Study Guide 2022
BLLR511 - Labour Relations
Postgraduate Diploma in
Management (PGDIP)
Shaping Executive Minds in Africa
Study guide compiled by: Prof CJ Botha
Copyright © 2022 edition. Review date 2024.
North-West University
It all starts here


Ranked in the top 5% of universities globally by the QS-rankings
Contributes the second largest number of graduates annually to the labour market
Dit begin alles hier


As een van die top 5% universiteite wêreldwyd deur die QS-ranglys aangewys
Lewer jaarliks die tweede meeste graduandi aan die arbeidsmark
Gotlhe go simolola fano


Re beilwe mo gare ga diyunibesiti tse 5% tse di kwa godimo go ya ka peo ya
maemo ya QS
Ngwaga le ngwaga go abelwa palo ya bobedi ka bogolo ya badiri mo maketeng ya
badiri
MODULE CONTENTS
Module information ............................................................................................................................. iii
A word of welcome .............................................................................................................................. iii
What does BLLR 511 entail? .............................................................................................................. iii
Work programme ................................................................................................................................ iv
Study material ..................................................................................................................................... iv
How to study ....................................................................................................................................... iv
Action words ......................................................................................................................................... v
Assessment ......................................................................................................................................... vi
Admission to the examination ............................................................................................................ vii
General module outcomes ................................................................................................................. vii
Specific module outcomes ................................................................................................................. vii
Module plan ........................................................................................................................................viii
General overview of this study guide.................................................................................................viii
Icons ...................................................................................................................................................viii
Warning against plagiarism ................................................................................................................ ix
Study unit 1:
Labour relations in the South African labour context .................................. 1
1.1
Introduction ......................................................................................................... 2
1.2
The concept of labour relations .......................................................................... 3
1.3
The history of labour relations in South Africa ................................................... 4
1.4
Comparative labour relations .............................................................................. 5
1.5
Participants in South Africa’s labour relations system ....................................... 5
1.5.1
The State ............................................................................................................. 5
1.5.2
Employees .......................................................................................................... 6
1.5.3
Employers and employer’s organisations ........................................................... 7
Study unit 2:
Labour markets and the legislative framework ............................................. 8
2.1
Contemporary issues in the South African labour environment......................... 9
2.1.1
Background ......................................................................................................... 9
2.1.2
Minimum wages and wage regulation ................................................................ 9
2.1.3
Labour market flexibility and its importance ..................................................... 10
2.1.4
Grey labour markets ......................................................................................... 10
2.1.5
The ‘apartheid’ legacy ....................................................................................... 11
2.1.6
Productivity ........................................................................................................ 11
2.1.7
Unemployment .................................................................................................. 11
Study unit 3:
Labour relations in practice........................................................................... 13
3.1
Managing labour relations in the workplace ..................................................... 14
i
3.1.1
The employment relationship............................................................................ 14
3.1.2
Discipline ........................................................................................................... 14
3.1.3
Dismissals ......................................................................................................... 14
3.1.4
Grievance procedures....................................................................................... 15
3.1.5
The decision-making process ........................................................................... 15
3.2
Collective baraining ........................................................................................... 16
3.2.1
Rights of trade unions ....................................................................................... 16
3.2.2
The collective bargaining process .................................................................... 16
3.2.3
Union security arrangements ............................................................................ 17
3.2.4
Bargaining structures ........................................................................................ 17
3.3
Negotiation ........................................................................................................ 18
3.3.1
Definition of negotiation .................................................................................... 18
3.3.2
Approaches to negotiation ................................................................................ 18
3.3.3
Factors that impact on negotiations.................................................................. 18
3.3.4
Bargaining in good faith .................................................................................... 18
3.3.5
Arguments used in wage negotiations ............................................................. 19
3.3.6
Negotiating strategies and tactics..................................................................... 19
3.3.7
The negotiation process ................................................................................... 19
3.3.8
The outcomes ................................................................................................... 19
Study unit 4:
Dispute resolution and worker participation in South Africa .................... 21
4.1
Background ....................................................................................................... 22
4.2
Labour disputes................................................................................................. 22
4.2.1
4.3
ii
Dispute resolution ............................................................................................. 22
Worker participation .......................................................................................... 24
4.3.1
Objectives of worker participation ..................................................................... 25
4.3.2
Forms of worker participation and implementation .......................................... 25
4.4
Industrial action ................................................................................................. 26
4.5
The future of labour relations in South Africa ................................................... 27
Module information
Module code
BLLR 511 EC
Module credits
12
Module name
Post Graduate Diploma In Management
Name of lecturer(s)
Prof CJ Botha
Office telephone
018 299 1672
Email address
Christoff.Botha@nwu.ac.za
Building and Office nr
E3 Building, Room 411
Consulting hours
A word of welcome
A warm welcome to this module called Employment Relations. It is a 12-credit module,
which implies that you will need approximately 120 hours of study to complete the
module successfully. I trust that you will not only find the learning programme stimulating,
useful and relevant but also truly enjoyable, especially at a time where we are
experiencing radical changes to our education system.
This module is designed to improve your knowledge and skills regarding the
management of labour and, in particular, the relationships associated with it. You are
cordially invited and encouraged to partake in every learning activity and opportunity
provided in this module.
What does BLLR 511 entail?
In the first place you need to realise that you already made a career choice because you
have a certain degree. YOU are on your way to become an architect, attorney, chemist,
economist, dietician, biocinetist, accountant, human resource practitioner or even a
consultant, to mention but a few here in class. You THEREFORE need to know that in
this module you will be helped to build a “bridge” towards that career you chose. This
module will help you to manage people better from a labour relations perspective.
This module is designed to develop your creative skills, specifically in the context of
employment relations. This means that you are afforded the opportunity to learn how to
approach your subject (as practitioner) in a more creative way. In this module you will
also be introduced to different aspects of employment relations. The way you handle
these aspects will, however, determine the degree to which you develop your skills.
Remember, a skill is “learned” with exercise.
iii
Work programme
Study unit
Estimated
hours of
study
Study unit 1
30
Study unit 2
30
Study unit 3
30
Study unit 4
30
TOTAL
120
Date for
completion
Assessment
Estimated
level of
completion
Study material
NEL, P.S., KIRSTEN, M., SWANEPOEL, B.J., ERASMUS, B.J. & JORDAAN, B.
2016. South African Employment Relations. Theory and Practice. 8th Edition. Van
Schaik: Pretoria.
The abovementioned handbook is prescribed and is compulsory reading. You must use
it very extensively. The study material that you will use in this module includes this
handbook, various articles and websites, such as Statistics SA, as well as a paper. At
times, you will be guided to investigate certain learning contents in the library and on the
Internet which will form part of the study material and which you have to study for
assessment purposes.
The specific study material which you need to study or investigate in will be indicated in
the relevant study unit.
The particulars of the articles, papers, literature and case law composition you
have to study are available in class and thereafter on e-fundi.
How to study
Articles and papers are summaries of research which has been conducted on specific
real-life aspects. Merely studying an article is not meaningful. In order to form a
conceptual framework, various articles on that specific concept should be studied after
which comparisons have to be drawn between the different research results the
researchers have obtained.
Although this method of work is recommended, you will not be expected to compare
sources of knowledge in study unit 1 yet. In this study unit, time is spent to familiarise
you with this method as part of the introduction. Therefore, you are first introduced to this
format in study unit 1 after which you have to compare literature and different sources of
information with one another in the remainder of the module.
When working through an article (before you draw a comparison between the different
points of view), you may adhere to the following method of work to ensure that you are
familiar with the information that is discussed in the article:

iv
First read the whole document attentively without making any notes. This initial
reading enables you to form a synoptic conceptual framework of the article and its
contents.
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After completing your reading, you then have to study every paragraph individually
and summarise the most important concepts, procedures, frameworks and
content.
Depict this summary in a mind map so that you are able to visualise the entire
paragraph and provide explanations on a separate page.
Should you come across any uncertainties or if you do not know what is meant by
a certain concept; you are advised to make a note in this regard and to take the
question(s) to the contact session for discussion.
Action words
The following action verbs are regularly used during assessment and in the study guide.
This list is provided so that you can ensure that you know what is expected from you
when that action verb is used in a question or assignment. The action verb also indicates
whether lower or higher order cognitive skills are required to answer the question or
assignment. Therefore, you have to see to it that you know the meaning of every action
words very well!
Describe
Give an exact description of a certain phenomenon, the characteristics of a concept or
an explanation of how something works. No own opinion or argument is required.
Discuss
Argue the issue or phenomenon by means of existing literature. Reach a conclusion
which you have to write down in your own words. A critical discussion may include the
following:


Your own interpretation of the phenomenon; and
an indication of the relationships and differences in existing arguments about the
phenomenon.
Explain
Explain a concept or phenomenon insightfully and in your own words. You must prove
that you understand the concept and that you are able to show the relationship between
the different variables. The use of examples or illustrations is recommended.
Motivate/substantiate
Provide reasons or criteria for the point of view you hold regarding a specific matter. Your
motivation must follow a logical line of argument and should be stated very clearly.
Evaluate
Air your view regarding the pros and cons of a specific concept/idea/process. You should
also be able to indicate why, based on your theoretical knowledge, you evaluate a
specific idea/concept/process positively or negatively.
Criticise
Give critique on someone else’s work. This means that you have to highlight the
strengths and weaknesses of the work, based on your knowledge and proven by
research conducted on the specific matter.
Distinguish
When you have to distinguish, you have to show the characteristics that are unique to
an issue. You have to establish relevance with other issues. A distinction may be done
in table of paragraph format.
v
Analyse
When analysing, you have to identify the main elements of a matter and describe each
of these core elements.
Design
When you need to design, you have to create something new. If, for instance, you are
asked to design a questionnaire, you have to create a unique questionnaire which meets
your requirements.
Investigate
When you are asked to investigate, you should be able to describe a specific matter by
means of research that has been conducted in this regard. Consult relevant literature or
utilise any other source of information.
Report
When you have to report on a matter, it means that you have to demonstrate your
communication skills. The format in which you should do the reporting will be
communicated to you by the lecturer. This may be in a written, oral or visual format. This
means that you have to communicate to others the knowledge you have gained, in a
specific format.
Evaluate critically
Here you are not only expected to state your opinion regarding the pros and cons of a
specific concept/idea/process. You also have to criticise someone’s work. You must state
the pros and cons, the strengths and the weaknesses of the work based on your
knowledge and proven by research that has been conducted on the specific matter.
Demonstrate
The skill to demonstrate may be multidimensional. Normally, you will be guided by the
way in which a demonstration should take place. In this module, demonstrate means that
you need to provide an extensive explanation for a specific matter AND that you need to
prove your explanation with real-life examples.
Interpret
Interpret means that you should state/explain a matter within a specific context. When
you interpret, you normally say what something means within that specific context.
Assessment
Participation mark
Formative assessment
Teaching test: You are expected to write teaching tests during the semester. These
teaching tests will not be announced by the lecturer, and the mark will form part of your
participation mark.
Presentation: A presentation can be completed within a group context. Every
presentation must be accompanied by a written document. Only the written document
will be assessed in order to determine the assessment mark. The exposition and
requirements for the presentation will be set out in the class.
vi
Admission to the examination
You need a participation mark of at least 40% to gain admission to the examination.
General module outcomes
After completion of this module, the student will demonstrate the following:
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Integrated knowledge of and engagement in the management of employment
relations and critical understanding and application of managerial procedures and
methods relevant to the employment relation;
An ability to critically interrogate multiple sources of knowledge, such as CCMA
cases, Journal articles and Case law, within the field of employment relations, and
critically evaluate and review that knowledge and the manner in which the
knowledge was produced;
Understanding of the complex nature of knowledge transfer from managing
elementarily employment relations on the work floor to manage complex
employment situations such as strikes.
The ability to select, evaluate and apply a range of different but appropriate
managerial -and negotiations skills and scientific methods of enquiry in managing
disciplinary aspects to reflect on and then address complex or abstract problems
and contribute to positive change within practise;
The ability to critically judge the ethical conduct of others within different cultural
and social environments, and to effect change in conduct where necessary;
Accurate, coherent, appropriate and creative presentation and communication of
innovative and new professional methods to management with understanding of
and respect for intellectual property conventions, copyright and rules on plagiarism;
Operate effectively within a team/system and/or mange a team/group/system in
any given discipline-related context and demonstrate logical and critical
understanding of the roles of all players/persons/elements of the team/group/
process and taking responsibility for task outcomes and applications of appropriate
resources; and
Self – regulated learning skills in managing employment relations for lasting labour
peace in the work place.
Specific module outcomes
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Demonstrate a comprehensive and systematic knowledge base regarding the
different roles of parties in a tripartite relationship, the role of trade unions in
employment relations, and the various methods of managing discipline.
Analyse and evaluate aspects regarding employment relations (abovementioned
theory) and solve complex problems in this regard.
Ethically communicate different aspects of employment relations gained through
research, individually or in groups.
vii
Module plan
Labour relations and the South
MANAGING LABOUR
African labour context
STUDY UNIT 1
STUDY UNIT 2
Labour economics, labour
STUDY UNIT 3
Labour relations in practice
STUDY UNIT 4
Dispute resolution and
General overview of this study guide
It is important that you attain the outcomes of every study unit. To succeed in doing this,
you are expected to work through every study unit on your own (or as part of a group) in
order to construe your own knowledge and to develop your skills.
The role of the lecturer is that of facilitator, which means that he/she will only guide the
learning process. It also means that the lecturer will not actually handle the knowledge
component of this module. It is your responsibility. Only in the case of difficult theoretical
aspects will the lecturer enter the learning process and support you in attaining the
outcomes yourself.
Another function of the lecturer is to support you in the development of your skills with
the aid of this study guide. The skills referred to here include cognitive skills such as the
solving of problems and higher order cognitive skills.
At the end of this module you will, therefore, have the ability to analyse, synthesise and
evaluate within the context of this module; in other words, you will be able to think in a
critical and creative manner.
Icons
viii
Time allocation
Learning outcomes
Study material
Assessment /
Assignments
Individual exercise
Group Activity
Example
Reflection
Warning against plagiarism
ASSIGNMENTS ARE INDIVIDUAL TASKS AND NOT GROUP ACTIVITIES. (UNLESS
EXPLICITLY INDICATED AS GROUP ACTIVITIES)
Copying of text from other learners or from other sources (for instance the study guide,
prescribed material or directly from the internet) is not allowed – only brief quotations
are allowed and then only if indicated as such.
You should reformulate existing text and use your own words to explain what you have
read. It is not acceptable to retype existing text and just acknowledge the source in a
footnote – you should be able to relate the idea or concept, without repeating the original
author to the letter.
The aim of the assignments is not the reproduction of existing material, but to ascertain
whether you have the ability to integrate existing texts, add your own interpretation and/or
critique of the texts and offer a creative solution to existing problems.
Be warned: students who submit copied text will obtain a mark of zero for the
assignment and disciplinary steps may be taken by the Faculty and/or University.
It is also unacceptable to do somebody else’s work, to lend your work to them or
to make your work available to them to copy – be careful and do not make your
work available to anyone!
Plagiarism is a serious offence and you should familiarise yourself with the plagiarism
policy of the NWU http://library.nwu.ac.za/copyright-and-plagiarism
Please refer to the Policy on Academic Integrity which is found on the following website:
http://www.nwu.ac.za/sites/www.nwu.ac.za/files/files/i-governancemanagement/policy/2P-2.4.3.2_Academic%20integrity_e.pdf
ix
x
Study unit 1
Study unit 1
LABOUR RELATIONS IN THE SOUTH AFRICAN LABOUR
CONTEXT
Study hours
You will need approximately 30 hours to master this study unit and attain the learning
outcomes.
Study outcomes
Upon completion of this study unit, you should be able to:
By way of an introduction to labour relations:

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
Define labour relations;
reflect on the origins of labour relations;
list and describe the major theories of labour relations;
understand that labour relations is an academic discipline as well as a practice;
identify the parties that are involved in a tripartite relationship;
describe how a tripartite relationship functions by noting the functions and
objectives of each party involved in said relationship;
list the micro-environmental factors and macro-environmental factors that could
impact labour relations; and
explain how the afore-listed listed environmental factors impact labour relations.
In terms of the historical development of South African labour relations:

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Demonstrate knowledge and understanding of the origins and development of
the dual system of labour relations;
understand and describe the progression from the dual to the unified system of
labour relations;
demonstrate knowledge of the origins of South African labour law;
understand the development of the industrial conciliation mechanism;
show an understanding of the deracialisation of labour relations;
discuss the significance of the Wiehahn Commission;
discuss the role that NEDLAC plays in the development of contemporary South
African labour legislation;
1
Study unit 1
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
understand the role of the Mbeki government in influencing South African labour
relations in the post-Mbeki era; and
understand the role of the current dispensation in influencing South African
labour relations.
With reference to comparative employment relations:
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Define what is meant by the term globalisation;
discuss the effect of globalisation upon business and upon labour relations;
list the various international and regional bodies that may have an impact upon
the South African workplace;
explain the role played by the listed bodies in terms of their impact upon and
importance for the South African workplace;
briefly discuss the importance of comparative labour relations studies;
discuss aspects relating to labour relations in Australia and in Japan;
represent labour-related challenges encountered in the African context
critically; and
sketch labour relations within the context of a few African countries.
With reference to the participants in South Africa’s labour relations system:
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1.1
Discuss the tripartite relationship in industrial/labour relations;
discuss the role of each party in the tripartite relationship;
define the term ‘trade union’ and give an example;
distinguish between different types of trade unions;
set out the goals and objectives of trade unions;
describe the various means by which trade unions may achieve their goals;
explain how trade unions function internally;
describe the registration process that must be followed by trade unions;
discuss trade union recognition within and access to the workplace;
discuss what is meant by freedom of association;
define the term ‘closed shop’;
discuss trade union growth in South Africa;
write short notes on the major trade unions and trade union federations that
colour the South African landscape;
define the term ‘employers’ organisations’ and provide an example; and
discuss the main employers’ organisations in South Africa.
Introduction
What is Labour Relations?
The term “industrial relations” is confusing because you hear the expression “labour
relations” or, even worse, “work relations”. The difference between these concepts is
more often semantic and technical. It is important therefore for the purpose of this study
to accept that all these terms have the same meaning – namely the people and their
work and workplace – and are, therefore, regarded as synonyms. “Labour relations” will
be used as far as possible for the simple reason that most of the current institutions and
2
Study unit 1
structures in this field use the word “labour”, for example “Labour Court”, “Department
of Labour” and even “the Minister of Labour”.
In defining “labour relations”, one has to refer to the relationships between people who
work and those for whom they work. Industrial relations can be:


A simple, interpersonal process involving only two people; or
it may occur within a group or between groups, such as between management and
a group of employees; or

a much broader interaction may develop between formalised groups, such as
between an association of employers and a trade union federation.
(This will be explained in detail a bit further on.)
In addition, labour relations also include a system of rules; in other words, the subject
deals with certain regulated, institutionalised relationships in industry. Every game has
its rules that must be adhered to. The same applies to labour relations. The rules and
regulations provide the framework for proceedings in the relationship, which in this case
is comprised of the following concepts:



Relationships;
people in the work environment; and
the problems and issues of the modern workplace, including certain

mechanisms,

structures,

institutions, and

regulations,
all of which are placed or occur within a specific context and should never be studied in
isolation.
Based on the afore-going, it is, therefore, important to formulate a full and formal
definition.
The following can be regarded as a definition. Study it comprehensively: Labour relations
can be defined as a relationship – a specific one – at the workplace and involves man
and his work. It encompasses problems and issues in a modern industry with the
influence and conflict of employers and employees and is regulated by certain
mechanisms, processes, structures and institutions. It is further characterised by the fact
that the parties involved can only be the state, employers and employees.
Remember that although we demarcate the field of study and place it in compartments,
it does not happen like that in the workplace. The reality in the workplace is far more
complicated.
1.2
The concept of labour relations
Labour relations has become a popular media buzzword in the last century, so much so
that one might have forgotten that labour relations, in its essence, is a science just as
chemistry and physics is a science. The only difference is that where chemistry and
physics revolve around the understanding and careful studying of static inhuman
subjects, objects and molecules and the relationships between them, labour relations is
the science dealing with the most difficult of all subjects: human minds in the workplace
and the relationships between them.
3
Study unit 1
Self Assessment Test


After studying the relevant chapter, give your own definition of the term labour
relations.
Why, would you say, has the understanding and management of labour
relations become such an essential notion in the current world?
Think further


Currently, three major theories on labour relations exist.
List the tree theories and attempt to capture their essences in a single sentence
each.

Now think further. Write your own theory on labour relations, again attempting to
use no more than a single sentence.
By now, you have more or less established a definition for yourself and are more au fait
with what the term labour relations actually means. The next step is to break this
definition down into its most essential components.
Labour relations encompass:





1.3
An employer;
an employee;
the state (regulations and rules);
an environment; and
the relationships between these components (hence the term labour relations).
The history of labour relations in South Africa
To understand the current South African labour relations regulations and acts that are in
place, it is necessary to understand how the development of it all came about.
Read chapter 2
Self Assessment Test


Draw up a timeline of your own depicting the events in South Africa’s history
that contributed to the development of South Africa’s labour relations policy.
Consider the current acts in place in the South African labour relations system.
Do you think that, given the history of how these acts came about, it is effective
legislation for a country so torn between races? Why do you think this?
Think further



4
Do some research on South Africa’s current BEE policies and legislation.
How do these policies affect the South African labour environment?
Would you say BEE is an effective remedy for the past injustices? Motivate your
answer.
Study unit 1
1.4
Comparative labour relations
The economic, social and political integration and manifestation of international markets
that is evident everywhere has made knowledge of the international labour relations
scene a necessity. Organisations do not only have to adjust to but must also compete in
a rising globalised economy and should, therefore, take the different international labour
environments into account in order to do so.
Furthermore, it is not possible to study the South African labour environment without
taking into account the international powers involved in shaping it. For this reason, a
study of comparative labour relations is a necessity.
Read chapter 3
Self Assessment Test




1.5
List and describe the different legal bodies which could have an effect on the
international labour scene concerning South Africa.
Consider the Australian versus the Japanese labour environment. According
to you, how will each of these labour environments be affected and be able to
deal with the current global economic debt crisis?
Consider the Nigerian versus the Zambian labour environment. According to
you, how will each of these labour environments be affected by the HIV/AIDS
crisis?
Now consider South Africa’s labour environment (studied in 1.3). According to
you and taking into account you answers to the abovementioned questions, how
will the local labour environment respond to each of the abovementioned
scenarios? Do you see just how interdependent and co-dependent the different
environments that make up the globalised economy are?
Participants in South Africa’s labour relations
system
Introduction
In this study section, we will take a more in-depth look at the different parties involved in
the South African labour relations system. The parties discussed (as explained in study
section 1.2) are the state, the employees and the employers.
1.5.1
The State
The state fulfils mainly three main roles in the tripartite labour relationship, namely:
1.
It influences the political and regulatory environment by establishing a framework
governed by labour legislation. This role also encompasses providing processes
for mediation and conciliation between the two parties to the primary relationship
through legislation, mediation and arbitration.
2.
Through its labour and constitutional courts, it interprets the law.
3.
Through political leaderships, it sees to it that the chosen labour policies and
strategies are executed.
5
Study unit 1
The way in which the state fulfils these roles may differ from state to state, depending on
whether its leaders are pro-labour or pro-capital orientated.
Think further

1.5.2
Considering recent and past news headlines, would you say our political leaders’
orientation is more pro-capital or more pro-labour? Give reasons for your answer.
Employees
Employees are motivated by wages to provide labour. However, because of increased
unemployment, their position is such that they are often targets of exploitation. Thus,
they utilise the power of numbers (collective bargaining) when negotiating with
employers. This is where Trade Unions come into play.
1.5.2.1
Trade Unions
What is a Trade Union?
The term ‘trade union’ (made incredibly popular by the South African media) refers to an
organisation of employees that has as its objectives the protection of a specific group of
workers against exploitation, the enhancement of job security and the overall
representation of the employees in the labour and political environment. When different
trade unions combine to strengthen their influential power in the pursuance of a
combined goal, they form a trade union federation.
Self Assessment Test

Cosatu, Fedusa, Nactu and Sacotu are all examples of South African trade
unions and trade union federations. Draw a table dividing the trade unions and
trade union federations and specify the difference/s between them.
Registration / Recognition
In South Africa, the registration process of a trade union is governed by the Labour
Relations Act (LRA). A trade union may generally apply for registration when and if it has
adopted an original name, has a constitution that meets the requirements set out in the
LRA, has an address in die Republic and is independent from any employer or
employer’s organisation.
Recognition of a trade union is an entirely different concept, however, and has to do with
the access rights to a certain workplace. A trade union may only insist on access rights
to a certain workplace when it has been proven to be a representative trade union. Only
a trade union with a significant membership, albeit short of a majority, will be considered
as being representative.
Only once a trade union is thus registered and recognised will it be able to enter into
collective bargaining transactions with the employer and make claims on its rights as a
union.
6
Study unit 1
Self Assessment Test

Registered and recognised unions have certain organisational rights according
to the LRA. Make a summary of these rights, listing the rights and explaining
each in a short sentence or two.
Take note

A closed-shop agreement is an agreement between an employer and a majority
union according to which all employees covered by the agreement must become
members of the majority union.
Collective bargaining is an acquired privilege, not a right!
Freedom of association is a basic right afforded to all through the constitution.


Types of Trade Unions
Self Assessment Test



1.5.3
Four main types of unions exist, namely craft unions, industrial unions, general
unions and white-collar unions. Give an example of each.
Read in your handbook and draw a diagram that shows the hierarchical
structure of a trade union’s management. Describe each level of management
in a short paragraph.
Which methods are at a trade union’s disposal in order to get what it wants from
its members? Give an example of a scenario to which each method would apply
Employers and employer’s organisations
In order to contend and be able to bargain with employee’s organisations (Trade Unions)
some employers have also formed employer’s organisations to represent a number of
employers at the collective bargaining table. This is however not as common a practice
as the forming of Trade Unions.
Think further

Why, would you say, hasn’t the notion of forming employers’ organisations been
adopted as readily as the notion of forming employees’ organisations?
Self Assessment Test

Give examples of employers’ organisations in South Africa and explain why and
how they work.
7
Study unit 2
Study unit 2
LABOUR MARKETS AND THE LEGISLATIVE FRAMEWORK
Study hours
You will need approximately 30 hours to master this study unit and attain the learning
outcomes
Study outcomes
Upon completion of this study unit, you should be able to:
By way of an introduction to labour relations:
With reference to contemporary issues in the South African labour market:






Understand the notion of labour market flexibility;
describe the ways in which minimum-wage legislation is enacted in South
Africa;
understand what is meant by outsourcing;
explain why outsourcing is a feature of the South African labour market;
comprehend what labour productivity means; and
appreciate the roots of the high levels of unemployment in South Africa.
In terms of South Africa’s labour legislative framework:




8
Demonstrate a sound understanding of the contractual law applicable to the
contract of employment;
list and describe the main provisions of the major components of the South
African labour legislative framework;
understand the levy system in terms of the Skills Development Levies Act (Act
9 of 1999); and
become familiar with proposed amendments to the labour legislative
framework.
Study unit 2
2.1
Contemporary issues in the South African labour
environment
2.1.1
Background
In order for the theory of labour relations to be made applicable to real life scenarios, one
must, as a basis, firstly understand the environment in which these labour relations are
lodged. This study section is aimed at creating that understanding by way of a brief
overview of the following issues relevant to the labour environment in South Africa:






2.1.2
Minimum wages and wage regulation;
labour market flexibility and its importance;
grey labour markets;
the ‘apartheid’ legacy;
productivity; and
unemployment.
Minimum wages and wage regulation
As discussed in the previous chapter, in the primary relationship between employer and
employee, the employee is often left in a weaker position due to his/her dependency on
the employer for wages to fulfil his/her basic needs. This position of the employee has
become a much debated economic and social debating point. On the one hand, high
wages lead to higher production costs, rises in inflation and, in the worst cases, stunted
economic growth. On the other hand, wages that are too low to cover even the most
basic of the employee’s needs are not only morally repugnant but also lead to a
discouraged, misused and, ultimately, criminally inclined worker class. It is left to trade
unions, employers and the state to find and maintain the balance. Where trade unions
and employers, along with the market forces of supply and demand, fail to come to
satisfying terms, it is up to the state to set the injustice right or to turn a blind eye. In
South Africa, the state has chosen to intervene quite dramatically with relative high
minimum wages set in place for each sector.
There are now four main means of wage determination in South Africa, namely:



Direct contract between the buyer and seller of labour;
minimum wage levels set on a sectorial basis by a statutory wage-fixing body;
statutorily backed collective bargaining with extension of the agreement to nonparticipative parties; and
voluntary collective bargaining at plant or enterprise level.

Self Assessment Test

Find examples of at least three of the above-mentioned methods of wage
determination in newspapers or magazines and briefly explain the impact that
this negotiation will have on a) the economy (micro and macro) and b) the
affected labour force.
9
Study unit 2
2.1.3
Labour market flexibility and its importance
Labour market flexibility refers to the control that an organisation has over its workforce,
for example the ability to hire, fire, change the content of jobs, et cetera, and depends
largely on the amount of interference by the state and the effectiveness of the country’s
labour legislation.
There are four main components to the flexibility of a labour market, namely:




Wage flexibility;
numerical flexibility;
functional flexibility; and
work time flexibility.
Self Assessment Test

2.1.4
Discuss each of the criteria in the flexibility of any given labour market and then
state whether South Africa’s labour market would be classified as relatively
flexible or relatively inflexible. Give reasons for your answers.
Grey labour markets
Grey labour markets are much the same as the existing black markets for goods. The
inflexibility of the standard labour market, together with the ineffectiveness and restrictive
nature of heavy labour legislation, gives rise to these kinds of markets. These markets
tend to provide labour at a cheaper price than the standard labour market, be it by legal
or illegal means.

The cost of labour, as referred to in this chapter and as seen by employees, not
only refers to the determined wage but also to procedural costs and extra costs of
permanent labour regulated by standard labour legislation like leave, severance
pay, attributions to pension funds, et cetera.
There are four main ways by which employers will try to lighten the ‘cost’ of labour:




Outsourcing to a labour broker;
casualisation and short-term contracts;
outsourcing the function to a service provider; and
extra-legal employment.
Think further

10
Do you believe that excessive labour legislation may lead to increased levels of
unemployment? If yes, where should the line between excessive and protective
be drawn?
Study unit 2
2.1.5
The ‘apartheid’ legacy
Apartheid, the inequalities scar left by it and affirmative action are maybe among the
aspects most commonly known about the South African Republic, but how does this
affect the South African economy? The effect can certainly be seen in more ways than
one, but some of the most important scars left by apartheid on specifically the economy
include:






A largely unskilled black community;
inequality in the workplace;
unequal distribution of wealth;
skill shortages;
a damaged international image; and
the ‘apartheid wage-gap’ argument.
Self Assessment Test




2.1.6
Discuss the significance of the influence of the ‘apartheid wage-gap’ argument
on the South African economy.
Discuss the extent to which apartheid has contributed to skill shortages in the
South African workforces.
If you were the government, how would you go about producing a more
widespread distribution of wealth?
Do some research on affirmative action legislation and in a paragraph or two,
summarise the whole concept of the legislation.
Productivity
Productivity is essentially a term which refers to the relation between the amount of input
and the amount of output. The less input required to produce the same amount of output
or the more output the same amount of input produces, the more productive an
organisation is said to be.
Self Assessment Test



2.1.7
Discuss how South Africa measures up to the other participants in the
globalised environment.
List and explain the factors which affect labour productivity.
FDI is a component of the GDP of a country. How does the FDI affect the GDP
of South Africa? For example, is it a large component? What influences the
attraction of international investors?
Unemployment


Narrow definition of unemployment: That part of the workforce which does not
have jobs or have not actively been seeking jobs in the last 30 days.
Broad definition of unemployment: That part of the workforce which does not
have jobs.
11
Study unit 2
Self Assessment Test



Why, do you think, would the narrow definition of unemployment be set to
exclude those workers who have not been seeking jobs in at least 30 days?
Read the relevant chapter and identify from the text at least four factors
contributing to the high rate of unemployment in South Africa.
Study figure 6.9. How is it possible for a country to experience economical
growth and yet to have fewer jobs available for workers?
Group activity: Consolidation and feedback on the critical evaluation


Now discuss the strengths and weaknesses, the differences, views and
motivation with your fellow students in group context. Compile a consolidated
framework in which you focus on these aspects (maximum one (1) typed A4
page). Use Arial size 12 and line spacing 1.5.
Bring this framework along to the following contact session so you as a group
can give feedback to the rest of the class. At the end of the presentation, you
have to submit the group framework and the individual reports.
Reflection

12
Now study the outcomes at the beginning of this study unit again and test your
knowledge, skills and competencies against the outcomes. Do not start the
following study unit if you have not fully attained the outcomes of this study unit.
Study unit 3
Study unit 3
LABOUR RELATIONS IN PRACTICE
Study hours
You will need approximately 30 hours to master this study unit and attain the learning
outcomes.
Study outcomes
Upon completion of this study unit, you should be able to:
In terms of managing labour relations in the workplace:






Discuss the rights and obligations attached to both parties in the employment
relationship;
distinguish between dismissals based on operational requirements versus
those based on misconduct or incapacity;
describe the reasons employers may use to terminate a single or several
contracts of employment;
be conversant with the requirements of fair dismissal;
understand the role of purpose and procedures in the employment relationship;
and
understand the considerations regarding the changes to employment
conditions.
With reference to collective bargaining and organisational rights:





Understand the role of collective bargaining within the context of the South
African labour system;
comprehend the employer’s duty to recognise and bargain with a trade union;
be aware of the legal status of collective agreements;
discuss the various bargaining levels and structures as made possible by South
African legislation; and
understand how duties concerned with collective bargaining and organisational
rights are dealt with.
With reference to negotiation:


Define the term ‘negotiation’;
show an understanding of the various types of negotiation that are found in
collective bargaining;
13
Study unit 3



3.1
know the various internal and external factors that impact negotiations;
demonstrate a knowledge of negotiating strategies and tactics; and
describe and comprehend the negotiating process.
Managing labour relations in the workplace
Unlike other sciences, for instance physics which comprises a set rule of laws that will
ALWAYS apply to certain situations, the study of labour relations rather has to do with
an array of possibilities, options and probabilities governed by the unpredictability of
human nature itself. Therefore, there will never be a textbook answer to any labourrelated question in the workplace. A degree of guidance can, however, be derived from
this study, and that is what this study section proposes to do.
3.1.1
The employment relationship
Key concepts


Wherever there is an employment relationship, there is a contract of employment.
South African labour law does not require that the contract be in writing, except for
apprenticeship agreements.
The employment relationship is a source of rights and obligations, which can either
be explicit (stipulated in a contract) or implicit (according to common law or various
other pieces of legislation).
Any action by either party that amounts to a breach of the rights of the other party
will leave that party with a remedy.


Think further

Study recent news headlines and write down scenarios where either party’s rights
have been breached alongside the remedy for this action.
Define and give an example of a ULP (unfair labour practice).

3.1.2
Discipline
When an employee has performed an act that breaches any of the rights of the employer,
the employer has the right to discipline. Any employer should attempt to implement
discipline before dismissal.
Self Assessment Test

3.1.3
Disciplinary action includes the issuing of warnings, suspension without pay,
transfers and demotions. Discuss each of these briefly, outlining the different
adverse side-effects of each.
Dismissals
Dismissals, because of its inherent nature, are one of the main conflict points in the
primary and secondary labour relationship.
14
Study unit 3
Key concepts


The LRA states that each employee has the right not to be unfairly dismissed.
Section 187(1) of the Act defines scenarios of dismissal that will automatically be
labelled as unfair.
The ILO provides three scenarios in which an employee can be fairly dismissed:
A)
Misconduct by the employee (because of disciplinary actions);
B)
incapacity of the employee (the inability of the employee to perform the job
to a satisfactory level); and
C)
operational requirements of the organisation (retrenchments).
In order for a dismissal to be classified as fair, it should adhere to both the
standards of procedural fairness and substantive fairness. This means that for
each of the above-mentioned substantially fair grounds of dismissal, there is a fair
procedure that should be followed in order to achieve a completely fair dismissal.





Self Assessment Test


3.1.4
Write down and summarise for yourself the definition of dismissal according to
South African labour legislation.
For each of the three grounds of fair dismissal, summarise in three or more
paragraphs the correct procedure to follow in dismissing the employee fairly.
Grievance procedures
Key concepts


Grievances are those complaints initiated by employees or groups of employees,
which relate to the work environment.
Grievance procedures are procedures designed to facilitate effective
communication between employers and employees where grievances are
concerned.
Think further

3.1.5
Design your own grievance procedure for a medium to large company, which
comprises four levels of employees, namely ground level, ground level
management, strategic management and top management. Give reasons for the
procedures you would put into place to ensure effective communication and
minimisation of conflict.
The decision-making process
Think further

The textbook suggests a four-step decision-making process. Study this process
and write down any ideas that come to mind. Bring these points of discussion to
the next contact session.
15
Study unit 3
3.2
Collective baraining
Collective bargaining in its essence refers to the means of communication established
between the collective (more than one, for example trade unions) primary parties to the
labour relationship. South African labour legislation provides guidance for this process
concerning the following:



3.2.1
Organisational rights of Trade Union;
the collective bargaining process; and
bargaining forums.
Rights of trade unions
As already discussed, trade unions have to be 1) registered and 2) representative in
order to qualify for organisational rights. (Refer to study unit 1.)
A registered representative trade union has the right to the following:





Access to the workplace;
deduction of union dues;
trade union representatives;
leave for trade union activities; and
disclosure of information.
Self Assessment Test


3.2.2
Explain each of the above trade union rights in your own word in no more than
three sentences each.
Discuss, in one paragraph, the process that should be followed when a trade
union wishes to exercise one of its organisational rights.
The collective bargaining process
Key concepts





16
South African law does not prescribe a duty to bargain; however, it does support
bargaining in good faith, and the refusal to bargain by an employer constitutes
legitimate grounds for a lawful strike.
The two main known collective bargaining styles are 1) distributive bargaining and
2) integrative bargaining.
The level of bargaining refers to how many employees and employers are involved
in and will be affected by the bargaining process, in other words is bargaining
between individuals or between trade unions and employers’ organisations.
The final collective agreement is a written document stipulating the conclusion of
the collective bargaining process.
Disputes about the interpretation and application of collective agreements should
be resolved through conciliation or arbitration and, if the first two do not work, the
CCMA.
Study unit 3
Self Assessment Test

3.2.3
Compare the different styles of collective bargaining, taking care to outline each
style’s advantages and drawbacks.
Union security arrangements
Key concepts

According to an agency-shop agreement, an employer will be obliged to deduct
agency fees from employees’ salaries, if they are not part of the representative
union but are benefiting from the trade union’s collective bargaining.
According to a closed-shop agreement, all employees of a certain organisation
are obliged to join the representative trade union.

Think further

What are the advantages/disadvantages of an agency-shop agreement for 1) the
trade union, 2) the employer and 3) the employees?
What are the advantages/disadvantages of a closed-shop agreement for 1) the
trade union, 2) the employer and 3) the employees?
Can an employee be dismissed because of non-compliance with either of these
agreements?
What happens when an agency-shop agreement exists for a trade union which is
no longer representative of the employees in a particular organisation?



3.2.4
Bargaining structures
The Labour Relations Act promotes three types of bargaining structures, namely:



Bargaining councils;
statutory councils; and
workplace forums.
Self Assessment Test

Compare the three bargaining structures promoted by labour legislation and
attempt to define each in a single sentence.
17
Study unit 3
3.3
Negotiation
3.3.1
Definition of negotiation
Self Assessment Test

3.3.2
Study the textbook p 283-288 and write down your own definition of negotiation.
Bring this to the contact session to be discussed.
Approaches to negotiation
According to Walton and McKersie (1965), there are four main approaches to negotiation
which differ among various trade unions, employers and employers’ organisations.
These include:




Distributive bargaining;
integrative bargaining;
intra-organisational bargaining; and
attitudinal structuring.
Self Assessment Test

3.3.3
Describe each of the above approaches to negotiation in no more than a short
paragraph, focusing on the differences between the different methods.
Factors that impact on negotiations
Because negotiation essentially involves communication between two parties, factors
from both the inside and outside of the organisation will have an impact on the negotiation
process.
Self Assessment Test


3.3.4
List and explain the internal factors that impact on negotiations between an
employer and trade union.
List and explain the external factors that impact on negotiations between an
employer and trade union.
Bargaining in good faith
Bargaining in bad faith has come to be labelled as an unfair labour practice, and it is thus
important to understand the fundamental differences between bargaining in good faith
and bargaining in bad faith.
18
Study unit 3
Self Assessment Test

3.3.5
Define what bargaining in good faith would mean to a labour court. Is this by
any way defined through labour legislation?
Arguments used in wage negotiations
There are five main legitimate arguments generally used in wage negotiations:





Affordability;
Comparability;
cost of living;
productivity; and
public policy.
Self Assessment Test


3.3.6
Explain each of the five arguments used in wage negotiations and state whether
each particular argument would rather be used in negotiations by the
employees’ side (trade union) or employers’ side (employers’ organisations).
Indicate how each of the above arguments is affected by South African public
policy.
Negotiating strategies and tactics
Self Assessment Test

3.3.7
Differentiate between negotiation strategies and tactics by giving a definition of
each and then categorising the different options of actions available to both
parties of the primary labour relationship either as a strategy or a tactic.
The negotiation process
Please read page 283-288 in your handbooks.
3.3.8
The outcomes
There are three main actions which can be undertaken by negotiators and which will
each influence the outcomes of the negotiation process in their respective ways.
Negotiators can, therefore, choose to:



Contend;
concede; or
compromise.
19
Study unit 3
Self Assessment Test

Discuss how each of the above-mentioned actions will influence the outcome
of a specific negotiation process.
You have to complete the exercise below individually after studying the relevant study
material.
Theoretical classroom creativity

20
Complete this theoretical exercise after you have studied the prescribed
paragraph:
Study unit 4
Study unit 4
DISPUTE RESOLUTION AND WORKER PARTICIPATION IN
SOUTH AFRICA
Study hours
You will need approximately 30 hours to master this study unit and attain the learning
outcomes.
Study outcomes
Upon completion of this study unit, you should be able to:
With reference to dispute resolution:



Understand and analyse the functions of the CCMA, bargaining councils and
the Labour Court in the context of employment relations;
compare the duties of the CCMA, bargaining councils and the Labour Court in
the context of employment relations; and
outline the rules of the three main statutory bodies established under the LRA.
In terms of worker participation in South Africa:




Grasp the underlying reasons for introducing worker or employee participation
into an organisation;
list and understand the various forms that employee participation may take
within the organisational context;
demonstrate knowledge of what is needed to ensure successful employee
involvement in the organisation; and
understand what is meant by workplace forums and pertinent legislation.
With reference to industrial action:





Trace how the law of strikes has progressed to culminate in the right to strike
(in the context of South African law);
demonstrate knowledge of how strikes are classified;
be aware of the forms of industrial action, other than strikes, that are available
to the employee;
describe the concept of the lockout;
know what a protected strike or lockout entails under the Labour Relations Act,
No 66 of 1995;
21
Study unit 4





understand that both the right to strike and recourse to lockout are subject to
limitations derived from the Constitution’s limitations clause;
demonstrate familiarity with the various provisions for secondary strikes under
the LRA;
describe how the Labour Relations Act of 1995 deals with non-compliant strikes
and lockouts;
list the various provisions related to the right to strike; and
understand the practicalities and procedural elements involved in managing a
strike.
With reference to some future patterns and predictions for labour relations in
South Africa:


4.1
Discuss the future of labour relations in South Africa meaningfully; and
feel compelled to keep abreast of happenings on the South African economic
and political scene so as to monitor trends .
Background
Disputes and especially labour disputes are always present in our workplaces. They
must be managed and solved.
4.2
Labour disputes
A dispute arises when conflict is of such a nature or if conflict is left unattended for such
a period that the conflict becomes formalised to a level where a neutral party is needed
for resolution.
Key concepts


Disputes are differentiated by right or by interest.
Disputes of right refer to disputes arising from the violation of an actual right or
obligation as set out in the employment contract, collective bargaining agreement
or any other applicable labour legislation.
Disputes of interest are centred around the conflicting interests of an employer and
employee regarding a point of conflict that relates to work.

Self Assessment Test

4.2.1
Write down as many examples of 1) disputes of right and 2) disputes of interest
as you can think of.
Dispute resolution
The LRA prescribes a two-phase procedure for resolving labour disputes. Firstly, all
disputes should attempt conciliation (through the CCMA or a bargaining council) and if
this fails, the disputes should either be referred to arbitration or adjudication by the
Labour Court.
22
Study unit 4
Self Assessment Test

4.2.1.1
Name the scenarios where the CCMA will have no jurisdiction.
Conciliation
According to the LRA, conciliation has to be the first step of dispute resolution.
Key concepts

Conciliation involves the use of a conciliator to act as neutral party in an attempt
to resolve a dispute through open and constructive communication.
A conciliator consults with each party individually in order to find a satisfying
resolution and eliminate the negative communication typical of conflict.
A mediator differs from a conciliator in that he/she plays a more active role in the
conversation between the two parties while both are present.
The conciliator is appointed by the CCMA immediately after a dispute has been
referred to it.
The conciliator must attempt to resolve the dispute within 30 days which can be
extended by mutual agreement of the parties involved.
A party to the dispute may be represented by a co-employer or a member of that
party’s trade union or employer’s organisation.
At the end of the conciliation period, a certificate must be issued stating whether
or not the dispute has been resolved.






Self Assessment Test

4.2.1.2
Summarise for yourself the process of referring a case to the CCMA.
Arbitration
In the case that conciliation should fail, the dispute should either be referred to arbitration
or to the Labour Court itself. Arbitration should first be discussed.
Key concepts




Arbitration refers to the process where a neutral third party, an arbitrator,
interferes directly by conducting a fair hearing and weighing the argument and
evidence and making a final decision that is legally binding to both parties.
The Labour Court can enforce any arbitration award, should a party fail to comply.
Arbitration can either be compulsory or voluntary.
A pre-dismissal arbitration takes the place of an internal hearing.
23
Study unit 4
Self Assessment Test



4.2.1.3
Name instances where arbitration will be compulsory.
Why would the parties of a dispute contend voluntary arbitration?
In the instance that the parties of a dispute have opted for voluntary arbitration,
which legal route should they follow in order to achieve this?
The use of bargaining councils
Key concepts

Bargaining councils have to apply to the CCMA for accreditation or, alternatively,
appoint an accredited agency.
Bargaining councils can resolve certain labour disputes through conciliation and,
if necessary, arbitration.
Certain disputes should, however, not be referred to a bargaining council.


Self Assessment Test

4.2.1.4
Summarise for yourself the types of labour disputes that should not be referred
to a bargaining council
The Labour Court
Key concepts



The Labour Court has powers equal to those of a provincial division of the Supreme
Court and deals with all labour cases.
The Labour Appeal Court has powers equal to those of the Appellate Division of
the Supreme Court.
The Superior Courts Bill proposed the abolishment of the Labour Court and the
Labour Appeal Court and the integration of these courts’ functions into the High
Courts and the Supreme Court of Appeal. This bill, however, has not yet been
passed.
Think further


4.3
You now know that the Labour Court has powers equal to those of the Supreme
Court. Do you know which powers the Supreme Court has?
If The Superior Courts Bill is passed, what do you think will be the consequences
for the South African labour environment?
Worker participation
Worker participation is essentially a style of management where workers are involved in
management-type decisions in order to create mutual goals and motivate the workplace.
24
Study unit 4
4.3.1
Objectives of worker participation
Worker participation can certainly amount to a lot of extra work and administrative costs,
especially where organisations have a large workforce. Why, then, would an
organisation even consider the prospect of having workers participate in the
management of a business?
The objectives of worker participation can be of an ethical/moral, socio-political or
economical nature, ranging from better motivation of the workforce, the establishment of
mutual interests and goals, the entrenchment of democracy in the workplace and the
improvement of communication between different levels of the workforce.
Self Assessment Test

4.3.2
Write an essay of no more than two pages, summarising why South African
organisations should/or should not attempt to adopt a certain level of worker
participation in their respective management systems. State clearly whether
you are for or against the concept of worker participation.
Forms of worker participation and implementation
There are different ways in which workers can be involved in the management process.
Study the discussion of each form in the textbook.
There are also different ways in which an organisation that wishes to adopt the concept
of worker participation can attempt to establish this. These are also discussed in the
prescribed textbook.
Key concepts

The ingredients that have to be present in an organisation in order to implement
worker participation as a management style, include:
1.
management commitment;
2.
a positive organisational culture;
3.
an accommodating management style;
4.
an accessible organisational structure; and
5.
ongoing assessment of the participative process.
Self Assessment Test


Write down the different forms of worker participation in the order of more
theoretical to more practical and summarise the value of each in a single
sentence.
Write an essay in which you discuss the various ingredients which have to be
present in order for an organisation to implement the concept of worker
participation successfully.
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Study unit 4
4.4
Industrial action
Key concepts
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Section 64 of the Labour Relations Act, No 66 of 1995, grants every employee the
right to strike and every employer the recourse to lockout, provided that the issue
in dispute has been referred to a bargaining council or, if no council has jurisdiction,
to the CCMA.
The wage round refers to a clearly discernable seasonal pattern in exercising
collective bargaining, stating that workers will demand higher wages in a certain
fixed cyclical pattern.
Section 213 of the Labour Relations Act of 1995 defines a strike as:

…the partial or complete concerted refusal to work, or the retardation or
obstruction of work, by persons who are or have been employed by the same
employer or by different employers, for the purpose of remedying a grievance
or solving a dispute in respect of any matter of mutual interest between
employer and employee, and every reference to work in this definition
includes overtime work, whether it is voluntary or compulsor
The definition of strike is thus stretched to include various other abductions of the
normal progress of work, such as go-slows, works-to-rule and work-ins or sit-ins.
Section 213 of the 1995 Labour Relations Act defines a lockout as:

…the exclusion by an employer of employees from the employer’s
workplace, for the purpose of compelling the employees to accept a demand
in respect of any matter of mutual interest between the employer and
employee, whether or not the employer breaches mutual interest between
the employer and employee, whether or not the employer breaches those
employees’ contracts of employment in the course or purpose of the
exclusion.
A certificate of failed conciliation needs to have been issued before a strike or
lockout can take place, and the party planning the industrial action has to give at
least 48 hours’ notice to the other party before industrial action can commence.
Workers participating in a protected strike cannot be liable for delict or breach of
contract but will not be paid for the period of the strike.
Employees participating in a protected strike may not be dismissed for that reason.
There are, however, two exceptions to this law:
1.
If there is a genuine threat of financial ruin or substantial economic loss (in
which case the jobs which are the centre of the dispute will cease to exist);
and
2.
If the striking workers are in any way guilty of misconduct. (This includes
violence, intimidation, damage to property, et cetera.)
Section 66(1) of the 1995 Labour Relations Act defines a secondary strike as:

…a strike or conduct in contemplation or furtherance of a strike, that is in
support of a strike by other employees against their employer but does not
include a strike in pursuit of a demand referred to a council if the striking
employees employed within the registered scope of that council have a
material interest in that demand.
Employees that partake in an invalid state are not in any way protected by the law
and can be sued and dismissed.
Study unit 4

The act prescribes a clear policy for actions associated with strikes, such as:
picketing, essential services, maintenance services, replacement labour and
protest action in defence of the socio-economic interests of employees.
Self Assessment Test
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4.5
According to you, is South Africa a strike prone country? Motivate your answer.
Would you say that the right to strike or enforce a lockout is fundamental to a
healthier labour environment? Why?
What happens in the case that an employer refuses to bargain?
Describe the process and rules to be followed in the case of strikes and lockouts
in response to dismissals for operational requirements and clearly indicate how
these differ from the otherwise normal procedure to be followed.
There are certain limits to the right to industrial action instituted by the Act.
Explain when and how these limits will come into play in the course of industrial
action taken 1) by the employee and 2) by the employer.
Summarise for yourself the legislation which applies to the specific provisions
relating to the right to strike.
The future of labour relations in South Africa
Self Assessment Test

Discuss how the following factors impact on the future of labour relations in
South Africa:
1.
political transition; and
2.
economic transition.
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