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

The Role of Trade Unions in South Africa .

” (Nel.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. et al. to seek to better the conditions of their lives and to provide a means of expression for their workers’ views on matters of society. to improve their conditions of work through collective bargaining. 2012) .

bonuses. medical aid. allowances) .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. pension/provident fund.g. annual/sick leave.

Ian Farmer.2 million per month. Cyril Ramaphosa.earned R1. earned R 57 000 per month . director.How Do Trade Unions Affect Employee Relations? According to Lonmin’s Annual Report for 2011: Outgoing SA CEO.

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 .

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. authority. • 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 .How Do Trade Unions Affect Employee Relations? Strategic Conflict : Manipulate the allocation or Reallocation of resources.

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 relationship between labour unions.

The challenges that unions face in shaping employee relations .

. • Ability to protect themselves at work • Improve conditions of work through collective bargaining.The challenges that unions face in shaping employee relations 1. WITH UNION MEMBERS • Serve member interests.

WITH THE GOVERNMENT • Contribution to economic growth • Employment creation .The challenges that unions face in shaping employee relations – 2. WITH THE EMPLOYERS/ BUSINESSES • Employer. • Employer-Employee relationship. • Effectiveness and productivity.Union relationship. – 3.

. • Lack of Leadership and management skills. • Unethical mine employers.The challenges that unions face in shaping employee relations WITH THE EMPLOYERS To Serve member interests • Some leaders not properly politically trained.

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. • Adherance of members to Union instructions. . and also the implications of not following procedures.

.The challenges that unions face in shaping employee relations WITH THE EMPLOYERS Improve conditions of work conditions through collective bargaining.

. Employer employee relationship.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. • HR to work hand in hand with Unions.

. reasonably meeting employees needs and be aware of social responsibilities of workers.The challenges that unions face in shaping employee relations WITH THE EMPLOYERS/ BUSINNESSES Effectiveness and productivity • HR Strategy to focus on motivation.

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? .

” . or the retardation or obstruction of work. for the purpose of remedying a grievance or resolving a dispute in respect of any matter of mutual interest between employer and employee ….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. by persons who are or have been employed by the same employer or by different employers.

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

Strikes as a weapon… • Strikes have a long history in South African labour relations dating back to more than a hundred years. protest or picket. • 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. • 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. • Strikes likened to “what an engine is to a car” in the collective bargaining process. . • Managers regarded as occupying a powerful position in the employment relationship.

Battle & Warfare .

• Dismissals end the employment relationship and the two actions cannot be seen as equivalent. • Strikes are instruments which are legitimate in the collective bargaining process and weaken resistance of employers. .Battle & Warfare • Strikes and dismissals are ultimate weapons of trade unions and employers respectively. • 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 .

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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? .