The role of SA trade unions in shaping the employee relations landscape

MBA FT GROUP 12.1 Sanisha Hurrisunker Chumani Maqina Lukhanyiso Mpongoshe Edem Foli Kayode Ayankoya

Key Concepts
The Role of Trade Unions in South Africa How Do Trade Unions Affect Employee Relations? The relationship between Government, the employer & employees to unions & the evolving relationship The challenges that unions face in shaping employee relations

Key Concepts cont.

When to strike? Perception of management towards trade unions The relationship between labour unions, the Government the employee and employers Avoiding a Lonmin in your company Conclusion

The Role of Trade Unions in South Africa

The Role of Trade Unions in South Africa

Definition of Trade Union

Is regarded as a continuing permanent organisation created by the workers to protect themselves at their work, to improve their conditions of work through collective bargaining, to seek to better the conditions of their lives and to provide a means of expression for their workers views on matters of society. (Nel, et al. 2012)

What Is the Role of Trade Unions in South Africa?

Serve the members best interests through collective bargaining: Protecting Working Conditions Environment Healthy Safe Secure Compensation and Reward Packages Salary (Basic and Net) Employee Benefits (e.g. medical aid, pension/provident fund, bonuses, annual/sick leave; allowances)

How Do Trade Unions Affect Employee Relations?

According to Lonmins Annual Report for 2011:

Outgoing SA CEO, Ian Farmer,earned R1.2 million per month.

Cyril Ramaphosa, director, earned R 57 000 per month

How Do Trade Unions Affect Employee Relations?

Typical Monthly Total Cost to Company Monthly Package of Rock Driller Description Basic Salary Company Contribution to Medical Company Contribution to Pension Amount R 5891 R556 R874

Company Contribution to Housing Allowance

Rock Driller Allowance TOTAL MONTHLY COST TO COMPANY

R1950
R750 R10 512

Association of Mining and Construction Workers (AMCU) Trade Union asking for R12 500 cost to company package per month

How Do Trade Unions Affect Employee Relations?

Strategic Conflict : Manipulate the allocation or Reallocation of resources; authority; power Strike Conflict forms a key part of employment relations: Managers must be aware of it so that when they arise they have strategies in place will which help them deal with collective bargaining and negotiations. Building and Improving relationship within the community must form an integral part of their Human Resources Strategy Association of Mining and Construction Union (AMCU): Will not sign peace agreement Peace agreement document does not mention any wage amount or respond to any of the workers demands Continuously side-lined in negotiation meetings General lack of trust with management

The relationship between labour unions, the Government the employee and employers

The relationship between labour unions, the Government the employee and employers
Government

Employers

Socio Economic Climate

Trade Unions

Employee

The challenges that unions face in shaping employee relations

The challenges that unions face in shaping employee relations

1. WITH UNION MEMBERS Serve member interests. Ability to protect themselves at work Improve conditions of work through collective bargaining.

The challenges that unions face in shaping employee relations

2. WITH THE EMPLOYERS/ BUSINESSES Employer- Union relationship. Employer-Employee relationship. Effectiveness and productivity. 3. WITH THE GOVERNMENT Contribution to economic growth Employment creation

The challenges that unions face in shaping employee relations

WITH THE EMPLOYERS

To Serve member interests Some leaders not properly politically trained. Lack of Leadership and management skills. Unethical mine employers.

The challenges that unions face in shaping employee relations

WITH THE EMPLOYERS

NUM President Senzeni Zokwana, receives a cheque from the Gift of the Givers Foundation on behalf of Aurora workers.

The challenges that unions face in shaping employee relations

WITH THE EMPLOYERS Ability to protect themselves at work Educate workers in knowing their rights, procedures to follow when they want to protest, and also the implications of not following procedures. Adherance of members to Union instructions.

The challenges that unions face in shaping employee relations

WITH THE EMPLOYERS Improve conditions of work conditions through collective bargaining.

The challenges that unions face in shaping employee relations

WITH THE EMPLOYERS/ BUSINNESSES Employer Union relationship. Bridge the gap between the mining houses and the Union. Employer employee relationship. HR to work hand in hand with Unions.

The challenges that unions face in shaping employee relations

WITH THE EMPLOYERS/ BUSINNESSES Effectiveness and productivity HR Strategy to focus on motivation, reasonably meeting employees needs and be aware of social responsibilities of workers.

The challenges that unions face in shaping employee relations

WITH THE GOVERNMENT Contribution to economic growth Employment creation

The challenges that unions face in shaping employee relations

Former Mine Worker

Comrade Ntsane Monaheng shows off his MBA Award.

When to strike?

When to strike?
In the case of Lonmin the workers embarked on what the Labour Relations Act defines a strike as: The partial or complete concerted refusal to work, or the retardation or obstruction of work, by persons who are or have been employed by the same employer or by different employers, for the purpose of remedying a grievance or resolving a dispute in respect of any matter of mutual interest between employer and employee .

Steps to take when embarking on a strike - LRA

Strike action must be preceded by the referral of a dispute to the CCMA or council. A certificate must be issued, following the referral, to the effect that the dispute was not resolved. Receipt of the referral of the dispute by the council or Commission must be followed by 30 days, or any extended period agreed by parties. 48 hour notice must be given to an employer before a strike commences.

Strikes as a weapon
Strikes have a long history in South African labour relations dating back to more than a hundred years. Industrial action has such prominence in South Africa that unions find it impossible to engage or negotiate with employers without making constant threats to strike, protest or picket. The threat by the parties to resort to industrial action drives the collective bargaining process.

Implications for managers

Dismissing employees who participate in strikes is considered a disproportionate counteraction which should be discouraged by all means.

Managers regarded as occupying a powerful position in the employment relationship. Strikes likened to what an engine is to a car in the collective bargaining process.

Battle & Warfare

Battle & Warfare

Strikes and dismissals are ultimate weapons of trade unions and employers respectively. Strikes are instruments which are legitimate in the collective bargaining process and weaken resistance of employers. Dismissals end the employment relationship and the two actions cannot be seen as equivalent. To dismiss striking workers is not a reciprocal right, but an extraordinary one & should be exercised only when there are compelling circumstances.

Managements perception towards unions

Managements perception towards unions

Interview with Mvuleni Mapu Former Provincial Chairperson of SAMWU, currently The Director at NMBM Housing Delivery

Avoiding a Lonmin in your company

Avoiding a Lonmin in your company

Macro
Political agenda

Micro
Understanding of productivity

Legitamacy

HR and Organizational leadership (trust and culture)

Internal conflict at unions

Ongoing relations with trade unions

Conclusion

Conclusion
Should trade unions have dual roles in government and represent their members? What is the role of HR in strategically catering for the human element within the leadership and corporate goals?