resolution model
for PNG)!!

https://www.pngpower.com.pg/index.php/news/view/png-power-ltd-management-to-meet-with-
union-exectutives

PNG POWER LTD MANAGEMENT TO MEET

WITH UNION EXECTUTIVES
 28 Jul 2017
The PNG Power Management will meet with the executives of the PNG Energy Workers
Association on Monday, July 31, 2017 to go through all the issues raised by the Union.

This follows action taken by PNGEWA members to stop work until their outstanding grievances
are addressed by the Board and Management of PNG Power Ltd.

The grievances raised by the Union include the following:

1. 17.7% Pay Rise that is outstanding and must be effected immediately to all employees
pursuant to the Enterprise Agreement 2015.
2. A Consultative Committee be immediately established pursuant to Section 4 (4.5) of the
Enterprise Agreement 2015 to specifically deal with issues and matters of concern under the
Enterprise Agreement 2015.
3. That the Discriminatory Application/Implementation of the five percent CPI stipulated by the
Enterprise Agreement 2015 cited CPI must be dealt with immediately.
4. That the outstanding salary movement for staff on Grades 14 -10 from Band One to Band
Two be immediately effected.
5. That the salary upgrading/movement for staff on salry Grades 14-10 which was supposed to
be effected on 12th April, 2017, Pay period 9/2017 be effected immediately for Union members
only.
6. That the outstanding 2010 Structure Alignment Program (SAP) be resolved immediately.
7. That the SAP be settled by the month of May, 2017 and payment be made retrospective to the
month of May 2010 and payment only to PNGEWA unionized members must be settled
immediately.
8. Outstanding Home Ownership scheme/sales of Institutional House must be resolved
immediately.
9. That the PNG Power Board and Management provide their action plan and Program by the
month of April, 2017 inclusive of Recruitment process and Financial delegation.
10. That the Ex- gratia /Service Entitlements for the former PNG Electricity Commission
employees and transferred to PNG Power Limited be paid out the PNGEWA members only.

According to our records Grievances 1, 2, 3, 7, 8, had already been addressed.

The other outstanding grievances, including 4, 5, 6, 9,10 could not be dealt with due of lack of
quorum at several of the ECC Meetings.

As a way forward and in order to effectively deal with union issues, the Board had directed the
Management to create a full time position for an Industrial Relations Officer/Cordinator to deal
with union matters. This position has been advertised in the newspapers this week.

I appeal to the staff not to take any drastic actions that would affect the operations of the
company and the general public at this very crucial time where the counting of the ballot papers
in the 2017 General Elections is not fully completed yet and with the formation of the
Government coming up next week.

Let us sit down with your executives on Monday and go through your grievances and address
them again.

https://www.pngpower.com.pg/opportunities/apprenticeship

About Us
PNG Power Ltd (PPL) is a fully integrated power authority responsible for generation,
transmission, distribution and retailing of electricity throughout Papua New Guinea and servicing
individual electricity consumers.

PNG Power services customers in almost all urban centres throughout the country
encompassing industrial, commercial, government and domestic sectors. Where possible, the
services extend to rural communities adjacent to these urban centres.

PNG Power also performs a regulatory role on behalf of the Independent Consumer and
Competition Commission (ICCC). These responsibilities include approving licenses for electrical
contractors, providing certification for models of electrical equipment and appliances to be sold in
the country and providing safety advisory services and checks for major installations.

PNG Power Limited (Company No1-44680) was corporatised under Section 3 (1) of the
Electricity Commission (Privatisation) Act 2002 as the successor company to the Papua New
Guinea Electricity Commission (ELCOM). All of ELCOM’s assets, liabilities, rights, titles and
personnel were transferred to PPL.
Company Ownership and Reporting

PNG Power is a State Owned Entity (SOE). The Kumul Consolidated Holdings Limited (KCHL) is
the shareholder who holds shares as trustee of the General Business trust (GBT). The ultimate
shareholder is the Government of Papua New Guinea who appoints the Board through the
National Executive Council (NEC). The PNG Power Board reports to KCHL. The Minister for
Public Enterprise and State Investments is responsible for all State Owned Entities. PNG Power,
through the Board provides regular financial and operational reports and a business plan to
KCHL on an annual basis.

PNG Power Ltd Board

The Board consists of 7 Directors. Appointment of the Board Directors are made pursuant to
Section 12 of the Kumul Consolidated Holdings Act 2002 (as amended). The Board has the
ultimate responsibility to its Stakeholders for the strategy and performance of the Company in
general. The Board is dedicated to fulfilling these duties in a lawful and professional manner, and
with the utmost integrity and objectivity. As such, the Board actively pursues best practice
governance processes.

PNG Power Ltd Constitution

PNG Power Limited as an incorporated Company (1-44680) under the Companies Act 1997
has a Constitution that governs its internal management and oversees the activities of the
company as well as the relationship of the company’s directors and shareholder. .

https://www.myadvo.in/blog/how-to-resolve-industrial-disputeshttps://www.myadvo.in/
blog/how-to-resolve-industrial-disputes

Industrial Dispute Act: Process of Resolution of Disputes

The redressal of industrial disputes is very pertinent for effective functioning of the industry.
Therefore, the Industrial Disputes Act, 1947 has provided various ways to settle industrial
disputes by empowering the appropriate government to appoint different authorities as and
when necessary, in order to maintain industrial peace and harmony. The recent amendment to
the Act has provided for setting up of grievance redressal committee.

Written by:
Prachi Darji

88,602

Published on
24-Jun-19
Industrial dispute arises when employees and the employers fail to sort out their differences.
Industrial dispute is always harmful to all persons associated with such industry as it affects all
stakeholders, management, employees, economy, and society. The employers suffer losses in
production, revenue, profits and even sickness of the plants; whereas the employees may suffer
due to loss of wages and even jobs. Since industries are the pillars to economic growth, any
dispute is detrimental to the rate of growth of the economy which ultimately affects the whole
society. Therefore, Industrial Disputes Act, 1947 provides machinery to resolve such disputes by
following ways:

 Collective Bargaining
 Grievance Redressal
 Arbitration
 Conciliation
 Adjudication

Collective Bargaining
Collective bargaining is the most effective method of resolving industrial disputes. It occurs
basically through Works Committee i.e. when representatives of both workmen and employer
meet to settle the differences which may be due to disputes in wages, benefits, work rules, etc.
Since both parties have their representatives, they can collectively bargain to protect their
interests and reach a settlement.
Grievance Redressal Mechanism
A grievance may be defined as a sort of dissatisfaction to workman with any aspect of the
organisation wherein he is employed. The same needs to be redressed for the betterment of the
industry. The Industrial Disputes (Amendment) Act, 2010 has substituted a new chapter i.e.
Chapter II-B in the Act with the purpose to establish an effective tool to resolve industrial
disputes. The title of the Chapter is Grievance Redressal Machinery. Section 9C of the Act
provides for the establishment of Grievance Redressal Machinery.

 Every industrial establishment having twenty or more workmen shall have one or more
Grievance Redressal Committee for the resolution of disputes arising out of individual
grievances
 The Grievance Redressal Committee shall consist of equal number of members from the
employer and the workmen
 The chairperson of the Grievance Redressal Committee shall be selected from the
employer and from among the workmen alternatively on rotation basis every year
 The total number of members of the Grievance Redressal Committee shall not exceed six
 There shall be one woman member in the Grievance Redressal Committee in case of two
members. In case the number of members are more than two, the number of women
members may be increased proportionately
 The Grievance Redressal Committee shall not affect the right of the workman to raise
industrial dispute on the same matter under the provisions of this Act
 The Grievance Redressal Committee may complete its proceedings within thirty days on
receipt of a written application by or on behalf of the aggrieved party
 The workman who is aggrieved by the decision of the Grievance Redressal Committee
may appeal to the employer against the decision of the Grievance Redressal Committee
and the employer shall, within one month from the date of receipt of such appeal,
dispose off the same and send a copy of his decision to the workman concerned

Arbitration
Arbitration is a method of settlement of a dispute wherein a neutral third party (appointed by
both parties) apprehends the bargaining situation after listening to both the parties and studying
other information. An award is made on such settlement that binds the parties. Arbitration is
effective as a means of resolving disputes because it is relatively expeditious as compared to
court.

When can the parties refer an industrial dispute to

arbitration?
Section 10A of Industrial Disputes Act, 1947 provides for Voluntary reference of disputes to
arbitration. It says:

 Where any industrial dispute exists or is apprehended and the employer and the
workman agree to refer the dispute to arbitration, they may, at any time before the
dispute has been referred under section 10 to a Labour Court or Tribunal or National
Tribunal by a written agreement, refer the dispute to arbitration and the reference shall
be to such person or persons (including the presiding officer of a Labour Court or
 Tribunal, or National Tribunal) as an arbitrator or arbitrators as may be specified in the
arbitration agreement
 If arbitration agreement provides for a reference of the dispute to an even number of
arbitrators then agreement shall provide for the appointment of another person as
umpire who shall enter upon the reference, if the arbitrators are equally divided in their
opinion, and the award of the umpire shall prevail and shall be deemed to be the
arbitration award for the purposes of this Act.
 An arbitration agreement must be signed by the parties thereto in such manner as may
be prescribed
 A copy of the arbitration agreement shall be forwarded to the appropriate government
and the conciliation officer
 The arbitrator or arbitrators shall investigate the dispute and submit to the appropriate
government the arbitration award signed by the arbitrator or all the arbitrators, as the
case may be

Conciliation
Conciliation is a process to resolve the dispute where representatives of workers and employers
are brought together before a third party (conciliation officer) with a view to convince them to
arrive at mutual settlement. The conciliation officer basically acts as a catalyst who deals with
parties separately and collectively in order to provide an effective solution to the dispute. The
appropriate government may appoint one or more conciliation officer, charged with the duty
of mediating in and promoting the settlement of industrial disputes. Section 12 of the Act
provides the duties of conciliation officer wherein the conciliation officer is required to hold
conciliation proceedings in case of any industrial dispute or where the dispute relates to a public
utility service and a notice under section 22. Other duties include investigation of disputes,
appropriate steps to settle the dispute, submission of reports to appropriate government, etc.

Similarly, a board of conciliation (constituted under Section 5 of the Act) may also be referred for
settlement of the dispute. The Board of Conciliation is another authority recognized under
Industrial Disputes Act, 1947 to promote the settlement of industrial disputes. Duties of Board are
similar to the duties of conciliation officer like to take necessary steps for settlement of the
dispute, submission of reports and memorandum of settlement to appropriate Government
within 2 months. In case of no settlement, the Board must submit the full report of steps taken by
it while working for the settlement. The report shall be in writing and signed by all the members
of the Board.

Adjudication
Industrial disputes can be resolved by way of adjudication i.e. settlement of an industrial dispute
by labour court or industrial tribunal. The appropriate government may refer a dispute to
adjudication depending on the failure of conciliation proceedings. Section 10 of the Industrial
Disputes Act, 1947, provides for reference of a dispute to the court of inquiry or labour court or
industrial tribunal. The decision of a court of inquiry or labour court or tribunals is binding on
both the parties. The Act also provides for rules regarding the composition and powers of the
court of inquiry, labour courts and tribunals.

When can an industrial dispute be referred to the

Labour Court or Industrial Tribunal?
Section 10 of the Act empowers the appropriate government to refer any industrial dispute for
adjudication to Labour court or Tribunal in case:

 The conciliation proceedings fail and conciliation officer recommends for adjudication or
 The appropriate government is satisfied that such dispute must be referred to the labour
court or industrial tribunal
The appropriate government may refer the dispute to the Labour Court if such dispute appears
to be connected with any of the matters specified in the Second Schedule

The appropriate government may refer the dispute to Industrial Tribunal if such dispute appears
to be connected with any of the matters specified in the Second Schedule or the Third Schedule.

Where the dispute is related to any matter specified in the Third Schedule and is not likely to
affect more than one hundred workmen, the appropriate government may refer the same to
Labour Court.

The parties to an industrial dispute may apply jointly or separately, for a reference of the dispute
to Board or Labor Court or Tribunal. If the appropriate government is satisfied that the persons
applying represent the majority of each party, it shall make the reference accordingly. The
reference must state the time period within which the refereed authority need to submit the
award on such dispute.

When can an industrial dispute be referred to the

Labour Court or National Tribunal?
If the Central Government is of the opinion that any industrial dispute involves question of
national importance or is of such a nature that industrial establishments situated in more than
one State are likely to be affected by such dispute and that the dispute should be adjudicated by
a National Tribunal, then the Central Government may (whether or not it is the appropriate
government in relation to that dispute) refer the dispute or any matter connected with such
dispute to a National Tribunal (established under Section 7B of the Act) for adjudication.

The parties to an industrial dispute may also apply to refer the dispute to the National Tribunal. If
the appropriate government is satisfied then the persons applying represents the majority of
each party, it shall make the reference accordingly. The Tribunal must submit the award on such
dispute within the prescribed time period.

Section 11 of the Act provides the procedure and powers of conciliation officers, Board, courts
and Tribunals and National Tribunals wherein they may take any step or follow any procedure as
necessary for the settlement of disputes. The Conciliation officer may enter the industrial
premises for inspection after reasonable notice. The Board, courts and Tribunals and National
Tribunals have similar power as that of Civil Court and therefore, require the attendance of any
person, compel the production of documents, examine witnesses or take necessary steps for
inquiry and investigation.

Award and Settlement

Award is the decision given by the arbitrator, Labour Court or Industrial Tribunal. It resembles the
judgment of a Court whereas settlement is at as a result of conciliation between the parties to the
settlement.
Award - Section 2(b) of the Industrial Dispute Act defines award as “an interim or a final
determination of any industrial dispute or of any question relating thereto by any Labour Court,
Industrial Tribunal or National Industrial Tribunal and includes an arbitration award made under
Section 10-A.”

Settlement - Section 2(p) of the said Act defines settlement as “a settlement arrived at in the
course of conciliation proceedings and includes a written agreement between the employer and
workmen arrived at otherwise than in the course of conciliation proceeding where such
agreement has been signed by the parties thereto in such manner as may be prescribed and a
copy thereof has been sent to an officer authorized in this behalf by the appropriate Government
and the conciliation officer”.