HRM IIB

1
HRM IIB

• Revision

2
Poverty and Inequality

• Inequality
• Legacy of segregation, discrimination and racial
  division of labour
• Political influence through legislation
• Poverty is related to income
• Access to employment
• Wages attached to that employment

3
Post Apartheid Labour Market

• Poverty measures show that in SA
• 3.7 m (out of 11.4m) households live below the
  poverty line
• 38 Africans, 22 Coloureds, 3 Whites, 4 Asians
  live below the poverty line
• Poverty is related to access to income
• Income derived primarily from employment
• Need is a well performing job generating LM

4
Post Apartheid Labour Market

• Employment Growth 1995 2002
• Low economic growth meant negative effect on job
  creation (2.8 over this period)
• 1.6 million jobs crated
• New entrants to the labour market was 5 million
• 3.4 million remained jobless since 1995
• Unemployment at 39 in 2002

5
Post Apartheid Labour Market

• Race trends in employment creation show that
• Only 28 of new African entrants got jobs
• While 55 of new White entrants got jobs
• Skills trends in employment show
• 64 of tertiary educated individuals got jobs
• 35 with matric only got jobs
• 14 with incomplete secondary educ. got jobs

6
Lecture 2

• Origins of IR
• Transition from Feudalism to Capitalism
• Changing nature of work under capitalism
• Craft work, deskilling, Taylorism, Fordism,
  growth of factory, rise of trade unions
• Definitions of IR

7
Definition

• We look at a definition by a South African author
  Mark Anstey
• Essentially, industrial relations is the process
  through which employers and employees interact,
  and through which they regulate conflict at the
  workplace

8
Definition

• Another definition is one used by Richard Hyman
• Industrial relations is the study of the
  processes of control over work relations and
  among these processes, those involving collective
  worker organisation and action are of particular
  concern.

9
The Labour Relationship

• Human relationship
• Between people at work
• Governed by the way work is organised
• It has all the dynamics of other human relations
• It has its own unique characteristics and
  problems
• Often employees work for the money and not
  because they like the job cause problems

10
The Labour Relationship

• The employer is not interested in the employee
• Except in the way this person can labour
• How hard and fast the person can work
• The skills and the abilities of the person
• This creates the division between those who work
  and those who own and manage

11
Lecture 3

• Management Strategy
• Unitarism
• Pluralism
• Marxism/Radical perspective

12
Lecture 3 Management Strategy

• Bendix
• Identifies various styles of IR management
• Fox developed 5 types of relationships
• Traditional unitariast by both employers and
  employees
• Management is resistant to unions and wants to
  win at all times
• Sophisticated modern both parties adopt a
  pluralist perspective

13
Management Strategy

• Both parties accept each other collective
  bargaining is institutionalised, procedures
  established to regulate behaviour
• Sophisticated paternalistic style management
  wants a pluralist approach but employees adopt a
  unitarist approach
• Paternalism prevails and employees are motivated
  by good human resources management

14
Management Strategy

• Conflict challenge style management stuck in
  unitarist style and employee are pluralist.
  Employees place demands and management refuses to
  acknowledge such demands
• Standard modern style ambivalence on both sides.
  Management is aware of pluralist approach but
  adopts a unitarist style. Employees occasionally
  make demands but dont rock the boat

15
Management Strategy

• Purcell 6 possible managerial styles
• Traditional style, also autocratic unitarism.
  Management wants to maximise profits and labour
  costs are kept low.Employees have no job
  security, management is autocratic and conflict
  is suppressed
• Paternalistic style company cares for the
  employee who knows his place in the hierarchy,
  communication and motivation but no unions

16
Management Strategy

• Sophisticated human relations style unions are
  actively avoided but there is promotion and
  development of the individual thru sophisticated
  HRM such as higher wages, training development
  and good communication
• Bargained constitutionalism accept unions to
  contain conflict, bargaining on narrow range of
  procedural issues

17
Management Strategy

• Management retain its right to manage make
  decisions, unions treated fairly if remain within
  constitutionally established relationship, unions
  help maintain discipline and order reduce
  conflict
• Modern paternalistic style effort to build
  constructive relationship thru consultation,
  briefing groups set up to deal with IR as well as
  operational issues paternalistic in style in
  that management share to gain commitment

18
Management Strategy

• Sophisticated consultative style management
  shares all aspects of organisational training
  with unions, but reserves the right to make final
  decisions, uses teambuilding, quality circles,
  profit sharing and share ownership schemes
• M Finnemore using same research has reduced the
  typologies to 4 models

19
Management Strategy

• Sophisticated paternalistic unitarism and union
  avoidance
• Use sophisticated HRM systems to undermine union
  support
• Aggression and confrontation is avoided
• Strategies used to discourage unions
• Wages higher than market rates
• Investment in training and career development

20
Management Strategy

• Adversarial pluralism and collective bargaining
• Accepts the freedom of association
• See unions as a necessary interest group to the
  workplace
• See shop stewards as a way of communicating with
  workers
• Accept the rights of unions to bargain
  collectively

21
Management Strategy

• Consultative pluralism employee participation
  and cooperation
• Groups have different interest at the same time
  there is a common interest in the survival of the
  firm
• Employee participation and union/management
  cooperation seen as creating a stable business
  environment

22
Lecture 4 Historical Developments

• Why we study the history?
• Racial division of the working class
• Racism in the workplace
• Institutionalization of racism apartheid
• Its effects on poverty, inequality, unemployment,
  HIV/AIDS on working class
• Trade unions fight against apartheid and the
  implementation of democracy

23
Repressive Labour Policies

• The ICA 1924
• Collective bargaining for white workers
• Excluded Africans from all IR
• Racial discrimination at the workplace
• Gov Policy repressive labour policies
• Protection of white workers civilised labour
• Tariff protection for industry
• 1925 Wage Act 1926 Mines Works Act

24
1948 1973 Apartheid Labour Market

• 1948 NP elected to Government
• Political Apartheid on 3 levels
• Macro Grand apartheid, Homelands and industrial
  decentralisation influx control
• Meso separation between races, through group
  areas, population removal, separate school, etc
• Micro separation between individuals, marriage
  separate amenities parks, toilets, etc

25
Apartheid Labour Market

• Labour Legislation
• 1956 ICA - Africans prohibited from joining
  registered trade unions or going on strike
• Widened job reservation to all sectors
• State could overrule IC agreements meant it
  could control hiring practices
• 1953 Bantu education Act
• Spending on African education tied to taxes

26
Road to Reform

• 1973 mass spontaneous strikes
• Led to the development of black trade union
  movement
• TU increasingly began to challenge both the
  apartheid state and businesses
• State was put under pressure to reform the
  industrial relations legislation business were
  experiencing major problems
• This was the beginning of the road to reform

27
Road to Reform

• 1973Strikes reveal no effective IR legislation
• 1973 Black Labour Relations Regulation Act
• Create Liaison Committees / supplement Works
  Committees
• Growing internal external pressure
• Boycotts, sanctions, disinvestments

28
Road to Reform

• State appointed the Wiehahn Commission
• Investigate labour legislation
• 1979 ICA amendedChanged labour relations in SA
• All persons now employee/ no racism
• All unions allowed to register
• Job reservation eliminated
• Freedom of association guaranteed to all

29
Road to Reform

• 1995 Nedlac Formed Corporatism
• National Economic Development and Labour Council
• Labour Relations Act 66 of 1995
• Basic Conditions of Employment Act 75 of 1997
• Employment Equity Act 55 of 1998
• Skills Development Act 97 0f 1998

30
Lecture 5 SA Trade Union History 1920s

• The Industrial Commercial Workers Union
• Founded in 1919 by Clements Kadali
• 1928 Communist Party formed the
• South African Federation of Non-European Trade
  Unions 10 000 members
• Collapsed in 1930 due to Police repression

31
SA Trade Unions History 1930s

• 3 trends discernable
• 1st Communist Party organised 27 unions in Natal
  Western Cape
• 2nd Joint Committee of African Trade Unions
  organised by Max Gordon (JHB)
• 3rd trendCo-ordinating Committee of African
  Trade Unions Gana Makabeni (JHB)

32
SA Trade Union History 1940s

• Formation of the Confederation of trade Unions
  (CNETU) in 1941
• Gordons unions and Makbenis unions held unity
  talks in 1941 organised by the CPSA
• 1945 it had 119 affiliates 158 000 members
• African Mineworkers Union
• 1946 a strike is called lasted 12 days, leaving
  12 dead
• 100 000 workers come out 21 pits closed

33
SA Trade Union History 1950s

• Formation of the South African Congress of Trade
  unions (SACTU)
• 1955 Sactu launched, 19 Unions, 20 000 mbs
• Emphasised non racialism political protests
• Sharpville massacre ANC PAC banned armed
  struggle launched
• ANC SACTU leaders went underground, detained
  or exiled
• 160 SACTU organisers detained
• SACTU collapses and by 1965 ceases to exist

34
SA Trade Union History 1965 - 1973

• New beginnings
• January 1973 series of strikes by African and
  Indian workers in the Durban Pinetown are
• April 1979 Fosatu formed based on
• Non racialism
• Direct Worker control of union structures
• Development of shop stewards
• Shop floor organisation
• Independence from political organisation

35
SA Trade Union History 70/80s

• 1985 COSATU formed
• Fosatu, ANC unions, independent unions and NUM
• 1986 Nactu (National Council of Trade Unions)
• Formed in out of a merger of CUSA and AZACTU
• Fedusa (Federation of Unions of SA)
• Formed in 1997 out of former white unions

36
Lecture 6 Why do Workers Join Trade Unions

• Economic needs
• Job security
• Social Needs
• Social Welfare
• Self-fulfillment and Development
• Political Reasons

37
Types of Trade Unions

• 3 Forms or type of trade unions
• Craft Unions
• General Unions
• Industrial Unions
• Other Types
• White Collar Unions
• Public Sector Unions

38
Structures of Trade Unions

• At its base is members Rank and file of unions
• Shop Steward Elected by members in terms of LRA
• Shop Steward Committees
• Branch Committees
• Regional Committees
• National Level
• National Congress

39
Structures of Trade Unions

• National Congress
• Attended by delegates elected at branch level
• Held annually or biannually
• Highest authority of the union
• Policy decisions are made/ resolutions passed
• Key personnel of NEC elected
• Presentation and approval of financial statement
  and auditors report

40
Lecture 7 Employers Organisations

• Some functions include
• Engage in collective bargaining at industrial
  councils
• Influence government on trade industry policy
  economic policy
• Negotiate with labour gov. over labour policy
  at NEDLAC
• Provide support and training to members
• Provide assistance to small businesses

41
Employers Organisations

• Chambers of commerce
• Do not negotiate on labour issues as they are not
  registered for such purpose
• Sector based organisations
• Organisations that are registered with the Dept
  of Labour in terms of the LRA as employer
  organisations
• BUSA has united the various chambers of commerce
  and also sector based organisations to present a
  united voice for employers in SA

42
Lecture 8 Corporatism

• 2 forms of corporatism
• State corporatism
• Societal corporatism
• What is meant by corporatism?
• Formal agreement between government, organised
  labour and organised business over key government
  policy issues

43
Corporatism

• What is the purpose of corporatism?
• Emphasises dialogue (over violence) and
  coordination between adversarial groups in
  society
• Regulate the capitalist economy
• Nedlac consists of Labour, Business, Gov and
  Community Organisations
• Considered all labour legislation

44
Lecture 9 Negotiation

• Definitions
• Negotiations often used interchangeably with
  collective bargaining
• Collective Bargaining is the broad all
  encompassing process that includes negotiations
• Negotiations is what happens in collective
  bargaining

45
Negotiation

• Conflict and Power in Negotiations
• Bargaining and negotiations arise out of the need
  to share scarce resource
• Need to give up power or share some power
• Differences in goals values and ideologies
• All of this creates conflict that become the
  issues of bargaining and negotiations

46
Negotiation

• Use of Power
• Managements power its ownership, ability to
  hire fire, ability to give rewards, develop
  employees, continue business
• Employees power withhold labour, disrupt
  production, make company loose market share, work
  inefficiently
• Negotiators set high demands when they know they
  can use their power base

47
Negotiation

• Use and display of power is central to
  negotiations and collective bargaining
• Labour legislation legitimises the use of such
  power within certain confines
• Parties receive legal protection when exercising
  their power
• This form of power overshadows the negotiations
  process and is ever present

48
Lecture 10 Collective Bargaining

• Definition
• The prime aim for unions is to improve wages
  conditions of employment
• This definition however fails to discuss the
  interactive nature of the process and its central
  position in labour relations
• Collective bargaining is a two way process and
  the pressure to negotiate comes from both sides

49
Definition

• Collective bargaining is the principle method
  whereby employers and employees establish and
  continue a relationship
• This is an important means of communication
  between employers and employees
• Allows the two sides to get together and talk
  about problems, needs, goals and to settle
  differences

50
Collective Bargaining

• Commonality of interest as a basis for
  bargaining
• Bargaining would not take place if there was no
  common interest to bargaining
• Parties work together to produce goods and
  services
• Together they work for the long term future of
  the of the company
• Bargaining is based on pluralism
• Both parties recognise each others right to exist

51
Collective Bargaining

• The role of conflict in bargaining
• Bargaining would not occur if there was no
  conflict
• Parties have different needs, goals, interests,
  attitudes, values and perceptions
• These goals are pursued at the costs of the other
  party
• If parties have sufficient power then they use
  collective bargaining as a way forward

52
Collective Bargaining

• Bargaining styles
• Distributive bargaining this is the most common
  type (win loose)
• Management and unions are in opposing positions
  and gain for one is a loss for another
• Antagonism dominates the bargaining items
• These would be around wages and conditions of
  employment
• Power is used as a tactic by both sides

53
Collective Bargaining

• Bargaining styles
• Integrative Bargaining This is when both parties
  want a successful outcome and there is a genuine
  desire to solve a problem
• In integrative bargaining items are seen as
  problems that need resolving
• Integrative bargaining strives for a win win
  situation
• Conflict is minimised

54
Text Book Block 1

• Chap 1 study whole chap
• Chap 2 read this chap
• Chap 3 study whole chap
• Chap 5 study whole chap
• Chap 6 read pp 181 220 study pp 221 230
• Chap7 study whole chap
• Chap 9 study whole chap
• Chap 15 study whole chap
• Chap 20 read pp 677 685 study pp 685 - 696