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For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning PART 4 Labour Relations.

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Presentation on theme: "For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning PART 4 Labour Relations."— Presentation transcript:

1 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning PART 4 Labour Relations

2 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning CHAPTER 13: The Union–management relationship, employee discipline and dismissal The environment for HR Finding & placing qualified employees Assessing & developing qualified employees Labour relations Emerging HR practices 4

3 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning CHAPTER 13 The Union–management relationship, employee discipline and dismissal

4 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Chapter outcomes describe what a union is and explain why employees join unions understand the basic elements of the Labour Relations Act, No. 66 of 1995 as amended discuss the role and objectives of the National Economic Development and Labour Council (NEDLAC) describe the typical collective bargaining process

5 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Chapter outcomes recognise the various sources of poor performance through the illustration and discussion of an unsatisfactory performance model explain both good and poor ways to discipline employees illustrate a model of positive discipline and describe the procedures for ensuring that discipline achieves its goals identify the procedures for carrying out the dismissal decision humanely and tactfully and according to the law

6 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Definition Union -

7 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Trade unions, collective bargaining and grievance procedure Trade unions Employers’ organisations International Labour Organisation (ILO) Labour Relations Act 66 of 1995 NEDLAC Collective bargaining

8 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Labour relations management....that part of management that encompasses a study of those factors and dynamics that emanate from, and are related to, ______________________.

9 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning The role players in labour relations _________ __________ Secondary relationship _________ relationship ________ relationship

10 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Trade 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.

11 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Primary goal of a trade union... to promote the interests of its membership through __________________ (standard of living and working conditions).

12 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Trade union goals Union security – Job security Improved economic conditions Fairness and justice Social action

13 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Kinds of unions Industrial unions – Trade/craft unions – Employee association –

14 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Why to join a trade union? Job security Working conditions Mechanism to be heard Reasons NOT to join a trade union Cost Union ineffectiveness Political intimidation

15 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Trade union registration Independent Address in the RSA Bookkeeping Annual audit Minutes of meetings Trade union obligations

16 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Trade union rights Sufficiently representative trade unions – Majority representative trade unions –

17 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning The shop steward Two-fold task Functions – Number of shop stewards Time off during working hours Disclosure of information

18 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning The formal dimension of labour relations Constitution Labour Relations Act Basic Conditions of Employment Act Occupational Health and Safety Act Compensation for Occupational Injuries and Diseases Act Unemployment Insurance Act Employment Equity Act Skills Development Act Skills Development Levies Act

19 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Reasons for the new LRA Old Act no longer intelligible Inadequate collective bargaining Ineffective dispute resolution Interim Constitution

20 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Aims of the LRA

21 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Who is excluded from the LRA? Farm workers? Domestic workers?

22 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Benefits for workers i.t.o the LRA Trade unions Consultation Information Protection against victimisation

23 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Benefits for employers i.t.o the LRA Employers’ organisations Less production time lost Successful restructuring Accommodation of small business needs

24 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning The Constitution and Fundamental Rights Labour Relations Act __________ International Conventions Rights and obligations of employees, unions, employers and employers’ organisations Promotion of collective bargaining and worker participation Dispute resolution and labour peace Freedom of association ______________ Unfair dismissal ______________ Strikes and lockouts Collective agreements Bargaining Councils Statutory Councils _____________ ____________ Labour Court Labour Appeal Court

25 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Rights and obligations of employees, unions, employers and employers’ organisations Freedom of association ___________ Unfair labour practice ___________

26 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Promotion of collective bargaining and worker participation ___________ __________ Written agreement Terms & conditions of employment Between registered trade union(s) and employer(s)/employers’ organisation(s) Established for a specific sector in a specific geographical area Functions: (1) _________________ (2) _________________ Aims are to promote (1) _______________________ (2) _______________________ Functions: (1) Consultation (2) Joint decision making (3) Information sharing Established at request of union(s)/employers’ organisation(s) representing 30%+ of employers/employees in sector & area Function: Dispute resolution Difference?

27 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Establishment of workplace forums

28 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Working of workplace forums Regular meetings between employer and WPF Regular meetings between WPF and employees Yearly reports by management Union officials may attend meetings Dissolved by ballot

29 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Dispute resolution and _____ peace Labour Appeal Court CCMA Labour Court Councils & private agencies

30 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning NEDLAC EXECUTIVE COUNCIL Representatives of The State Organised labour Organised employers Development organisations Management Committee Secretariat Summit Chambers Public finance and monetary policy Trade and industry Labour marketDevelopment State, employer and union representatives Community development representatives

31 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning The phases of the negotiation process Planning, preparation and organisation _______________ PHASE Execution of negotiation strategies and tactics, and utilisation of structures in order to achieve objectives _______________ PHASE Agreements are concluded, and the maintenance of relations and the administration of agreements follow _______________ PHASE

32 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Bargaining strategies __________ bargaining

33 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Contract format Union recognition and scope of the bargaining unit Management rights Union security (eg. closed shop) Job rights and seniority

34 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Bargaining impasse Assistance from third party – Union power tactics Employer power tactics

35 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Strike Temporary Stoppage of work Collective action Means of expressing a grievance

36 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Strikes: Procedural requirements Ballot?

37 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Types of strikes Economic strike Grievance strike Secondary/sympathy strike Wildcat strike

38 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Other forms of industrial action Picketing Boycott

39 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Grievance vs gripe Grievance – Gripe –

40 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Typical steps in a grievance procedure Grievance procedure ends Start of dispute settlement process if preferred, eg bargaining council, mediation, conciliation, arbitration, judicial settlement or strike Ruling at highest level (top management) ______ Settled ________________________________ ______ Settled Manager from higher levelWorker & representative 4 working days Settled Head of immediate supervisorWorker & representative ______ Settled (record) Immediate supervisorWorker 24 hours Settled (record) Verbally Unsettled Step 1 Step 2 Step 3 Step 4 Step 5

41 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Discipline, counselling & dismissal Performance problems Discipline Disciplinary dismissal Outside misconduct

42 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning A model for analysing and correcting unsatisfactory performance ___________ _____________ ______________ __________ Lack of motivation __________ Personal problems __________ Discipline Train Transfer/ demote Change the work ___________ Council/ refer

43 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Incorrect discipline Punitive discipline Negative feedback Late intervention Inadequate definition Labelling employees, not behaviour Misplaced responsibility

44 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Preventative discipline

45 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Steps in the process of discipline Clarify responsibility for discipline  _____________________  Communicate disciplinary policy, procedure and rules  ___________________  Administer progressive discipline  _____________________ 

46 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning The hot-stove rule Immediate Warning Consistent Impersonal

47 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Dismissal Automatically unfair dismissals Other unfair dismissals –Substantive fairness (reason) –Procedural fairness (procedure) Remedies –

48 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Dismissal for misconduct Substantive fairness –Contravene a workplace rule/standard? –Rule/standard reasonable/valid? – –Rule/standard consistently applied? – –Nature of job/workplace –

49 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Dismissal for misconduct (continued) Procedural fairness – –State case (disciplinary hearing) –

50 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Dismissal for incapacity: Incompetence Substantive fairness –Fail to meet __________ –Aware of ________________ –Fair _________ –Appropriate ________ Procedural fairness –Opportunity to __________ –No other _________

51 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Dismissal for incapacity: Ill health or injury Substantive fairness –Capable of performing work –Extent of capability Procedural fairness –Adaptation of work circumstances –Alternatives

52 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Dismissal for operational reasons _____________ dismissals Substantive fairness –____________ reason Procedural fairness – –Attempt to reach consensus – –Method of selection –Severance pay

53 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Dismissal for operational reasons Procedural fairness (continue) –Disclose information –Future reemployment –Representations –Consider and respond to representations –Provide reasons –Selection of employees according to set criteria

54 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Summary A 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.

55 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Summary Relations 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.

56 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Summary Many 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.

57 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: © 2010 Cengage Learning Summary Much 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.


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