How Human Resources can help Australian manufacturing lift productivity

Thu, 27 Nov 2025 12:39:15 +1100

Australian manufacturing is at an inflection point. The sector now contributes only a small share of national output, and output per person has shown weak growth for many years. In this context, Human Resources (HR) has a critical role in helping manufacturers lift productivity, not just cut cost.

According to ABC News, manufacturing now contributes just 5.1 per cent of Australia’s GDP, the lowest of all OECD countries (abc.net.au, 2025).

A Parliamentary report into advanced manufacturing confirms that structural change has driven down Australia’s manufacturing share (aph.gov.au, 2023).

The OECD’s latest Employment Outlook notes that unit labour costs affect competitiveness, especially when not matched by output gains (www.oecd.org, 2024).

Research from the Centre for Future Work reveals that Australia ranks last in manufacturing self sufficiency among all OECD countries and no country can be an innovation leader without a strong manufacturing base (australiainstitute.org.au, 2020).

How HR can help drive productivity in Australian manufacturing

Strategic workforce planning aligned to advanced manufacturing

HR can partner with operations, engineering and finance to map required future skills (automation, robotics, data, quality systems), identify critical roles (e.g., mechatronics technicians, maintenance planners), and develop internal talent pipelines via apprenticeships or mid-career transitions. This ensures high cost labour is deployed where it creates the greatest value.

Skills development and capability building

Manufacturing often demands multi-skilled and adaptable workers. HR can design competency frameworks linking skills to safety, quality, output and waste metrics, and collaborate with knowledge providers such as TAFEs, universities and equipment suppliers to develop and rollout training programs. This supports productivity premium wages.

Work design and employee engagement

Well designed work plus employee engagement via continuous improvement, lean processes and suggestion schemes can improve output, reduce rework and waste, and increase quality.

Frontline leadership and supervision capability

Strong supervisors ensure efficient production and guard against rework, downtime, and non-compliance. HR led leadership training can reduce avoidable cost.

Performance and reward systems aligned with productivity

Continue to adapt performance based incentives to align with future productivity metrics. Since manufacturing growth has stalled so to it seems has innovative incentive plans.

Employee relations as a productivity enabler

Enterprise bargaining with multi year wage commitments linked to flexibility, skills pathways and productivity can support competitiveness. Many Enterprise Agreements seem to lack real productivity requirements, and are close to agreements with not much more than providing new wage and benefit increases.

Data, workforce analytics, and continuous improvement

Measure workforce metrics with production outcomes to identify high performing teams and best practices can be continually developed.

Australia's manufacturing sector has experienced a long decline in its share of GDP. Labour cost remains relatively high but can be justified if value added per worker is strong. Through strategic workforce planning, capability building, performance structures and effective Employee Relations, HR can help make high-cost labour a competitive advantage.

At Linq HR, we help organisations cut through workplace complexity, transforming busyness into focused performance through tailored HR and employee relations solutions. Ph 1300134566.

Sources

ABC News 2025: https://www.abc.net.au/news/2025-08-06/the-race-to-shore-up-australias-remaining-industry/105617502

Parliamentary report 2023: - https://www.aph.gov.au/Parliamentary_Business/Committees/House/Former_Committees/Industry_Science_and_Resources/Completed_Inquiries_of_the_47th_Parliament/AdvancedManufacturing/Report/Chapter_2_-_The_Australian_and_international_landscape

Australia Institute 2020: https://australiainstitute.org.au/wp-content/uploads/2020/12/A-Fair-Share-for-Australian-Manufacturing-WEB.pdf

OECD 2024: https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/06/oecd-employment-outlook-2024-country-notes_6910072b/australia_4d5a7a18/4f76e85a-en.pdf

OECD (n.d.) Unit Labour Costs: https://www.oecd.org/en/data/indicators/unit-labour-costs.html

Productivity Commission 1996: https://assets.pc.gov.au/research/supporting/changing-manufacturing/changman.pdf

Why Recording Minutes Matters in Enterprise Negotiations

Mon, 08 Sep 2025 14:23:17 +1000

Enterprise agreement negotiations are complex. With multiple stakeholders and legal obligations, keeping accurate minutes is not just good practice, it is essential.

Key benefits of issuing minutes:

Transparency: Records ensure all parties share a clear understanding of discussions and commitments (Fair Work Commission, 2022).
Compliance: Minutes help demonstrate “genuine agreement” under the Fair Work Act 2009, which is vital when seeking Fair Work Commission approval (Fair Work Ombudsman, 2024).
Progress tracking: They provide a timeline of negotiations, highlight outstanding issues, and maintain accountability.
Risk reduction: Minutes minimise misunderstandings and help resolve disputes quickly (Australian Government, 2023).
Governance: Boards and executives expect evidence of due diligence. Issued minutes show the process was managed professionally and responsibly (Australian Institute of Company Directors, 2024).

Minutes should be issued soon after each negotiation meeting and ask for feedback from all in attendance on clarifications and corrections.

Accurate minutes are more than a record, they are protection, potential evidence, and a vital governance tool in achieving a successful enterprise agreement.

If you need assistance planning and negotiating an Enterprise Agreement Linq HR has the experience and expertise to assist. Contact us in Melbourne at 1300234566.

References

Australian Government. (2023) Guide to managing workplace disputes. Canberra: Commonwealth of Australia. Available at: https://www.fairwork.gov.au/

Australian Institute of Company Directors. (2024) Good governance guide: recording and keeping minutes. Sydney: AICD. Available at: https://www.aicd.com.au/

Fair Work Commission. (2022) Enterprise agreements benchbook. Melbourne: Fair Work Commission. Available at: https://www.fwc.gov.au/

Fair Work Ombudsman. (2024) Enterprise bargaining. Canberra: Fair Work Ombudsman. Available at: https://www.fairwork.gov.au/

Linq HR - Blogs (Information) #Enterprise Agreement

How Human Resources can help Australian manufacturing lift productivity

Why Recording Minutes Matters in Enterprise Negotiations