part 4 labour relations

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

PART 4

Labour Relations



CHAPTER 13:CHAPTER 13:

The UnionThe Union––management management relationship, employee relationship, employee discipline and dismissaldiscipline and dismissal

The environment for HR

Finding & placing qualified employees

Assessing & developing qualified employees

Labour relations

Emerging HR practices

4



CHAPTER 13 The Union–management relationship, employee discipline and dismissal



Chapter outcomes• describe what a union is and explain why employees join unions• understand the basic elements of the Labour Relations Act, No. 66 of

1995 as amended • discuss the role and objectives of the National Economic Development

and Labour Council (NEDLAC)• describe the typical collective bargaining process



Chapter outcomes• recognise the various sources of poor performance through the

illustration and discussion of an unsatisfactory performance model• explain both good and poor ways to discipline employees• illustrate a model of positive discipline and describe the procedures for

ensuring that discipline achieves its goals• identify the procedures for carrying out the dismissal decision humanely

and tactfully and according to the law



Labour relations management....that part of management that encompasses a study of those factors and dynamics that emanate from, and are related to, ______________________.



The role players in labour relations

_________

_________ __________

Secondary relationship

_________ relationship

________ relationship



Trade union

.... an ongoing permanent organisation _____________________ to _________ themselves in their work, to improve their _______________ through collective bargaining, to try to improve their _____________ and to offer a mechanism by which workers can put their standpoints.



Primary goal of a trade union... to promote the interests of its membership through __________________ (standard of living and working conditions).



Trade union goals• Union security

– –

• Job security• Improved economic conditions• • Fairness and justice• Social action



Kinds of unions• Industrial unions

– –

• Trade/craft unions–

• Employee association–



Trade union rights

• Sufficiently representative trade unions– – – –

• Majority representative trade unions– –



The formal dimension of labour relations

• Constitution• Labour Relations Act• Basic Conditions of Employment Act• Occupational Health and Safety Act• Compensation for Occupational Injuries and Diseases Act• Unemployment Insurance Act• Employment Equity Act• Skills Development Act• Skills Development Levies Act



The Constitution and Fundamental Rights

Labour Relations Act__________ International Conventions

Rights and obligations of employees, unions,

employers and employers’

organisations

Promotion of collective bargaining

and worker participation

Dispute resolution and labour peace

Freedom of association

______________

Unfair dismissal

______________

Strikes and lockouts

Collective agreements

Bargaining Councils

Statutory Councils

_____________

____________

Labour Court

Labour Appeal Court



Rights and obligations of employees,

unions, employers and

employers’ organisations

Freedom of association

___________

Unfair labour practice

___________

___________



Promotion of collective

bargaining and worker

participation

___________ __________

__________ __________

Written agreement

Terms & conditions of employment

Between registered trade union(s) and

employer(s)/employers’ organisation(s)

Established for a specific sector in a specific geographical area

Functions:(1) _________________(2) _________________

Aims are to promote(1) _______________________(2) _______________________

Functions:(1) Consultation

(2) Joint decision making(3) Information sharing

Established at request of union(s)/employers’

organisation(s) representing 30%+ of employers/employees

in sector & areaFunction:

Dispute resolution

Difference?



Dispute resolution and _____

peace

Labour Appeal Court

CCMA Labour Court

Councils & private agencies



NEDLAC

EXECUTIVE COUNCIL

Representatives of The State

Organised labour Organised employers

Development organisations

Management Committee Secretariat

Summit

Chambers

Public finance and monetary

policy

Trade and industry Labour market Development

State, employer and union representatives

Community development representatives



The phases of the negotiation process

Planning, preparation and

organisation

_______________PHASE

Execution of negotiation

strategies and tactics, and utilisation of

structures in order to achieve objectives

_______________PHASE

Agreements are concluded, and the

maintenance of relations and the administration of

agreements follow

_______________PHASE



Strike

• Temporary• Stoppage of work• Collective action• Means of expressing a grievance



Strikes: Procedural requirements

• • • • Ballot?



Grievance vs gripe

• Grievance–

• Gripe–



Typical steps in a grievance procedureGrievance procedure ends

Start of dispute settlement process if preferred, eg bargaining council, mediation, conciliation, arbitration, judicial settlement or

strike

Ruling at highest level(top management) ______Settled

________________________________ ______Settled

Manager from higher levelWorker & representative4

working days

Settled

Head of immediate supervisorWorker & representative ______Settled (record)

Immediate supervisorWorker 24 hours

Settled (record)

Verbally

Unsettled

Unsettled

Unsettled

Unsettled

Unsettled

Step 1

Step 2

Step 3

Step 4

Step 5



A model for analysing and correcting unsatisfactory

performance___________

_____________

______________

1

2

3

__________

Lack of motivation

__________

Personal problems

__________DisciplineTrain

Transfer/ demote

Change the work ___________

Council/ refer



Steps in the process of discipline

Clarify responsibility for discipline

_____________________

Communicate disciplinary policy, procedure and rules

___________________

Administer progressive discipline

_____________________



The hot-stove rule• Immediate• Warning• Consistent• Impersonal



Dismissal• Automatically unfair dismissals• Other unfair dismissals

– Substantive fairness (reason)• • •

– Procedural fairness (procedure)• Remedies

– – –



Dismissal for misconduct

• Substantive fairness– Contravene a workplace rule/standard?– Rule/standard reasonable/valid?– – Rule/standard consistently applied?– – – Nature of job/workplace–



Dismissal for misconduct (continued)

• Procedural fairness– – – – State case (disciplinary hearing)– – –



Dismissal for incapacity: Incompetence

• Substantive fairness– Fail to meet __________– Aware of ________________– Fair _________– Appropriate ________

• Procedural fairness– Opportunity to __________– No other _________



Dismissal for incapacity: Ill health or injury

• Substantive fairness– Capable of performing work– Extent of capability

• Procedural fairness– Adaptation of work circumstances– Alternatives



Dismissal for operational reasons• _____________ dismissals• Substantive fairness

– ____________ reason• Procedural fairness

– – Attempt to reach consensus– – Method of selection– Severance pay



Dismissal for operational reasons• Procedural fairness (continue)

– Disclose information• • • • • • •

– Future reemployment– Representations– Consider and respond to representations– Provide reasons– Selection of employees according to set criteria



Summary• A union has a major impact on an organisation’s management.

Many HR decisions must be shared with the union, and the labour contract limits management’s flexibility for the length of the agreement. Finally, poor relations between management and labour may result in costly and stressful organisational conflict.

• The percentage of organised labour in South Africa has doubled since 1985 to approximately 3 million. This represents about 40% of the workforce.

• The goals of the unions have not changed dramatically since their beginning. Important union goals include job security, improved wages and benefits, favourable working conditions and fair and just treatment for their members.

• The heart of the union structure is the local union, although the national union provides important direction and guidance. The local union often receives assistance from the national union during the collective bargaining process.

• During the organising drive, the union attempts to convince workers that they will be better off by organising. Management tries to convince them that they are better off without the union. Labour legislation provides a number of ground rules regarding the recognition of a union in the workplace.



Summary• Relations between organised labour and management are strictly

governed by the Labour Relations Act, No. 66 of 1995. Managers and HR administrators who work in unionised organisations must be intimately familiar with this law.

• There are a variety of different collective bargaining strategies. The most common form involves distributive bargaining, or win/lose bargaining, although this strategy seems to be giving way to more cooperative forms such as integrative bargaining and productivity bargaining. Concessionary bargaining, or give-back bargaining, has increased as a result of foreign competition.

• The negotiation process involves a great deal of give and take before an agreement is reached. A bargaining impasse may cause a strike, lockout or other power tactic. However, more often mediation or other third-party techniques will be used to end the impasse.

• Grievance handling is a critical part of labour relations. The multi-step procedure usually includes arbitration as a final step. The grievance process can keep minor disagreements from disrupting the workplace unnecessarily.



Summary• Many reasons may cause an employee to perform unsatisfactorily.

Some of these reasons may be directly attributable to management’s shortcomings or to some other problem of the organisation. When attempting to determine the cause of poor employee performance, managers should recognise that the employee may not be responsible for the unsatisfactory behaviour.

• Discipline should be applied only when it has been determined that the employee is the cause of the unsatisfactory performance. There are different approaches to the disciplinary process; the most effective technique involves administration of preventive discipline. If discipline must be administered, the positive approach should be used.

• Corrective counselling is a particularly important part of the positive discipline process. It helps build respect and trust between the supervisor and subordinate and encourages the employee to find his or her own solutions to problems. The more the employee participates in the problem-solving process, the greater the chances for a permanent improvement in employee behaviour.



Summary• Much of the supervisory resistance to change can be reduced by training

supervisors to follow the hot-stove rule. With this technique, discipline is administered immediately, with a warning, consistently and impersonally. HR managers must ensure that supervisory training programmes provide instruction in applying each of the hot-stove rules.

• Dismissal can be traumatic and costly for both the dismissed employee and the organisation. The dismissal should be thoroughly planned and carried out in a professional manner and according to the law. It is particularly important that the employee be given complete details regarding the dismissal, including why it is taking place and how the dismissal is to be carried out.

• For a dismissal to be fair it must be substantively and procedurally fair.

part 4 labour relations

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