South African Employment Relations Theory and practice SIXTH EDITION v " PS Nel | M Kirsten | BJ Swanepoel BJ Erasmus I P Poisat CONTRIBUTOR MME Holtzhausen B 365602 Van Schaik PUBLISHERS Table of contents Part A Employment relations: a macro-perspective Chapter 1 Introducing the fundamentals of employment relations Introduction 3 1.1 In search of a definition: from industrial relations to employment relations . 4 1.2 Theoretical perspectives and ideologies of the conflict /common-ground dynamic in employment relations 6 1.2.1 The pluralist perspective 7 1.2.2 The unitarist perspective 7 1.2.3 The radical perspective 8 1.2.4 Corporatism and concertation 8 1.2.5 Room for alternative perspectives or ideologies? 9 1.3 A contemporary South African perspective of employment relations as a field of study 10 1.3.1 Societal embeddedness of the multidimensional employment relationship 10 1.3.2 The role players and stakeholders in employment relations: a preview 13 1.4 Key ingredients of employment relations dynamics 14 1.4.1 The centrality of justice perceptions in employment relations 14 1.4.2 Conflict dynamics 19 1.4.3 Power dynamics 21 1.4.4 Cooperation and common-ground dynamics 22 1.5 The interplay between employment relations and its broader environment: implications for management and organisational success 24 1.5.1 Macro-external factors 25 1.5.2 Organisation-level factors 29 Approach and structure of this book 31 Questions 31 Case study 1.1 33 References and further reading 35 Chapter 2 The employment relations role players Introduction 2.1 Management and employers' organisations 2.1.1 General 2.1.2 Employers' organisations 2.1.3 Sectoral employers' organisations 2.1.4 Collective interest groups 2.1.5 Business Unity South Africa 2.1.6 Competitors 2.2 Trade unions 2.2.1 General 38 40 40 41 42 42 43 44 45 45 vii 2.2.2 Types of trade union 2.2.3 Why do workers join trade unions and mobilise? A few behavioural perspectives 2.2.4 Some trade union anatomy: functionality and modus operandi 2.2.5 National and international cooperation, affiliation and representation 2.2.6 Benefit schemes 2.2.7 Trade union structure 2.2.8 The shop steward 2.2.9 The South African trade union movement: some trends and dynamics 2.2.10 Customers L ... .^., 2.3 The role of the state 2.3.1 General 2.3.2 State governance and processes 2.3.3 The role of the Department of Labour 2.3.4 State involvement in various labour-related bodies 2.3.5 The National Economic Development and Labour Council (Nedlac) 2.3.6 The state as an employer Summary Questions Case study 2.1 References and further reading 47 47 49 50 51 52 53 55 60 61 61 62 64 65 66 69 70 71 72 73 Chapter 3 The development of employment relations in South Africa Introduction 3.1 The period from 1652 to 1870 3.2 The period from 1870 to 1924 3.3 The period from 1924 to 1956 3.4 The period from 1956 to 1979 3.5 The period from 1979 to 1994 3.6 The period from 1994 to 2004 3.7 The period from 2004 onwards -.-: 3.7.1 Socio-political change 3.7.2 Employer and business developments 3.7.3 Union developments 3.7.4 Legal environment Summary Questions ' Case study 3.1 Case study 3.2 References and further reading 75 76 77 80 83 84 87 91 92 93 93 94 95 96 97 99 100 Chapter 4 Core labour legislation impacting on the employment relationship Viii Introduction 4.1 The employment relationship: legal perspectives 4.1.1 The contract of employment 4.2 Background to the development of the Labour Relations Act No. 66 of 103 104 104 1995 4.3 Main elements of the South African system of employment relations 4.3.1 Labour relations in terms of the Constitution 4.4 Freedom of association and general protection 4.4.1 Protection of employees and persons seeking employment 4.4.2 Protection of employers' rights 4.4.3 Rights of trade unions and employers' organisations 4.4.4 Procedure for disputes 4.5 Trade unions and employers' organisations 4.5.1 Registration of trade unions or employers' organisations and records to be kept : 4.5.2 Functions of the registrar for labour relations,.4.6 Organisational rights 4.6.1 Certain organisational rights for trade unions party to a council 4.6.2 Exercising organisational rights 4.6.3 Disputes about organisational rights 4.7 Bargaining councils 4.7.1 Powers and functions of a bargaining council 4.7.2 Registration of a bargaining council 4.7.3 Constitution of a bargaining council 4.7.4 Dispute resolution in bargaining councils 4.7.5 Binding nature of collective agreements concluded in bargaining councils 4.7.6 Appointment and powers of designated agents of bargaining councils 4.8 Statutory councils 4.8.1 Application to establish a statutory council 4.8.2 Establishment and registration of a statutory council 4.8.3 Establishment and registration of statutory councils in the absence of an agreement 4.8.4 Powers and functions of statutory councils 4.8.5 Ministerial determinations 4.8.6 Disputes about determinations 4.9 Bargaining councils in the public service 4.9.1 Bargaining councils in sectors in the public service 4.9.2 Dispute resolution committee 4.10 Collective agreements 4.10.1 Disputes about collective agreements 4.10.2 Union security arrangements 4.10.3 Agency shop agreements 4.10.4 Closed shop agreements 4.10.5 The closed shop and balancing of interests 4.11 Commission for Conciliation, Mediation and Arbitration (CCMA) 4.11.1 Functions of the CCMA 4.11.2 Governing body of the CCMA 4.11.3 Accreditation of, and subsidy to, councils and private agencies 4.11.4 Resolution of disputes under the auspices of the CCMA 4.11.5 Resolution of disputes through conciliation 4.11.6 Arbitration of disputes 4.11.7 Resolution of disputes by "Con-arb" 105 106 106 108 108 109 109 110 110 112 112 112 116 116 117 117 117 118 119 120 120 121 121 121 121 122 122 122 122 123 123 123 123 124 126 126 127 128 130 130 131 131 132 132 132 134 ix 4.11.8 Powers of a CCMA commissioner when attempting to resolve disputes 4.12 The Labour Court 4.12.1 Problems experienced by the Labour Court for the past ten years 4.13 Labour Appeal Court Summary Internet exercise Questions Case study 4.1 Case study 4.2 References and further reading ', 134 134 135 137 138 138 138 139 140 141 Chapter 5 Other labour legislation in South Africa Introduction 5.1 The Basic Conditions of Employment Act No. 75 of 1997 5.1.1 Purpose and application of the Act 5.1.2 Working time s 5.1.3 Leave 5.1.4 Remuneration, deductions and notice of termination 5.1.5 Administrative obligations 5.1.6 Prohibition on the employment of children and forced labour 5.1.7 Variation of the basic conditions of employment 5.1.8 Sectoral determinations 5.1.9 Monitoring, enforcement and legal proceedings 5.2 Skills Development Act No. 97 of 1998 and the Skills Development Levies Act No. 9 of 1999 5.3 Compensation for Occupational Injuries and Diseases Act No. 130 of 1993 .. 5.4 Occupational Health and Safety Act No. 85 of 1993 5.4.1 Advisory Council for Occupational Health and Safety 5.4.2 Duties of employers regarding health and safety at work 5.4.3 Duties of employees regarding health and safety at work 5.4.4 Penalties for offences 5.4.5 Victimisation 5.4.6 National Occupational Health and Safety Bill 5.5 Employment Equity Act No. 55 of 1998 5.5.1 Equality: background information 5.5.2 Differences between formal and substantive equality 5.5.3 Affirmative action measures: Section 15 of the Employment Equity Act No. 55 of 1998 5.5.4 Concluding remarks regarding employment equity 5.6 The Unemployment Insurance Act No. 63 of 2001 5.6.1 The scope of the Act 5.6.2 Duties of employers 5.6.3 Benefits and allowances 5.7 Broad-Based Black Economic Empowerment (BBBEE) Act No. 53 of 2003 ... 5.7.1 Overview of the major requirements of the Act 5.7.2 Concluding remarks concerning BBBEE Summary ••>publishers j Questions 142 143 143 143 144 146 147 147 148 148 148 148 150 151 152 152 153 153 153 154 155 155 156 157 158 160 160 161 161 162 162 164 164 165 Case study 5.1 Case study 5.2 Appendix A Employment Equity Act No. 55 of 1998 References and further reading 165 166 167 ._., 179 Part B Employment relations: a micro-perspective Chapter 6 Collective bargaining and negotiation Introduction 6.1 The role of collective bargaining in employment relations 6.2 Collective bargaining challenges l_ 6.3 The nature of collective bargaining .T 6.3.1 Communication process 6.3.2 Economic process 6.3.3 Negotiation process 6.3.4 Trade union activity 6.3.5 Management style or technique 6.3.6 Conflict-control mechanism 6.4 Bargaining approaches and structures 6.4.1 Bargaining approaches 6.4.2 Bargaining structures 6.5 Collective bargaining and conflict 6.5.1 Meaning of conflict 6.5.2 Characteristic features of conflict 6.5.3 Causes of conflict 6.6 Types of conflict 6.6.1 Real conflict 6.6.2 Perceived or felt conflict 6.6.3 Constructive and destructive conflict 6.6.4 Frictional and strategic conflict 6.7 Union-management conflict 6.8 Conflict resolution 6.8.1 The conflict resolution process 6.8.2 Conflict resolution by either mediation or arbitration 6.8.3 Conflict resolution by confrontation 6.9 Stages of conflict in practice 6.10 Negotiation 6.11 Rituals in negotiations 6.12 Preparing for negotiations 6.13 The negotiation process 6.14 The contract administration phase of collective bargaining 6.15 Some worldwide collective bargaining trends 6.16 Collective bargaining in South Africa 6.16.1 Bargaining structures according to the Labour Relations Act No. 66 of 1995 6.17 Decentralised collective bargaining structures 6.17.1 Plant-level recognition agreements 6.17.2 Collective agreements Summary 183 184 185 186 186 187 187 187 188 188 188 188 191 193 194 194 195 196 196 196 197 197 197 198 198 198 199 200 201 203 204 205 207 208 208 209 211 211 214 215 xi Questions Case study 6.1 Case study 6.2 References and further reading .-, 215 216 221 222 Chapter 7 Industrial action and strike handling Introduction 7.1 Strikes as an expression of organised collective conflict in industry 7.1.1 Definition of a strike 7.1.2 Types of strikes 7.1.3 Reasons for strikes v..,. •__•_. 7.2 The e m p l o y e r ' s recourse to lockout 7.3 Strikes and lockouts according to the Constitution a n d the Labour Relations Act N o . 66 of 1995 7.3.1 The right to strike and recourse to lockout 7.3.2 Protected a n d unprotected strikes and lockouts 7.3.3 Consequences of protected strikes and lockouts 7.3.4 Consequences of unprotected strikes a n d lockouts 7.3.5 Dismissal of strikers 7.4 Secondary strikes 7.5 Essential and maintenance services 7.5.1 Essential services 7.5.2 Maintenance services 7.6 Replacement labour 7.7 Picketing 7.8 Strike handling and contingency planning 7.8.1 The objectives of a contingency plan 7.8.2 Preparation for a strike 7.8.3 Action d u r i n g the strike 7.8.4 Action after a strike 7.9 Negotiation, mediation and arbitration for dispute resolution preventing strikes 7.9.1 Negotiation 7.9.2 Mediation 7.9.3 Arbitration Summary Questions Case study 7.1 Case study 7.2 ' Appendix A Picketing References and further reading 224 224 225 225 227 228 229 229 230 231 231 231 232 233 233 234 235 235 236 236 237 240 243 244 244 244 245 247 247 248 250 251 255 Chapter 8 Organisation-level perspectives: strategy and policy, procedures and practices xii Introduction 8.1 Employment relations management: some issues and challenges 8.1.1 What management entails: a brief and simplified synopsis 8.1.2 The management of employment relations at organisational level 256 257 257 258 8.2 Aspects of planning and organising employment relations in organisations: strategy and policy decisions 8.2.1 Employment relations strategy 8.2.2 Linking strategy to policy and procedures 8.3 Some key employment relations procedures and practices 8.3.1 Grievance procedures 8.3.2 Procedures and practices related to discipline and dismissal 8.3.3 Dismissal based on operational requirements of the employer 8.3.4 Legal remedies for unfair dismissal Summary Questions j Case study 8.1 >:... .-r: Case study 8.2 Appendix A: Disciplinary Code and Procedure for XYZ Company Appendix B: Example of a retrenchment procedure References and further reading 259 259 (261 264 264 271 287 293 294 294 295 298 300 305 312 Chapter 9 Industrial democracy, participation and cooperation Introduction 9.1 The concept of democracy 9.1.1 Political democracy 9.1.2 Democracy within an economic context: industrial democracy 9.2 The concepts of employee participation and involvement 9.2.1 Elements of participation 9.2.2 Degrees of power sharing in participation 9.3 Participation from within or outside an organisation 9.4 Direct and indirect participation 9.4.1 Direct worker participation '.. 9.4.2 Indirect worker participation 9.5 Different levels of participation 9.6 Techniques of worker participation and involvement 9.6.1 Participation by suggestion 9.6.2 Participation through quality circles 9.6.3 Participation through teams 9.6.4 Participation through consultation 9.6.5 Participation through codetermination 9.6.6 Participation by self-government 9.7 Workplace forums 9.7.1 The role of workplace forums 9.7.2 How workplace forums are established 9.7.3 Drafting the constitution of a workplace forum: requirements and guidelines 9.7.4 Electing workplace forum representatives 9.7.5 How workplace forums function 9.7.6 How workplace forums are dissolved 9.7.7 Failure of workplace forums to promote effective worker participation Summary Questions 313 314 315 315 318 319 320 321 322 322 323 323 325 325 325 326 327 328 329 329 329 330 331 334 334 339 339 341 341 xiii Case study 9.1 Case study 9.2 References and further reading 342 343 345 i> Chapter 10 Managing human resources: challenges integral to South African employment relations XIV ^ a n Schaik 1 "Publishers j Introduction 10.1 Traditional HR functions and processes 10.1.1 Acquiring people 10.1.2 Utilising employees' potential 10.1.3 Developing people V.... ^-. 10.1.4 Remunerating employees 10.2 Some more general and broad-range contemporary issues 10.2.1 Employment equity and affirmative action 10.2.2 HR and diversity in organisations and society 10.2.3 Broad-Based Black Economic Empowerment (BBBEE) 10.2.4 Employee wellness 10.2.5 Corporate governance and social responsibility 10.2.6 Ethics and reputation management 10.3 People in society Summary Questions Case study 10.1 Case study 10.2 References and further reading 347 348 349 352 356 357 358 359 360 361 363 366 367 368 368 369 369 370 372 Index 374