Business Studies
Chapter 4 - Legislation impacting on Human Capital
Read the case studies and answer the questions that follow:
Case study 1:
Lerato is the receptionist at the Taste Holdings head office in Sandton. On several occasions she has been
late for work. She also takes approximately five smoking breaks during the day and the reception is left
unattended. After three months of this her immediate boss, John Maponya, called her in and said this is
unacceptable she needs to correct her behaviour. She immediately got frustrated because what about all
the other employees that stand and smoke with her? Just because they are in different departments it is
not an issue to John. For the next week she continued with this behaviour. John left a letter on her desk the
end of the week saying that she was dismissed with immediate effect. The company would pay her one
month’s salary but she needs to leave straight away.
[Fictitious scenario]
Case study 2:
KFC workers toyi-toyi through town
About 25 KFC employees were striking outside Grahamstown’s two franchises on Thursday morning.
Blowing vuvuzelas and singing songs, energised employees began picketing outside Market Square only to
temporarily scatter when the rain worsened.
Strikers are demanding a 12% wage increase, which they have brought down from the initial 15%, said
Vuyani Jacobs, from the Food and Allied Workers Union (Fawu). “There will be no work today,” Jacobs
said and added that the strike will continue until their demands are met.
The Eastern Cape managing director of KFC, who did not want his name mentioned, said that in two and
half months of negotiations, the union has failed to accept any of their offers. KFC has offered an 8.5%
wage increase but Fawu has rejected this. “The union is not playing ball,” said KFC’s Eastern Cape
managing director (MD). He added that the unions and workers are not acknowledging that the country has
been in a recession.
Jacobs said: “This strike will take us where we want to be.” The workers were singing songs, one of which
called for Eastern Cape Managing Director to “get out of the country,” Jacobs said.
http://www.grocotts.co.za/content/kfc-workers-toyi-toyi-through-town-20-08-2010
Question one: (Refer to case study 1)
1.1
Identify the reason for the above dismissal.
[1]
1.2
Do you think the above dismissal of Lerato was procedurally fair? Substantiate why.
[3]
1.3
Do you think the above dismissal was substantively fair? Substantiate why.
[3]
1.4
Outline the difference between a dismissal on the grounds of misconduct and dismissal on the grounds of
poor performance.
[2]
1.5
Suggest two ways that John could avoid a similar situation from happening in the future.
1.6
Taste Holdings commits itself to job creation and not retrenchment. Mention any three prerequisites for
dismissing your employee for operational reasons.
[3]
List three remedies for unfair dismissals.
[3]
1.7
[4]
1.8
Do you think the CCMA will find in favour of Lerato or John?
[1]
Question Two: (Refers to case study 2)
2.1 Looking at the functions outlined above, in your opinion, do you think that the unions are fulfilling their duties
to their members of KFC? Explain your answer by substantiating from the above article above.
[3]
2.2 Is the above strike protected or unprotected? Substantiate your answer.
[3]
2.3 What is the process a union would need to go through to ensure a strike is legal?
[6]
2.4 FAWU is well aware of the contents of the Labour Relations Act and makes bold statements like “This strike
will take us where we want to be” and “There will be no work today”. It still needs to perform all it industrial
action within the arm of the law. Name any three main objectives of this act?
[6]
2.5 It is in the best interest of a healthy economy to maintain industrial peace. Discuss collective bargaining as a
foundation of Industrial relations.
[2]
2.6 Define the following:
2.6.1
2.6.2
2.6.3
2.6.4
2.6.5
Bargaining councils
Mediation
Adjudication
Picketing
Secondary Action
[2]
[3]
[3]
[3]
[2]
2.7
What is the reason for the above strike?
[1]
2.8
Name any two other reasons for strikes.
[2]
2.9
List four kinds of treatment that is seen as unfair labour practice.
[4]
Business Studies
Chapter 4 - Legislation impacting on Human Capital
Question one: (Refer to case study 1)
1.1
Misconduct
[1]
1.2
Page 55-56
[3]
1.3
No, as the rule was not applied consistently.
[3]
1.4
Page 55
1.5
John had to inform employees of expectations and train them accordingly.
[4]
John needs to become more vigilant in the work place and apply rule more consistently.
John needs to make sure employees are aware of consequences.
John could adjust break times
John could give the correct warnings (verbal and written)
1.6
Page 56
[3]
1.7
Page 56
[3]
1.8
Lerato
[1]
[2]
Question Two: (Refers to case study 2)
2.1
Page 58-59
[3]
2.2
Page 58 - Not clear…possibly protected because there have been negotiations for 2 ½ months.
2.3
Page 57-58
[6]
2.4
Page 53
[6]
2.5
Page 57
[2]
2.6.1 Page 58
[2]
2.6.2 Page 59
[3]
2.6.3 Page 59
[3]
2.6.4 Page 57
[3]
2.6.5 Page 57
[2]
2.7
Wages
[1]
2.8
Page 57
[2]
2.9
Page 56
[4]
[3]