3The Union–management relationship, employee discipline and dismissal CHAPTER 13The Union–management relationship, employee discipline and dismissal3
4Chapter outcomesdescribe what a union is and explain why employees join unionsunderstand the basic elements of the Labour Relations Act, No. 66 of 1995 as amendeddiscuss the role and objectives of the National Economic Development and Labour Council (NEDLAC)describe the typical collective bargaining process4
5Chapter outcomesrecognise the various sources of poor performance through the illustration and discussion of an unsatisfactory performance modelexplain both good and poor ways to discipline employeesillustrate a model of positive discipline and describe the procedures for ensuring that discipline achieves its goalsidentify the procedures for carrying out the dismissal decision humanely and tactfully and according to the law5
7Trade unions, collective bargaining and grievance procedure Employers’ organisationsInternational Labour Organisation (ILO)Labour Relations Act 66 of 1995NEDLACCollective bargaining7
8Labour relations management ....that part of management that encompasses a study of those factors and dynamics that emanate from, and are related to, ______________________.8
9The role players in labour relations _________Secondary relationship_________ relationship___________________________ relationship9
10Trade union.... an ongoing permanent organisation _____________________ to _________ themselves in their work, to improve their _______________ through collective bargaining, to try to improve their _____________ and to offer a mechanism by which workers can put their standpoints.10
11Primary goal of a trade union ... to promote the interests of its membership through __________________ (standard of living and working conditions).11
12Trade union goals Union security Job security Improved economic conditionsFairness and justiceSocial action12
13Kinds of unions Industrial unions Trade/craft unions Employee association13
14Why to join a trade union? Job security Working conditions Mechanism to be heardReasons NOT to join a trade unionCostUnion ineffectivenessPolitical intimidation14
15Trade union registration Trade union obligations IndependentAddress in the RSABookkeepingAnnual auditMinutes of meetings15
16Trade union rights Sufficiently representative trade unions Majority representative trade unions16
17The shop steward Two-fold task Functions Number of shop stewards Time off during working hoursDisclosure of information17
18The formal dimension of labour relations ConstitutionLabour Relations ActBasic Conditions of Employment ActOccupational Health and Safety ActCompensation for Occupational Injuries and Diseases ActUnemployment Insurance ActEmployment Equity ActSkills Development ActSkills Development Levies Act18
19Reasons for the new LRA Old Act no longer intelligible Inadequate collective bargainingIneffective dispute resolutionInterim Constitution19
21Who is excluded from the LRA? Farm workers?Domestic workers?21
22Benefits for workers i.t.o the LRA Trade unionsConsultationInformationProtection against victimisation22
23Benefits for employers i.t.o the LRA Employers’ organisationsLess production time lostSuccessful restructuringAccommodation of small business needs23
24__________ Labour Relations Act The Constitution and Fundamental RightsInternational Conventions__________Labour Relations ActRights and obligations of employees, unions, employers and employers’ organisationsPromotion of collective bargaining and worker participationDispute resolution and labour peaceFreedom of associationCollective agreements__________________________Bargaining CouncilsLabour CourtUnfair dismissalStatutory CouncilsLabour Appeal Court___________________________Strikes and lockouts
25Freedom of association ______________________Rights and obligations of employees, unions, employers and employers’ organisationsUnfair labour practice___________
26Promotion of collective bargaining and worker participation _____________________Written agreementTerms & conditions of employmentBetween registered trade union(s) and employer(s)/employers’ organisation(s)Established for a specific sector in a specific geographical areaFunctions:(1) _________________(2) _____________________________________Difference?Aims are to promote(1) _______________________(2) _______________________Functions:(1) Consultation(2) Joint decision making(3) Information sharingEstablished at request of union(s)/employers’ organisation(s) representing 30%+ of employers/employees in sector & areaFunction:Dispute resolution
28Working of workplace forums Regular meetings between employer and WPFRegular meetings between WPF and employeesYearly reports by managementUnion officials may attend meetingsDissolved by ballot28
29? ? ? Labour Appeal Court Labour Court CCMA Dispute resolution and _____ peaceCouncils & private agenciesCCMALabour Court?
30Management Committee Secretariat EXECUTIVE COUNCIL Representatives of NEDLACManagement Committee SecretariatEXECUTIVE COUNCILRepresentatives ofThe StateOrganised labourOrganised employersDevelopment organisationsSummitChambersPublic finance and monetary policyTrade and industryLabour marketDevelopmentState, employer and union representativesCommunity development representatives
31The phases of the negotiation process Planning, preparation and organisationExecution of negotiation strategies and tactics, and utilisation of structures in order to achieve objectivesAgreements are concluded, and the maintenance of relations and the administration of agreements follow
40Typical steps in a grievance procedure Grievance procedure endsStart of dispute settlement process if preferred, eg bargaining council, mediation, conciliation, arbitration, judicial settlement or strikeUnsettled______Ruling at highest level(top management)Step 5SettledUnsettled______________________________________Step 4SettledStep 3Unsettled4 working daysWorker & representativeManager from higher levelSettledUnsettledStep 2______Settled (record)Worker & representativeHead of immediate supervisorUnsettledStep 1Verbally24 hoursSettled (record)WorkerImmediate supervisor
42A model for analysing and correcting unsatisfactory performance 1__________TrainDiscipline___________3______________Transfer/demoteCouncil/referPersonal problemsChangethe work___________2_________________________________Lack of motivation
43Incorrect discipline Punitive discipline Negative feedback Late interventionInadequate definitionLabelling employees, not behaviourMisplaced responsibility43
45Steps in the process of discipline _____________________Administer progressive discipline___________________Communicate disciplinary policy, procedure and rules_____________________Clarify responsibility for discipline
48Dismissal for misconduct Substantive fairnessContravene a workplace rule/standard?Rule/standard reasonable/valid?Rule/standard consistently applied?Nature of job/workplace48
49Dismissal for misconduct (continued) Procedural fairnessState case (disciplinary hearing)49
50Dismissal for incapacity: Incompetence Substantive fairnessFail to meet __________Aware of ________________Fair _________Appropriate ________Procedural fairnessOpportunity to __________No other _________50
51Dismissal for incapacity: Ill health or injury Substantive fairnessCapable of performing workExtent of capabilityProcedural fairnessAdaptation of work circumstancesAlternatives51
52Dismissal for operational reasons _____________ dismissalsSubstantive fairness____________ reasonProcedural fairnessAttempt to reach consensusMethod of selectionSeverance pay52
53Dismissal for operational reasons Procedural fairness (continue)Disclose informationFuture reemploymentRepresentationsConsider and respond to representationsProvide reasonsSelection of employees according to set criteria53
54SummaryA union has a major impact on an organisation’s management. Many HR decisions must be shared with the union, and the labour contract limits management’s flexibility for the length of the agreement. Finally, poor relations between management and labour may result in costly and stressful organisational conflict.The percentage of organised labour in South Africa has doubled since 1985 to approximately 3 million. This represents about 40% of the workforce.The goals of the unions have not changed dramatically since their beginning. Important union goals include job security, improved wages and benefits, favourable working conditions and fair and just treatment for their members.The heart of the union structure is the local union, although the national union provides important direction and guidance. The local union often receives assistance from the national union during the collective bargaining process.During the organising drive, the union attempts to convince workers that they will be better off by organising. Management tries to convince them that they are better off without the union. Labour legislation provides a number of ground rules regarding the recognition of a union in the workplace.
55SummaryRelations between organised labour and management are strictly governed by the Labour Relations Act, No. 66 of Managers and HR administrators who work in unionised organisations must be intimately familiar with this law.There are a variety of different collective bargaining strategies. The most common form involves distributive bargaining, or win/lose bargaining, although this strategy seems to be giving way to more cooperative forms such as integrative bargaining and productivity bargaining. Concessionary bargaining, or give-back bargaining, has increased as a result of foreign competition.The negotiation process involves a great deal of give and take before an agreement is reached. A bargaining impasse may cause a strike, lockout or other power tactic. However, more often mediation or other third-party techniques will be used to end the impasse.Grievance handling is a critical part of labour relations. The multi-step procedure usually includes arbitration as a final step. The grievance process can keep minor disagreements from disrupting the workplace unnecessarily.
56SummaryMany reasons may cause an employee to perform unsatisfactorily. Some of these reasons may be directly attributable to management’s shortcomings or to some other problem of the organisation. When attempting to determine the cause of poor employee performance, managers should recognise that the employee may not be responsible for the unsatisfactory behaviour.Discipline should be applied only when it has been determined that the employee is the cause of the unsatisfactory performance. There are different approaches to the disciplinary process; the most effective technique involves administration of preventive discipline. If discipline must be administered, the positive approach should be used.Corrective counselling is a particularly important part of the positive discipline process. It helps build respect and trust between the supervisor and subordinate and encourages the employee to find his or her own solutions to problems. The more the employee participates in the problem-solving process, the greater the chances for a permanent improvement in employee behaviour.
57SummaryMuch of the supervisory resistance to change can be reduced by training supervisors to follow the hot-stove rule. With this technique, discipline is administered immediately, with a warning, consistently and impersonally. HR managers must ensure that supervisory training programmes provide instruction in applying each of the hot-stove rules.Dismissal can be traumatic and costly for both the dismissed employee and the organisation. The dismissal should be thoroughly planned and carried out in a professional manner and according to the law. It is particularly important that the employee be given complete details regarding the dismissal, including why it is taking place and how the dismissal is to be carried out.For a dismissal to be fair it must be substantively and procedurally fair.