Labour Relations

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PART 4 Labour Relations
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The environment for HR
Finding placing qualified employees
Assessing developing qualified employees
CHAPTER 13 The Unionmanagement relationship,
employee discipline and dismissal
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Labour relations
Emerging HR practices
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CHAPTER 13 The Unionmanagement relationship,
employee discipline and dismissal
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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

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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

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Definition

• Union -

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Trade unions, collective bargaining and grievance
procedure

• Trade unions
• Employers organisations
• International Labour Organisation (ILO)
• Labour Relations Act 66 of 1995
• NEDLAC
• Collective bargaining

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Labour relations management
....that part of management that encompasses a
study of those factors and dynamics that emanate
from, and are related to, ______________________.
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The role players in labour relations
_________
Secondary relationship
_________ relationship
_________
__________
________ relationship
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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.
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Primary goal of a trade union
... to promote the interests of its membership
through __________________ (standard of living
and working conditions).
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Trade union goals

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

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Kinds of unions

• Industrial unions
• Trade/craft unions
• Employee association

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• Why to join a trade union?
• Job security
• Working conditions
• Mechanism to be heard

• Reasons NOT to join a trade union
• Cost
• Union ineffectiveness
• Political intimidation

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Trade union obligations
Trade union registration

• Bookkeeping
• Annual audit
• Minutes of meetings

• Independent
• Address in the RSA

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Trade union rights

• Sufficiently representative trade unions
• Majority representative trade unions

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The shop steward

• Two-fold task
• Functions
• Number of shop stewards
• Time off during working hours
• Disclosure of information

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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

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Reasons for the new LRA

• Old Act no longer intelligible
• Inadequate collective bargaining
• Ineffective dispute resolution
• Interim Constitution

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Aims of the LRA

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Who is excluded from the LRA?

• Farm workers?
• Domestic workers?

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Benefits for workers i.t.o the LRA

• Trade unions
• Consultation
• Information
• Protection against victimisation

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Benefits for employers i.t.o the LRA

• Employers organisations
• Less production time lost
• Successful restructuring
• Accommodation of small business needs

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The Constitution and Fundamental Rights
International Conventions
__________
Labour Relations Act
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
Collective agreements
____________
______________
Bargaining Councils
Labour Court
Unfair dismissal
Statutory Councils
Labour Appeal Court
______________
_____________
Strikes and lockouts
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Freedom of association
___________
___________
Rights and obligations of employees, unions,
employers and employers organisations
Unfair labour practice
___________
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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) _________________
__________
__________
Difference?
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
area Function Dispute resolution
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Establishment of workplace forums

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Working of workplace forums

• Regular meetings between employer and WPF
• Regular meetings between WPF and employees
• Yearly reports by management
• Union officials may attend meetings
• Dissolved by ballot

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Dispute resolution and _____ peace
Councils private agencies
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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
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The phases of the negotiation process
_______________PHASE
_______________PHASE
_______________PHASE
Planning, preparation and organisation
Execution of negotiation strategies and tactics,
and utilisation of structures in order to achieve
objectives
Agreements are concluded, and the maintenance of
relations and the administration of agreements
follow
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Bargaining strategies

• __________ bargaining
• __________ bargaining
• __________ bargaining
• __________ bargaining

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Contract format

• Union recognition and scope of the bargaining
  unit
• Management rights
• Union security (eg. closed shop)
• Job rights and seniority

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Bargaining impasse

• Assistance from third party
• Union power tactics
• Employer power tactics

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Strike

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

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Strikes Procedural requirements

• Ballot?

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Types of strikes

• Economic strike
• Grievance strike
• Secondary/sympathy strike
• Wildcat strike

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Other forms of industrial action

• Picketing
• Boycott

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Grievance vs gripe

• Grievance
• Gripe

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Typical steps in a grievance procedure
Grievance procedure ends Start of dispute
settlement process if preferred, eg bargaining
council, mediation, conciliation, arbitration,
judicial settlement or strike
Unsettled
______
Ruling at highest level (top management)
Step 5
Settled
Unsettled
______
________________________________
Step 4
Settled
Unsettled
Step 3
4 working days
Manager from higher level
Worker representative
Settled
Unsettled
Step 2
______
Settled (record)
Head of immediate supervisor
Worker representative
Unsettled
Step 1
24 hours
Verbally
Settled (record)
Immediate supervisor
Worker
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Discipline, counselling dismissal

• Performance problems
• Discipline
• Disciplinary dismissal
• Outside misconduct

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A model for analysing and correcting
unsatisfactory performance
1
__________
Train
Discipline
___________
______________
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Transfer/ demote
Council/ refer
Personal problems
Change the work
___________
2
__________
_____________
__________
Lack of motivation
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Incorrect discipline

• Punitive discipline
• Negative feedback
• Late intervention
• Inadequate definition
• Labelling employees, not behaviour
• Misplaced responsibility

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Preventative discipline

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Steps in the process of discipline
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The hot-stove rule

• Immediate
• Warning
• Consistent
• Impersonal

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Dismissal

• Automatically unfair dismissals
• Other unfair dismissals
• Substantive fairness (reason)
• Procedural fairness (procedure)
• Remedies

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Dismissal for misconduct

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

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Dismissal for misconduct (continued)

• Procedural fairness
• State case (disciplinary hearing)

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Dismissal for incapacity Incompetence

• Substantive fairness
• Fail to meet __________
• Aware of ________________
• Fair _________
• Appropriate ________
• Procedural fairness
• Opportunity to __________
• No other _________

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Dismissal for incapacity Ill health or injury

• Substantive fairness
• Capable of performing work
• Extent of capability
• Procedural fairness
• Adaptation of work circumstances
• Alternatives

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Dismissal for operational reasons

• _____________ dismissals
• Substantive fairness
• ____________ reason
• Procedural fairness
• Attempt to reach consensus
• Method of selection
• Severance pay

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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

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Summary

• A union has a major impact on an organisations
  management. Many HR decisions must be shared with
  the union, and the labour contract limits
  managements 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.

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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.

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Summary

• Many reasons may cause an employee to perform
  unsatisfactorily. Some of these reasons may be
  directly attributable to managements
  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.

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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.