ABV 320

Tutorial 3

tishca0007@gmaa0l.ccoma
 Chapter 2
Labour relations as a
societal structure
…continued…
 - Represents society at large

Role of the state

- State / Governm ent used
interchangeably
- Can be pro-labour or pro-
capital

The degree of state interference in the working relationship will depend on whether it
supports voluntarism or mandatorism:

Voluntarism – minimal or no interference in the conduct of the

relationship Mandatorism- absolute or maximal gov. control of all
aspects of employment

In reality, voluntarism would have elements of mandatorism, because absolute voluntarism

does not exist anywhere in the world:

• The government would need to regulate the employment relationship e.g., set minimum wages,
implement policies
• If power is left to employers, employees, and trade unions the relationship may be inequitable

The government’s involvement is important because

it would:
• Provide a legal framework for the conduct of the relationship
• Provide minimum protection to employers and employees
• Protect the society against extreme behavior by either party
 FORMS OF STATE
INTERFERENCE

PRO-CAPITAL PRO-
MARKET INSTITUTIONALIS INTERVENTIONI CAPITAL
MANDATORIS
INDIVIDUALI ED
CORPORATIS SM M
SM VOLUNTARISM M
PRO-LABOUR PRO-LABOUR
INTERVENTIONI
SM MANDATORI
SM

20X 3
MARKET INDIVIDUALISM INSTITUTIONALIZED
VOLUNTARISM
• Government supports an individualist
ideology

• Adopts laissez-faire approach to economy • Government is individualist-oriented

• Union movement is weak • Supports free-market system

• Employers and employees responsible for • Union movement is strong

the way
• Employees and unions interests are
in which the relationship is conducted
accommodated by the government
• Market forces will sufciently regulate
• May adopt laissez-faire approach but
employment practices accepts trade unions’ rights
to existence and entrench this right in
legislation

• Minimum conditions of service regulations,

health and safety prescriptions and
regulations pertaining to workmen’s
compensation and unemployment are
20X
X legislated to safeguard employees
 CORPORATISM
• Economic or political development may
infuence the government to intervene
in labour relations

• Government may request employees and

employers to cooperate so to bring
about economic improvement

• Aggressive collective bargaining will not

be engaged

• Unions limit wage demands

• If corporatism approach not agreed
• upon, incomes
Employers limit policy or other
price increases
restrictions and conditions may be This Photo by Unknown Author is licensed under CC
BY-NC-ND
imposed by government
20X PRESENTATION 5
X TITLE
PRO -LABOUR INTERVENTIONISM
• Government intervene on behalf of
labour if labour gains dominance
• Government engages in
redistributing wealth through
economic policies, if economic
ideology shifts to a more
communitarian approach and seeks
• Unnecessary for parties to engage
to aggressive
in incorporate social market policy
collective bargaining and strike
• Greater protection and promotion
action or lockout
of employee interests and rights
in the workplace
PRO-CAPITAL INTERVENTIONISM
• Trade union movement is strong that
it poses a political or economic threat
or causes an imbalance between
union and employers
• Government engages in greater
interference with the aim of reducing
the power that unions hold (done by
limiting freedom to strike or restricting
activities in other spheres)
• Policy adopted where the labour-
oriented government (new) intervened
too much on behalf of labour
E.g., denationalise industries,
encourage capital accumulation and
PRO-CAPITAL
MANDATORISM
• Absolute
mandatorism
• Total individualist government
favours capital and excludes
labour
• Government intervene to reduce
employee rights
• Unions are not recognised which
therefore means that the right to
strike is curtailed and laws that
promote employers are lessen
20X
X TITLE
PRO-LABOUR
MANDATORISM
• Strictly
communitarianist
• Government adopt absolute bias
society
towards labour, not accept free-
market principle and will not
encourage capital accumulation
• Labour relationship under the
control of the State
• No perceived need for union
action in form of collective
bargaining or protection of
employee rights
PRESENTATION 7
 Roles adopted by the
state
Legisla Advis
• tor:
Legislate on • Watchdog and
or:
individual adviser in the
rights and Conciliator: sphere of LR
collective Regula • May establish
• Establish •
rights tor:
If State wants to various bodies
conciliation, regulate the
• Establish mediation and to monitor
collective conduct of developments
arbitration employment
bargaining services in LR
machinery relationship, it will • Produce
• Facilities
• Prescribe intervene more guidelines on
may or directly in the
statutory may not be the conduct of
procedures relationship, and
Controller of to relationship
be followed by conducting • Police:
Suggest
income compulsory
parties to the collective bargaining
distribution: • Judiciary:
May interfere • innovations to
Protect the public
• Collect
relationship
taxes • Common form of participants
in disputes or regulation is
and utilise it for • Establish
act as establishment of an
other purposes competent
conciliator/me
dispute income policy
diator • Regulate the
resolution
Ca0se Study
The Cuban Workers' Confederation (CTC) consists of 19 individual member unions and is the only trade
union federation that has been recognized by the Cuban government since the 1959 revolution.
Workers are not permitted to organize outside of the CTC, which remains under strict government
control. Cuban law recognizes the right to organize. However, according to Article 16 of the labour
code, unions must support national development and the Cuban socialist model. The government
claims that there is no legal requirement to join the CTC. However, membership is implicit in
employment contracts.

Cuban law does not grant workers the rights to strike. Since the state controls the labour market, it
determines pay and working conditions in the public sector. In the private sector, foreign investors are
required to contract workers through state employment agencies, which pocket up to 95 percent of
worker salaries. The minimum wage in 2008 was approximately 225 pesos ($9) per month.
Dissatisfed workers are allowed to refuse to work only when infrastructure or machinery poses a risk
to their health and well-being. The labour code states that "a trade union inspection of work can
order the shutdown of machinery, equipment and tasks and propose that the workplace be closed
down, if the conditions are such that an imminent workplace accident is foreseen." However, there is
little evidence that this provision is ever implemented.

Independent trade unions face severe restrictions, and members are subject to physical abuse,
loss of employment, confscation of property, and imprisonment. According to the International
Trade Union Confederation (ITUC), "anyone who engages in independent trade union activity
 Questiomon 1:
Froma the ca0se study, ldeontiiy a0ond exp.a0lon
the iomra omi sta0te lonterveontiomon a0pp.lca0b.e
tom the ca0se study a0ond londlca0te a0on
a0.terona0tive lonterveontiomon tha0t the sta0te
aa0y a0dompt tom promaomte the rlmhts a0ond
lonterests omi eap.omyees lon Cuba0c (10)
 Answer

Pro-capital mandatorism✓ exists within the case study, as an individualist government is present e.g. the state controls the
labour market✓ . The Cuban government favours capital and excludes labour e.g. foreign investors are required to contract
workers through state employment agencies✓. Employee rights are curtailed by government intervention e.g. Cuban law does
not grant workers the right to strike✓ and trade unions are not recognised✓, as within the case study the government jailed 75
Cubans as political prisoners which include seven leaders of independent trade unions✓. The government has also put in laws
that favours employers e.g. state employment agencies pocket up to 95% of worker salaries✓

A state intervention that can be adopted so employees have rights is institutionalised voluntarism ✓. The government within
this intervention accommodate the interests of employees and their unions e.g. state agencies not pocketing 95% of workers’
salaries ✓. A laissez-faire approach is adopted, and trade union rights are accepted and may even be adopted in legislation e.g.
employees have the right to strike and join trade union✓. Collective bargaining becomes an accepted practice and the
government may even go as far as to establish or endorse processes for this purpose✓. Disputes are accepted as well as freedom
to strike and lock out e.g. members of trade unions are not subjected to loss of employment and confiscation of property✓.
Minimum conditions of service regulation, health and safety prescriptions and regulations pertaining to workmen’s
compensation and unemployment may even be legislated to safeguard employees e.g. safe and healthy work environment where
machinery or infrastructure will pose a risk on employees’ health and well-being ✓.
 Questiomon 2:
Ideontiiy a0ond exp.a0lon the iomra(s) omi sta0te
lonterveontiomon/s a0dompted lon Somuth Airlca0
a0ond promvlde exa0ap.es (20)c
Answer

• Instittinalised viltniarism (5)

• Cirpiratsm (5)
• Pri-capiial inierventinism (5)
• Pri-labitr inierventinism (5)
 Answer

Ionstitutiomona0.lsed vom.uonta0rlsa✓
 The givernmeni stppiris a free-markei sysiem as citiens if Sitih Africa can
viie in whai pariy ihey wani ii rtn ihe citniry✓
 Uniin mivemeni is siring as Sitih Africa has many irade tniins, and ihe
siringesi tniin is COSATU ✓
 Minimtm cinditins if service regtlatins, healih and safeiy prescriptins,
and regtlatins periaining ii wirkmen’s cimpensatin and tnempliymeni
are legislaied e.g. Unempliymeni Instrance Ftnd and Occtpatinal Healih
and Safeiy Aci ✓
 Accepis irade tniins’ righis ii exisience and enirench righi in legislatin ✓
 Answer

Comrpomra0tisa✓
 Givernmeni may reqtesi empliyees and empliyers ii ciiperaie si ii bring
abiti ecinimic imprivemeni ✓✓
 Givernmeni inierventin in labitr relatins is inftenced by ecinimic ir
pilitcal develipmeni e.g. legislatng new laws ✓✓
 Answer

Prom-ca0plta0. lonterveontiomonlsa✓
 Trade tniin mivemeni is siring ihai pises a pilitcal ir ecinimic ihreai ir
catses an imbalance beiween tniins and empliyers e.g. liitng ✓✓
 Givernmeni engages in greaier inierference wiih ihe aim if redtcing ihe
piwer ihai tniins hild e.g. Labitr Relatins Aci when ii cimes ii lick-itis
✓✓
 Answer

Prom-.a0bomur lonterveontiomonlsa✓
 Givernmeni engages in redisiribttng wealih ihritgh ecinimic pilicies stch
as incime iax ir Empliymeni Eqtiiy Aci✓✓
 Greaier priiectin and primitin if empliyee inieresis and righis in ihe
wirkplace e.g. Basic Cinditins if Empliymeni Aci ✓✓