2010
INDUSTRIAL RELATIONS MODULE
PETER F. SIBANDA
MIDLANDS STATE UNIVERSITY
1/16/2010
MODULE OUTLINE
The Module: Explores on the nature of the employment relationship,
Examines the different perspectives in analyzing Industrial Relations,
Examines the different perspectives in analyzing the worker problem,
Examines the roles of various parties in Industrial Relations,
Explores on Industrial Relations dynamics in the 21st Century and key issues driving
change in Industrial Relations.
AREAS OF STUDY
BACKGROUND TO THE STUDY OF INDUSTRIAL RELATIONS
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Academic Study of I.R
I.R defined
The growth of I.R as a discipline.
The Employment Relationship
Nature of the Employment Relationship,
The Employment Contract (origins, types, elements etc.)
The Concepts of Power, Conflict and Job Regulation.
Implications on the study of Industrial Relations
Industrial Relations Perspectives
Unitarism
Pluralism
Marxism
ACTORS IN INDUSTRIAL RELATIONS
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Management
Management defined
Historical features of labour management
The Managerial Prerogative
Management Styles in Employment R/ships
Management Control Strategies
Contemporary issues in Management
Management and Employers Organisations
Trade Unions
Trade Unions defined
Types of unions
The rise and fall of trade unions
Trade union Structure and democracy
Contemporary Issues on Trade Unions
The State in Industrial Relations
Forms of State Interventions
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The changing and future role of the State in Industrial Relations
INDUSTRIAL RELATIONS PROCESSES
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Negotiations
Purpose of Negotiation
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Types of Negotiation
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Negotiation Strategies
Collective Bargaining
9.
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Definition
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Types of Bargaining
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Functions of Bargaining
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Management and Trade Union roles in bargaining
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Contemporary issues in Collective Bargaining
Industrial Action
10.
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Functions
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Forms of Industrial Relations
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The Legal Framework of Industrial Action in Zimbabwe
I. R dynamics in Zimbabwe
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A historical account of Industrial Relations in Zimbabwe
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Organisation of workers
FACTORS SHAPING I.R IN ZIMBABWE TODAY
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Globalisation
Technology
Flexibility
The new H.R Agenda
Social Dialogue
The future of Industrial Relations and the study of HRM in Zimbabwe
Importance of Industrial Relations:
Industrial Relations Home » Importance Of Industrial Relations
The healthy industrial relations are key to the progress and success. Their significance
may be discussed as under –
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UNINTERRUPTED PRODUCTION – The most important benefit of industrial
relations is that this ensures continuity of production. This means, continuous
employment for all from manager to workers. The resources are fully utilized, resulting in
the maximum possible production. There is uninterrupted flow of income for all. Smooth
running of an industry is of vital importance for several other industries; to other
industries if the products are intermediaries or inputs; to exporters if these are export
goods; to consumers and workers, if these are goods of mass consumption.
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REDUCTION IN INDUSTRIAL DISPUTES – Good industrial relations reduce the
industrial disputes. Disputes are reflections of the failure of basic human urges or
motivations to secure adequate satisfaction or expression which are fully cured by good
industrial relations. Strikes, lockouts, go-slow tactics, and grievances are some of the
reflections of industrial unrest which do not spring up in an atmosphere of industrial
peace. It helps promoting co-operation and increasing production.
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HIGH MORALE – Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of employer and
employees is one and the same, i.e. to increase production. Every worker feels that he
is a co-owner of the gains of industry. The employer in his turn must realize that the
gains of industry are not for him along but they should be shared equally and generously
with his workers. In other words, complete unity of thought and action is the main
achievement of industrial peace. It increases the place of workers in the society and
their ego is satisfied. It naturally affects production because mighty co-operative efforts
alone can produce great results.
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MENTAL REVOLUTION – The main object of industrial relation is a complete
mental revolution of workers and employees. The industrial peace lies ultimately in a
transformed outlook on the part of both. It is the business of leadership in the ranks of
workers, employees and Government to work out a new relationship in consonance with
a spirit of true democracy. Both should think themselves as partners of the industry and
the role of workers in such a partnership should be recognized. On the other hand,
workers must recognize employer’s authority. It will naturally have impact on production
because they recognize the interest of each other.
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REDUCED WASTAGE – Good industrial relations are maintained on the basis of
cooperation and recognition of each other. It will help increase production. Wastages of
man, material and machines are reduced to the minimum and thus national interest is
protected.
Thus, it is evident that good industrial relations is the basis of higher production with
minimum cost and higher profits. It also results in increased efficiency of workers. New
and new projects may be introduced for the welfare of the workers and to promote the
morale of the people at work. An economy organized for planned production and
distribution, aiming at the realization of social justice and welfare of the massage can
function effectively only in an atmosphere of industrial peace. If the twin objectives of
rapid national development and increased social justice are to be achieved, there must
be harmonious relationship between management and labor.
Contract of employment
Definition
Elements of the contract
Forms\ types
Sources of contract terms
Minimum statutory standards
Express statements of the parties to the contracts
Collective agreements
Organizational rules
Custom and practice
Common law and duties of employers
Common law and duties of employees
Psychological Contract
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It refers to the expectations of the employer and the employee that operate in addition to
the formal contract of employment
It has been defined by Rousseau (1994) cited by Hiltrop (1995:287) as “the
understanding people have regarding the commitments made between themselves and
their organisation.”
It therefore, is concerned with each party’s perception of what the other party to the
employment relationship owes them over and above that which may be specified in the
contract of employment.
The contract is not clear as to the content and because it is based on perceptions, it is
not written down
Mullins (1996) points out that there is a continuous process of balancing and explicit and
implicit bargaining over the contract content and more over that the individual and the
organisation may not be aware consciously of the contract “terms”. However, these
terms affect their behavior and relationship.
One of the aspects of the psychological contract that has gained prominence over the
years is the traditional employee perception that the organisation promises a “job for life”
(examples) in return for employee loyalty and commitment. This is still practiced if we
take the case of local government, civil service and parastatals.
Some jobs are fast changing in terms of nature and content hence driving a twist of the
psychological contract for example, the changes in the banking sector. The coming in of
IT to replace people has shifted people’s expectations and hence the psychological
contract.
Organisations now need managers that are less experienced, more commercially aware,
more energetic, and they could be easily obtained, and retained, more cheaply than their
predecessors.
Research reviewed by Sparrow (2000) highlights the changing nature of the organisation
of work and its implications on the psychological contract, e.g., experiences of
redundancy, for example, are often viewed by the older workers as a violation of the
psychological contract, and are significantly related to their adoption of personal
responsibility for their career development (Sparrow 2000) also issues of termination or
grows of incapacitation, etc.
Herriot and Pemberton (1995) argued that the psychological contract has moved from
one that is relational- based on mutual trust and commitment- to one that is
transactional- based upon mutual instrumentality of the work- effort- reward bargain.
It demonstrates a shift from focus on job security on the part of employees towards
employability security.
According to Hiltrop (1995:289) in the new type of psychological contract “there is no job
security. The employee will be employed as long as s (he) adds value to the
organisation and is personally responsible for finding new ways to add value. In return
the employee has the right to demand interesting and important work has the freedom
and resources to perform it well, receives extra pay that reflect his/her contribution and
gets the experience and training needed to be employable here or elsewhere.”
Characteristics of the ‘old’ and new psychological contract
Characteristic
Focus of the E/R
Format
Duration
Underlying principle
Intended output
Employer’s
responsibility
Employee’s
responsibility
Employer’s key input
Employee’s key input
Old
New
Security and long term Employability to cope with
careers in the company
changes with this and future
employment
Structured and predictable
Flexible and unpredictable
Permanent
Variable
Influenced by tradition
Drive by market forces
Loyalty and commitment
Value added
key Fair pay for a fair day’s work
High pay for job performance
key Good performance in present Making a difference
job
organisation
Stable income and career
Opportunities
for
development
Time and effort
Knowledge and skills
Source- Hiltrop (1995:290)
to
the
self
So the contract is based on the theory of reciprocation/ exchange theory by Cox and Parkinson
(1999), where individuals make an investment with expectations that an appropriate reward will
be forthcoming.
Discuss the implications for the conduct of the employment relationship when the
psychological contract is broken.
How may you as a Human Resource Manager contribute towards the management of a
psychological contract in a company which is in the FMCG industry
Comm
Fairness of treatment
Job security
Attractiveness of benefits
Training
INDUSTRIAL RELATIONS PERSPECTIVES
1.
UNITARISM
- It assumes that an organisation is or should be, an integrated group of people with a
single authority/loyalty structure, and a set of common values, interests and
objectives shared by all members of the organisation.
- The management prerogative (that is, the right for management to manage and
make decisions) is regarded as legitimate and rational and accepted and any
opposition to it (whether formal or informal, internal or external) is seen as irrational.
- The underlying assumption therefore is that, the organizational system is in basic
harmony and conflict is unnecessary and exceptional.
- Conflict, when it does arise, is believed to be primarily frictional rather than structural
in nature and caused by such factors as clashes of personalities within the
organisation, poor communication by management of its plans and decisions, lack of
understanding on the part of the employees that management decisions and actions
are made for the good of all in the organisation.
- The use of coercion (including law) is legitimate in the use of managerial power. In
other words, management does not receive a need given the legitimacy of its
prerogative, to obtain consent of employees to decisions or changes.
- At the same time, management concentrate on a Human Relations Approach
improving interpersonal relations and communications within the organisation) or
make appeals to the loyalty of employees.
- Trade unions are seen to be an historical anachronism, and with the coming of HRM,
are no longer necessary to protect employees interests.
- Even though management are forced to accept the existence of trade unions in the
determination of terms and conditions of employment (market leaders), they are
certainly reluctant to concede any role for trade unions in the exercise of authority
and decision making and decision making within the organisation (managerial
relations).
- They (trade unions) are most likely to be seen as little more than a political power
vehicle used by militant minority in order to subvert the existing and legitimate
political, social and economic structure of society
CONCLUSION
- The Unitarist system has one source of authority and one focus of loyalty, which is
why it suggests the team analogy
- What pattern of behavior do we expect from members of a successful and healthily
functioning team?
- We expect then to strive jointly towards a common objective, each pulling his weight
to the best of their ability (tits out).
- Each accepts his place and function gladly, following the leadership of one so
appointed.
- There are no opposition groups/functions, and therefore no rival leaders within the
team.
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2.
Nor are they any outside it, the team stands alone, its members owing allegiance to
their own leaders but not o others.
If the members have an obligation of loyalty towards the leaders, the obligation is
reciprocated, for it is the duty of the leader to act in such ways as to inspire the
loyalty he demands.
Morale and success are closely connected and rest heavily upon personal
relationships.
Most of us will agree that the unitary perspective represents a vision of what industry
ought to be like which is widespread among employers, top managers and
substantial sections of outside public opinion.
The vision is closest to a professional football team, for her, combined with the team
structure and its associated loyalties; one finds a substantial measure of managerial
prerogative at the top in the persons of the manager, trainer or board members.
Team spirit and undivided management authority co-exist for the benefit of all.
PLURALISM
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The perspective views society as being post-capitalist in nature, a relatively wide
distribution of authority and power within the society, a separation of ownership from
management, a separation, acceptance and institutionalization of political and
industrial conflict.
Organisations are viewed as coalition of individuals with contrasting interests,
objectives and leadership. According to Fox (1973), the organisation is multistructured and competitive in terms of groupings, leadership, authority and loyalty
and this gives rise to a complex of tensions and competing claims which have to be
managed in the interests of maintaining a viable collaborative structure.
Conflict is perceived to be both rational and inevitable. It results from individual and
organizational factors (structurally determined) and different roles of managerial and
employee groups. (Management objectives include efficiency, productivity and
profitability whilst for employees working conditions, better pay, job and employability
securities are crucial).
Because of such divergence of interests, the issue of power and authority to control
the production process become fundamental. The resolution of conflict is
characterized by the need to establish acceptable procedures and institutions which
achieve collaboration through comprehensive, codified systems and negotiated
regulation.
There has to be an acceptance of the need for shared decision making, the
legitimacy of management’s role is not automatic but must be sought by and
maintained by management itself ‘management by consent” rather than
“management by right”.
Trade unions are seen to provide a countervailing power of management and
therefore are seen as legitimate.
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3.
Such legitimacy, according to Fox (ibid) is founded not just on industrial power or
management acceptance, but on social values which recognize the right of interest
groups to combine and have an effective voice in their own destiny.
MARXISM
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Concentrates on the nature of the capitalist society surrounding organisations, where
Hyman (1975) argues, “the production system is privately owned…., profit is the key
influence on Company policy…., and control over production is enforced downwards
by the owner’s managerial agents…”
Marxist general theory argues that: (1) class/group conflict is the source of societal
change, without it, the society will stagnate (2) class conflict arises primarily from the
disparity in the distribution of, and access to, economic power within society – the
principal disparity being between those who own capital and those who supply their
labour (3) the nature of the society’s social and political institutions is derived from
this economic disparity and reinforces the position of the dominant establishment
group, for example, through differential access to education, the media, employment
in government and other establishment bodies.
Social and political conflict in whatever form is merely an expression of the
underlying economic conflict within the society.
It is seen as a reflection of not just organizational demands and tensions, but the
economic and social divisions within society between those whose who own and
manage means of production and those who have their labour for sale.
Therefore it is continuous, unavoidable and synonymous with political and social
conflict.
Employers do not need to exercise their full industrial power by choosing plants and
withdrawing their capital, the implicit threat that they have such power is insufficient
to balance any direct collective power exercised by trade unions.
The social and political institutions within society supports the intrinsic position of
management, employees thought eh influence of education and the mass media,
become socialized into accepting the existing system and role of management.
An attack on the institutions of job regulation provides only a limited temporary
accommodation of the inherent and fundamental divisions within capitalist based
work and social structure.
Trade union growth becomes inevitable as a response to a system of capitalism.
MANAGEMENT
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The planning, organizing, leading and controlling of resources to achieve
organizational goals effectively and efficiently
ORIGINS OF MANAGEMENT
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Employer’s rights are today generally exercised by managers
Pollard attributed that the industrial revolution provides evidence of the origins of
management.
Writers such as Braverman argue that initial managers were recruited from the family of
business people
This is necessary to keep control of business, but in the growing size of businesses
nepotism was quickly replaced by merit
This provides an insight into modern ownership and control and becomes the real
underlying factor in terms of management into the ranks of owners
The managerial prerogative, which are the managements rights and functions are
asserted to derive property rights
Managerial rights are the right to decide what to be done, when, where, and by whom.
Managers act as legal trustees to the owners of property
MANAGERIAL PREROGATIVE
MANAGEMENT CONTROL STRATEGIES
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Is the process through which plans are implemented and objectives achieved by setting
standards of measuring performance, comparing the actual performance against the
target and then putting up corrective actions
Strategies adopted by management are based on ways of thinking about the
employment relationship
They include a pluralist view which asserts that a potential conflict defines the
employment relationship due to differences in the interests of the stakeholders
Blighton and Turnbull (1998) forwarded that the employment relationship is founded on
the principles of structured antagonism
most of them enter the employment relationship not because they want but for economic
reasons hence management control becomes important
management devise ways of making people do what they want to do
Friedman 1977
talks of two types of strategies which managers use to exercise authority over labour
power namely responsible autonomy and direct control
Responsible Autonomy mobilizes labour power by giving employees an opportunity to
have control over the work situation (being responsible citizens) in a manner that is
beneficial to the whole organisation
It includes such elements such as employee involvement and participation, delegation of
authority and empowerment.
Direct Control on the other hand involves close supervision of employees, a harsher
regime of discipline characterized by threats of pay reduction or dismissal
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This approach owes much to Taylorism and Scientific Management which has some of
the elements as reflected by Morgen (1986)
Morgen (1986)
Helrigel and Slocum (1978)
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Identify 3 common strategies used by managers, that is
i.
Control through Organizational Structure
ii. Control through Recruitment and Training
iii. Control through Rewards and Punishment
iv. Control through Policies and Rules
v. Control through budgets
vi. Control through machinery
TRADE UNIONS
TOPIC OBJECTIVES
Students should at the end of the lecture be able to: 
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Define a trade union,
Distinguish the types of trade unions citing examples,
List and explain the functions of trade unions,
Trace the genealogy of trade unions in Zimbabwe and Britain among other cases,
Account for the factors that have led to the rise and fall of trade unions in Zimbabwe
since the pre-independence period to date,
 Clearly demonstrate their understanding of the structure and organization of trade
unions, citing local examples,
 Demonstrate understanding of trade union democracy and shortcomings thereof,
 Assess the contemporary issues on trade unions including the factors that are likely to
influence the future of trade unions locally and abroad.
Definition of trade unions
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The Webb (1920:11) define a trade union as, “a continuous association of wage
earners for the purposes of maintaining or improving conditions of their working lives”
Salamon (1998) define it as “any organisation whose membership consists of
employees which seeks to organize and represent their interests both in the
workplace and society and in particular, seeks to regulate the direct process of
Collective Bargaining with management”
The legal definition of trade unions (according to The Act) “any association or
organization formed to represent or advance the interests of any employees or class
thereof in respect of their employment…”
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According to the towers, trade unions are more than engines for converting
bargaining power into improved pay and conditions for their members, …they are an
integral part of the system on checks and balances which is composed of capitalist
liberal democracies, as according to Salamon
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Why employees join unions
 To increase their bargaining power
 Minimize favoritism and discrimination
 Representation in labour disputes
 Closed shop arrangements
 Social factors, i.e., peer pressure, feeling of belongingness etc.,
 Cultural factors – legacy/history.
According to Swanepoel et al (2004), the following are the factors that lead employees
into joining trade unions: 1. Perceived lack of job security,
2. Management’s lack of respect for employees
3. Anger at the employer,
4. The belief that union representation would be effective
5. Favorable attitudes towards unions in general
Ultimately, they conclude, the decision to join trade unions “may involve a combination of
pre-dispositional attitudes, situational conditions, intense emotional effect, as well as a
calculative cost/benefit analysis of the pros and cons of union representation”
Employees will join trade unions if such membership wields utility. The utility that they
find usually emanate from the cost-benefit analysis, premised on the assumption of trade
unions bargaining for batter wages and working conditions,
Job security is increasingly becoming an all important factor, in an era where there are
changing trends on the nature of work and the new psychological contract and this is
exacerbated by the unfavorable labour market conditions locally with very high
unemployment levels, leading employees to prioritizing security as exoneration
Job insecurity is defined by Bender and Sloane (1999) as “a situation where employees
experience a sense of powerlessness to maintain desired continuity in a threatened job
situation. Now because of the power element associated with trade unions, this
insecurity, it is argued, is sufficient to influence the propensity of employees to unionize
hence it is argued by some scholars that “the overall impact of trade unions is to reduce
the proportion of workers who are insecure of their jobs.
Apart from the legal rights to freedom of association and assembly and of trade unions
organizing to get recognition in the workplace as representatives of employees
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THE FUTURE OF TRADE UNIONS
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Blyton&Turnball (1994) argue that the future of trade unions depends on two goals
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Workers who are willing to join and once joined to remain union members
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Employers who are willing to recognise them as bargaining agents for the
workforce
Batstone (1988) suggests power sources of unions lie in scarcity in the labour market,
disruptive capacity in the production process and political influence
Union membership therefore becomes an indicator of trade union power
In the UK unions work with shop stewards. In Zimbabwe they work with workers
committees.
“All trade unions are involved in political activity, by virtue of necessity” Crouch (1982)
Union’s political activities take into account broad social issues such as housing,
transport, education and health care.
In the UK there was a gradual move towards “market share unionism” merger activities
These mergers are because unions want to avert serious financial problems caused by
membership decline.
Unions may decide to pool their resources for mutual advantage
Section 27 of LRA a group of employees may form a trade union
Within 6 months of formation shall provide a written constitution and submit to Minister
showing:
Qualification for membership
Rights of person’s within the membership
The number of officials and office bearers
The holding of annual general meetings
Re appointment of office bearers
Calling and conducting meetings
Issues of discrimination
Amendment of constitution
winding up of trade unions
Can raise subscriptions from its members
According to the Act, No unregistered Trade Union shall;
Make representation to the Labour Court
Be assisted by an agent or labour officer
Form or be represented at the employment council
Recommend collective job action
Have the right to access employee records
Levy collects or recovers union dues
COLLECTIVE BARGAINING IN ZIMBABWE
Collective Bargaining – “...all negotiations which takes place between an employer, a group of
employers or one or more employers organisations, on the one hand, and one or more workers
organisations on the other, for: a) Determining working conditions and terms of employment, and /or
b) Regulating relations between employers and workers, and /or
c) Regulating relations between employers or their organisations and a workers’
organization…” (ILO Convention 154)
- The Industrial Concilliations Act establishes the foundation for Collective Bargaining in
Zimbabwe.
- According to Schiphorst (2001), The 1959 ICA was a major hallmark in Industrial
relations, as the first genuine piece of legislation not only to allow the formation of black
unions, but, to provide a wage setting machinery by setting the parameters for collective
bargaining as well as the development of Industrial Boards and Industrial Councils.
- Amongst the weaknesses it had however, Sachikonye (1986:52) in Schiphorst (2001)
has summarised thus “…the institutionalization of wage setting machinery has meant
breaking in part of the employer monopoly on wage determination even though the
process is far from complete…the exercise of labour power has established the basis for
intervention in the system and resulted in the development of additional threats to
employers’ interests…the institutionalization of unionism has permitted the entrenchment
of a protective instrument of working-class welfare, this being not an insignificant
achievement in the prevailing climate…”.
- The 1973 Act twisted the system of collective bargaining with the empowering of the
minister to vary CBAs, thus reducing the freedom to bargain (Collective Bargaining
Autonomy).
- Not so much change occurred post-independence, as had been forecasted, but just the
flow within the direction of the 1959 Industrial Conciliation Act. Within the first five years
of independence, wages continued to be determined through bargaining at an industry
level, albeit after the removal of racial overtones.
- This period also marked the time to debate on whether to introduce workers committees
and works councils in the new system, or instead to strengthen the machinery already
present.
- To trade unions, this had obvious implications in terms of their strengths, at a time when
they believed that the development of a trade union movement was more an important
achievement of worker expectations than worker participation, while to business; it
meant an alteration to the existing power structures and an opening of new forms of
worker control.
- That witnessed the formation of enterprise councils and the strengthening of the oneindustry-one-union policy. Collective bargaining became largely centralized at the
industry level.
- The coming in of the 1985 Act witnessed the institutionalization of collective bargaining
at industrial level with the possibility of enterprise flexibility through flexibility through
workers committees (Schiphorst 2001).
- Concepts such as the unfair labor practice concept were introduced, including good faith
bargaining, bringing Employment Councils and Employment Boards (in their structures
and forms) in the hierarchy to replace industrial councils and boards, that had been
introduced in the 1959 Act as well as empowerment of enterprise level bargaining
through works councils, the empowerment of the state to promulgate regulations which
would have overriding effects on bargaining agreements, state’s determination of
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maximum and minimum wages, severe curtailment of the right to strike and the intensive
state regulation of trade unions as well as the continuation of the one union one industry
concept among other things.
This resulted in collective bargaining playing a more secondary and subordinate role to
state regulation.
The neo-liberal policies adopted in the 90’s witnessed, but a radical shift towards
voluntarism and labour autonomy, when collective bargaining became a decisive
platform for the determination of wages and dismissals.
Benefits accrued to labour in terms of full recognition of trade unions as a legitimate
partner to the process, though major shortcomings including the severe curtailment of
the right to strike as well as shop floor competition that came in the form of works
councils.
The 2002 Amendment Act strengthened the facilitative role of the state, which expressly
states in the purpose of the Act the provision of a legal framework within which
employers and employees can bargain collectively for the improvement of working
conditions.
This position has been maintained by the 2006 Labour Act, as provided for on Part 1X
(Sections 74 to 82B) of the Act. Some of the critical elements that lie at the core of
collective bargaining in the Act include, among other things; issues on the scope of
agreements (s74), good faith negotiation (s75), disclosure once inability to pay is alleged
(s76), issues of agency representation (s77), registration of agreements (s79) as well as
internal and external regulation or variation of agreements (including the powers of the
minister to vary the agreements so made-s81).
Collective bargaining law in Zimbabwe has tremendously contributed to the whole
industrial relations framework both economically and socially.
The major economic benefit so derived by parties to the employment relationship has
been the establishment of a framework upon which individual and collective workplace
relations are managed and where industrial conflict is institutionalized for the pursuit of a
harmonious employee relations climate.
Gwisai (2006) also acknowledges how law has aided employee relations socially (in
terms of justice and democracy) by the strength of S2A of the Act (Purpose of the Act).
Collective Bargaining Autonomy, though some argue is limited, remains, but a significant
factor that has been enjoyed by parties to Employee Relations.
The legally binding nature of Collective Bargaining has been significant. It falls at the hub
of such works like Otto Kahn Freund who argue that law comes as a force to
“…regulate, support, and restrain the powers of management and organized labour…” In
other words, there is a clear recognition of the power differences between individual
employees against management or organized labour against management respectively,
the inadequacies of the former (organized labour) to provide a power base that can be
equated to that of the later (management) at the bargaining table, which then justifies the
need for a machinery to govern their relationship (in terms of setting the framework upon
which terms and conditions of employment are regulated).
Furthermore, the law has improved on trade union effectiveness, as measured by the
meeting of primary needs of workers such as better pay and conditions, increased
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influence on what they regard as increased influence on what they regard as workplace
decisions, and protection against arbitrary management action (Freeman 1996). This is
regardless of whether unions are instrumentally or ideologically motivated to do so.
In as much as the law on collective bargaining has posed improvements on employeremployee relations, it has also had its own weaknesses, or limitations. A critical analysis
of one element key to the process, the recognition of a need to balance the powers of
the parties to the employee relations, has not been addressed carefully.
The rhetoric of the argument provides a seemingly clear manner in which the
government has tried to create a balance of power between parties to employee
relations, but the reality is very different.
The state has made it very difficult for labor to enjoy the freedom to bargain by instituting
a well calculated and sophisticated bargaining framework involving a combination of
bargaining centralization through employment councils as well as bargaining
decentralization in the workplace (Schiphorst 2001).
While this may have been simple, if we look at s23 (1) (b), it has become very difficult for
unions to gain 50 % membership at an enterprise level so that they could control the
workers committees as shop stewards in the workplace with the prevailing economic
environment.
This was also made in light of Part VII of the Act on the right to organize, giving rise to a
recognition of multiple unions at the negotiation table (usually in opposition with regards
to political opinions) for example AMWZ and NUMQISWZ in the mining industry, and
most importantly, the continued curtailment of the right to strike, or rather, the exercise of
the freedom through a set of verbose procedures and unfounded restrictions (Part XIII of
the Act).
Research has clearly proved that the essence of bargaining power lies in one’s ability to
withhold something of value to another and that a strike action is an essential and
integral part of collective bargaining (Gwisai, 2006).
Without this, “…the power of management to shut down the plant will not be matched by
a corresponding power on the side of labour…”. Apparently, such factors have tended to
negatively affect trade unions in terms of their powers to negotiate effective collective
bargaining.
Most of the regulations were largely driven by political factors rather that economic ones,
thus resulting in a disintegrated, frustrated, competing (levels) and conflicting labour
movement hence diverting their attention from representing their constituencies to
scampering for membership. Meanwhile, this has given more security to employers who
already have so much power in employee relations.
A combination of the two tier system of managing collective bargaining, one for the
Public Sector and another for the Private Sector, plus the administration of a
combination of bargaining centralization (industry-wide) and decentralization (companywide) simultaneously has also come with it some interesting results.
This has also been against the fact that there are more than 20 sectors/industries
negotiating their agreements with employees in the country.
As a result, there has not only been a lack of collective voice on the part of employees in
general, but the private sector has had a tendency to wait for the public sector to
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negotiate CBAs first, and then use the result as a benchmark. Such has been a rather
firefighting and retrogressive ploy considering how poorly the public sector has
addressed issues of working conditions.
The lack of coordination amongst bargaining centers has also resulted in a lack of a
collective voice and an organized strategy with respect to the capacity of industry to
produce and pay.
The other weakness was that the declining degrees of bargaining centralization to
industry level has tended to result in bargainers passing negative pay externalities (i.e.
the cost of pay rises in terms of inflation, unemployment and loss of competitiveness)
onto third parties (e.g customers, other employee groups and also the state). Now this
has equally resulted in the stagnation of the country’s economic performance.
The area of scope of bargaining has not been fully addressed by law to take
consideration, explicitly issues of productivity, which should be a critical factor in the
consideration of pay increases.
This has resulted in a nadir relationship being built in employee relations where union
strength would at times supersede the capacities of companies to pay (for example in
the energy industry and local authorities).
The resultant effect has been the channeling of company funds towards employee
salaries at the expense of the real objects of Companies. It has been the general public
that has felt the grip especially considering how water and electricity charges have
increased for example, pressure for payments mounting against a rather dismal
performance of these, in terms of service delivery. These companies have managed to
comprise market leaders in terms of pay and benefits despite the fact that there is a
sharp contrast between productivity and pay, a flaw of the law. At one time the minister
even had to interfere in order to get allowances cut for some employees in the energy
industry.
Within this context, a great deal of questions has been raised over the effectiveness of
Arbitrators in collective dispute management, especially amid reports from business that
they were not factoring in these issues of productivity in wage determination.
This has been exacerbated by the continued inclination of the labour movement on
measuring minimum wages basing on the basic needs as explained in calculating the
Poverty Datum Line thus building on stagnation of the economy by way of creating a
dependency syndrome where they focus on milking business of productive funds instead
of realizing the relationship between productivity, performance, revenues and pay
increases.
A more similar argument has been raised in that the binding effect of collective
bargaining agreements on everyone in a specific industry has largely affected many
companies in terms of their capacities to pay since they are affected differently by the
business environmental factors. The moment we have Companies failing to meet wage
payment among other collective bargaining obligations, stagnation, rightsizing elements
or even Company closure becomes imminent.
Whilst taking note of the failures of the law to take into consideration the factors that
affected collective bargaining after the 2006 Act (esp. 2008) thus shaping the scope of
bargaining, where a great deal of both substantive and procedural rules was varied, the
-
frequency of bargaining increased, the levels of bargaining decentralized to the
workplace, and coverage of agreements also varied, equally, challenges have been
noted in trying to get parties to employee relations re-oriented to a new dollarized
Zimbabwe, which is a bit certain and more likely predictable.
The same applies to its failure to take cognizance of the increasingly growing informal
sector.
The weaknesses of law on collective bargaining in adapting to the prevailing economic
situation has also paved way for the administration of sophisticated HRM practices and
an intimate relationship between labour and business that has witnessed new trends on
Collective bargaining (to include productivity bargaining elements, e.g, at Wankie
Colliery) as well as other agreements that fall outside the legal framework of Collective
bargaining in Zimbabwe being binding on parties, for example in 2008.
RECOMMENDATIONS
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Productivity bargaining should be factored in on the scope of bargaining explicitly, since
it lies at the hub of collective bargaining. This should be complemented by an effort to
apprise the labour movement of the need to view negotiations within the context of
organizational and industry performance.
Trade unions will always remain ineffective for as long as they cannot exercise their right
to resort to collective job action as part of bargaining. This is but the most important area
that builds on trade union strength and hence forces employers to negotiate effectively.
The law should also put up a clause governing the frequency of bargaining and
circumstances upon which agreements can be reviewed in a clear and precise manner.
There is need to reduce the number of bargaining councils so as to try create a platform
for the formulation of more homogeneous agreements that allow for internalization of
negative pay externalities whilst at the same time allowing for coordination amongst
bargaining centers and the mapping of a whole industry-wide bargaining strategy.
There is need for the creation of a legal framework guiding and binding parties to the
social contract and then cascading to the workplace through a machinery of collective
bargaining. This is largely because the social contract has significant impacts on
collective bargaining.
REFERENCES
Gwisai M,(2006), Labour and Employment Law in Zimbabwe, Zimbabwe Labour Centre, Harare
Labour Act, (2006), Government Printers, Harare
Mugumisi S,(18 Nov 2009), Collective Bargaining: lessons form from 2009 focusing at 2010 and
Regional Trends, Paper presented at the IPMZ Labour Briefing in Harare.
Schiphorst F.B,(2001),Strength & Weakness: the rise of ZCTU and the development of Labour
relations (1980-1995)
Swanepoel et al,(2007), South African Employment Relations, Van Schaik Publishers, Pretoria
Taxler.F,(2009), The Economic Effects of Collective Bargaining Coverage: A cross national
analysis, ILO, Geneva
GLOBALISATION
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can be defined as a process of increasing global connectivity, integration and
interdependence in the economic, social, technological, cultural, political and institutional
spheres.
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It can be found to represent, for example, the process that reduces barriers between
countries and involve greater integration in world markets, thus, increasing the pressure
for assimilation towards international standards (Macdonald, 1997, Frenkel and Peetz,
1998, Ali, 2005).
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Economic aspects of globalisation are the most visible and important ones. These
include, but are not limited to: - economic competition amongst nations, rapidly
expanding international trade and financial flows and foreign direct investments (FDIs)
by multinational corporations (MNCs), disseminating advanced management practices
and newer forms of work organisation and in some cases sharing of internationally
recognised labour standards.
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globalisation enhances competitiveness, both at a company level and at a national level,
which leads to company managements and governments to adopt strategies designed to
increase labour effectiveness in terms of productivity, quality and or innovation.
-
In summary, globalisation involves economies that are opening up to international
competition and that do not discriminate against international capital. It therefore is
accompanies by liberalisation of markets and the privatisation of productive assets.
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At the same time, this phenomenon has obviously resulted in high unemployment,
increasing casual employment and weakening
labour movements according to Ali
(2005)
DIMENSIONS OF GLOBALISATION AND THEIR IMPACTS TO THE WORLD
1.
Economic Globalisation - is the convergence of prices, products, wages, interest rates
and profits towards the standard of developed countries. The extent to which an
economy will globalise depends on the importance of certain processes at play, such as
labour migration, international trade, movement of capital and integration of financial
markets.
2.
Political Globalisation - this relates to the increasing number and power of international
organisations which influence or govern the relationships among nations and which
safeguards the rights of countries arising from social and economic globalisation.
3.
Information Globalisation - refers to the rapid development of ICT worldwide, such as
global telecommunications infrastructure allowing for greater cross-boarder data flow.
4.
Cultural Globalisation - this refers to the greater international culture exchange and
growth of cross cultural contacts between nations and people. It also involves the
expansion of multiculturalism and improved individual access to cultural diversity, as well
as the growth of international travel and tourism, while at the same time developing and
establishing a set of universal values.
ECONOMIC IMPACTS OF GLOBALISATION
-
The most economic effects of economic globalisation include the following:


Increasing integration of global economic activities (this leads to intensifying competition
among producers and a greater and more varied offer of diverse sources and
destinations of FDI. Capital movements are very high in an open international
environment that labour force, MNCs have played a key role in this regard, through
relocating their business activities while also subcontracting and substituting technology
for human labour. Many companies have been seen to be rationalising their operations
in order to strengthen their competitiveness, by reducing both wage and non-wage
labour costs. Evidence has proved that MNCs generally pay higher wages and
employment benefits than local companies, which significantly affects the industrial
relations systems of the host country. In addition, their relationships with trade unions
are influenced by both the management and workforce relations in the Company’s
country of origin and the situation in host country, which makes it effectively difficult to
remove the rigidities of their policies. In most instances, they do not recognise trade
unions in bargaining on terms and conditions of employment, except for when they are
complying with the labour relations regulations of that particular host country.
(Macdonald, 1997, Ali, 2005)
Rising Competitiveness – increased competition in global markets creates demand for
more specialised and better quality products, leading to a higher volatility in product
markets and shorter product life cycles, which ultimately requires companies to respond
quicker to changes in market demands (HR implications- the need to manage people in
a quality way, to build on audible readiness, to develop globats, the need for HR to
transcend the stewardship of taking care of conditions of employment to look at factors
that bring shareholder value and organisational competitiveness. Production
implications-the need to introduce new technologies and increase the scope of flexibility
in the production processes and resolve any information and coordination difficulties
which previously limited the production capacities of enterprises in different locations
around the world. The main focus in on individualising and decollectivising work through
new work organisation in the form of niches, SBUs, while on the other end, a great deal
of effort is placed on reducing the input cost to the production process by replacing
people with technologies and then emphasising on building higher value capacities and
skills on workers to perform a variety of jobs (multi-skilling). This has blurred the
functional and hierarchical distinctions between different types of jobs and between
labour and management in general, Organisation of work – efforts to improve products
through innovation, quality, availability and pricing have led companies to set up crossfunctional development TEAMS, thus transcending the traditional boundaries between
engineering, manufacturing, and marketing. All these developments have been
accompanied by standardised, segmented, stable production process which had
facilitated collective industrial relations (Macdonalds, 1997) and a continual shift of
employment from manufacturing to service oriented industries, i.e., jobs shift from
traditional manual occupations to various forms of white collar occupations, though
these have been different amongst countries, largely because of differences in stages
of development. The developments in technologies, for example, are affected by the
willingness of countries with technologies to provide other countries with them
(situations of sanctions), and also the extent to which economically developed countries
are seeking access to the emerging markets to sell their products. On the other hand,
developing countries face many barriers to entry into the developed world’s markets,
hence affecting their rate of growth; hence the impact and pace of growth vary from one
country to another.
 Relocation of economic activities
 Structural changes in the economy
 Rapid advancements and innovation.
LABOUR MARKETS EFFECTS
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The most influential effects here include: -
 Labour market flexibility
 Increasing labour migration
 Rising atypical non-standard forms of employment
 Changes in the content and working conditions
 Skills mismatch, multi-skilling and the need for lifelong learning
Such factors vary from one country to another, but however are very fundamental in determining
a country’s competitive advantage labour market developments. Due to growing
competitiveness, many countries have become obliged to relax their employment protection
mechanisms in order to increase their labour market flexibility (see s12-duration, particulars and
termination of employment contracts), which has also raised a need to the need to create a
balance between labour market flexibility and social protection (see Parts 11-Fundamental
Rights of employees, 111-unfair labour practices as examples). As a result, the need for cost
efficiency and value addition has necessitated reforms in the labour market thus bringing
flexibility in order for companies to be able to deliver goods at the right time and be strategically
positioned closer to their customers.
Flexibility defined: - the capacity to which an organisation can adapt to global pressures. We
can distinguish between two types of flexibility, that is, numerical flexibility, which is when
employers use non-standard contracts of employment to match labour supply to product service
demand and to parcel out work in a way that avoids exposure to the risk of overstaffing.
Employers achieve numerical flexibility when employees work part time, fixed term and or short
term contracts, zero hours, annual hours or work from home, also including the use of short
term casualised labour, agency workers including contracting in and contracting out. We can
also talk about functional flexibility, which is the requirement or expectation that workers will
perform tasks beyond those strictly specified in their main role or function. This might entail
cross working (performing other people’s jobs at the workplace), expanding the number of tasks
performed or working in Teams. We can also talk of geographical flexibility which results in
managing across cultures as another type of flexibility. Organisational flexibility is yet another
strategic form of flexibility, now this is a bigger form and beyond the deployment of flexible
labour. It relates to workplace change more generally (e.g Business process reengineering,
continuous process improvement, restructuring, mergers and acquisitions, takeovers etc) as
well as introduction of new forms of work organisation, job design and redesign etc.
Complexities in flexibility in organisations have come in the form of new forms of contracts, e.g.,
part time work, fixed term contracts, zero hour contracts, the increased participation of women
in the labour market, outsourcing of labour, actualisation and subcontracting, all of which have
reshaped the issue of security of employment, from job security to employability security.
However, in most African societies, or the developing world in general, these have had a
tendency of creating permanent unemployment hence underemployment. Pillay (2006) argues
that outsourcing and subcontracting have been seen by COSATU as backdoor attempts to
introduce labour market flexibility in the country- in other words, lowering employment
standards. This is in contrast with the developed world, which sees a shortage in labour and
skills threatening their competitiveness, productivity performance and sustainability of their
economic growth, hence resulting in them steering labour migration to cover the void from the
developing world in the form of temporary employment. This introduces flexibility into the labour
market while increasing competition between foreign and domestic labour with varying
implications for the countries sending and receiving workers. (They put restrictions of migrant
labour into their markets in order to limit competition for work between domestic and foreign
workers.
The other issue we can talk about is the issue of reorganisation of work, which result in: -
Greater emphasis on team working
flattening of management hierarchies and the transfer of greater operational
responsibility and authority to lower level managers, supervisors and work teams. All these are
channelled at increasing workers’ commitment to the organisation and its goals, as well as in
establishing closer relationships between managers and workers based on consultation and
cooperation (Macdonald, 1997). In addition to that, there is an argument that, while globalisation
and rapid changes in economies demand that workers become proactive, adaptable, multiskilled, responsible and competent, these demands put additional pressure on workers, thus
exacerbating their difficulties at a time when working conditions are deteriorating and wages are
compressed. The results of this change will be on an unbearable price, with ill health associated
with a decrease in quality of life and unfair costs for individuals and society.
However, to become aware of the benefits arising from global integration, countries will need
effective education and training systems in order to supply the higher skills levels, which
underpin strong and flexible labour markets, economic growth and high unemployment, address
inequalities and ensure social cohesion (HM Treasury, 2005). In countries where competition is
based on quality and innovation, governments emphasize the need for adequate skills training
to improve workers’ competencies, esp. for those countries where shortages of qualified labour
exist, hence we have LIFELONG LEARNING-which is based on continuous learning, as well as
updating and upgrading of skills as a viable alternative to lifelong employment (Senge-learning
organisations, Blanchard-today’s organisations share a commitment to constant
improvement.......)
EFFECTS OF GLOBALISATION ON INDUSTRIAL RELATIONS
In any event direct labour costs are not a big part of the price of many products
and low wages alone are rarely decisive for most producers (although they are important
in particular industries, for examples for garment producers and electronics assembly.)
The major factor in the loss of manufacturing jobs is technological change. Domestic
U.S. manufacturing output today is five times what it was in 1950 even as fewer workers
are needed by the manufacturing sector. This is overwhelmingly the result of labour
displacing technology, not of runaway shops. The lack of unionization in the fast growing
high tech industries weakens all workers. The importance of such growth has
Robert Blackburn in his new book, The Making of New World Slavery, informs us that by
1770 profits derived from slavery furnished a third of British capital formation. In what might be
called a new international division of labour, slaves produced rice, coffee, sugar and other
products central to the living standard and personal fortunes of many Europeans. What is
interesting is not how much globalization changes things but the continuities in capitalist
mentality and practices. As Eric Foner has written: "Today's Chinatown sweatshops and Third
World child labour factories are the functional equivalent of colonial slavery in that the demands
of the consumer and the profit drive of the entrepreneur overwhelm the rights of those whose
labour actually produces the saleable commodity."9 Working people have always resisted such
demands. At the end of the 20th century resistance will be stronger to the extent to which we do
not allow the scarecrow of "globalization" to disempower us. The system is the same, its logic is
the same, and the need for workers of the world to unite has never been greater. It is time for
greater clarity in our critique of the basic workings of what are called "free markets" but are in
reality class power. We need to counterpoise the need to control capital and to have the
economy serve human needs rather than accept the continuous sacrifice of working people to
such ideological constructions as competitiveness, free markets, and the alleged requirements
of globalization.
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THE HUMAN RESOURCES MANAGEMENT AGENDA
DEFINITION OF GLOBALISATION
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is a driving force in global economic development today
concerns all actors in the economy, ranging from individuals and households to
governments
globalisation has greatly affected social partners, as traditional labour relations would
have to deal with entirely new and very dynamic situations, which include, but are not limited to;
Migration, relocation, changes in human capital and technology. Also included
are changes in labour force composition, where there is an increase in white collar jobs from
blue collar jobs, particularly in the developed world, coupled by an increase in self employment
and the growth of the informal sector of the economy in developing countries. All these have put
a significant pressure on trade unions to maintain and expand their membership levels and
coverage rates.
if industrial relations systems do not adjust to globalisation, the danger arises that
companies will relocate their production to countries with fewer restrictions on business
activities, such as countries with less regulated labour markets and lower labour costs.
Characteristics of globalisation
internationalisation of markets, increasing competition, free movement of capital and
labour, information globalisation through rapid development of information and communication
technologies (ict), the rising importance of markets- all influence working lives of employees and
represent serious challenges to the national industrial relations systems.
GLOBALISATION



Internationalisation of
markets
Increase
in
competition
Free movement of
capital and labour
across borders due to
less
stringent
regulations.
As
a
result, markets are
internationalising,
competition
is
increasing,
global
markets
are
integrating and ICT
IMPACTS
OF
GOBALISATION
 Increasing
integration of
global
economic
activities
 Rising
competitivenes
s
 Relocation of
economic
activities
 Structural
changes in the
economy
 Rapid
INDUSTRIAL
RELATIONS
SYSTEM
 ACTORS
-Trade Unions, Employers
Organisations, Government
 ACTIONS/PROCESSES
Collective
Bargaining,
Workers
Participation,
Industrial Actions, Conflict
Resolution
 CONTEXT
-Political, Economic, Legal,
Socio-Cultural,
Technological Environments
 OUTCOMES
-Scope of regulation of
employment, i.e., wages,

promote networking.
Informational
globalisation through
rapid development of
ICT






technological
advancements
and innovation
Knowledge
society,
networking,
social capital
Labour market
flexibility
Increasing
labour
migration
Rise
of
atypical
and
non standard
employment
forms
Changes
in
working
conditions and
work content
Job-skills
mismatches,
multi-skilling,
need
for
lifelong
learning

working
time,
working
conditions etc
IMPACTS
-Productivity,
job
and
employment
security,
industrial
peace
and
democracy
PAST EXAM QUESTIONS FOR REVISION
1. Discuss Robert Mitchell’s “Iron Law of Oligarchy” and its relevance to trade union
democracy.
2. A contract of employment is a way of controlling the labour process. Discuss with
reference to Zimbabwe’s statutory and common law provisions on the employment
contract.
3. “An unceasing power struggle is therefore the central feature of industrial
relations…..”Hyman (1975). Discuss
4. Discuss the contention that “there is nothing so unequal as the equal treatment of
unequals” with respect to the State’s intervention in industrial relations.
5. Does the definition of Industrial relations as job regulation represent a narrow framework
for the study of the subject? Discuss
6. Conflict is always inherent in Industrial Relations. Discuss this argument with reference
to the three Industrial Relations perspectives.
7. The issues of power and control are central to the study of industrial relations. Discuss
8. Discuss the various elements that are fundamental in developing a legally binding
employment contract as discussed in class.
9. Analyse the factors that have led to the growth and decline of trade unions in Zimbabwe
since 1900 to date.
10. Discuss the role of the State in industrial Relations.
11. Analyse the critical elements that should be considered by negotiators for effective
negotiations to take place. Discuss the extent to which the State has contributed towards
the rise and fall of trade unions in the pre and post-independent Zimbabwe.
12. Discuss the impact of globalization on Industrial Relations in Zimbabwe. In your answer,
take note of how flexibility issues have shaped the employment contract.
13. a) “…the issues of power and control are central to the study of industrial
relations…”.Outline the various types and sources of managerial power in Industrial
Relations.
b) Discuss the strategies employed by management in order to gain full control of the
labour process.
14. a) Discuss the contention that conflict is always inherent in Industrial Relations.
b) Analyse the nature and causes of industrial conflict and the various ways that are
used to
contain it.
15. a)
b) Discuss the factors that are likely to affect the nature and scope of collective
bargaining in Zimbabwe today.
16. a) Discuss the reasons why employees join trade unions as well as the factors that
discourage others to obtain membership in such organizations.
b) Critically analyse trade union democracy and the factors that are likely to impinge on
trade union democracy in the contemporary business world.
17. Discuss the role played by Social Dialogue in addressing issues of Social and Economic
Policy in Zimbabwe since 1998. To what extent has it added value to all parties to the
Social Contract?
18. Analyse the impacts of the new H.R Agenda on the management of Employment
Relations today.
ASSIGNMENT QUESTIONS
ASSIGNMENT 1:
ASSIGNMENT 2:
N.B: All assignments to be submitted before or on the due date. There will be a severe penalty
for late submission. Plagiarism amounts to an automatic zero and the student will not be
allowed to sit for their exams. Collusion will be treated in the same manner.