Luyolo Geza

Managing Director August 18, 2016

Human Resource’s Role in Maintaining Effective Working Relationships

with Trade Unions

Overview

The South African Labour Relations is verydynamic and aggressive in nature

Although that’s the case, it is amongst the bestlabour relations legislations in the world

Why is that?

The Labour Relations Act 66 of 1995 (asamended) seeks to strike a balance betweenthe employer & employee interests

There is law governing [1] the relationship betweenemployers and individual employees (employment law),and

Legal rules governing relationship between employersand employee collectivities, or between managementand organised labour (collective labour law).

Highlights of SA Historical Background

Between 1911 and 1918 a succession of laws waspromulgated in South Africa with various sectors and labourin general

After large scale industrial unrest on the Witwatersrand in1992 was a comprehensive attempt made to regulaterelations between management and organised labour, i.e.:

Industrial Conciliation Act of 1924

Wage Act, 1925

Industrial Conciliation Act in 1937

Botha Commission of Inquiry led to legislation that had a far-reaching effect the labour structure

The Commission recommended that black trade unionsshould be dealt with in separate legislation

In 1953, The Black Labour Relations Regulations Act

This resulted in “dualistic system of labour relations”: Blacks LR

Whites, Indians, Coloureds until beginning of the 1980’s

Following recommendations from the Wiehahn Commission,the country's labour laws were deracialised, significantamendments were made to the Industrial Conciliation Act →renamed to Labour Relations act 28 of 1956

Highlights of SA Historical Background (cont.)

The current LRA, Act 66 of 1995 brought another turning point

Its broad agenda focused on:

o Co-operative

o Encourages union-management cooperation

o Transformed bargaining styles.

The aims of the current LRA are wider and more ambitious thanthose of its predecessor, which aimed mainly at avoidingindustrial unrest

Whilst the 1956 LRA left it to the labour courts to encouragecollective bargaining as preferred method of resolvingworkplace disputes, the current LRA expressly commitsemployers and employee to workplace democracy

Which entails active promotion of participative managementand join-decision making

What Is HR’s Role in Maintaining Effective Working Relationships

with Trade Unions?

Negotiating Labour Agreements

Labour unions protects workers rights and negotiate for betteremployment terms and conditions through collective bargaining

A healthy working relationship between management andunion officials is vital to prevent and resolve workplace disputes

The HR department supports, guides and trains managers tohelp the maintain effective working relations with unions

For example: Building Trust in the Workplace

Managing Unionised Environments

Labour Relations Foundations

Strategic Grievance Handling

Strategies for Workplace Conflict

Why this kind of training is important? Given our historic background

It defined the culture of bargaining

Shaped the future approach

Created gaps and trust issues

Given leadership competences

Given organisational culture etc.

Negotiating Labour Agreements (cont.)

When a workforce becomes unionised, the company negotiatesa labour agreement with local union officials

The labour agreement governs the relationship between thecompany and the union

It lists items that are subject to collective bargaining, such as:

Wages

Benefits

Discipline, and but not limited to

Training.

It also reserves certain items to the sole authority ofmanagement, such as which product to produce and thelocation of production

HR helps managers prepare for negotiations by gatheringrelevant data and helping plan the bargaining strategy

The union officials do the same

Resolving Grievances

While the labour agreement is the foundation for therelationship, most of the day-to-day interaction between theunion and management involves the practicalities ofimplementation, as no agreement can account for everyeventuality

When disputes arises, the union raises a grievance on behalf ofits members or group members

HR supports supervisors to resolve grievances in a positive andconstructive manner by providing:

Training on the content of the labour agreement

Skills required to deal with grievances rationally and objectively and or,

Standards, guidelines, policies and procedures

HR can also conduct training on the following:

Building Trust in the Workplace

Managing Unionised Environments

Labour Relations Foundations

Strategic Grievance Handling

Strategies for Workplace Conflict

Implementing Non-Adversarial Negotiations

Traditionally, our labour relations history tells us that therelationship between management and the union has beenadversarial

With both parties engaged in position-based bargaining

But our current LRA, encourages collective bargaining andemployee participation

As such, companies are implementing non-adversarialnegotiations, such as “interest-based” bargaining

Interest-based bargaining requires parties to invest time andeffort to understand each others interests and helps themdevelop a more constructive relationship over time

What is the role of HR then?

HR can assist managers to move toward interest-basedbargaining by providing training and coaching

HR professionals can also support managers by sourcing best-practice examples of interest-based bargaining from their HRnetworks

Facilitating Communication between Management & Union Officials

Unions have a significant effect on management decision-making

They challenge supervisory authority and prevent a companyfrom formulating HR policy unilaterally

Such restrictions can create tension between management andthe union

However, managers benefit from meeting regularly with unionsto build their relationship and discuss forthcoming changes inthe workplace that will impact employees’ terms and conditions

How can HR be off assistance?

HR Can facilitate communication between management andunion officials by organising meetings, providing guidance andsharing expertise

Facilitating Communication between Management & Union Officials - Example

How can HR be off assistance?

HR Can facilitate communication between management andunion officials by organising meetings, providing guidance andsharing expertise

Area / Line Meetings

Union / Management

Meetings

Business Committee Meetings

Negotiating Committee

Central Bargaining

Line manager, HR, shop stewardand employees.

BU manager, HR, FT & PT shop stewards

Senior Management, HR, BU manager, FT & PT shop stewards

Executives, Mgt, HR, BU manager, Union Officials,FT shop stewards

Facilitating Communication between Management & Union Officials - Example

What are the long term benefits?

Area / Line Meetings

Union / Management

Meetings

Business Committee Meetings

Negotiating Committee

Central Bargaining

Line manager, HR, shop stewardand employees.

BU manager, HR, FT & PT shop stewards

Senior Management, HR, BU manager, FT & PT shop stewards

Executives, Mgt, HR, BU manager, Union Officials,FT shop stewards

meeting regularly with unions to build their relationship and discuss forthcoming changes etc.

Big picture view / alignment

Worker participation

Healthy relations

On-going key communication

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Any Questions & Comments?

Luyolo Geza

Managing Director Mobile 076 972 5744