The Impact Of Trump Presidency On HRM And Employment Relationship In The US And Australia Essay.

You are a HR Manager who is employed at the Altona manufacturing plant of Toyota Australia, a wholly-owned subsidiary of the Toyota Motor Corporation. Your organisation has decided to relocate in 2017 a manager from its Melbourne plant to a sister plant in the United States of America. You are asked to write a background briefing report for this manager outlining the employment relations and human resource management issues that will impact on the working life of this manager in the United States of America.

Please note that information that is relevant to this report will be posted on the course website.

Why is this question being asked?

President Trump

How will the presidency of Donald Trump impact on business and the economy and therefore on HR matters in the United States?

What is it like to work in the car industry in Australia and more particularly in the United States at the present time?

The essay was country specific; the report is industry specific. No tourism and limited cultural matters please because these were discussed in the essay.

You must discuss the human resource management and employment relations issues that will impact on the working life of this manager in the car industry in the United States.

As a point of comparison you can discuss briefly what it is like to work in the car industry in Australia at the present time.

Toyota Motor Corporation and HR Practices

Toyota Motor Corporation is a Japan automobile producer with many subsidiaries across the world such as the United States, Australia and others across the globe. The headquarters are based in Japan, but there are regional offices across the continents.  The firm was formed on August 28, 1937, and since then it has been in operations. Across different continents, the company’s HR policies and employment are different because the laws and policies guide these issues made the government (Jayamaha, et al., 2014). In the various countries, the country has to deal with a range of employees in the unions and non-unionized workers and other matters related to employment. On the other hand, HR practices and policies in different countries are involved in the quality of employees, continuous improvement, employee’s motivation, ensuring competencies, remuneration, and others as defined by the organization (Kumar, 2014). The report explores the difference between HR and employment relationship in the U.S and Australia.

Donald Trump was elected as the president of the United States in 2016 and inaugurated in January 21st, 2017. His presidency is expected to bring a lot of changes due to proposed legislation which is yet to be implemented. Therefore about business and economy, no one can indeed predict the significance of the proposed policies. Besides, Trump's Presidency has a lot of effects on the future of Human Resources management in the U.S. and the globe. However, the observation of his policies reveals an inevitable trend and the policies most likely to be implemented by Trump’s administration seems to be taking a direction of protectionism, and this would affect the HR of many organizations in many ways (Peters, 2017; Kehoe, 2017). The focus is to explore the future of strategic human resources management and the workplace policies in the light of the possible changes likely to be caused by federal policy changes. These effects on HR includes overtime regulation in the workplace, diversity benefits, hiring of immigrant workers and others.

The effects of trump’s presidency on the business and economy are explained on the proposed changes regarding the global trade agreements and the tax regime. One of the way to which this will affect the economy is through the use of tax breaks with an objective of support working for the population in the U.S. companies. Regarding the trade agreement, there are likely changes to NAFTA and Trans-Pacific Partnership trade agreements. Besides, President Trump has shown his desires to bring to an end Offshoring Act (Peters, 2017). Therefore based on these factors, there is a possibility of mixed effects on business mostly in the following sectors. Some of the primary beneficiaries of these policies would include the energy sector and particularly the oil and gas, and coal (Kehoe, 2017). Also, the plans will greatly have an effect on the manufacturing industry and infrastructure improvements. There is also a probability of putting on freeze the hiring of federal employees and let the numbers take a natural shape (Burman, 2016).

The implications of the Trump presidency is expected to have a far-reaching effect on the industries and organizations in the US. One of the effects on includes increased check and balances for the immigrant workers. This means that companies will be having a shortage of skills and personnel due to increased cracks on population from some countries (Ku, et al., 2017).  In the U.S the HR is required to use E-Verify to all the employees and check the status of their employment status. Therefore, the management need to ensure all their workers that the workers’ documentation and I-9 processes are order due to increased raids and checks by the Customers Enforcement Agency and U.S. Immigration department to ascertain the firm’s compliance (Morgan, 2017).

Laws Governing HR Policies in US-Based Toyota

President Trump is expected to reintroduce FLSA overtime regulations which were rejected last year. The rule will have an influence on the HR policies in the organization, and this is likely to increase the company spending.  This is because the rules will make many employees in the workplace to qualify for overtime compensation. In the end, the payment of overtime by the organization would trigger the HR department by reducing the set wages to pay for the overtime wages. Therefore, the employees in many categories would likely lose flexibility and prevention from working in overtime (Ku, et al., 2017).

Firms will be free to formulate additional diversity policies in the workplace. Under trump predecessor, federal contractors were awarded preferences for the awards of contracts provided they met diversity and a certain percentage of the workforce were given to certain minorities groups and proved to recruit members of the particular special group. However, this is expected to change under the Trump presidency, and the workplace can accommodate more diverse groups (Salzl & Johnson, 2017).

Toyota Motor Corporation is a successful firm which deals with the production of automobiles for the global market and is the second biggest regarding production after General Motors. The secret of their success is because the human resource management has focused on the section of highly skilled employees. The vacant position is filled by who can perform better in the duties and HR ensures development and training of these people to help achieve both their goals and that of the organization (Marks, 2014). As such, the company focus on developing and improving their HR capacity because it is perceived as the cornerstone used to enhance the firm capabilities and address the current and future challenges. There are general practices that characterize HR practices across the board such as providing employees with career opportunities, incentives to improve their creativity and productivity and others (Kaufman & Taras, 2016).

In the U.S. the laws affecting the organization policies are governed by the Federal and state laws and serve to protect the employees’ rights while setting the obligation of the employers.  Therefore a manager in the American-based Toyota Implementing HR policies is required to adhere to the federal and state guidelines. This includes anti-discrimination of any gender, group, and age. These laws also guide activities such as safety of the workplace, remuneration, and related benefits (Kaufman & Taras, 2016).

For example, on issues of employees wage and allowances, the manager must understand the two separate federal laws which guide the HRM policies on payment. The Fair Labor Standards Act which provides the minimum remuneration, overtime payments, record keeping, exempt and nonexempt workers classification. Therefore the manager must understand that in U.S. there may be federal and state wage differences in laws and thus the company is supposed to pay the one on the highest side and not the lower one between the two. Further, there is a need to understand that The Equal Pay Act which was enacted in 1963 is against the issues of discrimination of sex (Kubasek, et al., 2016). For example, the employer cannot pay higher wages to men than women for the same job done or position.  As such, HRM needs to keep evaluating their policies periodically to determine how to pay and change the compensation structure.

Effects of Trump Presidency on HR in the US

Hiring practices in the U.S. are governed by various acts that are enacted by the Federal government and States. These laws are enforced by the Equal Employment Opportunity Commission. Therefore HRM must have adequate understanding on various statutes that governs the firm's HR policies in the process of advertising for work, recruiting and selecting candidates to fill the vacant positions (Kubasek, et al., 2016). The same rules are also applied when training, developing employees skills and retaining employees. When operating in Toyota Motor Corporation in the U.S, the HR must avoid applying discriminatory practices which are likely to marginalize prospective employees due to their conditions such as disability, racial background, sex and religious affiliation. It is also paramount to understand that the State laws always mirror the federal statutes and municipalities which prohibit all form of discrimination and this affects Toyota HR policies (Dau-Schmidt, et al., 2016).

Countries across the world have different laws and policies that ensure the safety of the workers and in the workplace is implemented. In the U.S the managers must adhere to rules and regulation that promote safe working environment to make employers free from nay workplace hazards (Dau-Schmidt, et al., 2016). Therefore, in Toyota Motor Corporation, the HR must formulate policies that ensure adequate training for the purpose of achieving workplace safety. For example, dealing with hazardous materials, handling of complex machinery, robots that work in Toyota which can cause harm and possible death of employees (Kaufman & Taras, 2016). Further, HR policies and practices for dealing with the cases of workplace fatalities and injuries when they occur are based on OSHA regulations. For the new manager transferring to Toyota in U.S., the HR policies are designed to continually evaluate the workplace condition and make necessary changes to reduce cases of accidents (Marks, 2014).

In the U.S, no federal and state laws which deals with the issues of advantages in the workplace such as vacation and holiday pay. However, there are other provisions as provided by Family and Medical Leave Act which argues that employees can get 12 weeks of unpaid leave in cases where severe medical conditions affect them or one of their close family members (Salsgiver, 2015). Therefore, the managers must ensure that workers facing the issues are entitled to paid leave, and they must be restored to their original position and benefits, equal pay and working conditions must be checked. Also, during retirement, HR policies must guarantee the pension benefits which includes Medicare and Social Security which is different in Australia (Ruggie, 2013).

The employment relationship of Australia is different to that of U.S and the manager will be affected by different issues. The Employment Relationship Issues in U.S is guided by several Federal and State laws such as National Labour Relations Act and others. These laws makes the employment relationship different to that of Australia and, therefore, managers migrating from the country to U.S. will be affected by different issues as explained (Dubofsky & Dulles, 2014). Employees working in Toyota Motor Corporation in the U.S are protected to join union and also refuse to join them and also provides the rights to concerted activity. There are provisions regarding arbitration and collective bargaining (Kaufman & Taras, 2016; O'Sullivan & Turner, 2013). Therefore, the employers and labor unions have no permission to interfere with workers’ rights of the workers while on the other hand, the employee can enter into a collective bargaining with the employer. In addition, there are HRM policies that requires training and development of middle level employees such as supervisors on issues of protected activities and contract interpretation (Fossum, 2014).

Future of Strategic HR Management and Workplace Policies in Light of Trump's Policies

In addition, there is employment at-will doctrine in the United States which provides for a collective bargaining agreement between the management and the employees. In addition, the employer can implement the individual employment contract (O'Sullivan & Turner, 2013). In Toyota motor Corporation the HR has the permission and the freedom to discharge an employee without cause. The employer is prohibited from discriminating against the workers on the basis of race, religion, colour, sex and other conditions such as pregnancy and AIDS (Hattam, 2014). Further, the employer is not supposed to discriminate applicants on the basis of age, disability, refuse to settle paid leave. For example, employer cannot discriminate employers who are older than 40 years. In cases foreign workers, the management cannot hire the worker who is not authorized to be in the United States. As such, there must be a verification of the eligibility and identity of new workers.  For example, in the law, all the foreign workers hired must complete a Form I-9 and hiring of aliens attracts stiff penalties such as imprisonment and heavy monetary fines (Ngai, 2014).

This section of the report makes a comparison between the HRM policies and practices and the employment relations issues. On matters regarding the employment relationship, there are similarities such as provisions of equal opportunity and diversity in the workplace. In both countries, the workers guiding equal opportunities and diversities are similar because they advocate for hiring and retaining employees who reflect diversity in the workplace and having workers fetched from various backgrounds (Hollifield, et al., 2014). For example, this includes hiring workers from different ethnicity background, gender, educational status, age, religious affiliation, sexual orientation and work experience. Employees in both countries are allowed to enter into a collective bargaining and have the rights to be represented by a union or others (Gospel, et al., 2014).

As it is in the U.S the laws in Australia are found in the two levels of government namely national and state and ensures the workplace is characterized anti-discrimination and equal employment opportunity. Therefore, the managers are mandated by the laws to create and ensure the workplace is free from harassment and discrimination and understanding the responsibilities and rights entrenched in this law. The variation between the two is that Australia provides incentive schemes and funding extension for the firms that support workers with a disability, Indigenous population who have not been employed for long (Watson, 2013).

Regarding HR practices and policies in the organization, there is no much difference between the two in Toyota Motor Corporation. There are differences when it comes to employment contract because in U.S it is not mandatory but in Australia, it must be signed by the worker and the employer and must state the term of employment, rewards, time and other conditions (Ngai, 2014). Another difference is seen when hiring employees and dismissing them. For example, in U.S. the employer can hire and fire at their will, but in Australia, employees are protected. In Australia employees who has worked for more than six or more cannot be dismissed unfairly like in the U.S. However, this only happens on workers with lower salaries, but the modern award does not protect high-income managers. In both countries, there are broad protections which are similar such as taking strict action to the employee for exercising a workplace right such as participating in a strike or demanding a pay increase. Others include dismissal of employees, changing their position, discrimination and all form of prejudices (Dubofsky & Dulles, 2014; Watson, 2013).  

Tax Regime Changes and Global Trade Agreement: Effects on Business and HR

Conclusion

In conclusion, the report has explored the employment relationship and HR practices and policies in America and Australia. In both countries, there has been a decline of trade union and rise of collective bargaining between employees and employer, there is a guarantee for employee rights and safety in the workplace. The manager can hire and fire at will, and the company must follow the set minimum wages by federal and state government when determining benefits. The employment relationship is guided by the federal and state laws and prevent the employees from discrimination based on age, gender, race, and other conditions. There are similarities and differences between U.S, Australia as evidenced by the decline of trade unions and use of collective bargaining in the workplace. However, in Australia, the manager cannot hire and fire workers at will because national laws in Australia protect them.

References

Burman, L., 2016. The US Presidential Candidates and the Economy. Intereconomics, 51(5), pp. 295-296.

Dau-Schmidt, K., Finkin, M. & Covington, R., 2016. Legal protection for the individual employee. Minnesota : West Academic.

Dubofsky, M. & Dulles, F., 2014. Labor in America: A history. ‎Hoboken, NJ: John Wiley & Sons.

Fossum, J., 2014. Labor relations. New York. NY: Mcgraw Hill Higher Education.

Gospel, H., Pendleton, A. & Vitols, S., 2014. Financialization, new investment funds, and labour: an international comparison. eds ed. Oxford, England, U.K.: Oxford University Press.

Hattam, V., 2014. Labor visions and state power: The origins of business unionism in the United States. Princeton, NJ: Princeton University Press.

Hollifield, J., Martin, P. & Orrenius, P., 2014. Controlling immigration: A global perspective. Redwood City: Stanford University Press.

Jayamaha, N. et al., 2014. Testing a theoretical model underlying the ‘Toyota Way’–an empirical study involving a large global sample of Toyota facilities.. International Journal of Production Research, pp., 52(14), pp. 4332-4350.

Kaufman, B. & Taras, D., 2016. Nonunion employee representation: history, contemporary practice and policy. London: Routledge.

Kehoe, J., 2017. ‘Trumponomics: Wall St or economists wrong’. Australian Financial Review, p. 22.

Kubasek, N., Brennan, B. & Browne, M., 2016. The legal environment of business: A critical thinking approach. Upper Saddle River, NJ: Pearson.

Ku, L., Steinmetz, E., Brantley, E. & Bruen, B., 2017. Repealing Federal Health Reform: Economic and Employment Consequences for States. s.l.:s.n.

Kumar, N., 2014. Human resource management in future an obstacle of champion of globalization. Human Resource Management, 1(1), pp. 49-57.

Marks, G., 2014. Unions in politics: Britain, Germany, and the United States in the nineteenth and early twentieth centuries. Princeton: Princeton University Press.

Morgan, J., 2017. Trumponomics: everything to fear including fear itself?. Real-World Economics Review, Volume 78, pp. 3-19.

Ngai, M., 2014. Impossible subjects: Illegal aliens and the making of modern America. Princeton, NJ: Princeton University Press.

O'Sullivan, M. & Turner, T., 2013. Facilitators and Inhibitors of Collective Action: A Case Study of a US?Owned Manufacturing Plant. British Journal of Industrial Relations, 51(4), pp. 689-708.

Peters, M., 2017. The end of neoliberal globalisation and the rise of authoritarian populism. Abingdon: Taylor and Francis.

Ruggie, J., 2013. Business and Human Rights. s.l.:s.n.

Salsgiver, R., 2015. Disability: A diversity model approach in human service practice. Oxford: Oxford University Press.

Salzl, H. & Johnson, K., 2017. Insights from Professors. Marriott Student Review, 1(1), p. 10.

Watson, I., 2013. Bridges or traps? Casualisation and labour market transitions in Australia. Journal of Industrial Relations, 55(1), pp. 6-37.