ENVRONMENTAL

INFLUENCES ON LABOUR
RELATIONS

CHAPTER 3 (FINNEMORE)
ENVIRONMENTAL INFLUENCES ON LABOUR
RELATIONS
• ENVIRONMENTAL INFLUENCES COMPRISES OF THE:
1. MACRO-ENVIRONMENTAL INFLUENCES;
2. MICRO-ENVIRONMENTAL INFLUENCES;
 MACRO-ENVIRONMENTAL INFLUENCES

• MACRO-ENVIRONMENTAL INFLUENCES COMPRISES OF THE FOLLOWING:

1. POLITICAL TRANSFORMATION AND THE NEW CONSTITUTION
2. ECONOMIC CHALLENGES
3. GOVERNMENT ECONOMIC POLICY
 1. POLITICAL TRANSFORMATION AND THE
NEW CONSTITUTION
• A NEW CONSTITUTION WAS NEGOTIATED IN THE CONSTITUTIONAL ASSEMBLY IN
1996.
• THE CONSTITUTION HAS GREAT SIGNIFICANCE FOR LABOUR RELATIONS,
ESPECIALLY CHAPTER 2 THAT OUTLINE FUNDAMENTAL RIGHTS, WHICH AFFIRM
HUMAN DIGNITY, EQUALITY AND FREEDOM.
• THE RIGHT TO FAIR LABOUR PRACTICES IS ENSHRINED IN THE NEW
CONSTITUTION.
 2. ECONOMIC CHALLENGES
INFLATION
• INFLATION IS PERSISTENT AND APPRECIABLE INCREASE IN THE GENERAL PRICE LEVEL, WHERE THE LATTER IS
REPRESENTED BY A PRICE INDEX (DORNBUSCH ET AL., 1992:321).
• THE INFLATION RATE HAS A SIGNIFICANT IMPACT ON SALARY NEGOTIATIONS.
• IT IS USED AS A BASE BY EMPLOYERS AND TRADE UNIONS ON WHICH TO DEVELOP ARGUMENTS REGARDING THE
APPROPRIATENESS OF SALARY INCREASES THAT SHOULD BE GRANTED TO THE EMPLOYEES.
• TRADE UNIONS ARGUE THAT INFLATION RATE MAY BE UNDERESTIMATED WHEN IT COMES TO POORER EMPLOYEES WHO
ARE VULNERABLE TO INCREASES IN FOOD AND FUEL PRICES.

TECHNOLOGICAL TRANSFORMATION
NEW TECHNOLOGY HAS VARIED EFFECTS ON EMPLOYMENT AND LEADS TO:
• REDUNDANCY OF OLD SKILLS
• FEWER FULL-TIME, PERMANENT EMPLOYEES TO ACHIEVE THE SAME OUTPUT
• INSECURITY AMONG EMPLOYEES
• PRESSURES ON SHOP STEWARDS TO RESIST TECHNOLOGICAL CHANGES AT WORK
• DECLINING TRADE UNION MEMBERSHIP DUE TO LARGE RETRENCHMENTS
 3. GOVERNMENT ECONOMIC POLICY
• GOVERNMENT ECONOMIC POLICY AFTER 1994 ELECTIONS WAS STRONGLY BASED ON THE RECONSTRUCTION AND
DEVELOPMENT PROGRAMME (RDP).
• THIS PROGRAMME WAS ORIGINALLY INITIATED BY COSATU AND WAS ULTIMATELY DEVELOPED BY THE ANC ALLIANCE AS AN
INTEGRATED SOCIO-ECONOMIC FRAMEWORK.
• IN 1996 THE GOVERNMENT IMPLEMENTED GROWTH, EMPLOYMENT, AND REDISTRIBUTION (GEAR) TO REPLACE RDP AS
ECONOMIC POLICY THAT WILL PROMOTE A CLIMATE THAT WAS MORE INVESTOR-FRIENDLY.
• IN 2006 THE GOVERNMENT IMPLEMENTED THE ACCELERATED AND SHARED GROWTH INITIATIVE FOR SOUTH AFRICA (ASGI-SA).
GOALS OF ASGI-SA INCLUDED THE FOLLOWING:
1. REACHING AN AVERAGE GROWTH RATE OF 4.5% FOR 2005 TO 2009 AND 6% FOR THE PERIOD OF 2010 TO 2014;

2. HALVING THE UNEMPLOYMENT RATE BY 2014; AND

3. ENSURING THAT INFLATION REMAINED WITHIN THE 3% TO 6% RANGE.

• ASGI-SA FAILED TO REACH ITS GOALS DUE TO RECESSION THAT STARTED FROM 2008 TILL THE FIRST QUARTER OF 2009
• IN 2010 ASGI-SA WAS REPLACED BY THE NEW GROWTH PATH (NGP) AS ECONOMIC POLICY.
• THE AIM OF NGP WAS TO CREATE A “DEVELOPMENTAL STATE” BASED ON EAST ASIAN MODELS WHEREBY THE STATE WOULD BE
REQUIRED TO INTERVENE MORE DIRECTLY IN THE COUNTRY’S ECONOMY AND TAKE MORE RESPONSIBILITY FOR JOB CREATION,
INVESTMENT IN INFRASTRUCTURE, PUBLIC WORK PROGRAMMES AND WEALTH REDISTRIBUTION.
• THE NGP WAS REPLACED BY THE NATIONAL DEVELOPMENT PLAN (NDP) WHICH WAS PREPARED BY THE NATIONAL PLANNING
COMMISSION AND ADOPTED BY THE CABINET IN 2012.
• THE NDP AIMED TO ELIMINATE POVERTY, INEQUALITY AND UNEMPLOYMENT.
 MICRO-ENVIRONMENTAL INFLUENCES

• MICRO-ENVIRONMENTAL INFLUENCES COMPRISES OF THE FOLLOWING:

1. OCCUPATIONAL HEALTH
2. OCCUPATIONAL SAFETY
3. CULTURAL DIVERSITY AT THE WORKPLACE
4. THE ROLE OF THE MEDIA
 MICRO-ENVIRONMENTAL INFLUENCES

1. OCCUPATIONAL HEALTH
• WORKPLACES PROVIDE A MICRO-ENVIRONMENT THAT MAY GREATLY INFLUENCE EMPLOYEE HEALTH.
• LACK OF CONCERN ON PART OF THE MANY EMPLOYERS AND POOR EDUCATION OF THE EMPLOYEES
AND UNION REPRESENTATIVES HAVE RESULTED IN MANY HEALTH HAZARDS AT WORKPLACES.
• OCCUPATIONAL HEALTH AND SAFETY ACT AND HAZARDOUS CHEMICAL SUBSTANCES REGULATIONS
REFER TO THE NECESSITY OF THE IMPLEMENTATION OF OCCUPATIONAL HYGIENE PROGRAMMES AND
RISK ASSESSMENT.

2. OCCUPATIONAL SAFETY
• MINING INDUSTRY IN SOUTH AFRICA HAS A POOR SAFETY RECORD AND ONE OF THE HIGHEST
FATALITY RATES IN THE WORLD.
• THE MINE HEALTH AND SAFETY ACT WAS IMPLEMENTED IN ORDER FOR THE EMPLOYERS TO ENSURE
THE HEALTH AND SAFETY OF EMPLOYEES.
 MICRO-ENVIRONMENTAL INFLUENCES

3. CULTURAL DIVERSITY AT THE WORKPLACE

• CULTURE IS REFLECTED IN THE VALUES PEOPLE ATTACH TO VARIOUS ASPECTS OF LIFE, THEIR WAYS OF LOOKING AT THE WORLD
AND THEIR ROLE WITHIN IT.
• THE SLOGAN ADOPTED BY THE UNIONS NAMELY “AN INJURY TO ONE IS AN INJURY TO ALL” SUPPORTS THE VALUE THAT BLACK
EMPLOYEES PLACE ON COLLECTIVISM.
• RELIGIOUS BELIEFS MAY HAVE A CRITICAL IMPACT ON LABOUR RELATIONS AS PARTIES FREQUENTLY BELIEVE IN THE JUSTNESS OF
THEIR CAUSE AND THE POWERS OF THEIR DEITIES.
• WORKER EMPOWERMENT, GENDER EQUALITY AND DEMAND FOR RECOGNITION OF RELIGIOUS AND CULTURAL PRACTICES MAY
LEAD TO BOTH SUPPORT AND RESISTANCE IN THE WORKPLACE.

4. THE ROLE OF THE MEDIA

• TELEVISION, RADIO, NEWSPAPERS AND THE INTERNET MAY BE USED BY STATE, EMPLOYERS OR TRADE
UNIONS TO GAIN SUPPORT FOR POLICIES OR SPECIFIC ACTIONS.
• WALSH (1988) INDICATES THAT MUCH OF THE MEDIA COVERAGE OF TRADE UNIONS ON TELEVISION AND IN
NEWSPAPERS FOCUSES ON THE DISPUTE ASPECTS OF TRADE UNIONISM.
• THE WHOLE SPECTRUM PF MEDIA IS USED BY THE EMPLOYERS AND UNIONS TO PORTRAY THEIR POSITIONS,
ESPECIALLY WHEN DISPUTES ARE UNDERWAY.