5* Edition

LABOUR

RELATIONS

IN SOUTH AFRICA

Editors

Robert Venter • Andrew Levy

Hanneli Bendeman * Bronwyn Dworzanowski-Venter

OXFORD UNIVERSITY PRESS

SOUTHERN AFRICA

1 AN INTRODUCTION TO LABOUR RELATIONS... 1 Robert Venter

1.1 Introduction .4 1.2 Defining labour relations. 5 1.3 The origins of labour relations 6 1.4 Traditional approaches to labour relations....9 1.4.1 The unitarist approach 9 1.4.2 The pluralist approach .9 1.4.3 The conflict approach .9 1.5 The parties to the employment

relationship and their respective roles 10 1.5.1 The secondary employment

relationship n 1.5.2 The primary employment relationship. 12 1.5.2.1 The role of the employer. 12 1.5.2.2 The role of the employee 13 1.5.2.3 Power and conflict within the

primary employment relationship 17 1.5.3 Trade Unions. .20 1.5.3.1 Defining trade unions 20 1.5.3.2 Reasons for joining a trade union 24 1.5.3.3 Trade union structure and

Organisation .25 1.5.3.4 Trade Unions and the Labour

Relations Act 27

1.5.4 Employers' organisations. 29 1.5.4.1 Umbrella organisations: Business

Unity South Africa (BUSA) 30 1.5.4.2 National Chambers of commerce 30 1.5.4.3 Employers' organisations at

industry level 31 1.5.5 Social dialogue and NEDLAC .32 1.6 The environment for labour relations

in South Africa 35 1.6.1 The micro-environment .36 1.6.1.1 Organisational culture .36 1.6.1.2 Leadership 36

1.6.1.3 Communication 36 1.6.1.4 The nature of the workforce 36 1.6.1.5 Policies and procedures. 37 1.6.2 The macro-environment. 37 1.6.2.1 The economy .37 1.6.2.2 The socio-political environment .40 1.6.2.3 The legal framework 40 1.6.2.4 The social environment 41

2 PERSPECTIVES ON LABOUR RELATIONS.... 49 Bronwyn Dworzanowski-Venter Robert Venter Andrew Levy

2.1 Introduction 51 2.2 The multi- and interdisciplinary nature

of labour relations 52 2.3 The economist's perspective. 53 2.4 The lawyer's perspective 56 2.5 The industrial/economic sociology

perspective 59 2.5.1 Social movement unionism 61 2.5.2 Decent work. 62 2.5.3 The Precariat 62 2.5.4 Ecosocialism/Eco-Marxism 63 2.6 The industrial/organisational

psychology perspective. 63 2.7 The management perspective 65 2.7.1 Quantitative versus qualitative

approaches. .66 2.7.2 Ethics. 66 2.7.3 Judgement 67 2.7.3.1 The availability heuristic. 67 2.7.3.2 The representativeness heuristic 67 2.7.3.3 The confirmation heuristic 67 2.7.3.4 The affect heuristic. 68 2.7.4 Morality. .68

X LABOUR RELATIONS IN SOUTH AFRICA

2.7.5 Bounded rationality and decision-making. 70

3 THE HISTOR1CAL DEVELOPMENT OF SOUTH AFRICAN LABOUR RELATIONS 73 Bronwyn Dworzanowski-Venter

3.1 Introduction 74 3.2 Social engineering begins:

Colonialism (1652-1947) 75 3.2.1 Colonisation: The Dutch, the British

and slavery (1652-1886) 75 3.2.2 Gold, diamonds and reluctant black

proletarians (1886-1920) 76 3.2.3 English mining capital and race

politics: the Rand Rebellion (1922) 79 3.2.4 An Afrikaner welfare State and the

Colour Bar (1924) 80 3.2.5 Black protest: Urions, women, war

and the 1946 strike (1930-1948) 80 3.3 Extreme social engineering: Apartheid

(1948-1990) 84 3.3.1 Institutionalisation of apartheid

(1948-1960) 84 3.3.2 High apartheid (1960-1970) 85 3.3.3 The decline of apartheid (1979-1990)...86 3.4 Social re-engineering via

democratisation: Transition and consolidation (1990-2014) 89

3.4.1 Transition towards democracy (1990-1994) 89

3.4.2 Towards a new labour dispensation 92 3.4.3 Early transition and attempted

consolidation in the Mbeki years (1996-2007) 93

3.4.4 The first Zuma administration: a period of crises or a vision for inclusive growth? (2009-2014) 94

3.5 Conclusion 106

4 COMPARATIVE LABOUR RELATIONS: LESSONS FROM THE BRICS DEBATE 109 Bronwyn Dworzanowski-Venter

4.1 Introduction lio

4.2 Theoretical tools required to compare labour systems cross-nationally uo

4.3 Towards lessons for South African labour relations: BRICS comparison Iii

4.3.1 Building the BRICS alliance Iii 4.3.2 The great debate: BRIC or BRICS? 115 4.3.3 Labour comparison proper:

resolving the inclusion debate and lessons for South Africa 117

4.3.3.1 Type of economy 119 4.3.3.2 Economic growth trends. 120 4.3.3.3 Key labour legislation 121 4.3.3.4 The role of the State and

corporatism 122 4.3.3.5 Trade unions and employers'

organisations. 123 4.3.3.6 Collective bargaining. 125 4.3.3.7 Collective action: strikes and

lockouts. 126 4.3.3.8 Crises and challenges within the

BRICS labour markets 128 4.4 BRICS comparison: some reflections 128 4.4.1 Comparing the BRICS and IBSA

alliances: which is best for South Africa? 129

4.5 Taking comparative labour relations seriously: challenges and remedies. 130

4.6 Conclusion 131

5 AN INTRODUCTION TO LABOUR ECONOMICS 133 Andrew Levy

5.1 Introduction 134 5.2 Neo-classical microeconomic models

of wage determination 136 5.3 The elasticity of the demand for and

the supply of labour. 138 5.4 The marginal product of labour 139 5.5 The supply of labour: the backward-

bending supply curve 141

CONTENTS

5.6 The distribution of earnings, wage structures and the economic effects oftrade unions. 143

5.6.1 The occupational or skill differential 143 5.6.2 Inter-industry differentials 144 5.6.3 Union versus non-union differentials 145 5.6.4 Geographica! or regional differentials....145 5.6.5 Discriminatory differentials 145 5.7 Employment, unemployment and

technological progress 146 5.7.1 Frictional unemployment 147 5.7.2 Seasonal unemployment 147 5.7.3 Deficient demand (cyclical

unemployment) 147 5.7.4 Structural unemployment 147 5.7.5 'Hard-core' unemployment 148 5.8 Unions, wage bargaining and Inflation 148 5.9 Governments and labour market policy.....i52

6 CONTEMPORARYISSUES IN THE SOUTH AFRICAN LABOUR MARKET 155 Andrew Levy

6.1 Introduction 156 6.2 Minimum wage regulation in South

Africa 157 6.2.1 Direct contract between the buyer

and the seller of labour. 157 6.2.2 Minimum wage levels are currently

set on a sectoral basis by a statutory wage-fixing body. 157

6.2.3 Statutorily backed collective bargaining with Extension of the agreement to non-participative parties. 158

6.2.4 Voluntary collective bargaining at plant or enterprise level 158

6.3 Labour market flexibility. 159 6.3.1 Wage flexibility. 161 6.3.2 Numerical flexibility. 161 6.3.3 Functional flexibility. 162 6.3.4 Work time flexibility. 162

6.4 Grey labour markets. 162 6.5 Outsourcing 165 6.5.1 Outsourcing to a labour broker. 165 6.5.2 Casualisation and short-term

contra cts 166 6.5.3 Outsourcing the function to a

service Provider. 166 6.5.4 Extra-legal employment 167 6.5.5 Atypical labour and the future 167 6.6 The 'apartheid wage gap' argument 168 6.7 Labour market discrimination and

equality legislation 172 6.8 Labour market effects of discrimination....!73 6.9 Labour productivity, efficiency and

globalisation 176 6.10 Employment and the formal and the

informal sectors 179 6.11 The historical legacy of apartheid on

South African labour markets and unemployment 180

6.12 Broad and narrow definitions of unemployment. 184

6.12.1 Dealing with the question of the discouraged worker. 185

6.12.2 Dealing with the demand aspect of supply and demand 187

6.13 Is South African unemployment a function of a lack of sufficiently skilled labour? 189

7 THE SOUTH AFRICAN LABOUR LEGISLATIVE FRAMEWORK 193 Robert Venter

7.1 Introduction 200 7.2 The Constitution of the Republic of

South Africa Act 108 of 1996 201 7.3 The contract of employment. 203 7.3.1 Capacity to contract 203 7.3.1.1 Age 204 7.3.1.2 Insanity. 205 7.3.1.3 The influenae of drugs and alcohol .205

xii LABOUR RELATIONS IN SOUTH AFRICA

7.3.2 The contract must be legal 206 7.3.3 Possibility of Performance 206 7.3.4 Intention 206 7.3.5 Agreement. 206 7.3.5.1 Misrepresentation 206 7.3.5.2 Mistake 208 7.3.5.3 Undue influenae 209 7.3.5.4 Duress. 209 7.3.6 Duration of the contract. .210 7.3.6.1 Fixed-term contracts 210 7.3.6.2 Indefinite-period contracts. .211 7.3.7 Methods of concluding a contract of

employment. .211 7.3.7.1 A written contract. 211 7.3.7.2 A verbal contract. 212 7.3.7.3 Tacit contracts. 212 7.3.8 Duties of the employer. .213 7.3.8.1 Receivingthe employee into service.,.,213 7.3.8.2 Expecting only reasonable and

agreed hours of work. 213 7.3.8.3 Remuneratingthe employee .214 7.3.8.4 Provision of safe working conditions....2l4 7.3.8.5 Leave 214 7.3.8.6 Compliance with statutory

requirements. .215 7.3.9 Duties of the employee. 215 7.3.9.1 To supply services 215 7.3.9.2 To perform competently. 215 7.3.9.3 To show loyalty 215 7.3.9.4 To show reasonable respect and

obedience 216 7.3.9.5 To maintain levels of good conduct 216 7.3.10 Termination of the contract of

employment. 216 7.3.10.1 On expiry. 216 7.3.10.2 Completion of the specified task

or project 217 7.3.10.3 By notice duly given 218 7.3.10.4 By summary termination 218

7.3.10.5 By repudiation 219 7.3.10.6 Through mutual agreement 219 7.3.10.7 Bydismissal 219 7.3.10.8 Bydeath 219 7.3.10.9 Byinsolvency 219 7.3.10.10 By sickness and disability. 220 7.3.10.11 By State action 220 7.3.10.12 Due to operational requirements 220 7.4 The Labour Relations Act 66 of 1995 .220 7.4.1 Chapter 1: Purpose, application and

Interpretation of the Act. .220 7.4.2 Chapter 2: Freedom of association

and general protection .221 7.4.3 Chapter 3: Collective bargaining 221 7.4.3.1 Part A: Organisational rights. 221 7.4.3.2 Part B: Collective agreements 225 7.4.3.3 Part C: Bargaining Councils. .227 7.4.3.4 Part D: Appeals From Registrar's

Decision .229 7.4.3.5 Part E: Statutory councils 229 7.4.3.6 Part F: General provisions

concerning councils. 230 7.4.4 Chapter 4: Strikes and lockouts .232 7.4.4.1 Definitions of strike and lockout 232 7.4.4.2 Limitations on the right to strike

and lockout 232 7.4.4.3 Procedural requirements. 233 7.4.4.4 Effect of procedural strikes and

lockouts. 234 7.4.4.5 Replacement labour during strikes

or lockouts. 234 7.4.4.6 Strikes and lockouts not in

compliance with the Act. 234 7.4.4.7 Picketing 235 7.4.4.8 Essential services and

maintenance services 236 7.4.4.9 Socio-economic protest action 238 7.4.5 Chapter 5: Workplace forums 238 7.4.5.1 Establishment of workplace forums....,239

CONTENTS XIII

7.4.5.2 Composition and functioning of a workplace forum 239

7.4.5.3 Specific matters for consultation 240 7.4.5.4 Specific matters for joint decision-

making. .240 7.4.5.5 Disclosure of Information 241 7.4.5.6 Dissolution of a workplace forum 241 7.4.5.7 Disputes about workplace forums. 241 7.4.6 Chapter 6: Trade unions and

employers' organisations .241 7.4.7 Chapter 7: Dispute resolution 242 7.4.7.1 Part A: The Commission for

Conciliation, Mediation and Arbitration (CCMA) 242

7.4.7.2 Parts D and E: The Labour Court and the Labour Appeal Court 242

7.4.8 Chapter 8: Unfair dismissal 242 7.4.8.1 The basic principles. 243 7.4.8.2 Automatically unfair dismissals. 243 7.4.8.3 Other unfair dismissals. .244 7.4.8.4 Dismissal based on misconduct .244 7.4.8.5 Dismissal based on incapacity. 245 7.4.8.6 Dismissal based on operational

requirements. 245 7.4.8.7 Disputes about unfair dismissals

and unfair labour practices. 247 7.4.8.8 Onus in dismissal disputes. 248 7.4.8.9 Remedies for unfair dismissal and

unfair labour practices. 248 7.4.8.10 Transfer of the contract of

employment 249 7.4.9 Chapter 9: General provisions. 250 7.4.9.1 Temporary employment services. 250 7.4.9.2 Contracts of employment .251 7.4.9.3 General duties of employers .251 7.5 The Basic Conditions of Employment

Act 75 of 1997 251 7.5.1 Chapter 1: Definitions, purpose and

application of the Act 251 7.5.1.1 Purpose of the Act (Section 2) 251

7.5.1.2 Application (Section 3) 251 7.5.1.3 Inclusion of provisions in

the contracts of employment (Section 4) 252

7.5.1.4 Invalidity of agreements (Section 5)....252 7.5.2 Chapter 2: Working time 252 7.5.2.1 Regulation (Section 7) .252 7.5.2.2 Ordinary hours of work (Section 9) 252 7.5.2.3 Overtime (Section 10) 252 7.5.2.4 Extended ordinary daily hours of

work (Section 11) 252 7.5.2.5 Averaging hours of work

(Section 12). 252 7.5.2.6 Determination of hours of work by

the Minister (Section 13) 252 7.5.2.7 Meal intervals (Section 14) 253 7.5.2.8 Daily and weekly rest periods

(Section 15) .253 7.5.2.9 Pay for work on Sundays (Section

16) 253 7.5.2.10 Night work (Section 17) 253 7.5.2.11 Public holidays (Section 18) 253 7.5.2.12 Exclusions 253 7.5.2.13 Emergency work 253 7.5.3 Chapter 3: Leave 253 7.5.3.1 Annual leave (Sections 20 and 21) 253 7.5.3.2 Sick leave (Sections 22 to 24) 254 7.5.3.3 Maternity leave (Section 25) .254 7.5.3.4 Protection of employees before

and after the birth of a child (Section 26) .254

7.5.3.5 Family responsibility leave (Section 27) 254

7.5.3.6 Leave in excess of entitlement (Section 19) 254

7.5.3.7 Exclusions (Sections 19,28, and 36) 254

7.5.4 Chapter 4: Remuneration, deductions and notice of termination....255

7.5.4.1 Payment of remuneration and deductions (Sections 32 to 35) 255

xiv LABOUR RELATIONS IN SOUTH AFRICA

7.5.5 Chapter 5: Termination of employment. 255

7.5.5.1 Conditions attached to the termination of employment (Sections 36 to 42) 255

7.5.5.2 Exclusions (Section 36) 255 7.5.5.3 Particulars of employment

(Section 29) 255 7.5.5.4 Informing employees of their rights

(Section 30) 256 7.5.5.5 Keeping of records (Section 31) 256 7.5.5.6 Payment of and Information about

remuneration (Sections 32 and 33)....256 7.5.5.7 Certificate of service (Section 42) 256 7.5.6 Chapter 6: Prohibition of

employment of children and forced labour. 256

7.5.6.1 Prohibition of employment of children (Sections 43 to 48) .256

7.5.6.2 Prohibition of forced labour (Section 48) 257

7.5.7 Chapter 7: Variation of basic conditions of employment 257

7.5.7.1 Variation by agreement (Section 49)...257 7.5.7.2 Variation by the Minister (Section

50) 258 7.5.8 Chapter 8: Sectoral determination 258 7.5.8.1 Sectoral determination (Section 51)...258 7.5.8.2 Investigation and report (Sections

53 to 56) 258 7.5.8.3 Making sectoral determinations

(Section 55). 258 7.5.8.4 Period of Operation of sectoral

determination (Section 56) 259 7.5.8.5 Legal effect of sectoral

determination (Section 57) 259 7.5.9 Chapter 9: Employment Conditions

Commission 259 7.5.9.1 Establishment of Employment

Conditions Commission (Section 59) 259

7.5.9.2 Composition of the Commission (Section 60) 260

7.5.9.3 Public hearings (Section 61) 260 7.5.9.4 Report by the Commission

(Section 62) 260 7.5.10 Chapter 10: Monitoring,

enforcement and legal proceedings 260 7.5.10.1 Appointment of labour

inspectors (Section 63) 260 7.5.10.2 Functions of labour inspectors

(Section 64) 260 7.5.10.3 Powers of entry (Section 65) 260 7.5.10.4 Powers to question and inspect

(Section 66) 260 7.5.10.5 Co-operation with labour

inspectors (Section 67) 260 7.5.10.6 Securing an undertaking

(Section 68) 260 7.5.10.7 Compliance order (Sections 69

to 71) 261 7.5.10.8 Appeals (Section 72) 261 7.5.10.9 Orders of the Labour Court

(Section 73) and the consolidation of proceedings (Section 74) 262

7.5.10.10 Payment of interest (Section 75) 262 7.5.10.11 Proof of compliance (Section 76)...262 7.5.10.12 Jurisdiction (Section 77) .262 7.5.10.13 Protection of the rights of

employees (Sections 78 to 81) 263 7.5.11 Chapter 11: General delegation

(Section 85) 263 7.5.11.1 Deeming of persons as

employees (Section 83) 263 7.5.11.2 Regulations (Section 86) 264 7.5.11.3 Codes of good practice

(Section 87) 264 7.5.11.4 Obstruction, undue influence

and fraud (Section 92) 264 7.5.11.5 Penalties (Section 93) 264 7.5.11.6 Transitional provisions: Schedule 3...264

CONTENTS xv

7.6 The Employment Equity Act 55 of 1998 ...265 7.6.1 An overview of the Act 265 7.6.2 Provisions. .266 7.6.2.1 Elimination of unfair discrimination 266 7.6.2.2 Prohibition of unfair discrimination 266 7.6.2.3 Medicai testing 266 7.6.2.4 Psychometric testing. .266 7.6.2.5 Disputes concerning Chapter 2 of

the Act 266 7.6.2.6 Bürden of proof. 267 7.6.3 Affirmative action 267 7.6.3.1 Duties of designated employers. 267 7.6.3.2 Affirmative action measures 267 7.6.3.3 Consultation with employees. 268 7.6.3.4 Matters for consultation 268 7.6.3.5 Disclosure of Information 268 7.6.3.6 Analysis .268 7.6.3.7 Employment equity plan 268 7.6.3.8 Report .269 7.6.3.9 Publication of report 269 7.6.3.10 Successive employment equity

plans. 269 7.6.3.11 Responsibility for monitoring and

Implementation .269 7.6.3.12 Dutyto inform 269 7.6.3.13 Income differentials 270 7.6.3.14 Commission for Employment

Equity. 270 7.6.3.15 Monitoring, enforcement and

legal proceedings. 270 7.6.3.16 General 272 7.6.3.17 Implementing employment equity 272 7.7 The Broad-Based Black Empowerment

Act 53 of 2003 .275 7.7.1 The strategy for the advancement of

B-BBEE. 277 7.7.2 B-BBEE codes. 277 7.7.2.1 To whom the codes apply. .278 7.7.2.2 How the codes work, 278

7.7.2.3 How the codes apply to small enterprises 279

7.7.2.4 Implications of BEE codes for the management of labour relations. 279

7.7.3 Industry charters .280 7.7.4 Amended Codes of Good Practice 280 7.8 Women Empowerment and Gender

Equality Bill .282 7.9 The Skills Development Act 97 of 1998....282 7.9.1 The National Skills Authority .283 7.9.2 Sectoral Education and Training

Authorities (SETAs) 283 7.9.3 The National Skills Fund 283 7.9.4 Labour centres. 283 7.9.5 The Skills Development Flanning Unit.,283 7.9.6 Offences 284 7.10 The Skills Development Levies Act 9

Of 1999 284 7.10.1 Calculation of a levy. 284 7.10.2 Payment of a levy .284 7.10.3 Appointment and powers of

inspectors 285 7.10.4 Undertakings and compliance

orders 285 7.10.5 Offences 286 7.10.6 Proof of accuracy of Statement 286 7.11 The Occupational Health and Safety

Act 85 of 1993 as amended by the Occupational Health and Safety Amendment Act 181 of 1993 287

7.11.1 Application of the Act 288 7.11.2 Advisory Council for Occupational

Health and Safety (Sections 2 to 6)....288 7.11.3 An employer's duties (Sections 8

to 13) 288 7.11.4 An employee's duties (Sections 14

and 15) .289 7.11.5 Health and safety representatives

(Sections 17 and 18) 289 7.11.6 Health and safety committees

(Sections 19 and 20) 289

xvi LAßOUR RELATIONS IN SOUTH AFRICA

7.11.7 Inspectors (Sections 28 to 32) .289 7.12 The Compensation for Occupational

Injuries and Diseases Act 130 of 1993 as amended by the Compensation for Occupation Injuries and Diseases Act 61 of 1997 290

7.12.1 Death of an employee (Section 54) 292 7.13 The Unemployment Insurance

Act 63 of 2001 as amended by the Unemployment Insurance Amendment Act 32 of 2003. 292

7.13.1 The Unemployment Insurance Fund 292 7.13.2 Claiming benefits. 293 7.13.3 Enforcement. 295 7.13.4 The Unemployment Insurance Board...295 7.14 The Unemployment Insurance

Contributions Act 4 of 2002 295 7.15 Acts pertaining to aspects of

Information in the workplace .296 7.15.1 The Promotion of Access to

Information Act 2 of 2000 296 7.15.2 The Protection of Personal

Information Act 4 of 2013 296 7.15.3 The Protected Disclosures Act 26

of 2000 298 7.16 The Employment Services Act

4 of 2014 298

8 MANAGING LABOUR RELATIONS IN THE WORKPLACE 313 Andrew Levy

8.1 Introduction 316 8.2 The employment relationship as a

source of rights and obligations. .317 8.3 Employee misconduct, discipline and

dismissal .320 8.4 Termination of employment 322 8.4.1 The definition of the term 'dismissal' 322 8.4.2 Automatically unfair dismissals 322 8.4.3 Dismissals based on disciplinary

reasons 325

8.5 Elements of procedural faimess in respect of terminations. 326

8.5.1 Procedure in dismissals for misconduct. 327

8.5.2 Requirements for a fair hearing 328 8.5.3 Representation at a hearing. .330 8.5.4 Representation by a fellow

employee or shop Steward 330 8.5.5 Outside representation: friends,

spouses, lawyers and Consultants 331 8.5.6 Representation by full-time trade

union officials. 331 8.5.7 The right to an Interpreter. 331 8.5.8 Additional preparations 332 8.5.9 Administrative preparations 332 8.5.10 Decisions on holding joint or

individual hearings 333 8.5.11 Why should an employer hold

formalised hearings at all? : an alternative approach 333

8.5.12 The outside chairperson 334 8.5.13 Appeal hearings. 335 8.5.14 Company offences that are also

criminal offences 335 8.5.15 Employee refusal to attend hearings....336 8.6 Substantive faimess. .337 8.6.1 Warnings. 338 8.6.2 Types of offences 339 8.6.3 Validity of warnings 340 8.6.4 Completing disciplinary forms. 340 8.6.5 Suspension from employment 340 8.6.5.1 Suspension on füll pay 340 8.6.5.2 Suspension without pay as a

disciplinary measure 341 8.6.6 Demotions. 341 8.6.7 Transfers. 341 8.6.8 Resignation to avoid dismissal 341 8.6.9 Constructive dismissal 342 8.7 Common forms of misconduct. 342

CONTENTS XVII

8.7.1 Misconduct involving acts of dishonesty, unfair competition, and similar breaches of the duty of good faith .343

8.7.2 Breach of confidentiality. .346 8.7.3 Unfair competition 346 8.7.4 Misconduct relating to assault,

fighting or harassment 347 8.7.5 Acts of misconduct relating to

timekeeping and attendance. 348 8.7.6 Negligence as a form of misconduct... .352 8.7.7 Misconduct in relation to drink or

drugs. 353 8.7.8 Internet and computer-related

misconduct 354 8.7.9 Impossibility of Performance 355 8.7.10 Is the refusal to work overtime

misconduct? 355 8.8 Poor work performance/incapacity. 356 8.8.1 Poor work Performance 356 8.8.2 Incapacity resulting from illness. 359 8.9 Dismissals based on operational

requirements 359 8.9.1 Fair and valid reason 360 8.9.2 Consultation prior to termination 361 8.9.3 Parties to be consulted 361 8.9.4 Commencement of consultations 362 8.9.5 Prior notification 363 8.9.6 Steps to avoid or minimise

dismissals. 363 8.9.7 Steps to mitigate the adverse

effects of dismissals (retrenchments)....364 8.9.8 Implementation of agreed or fair

selection criteria .364 8.9.9 Last-in, first-out (LIFO) .365 8.9.10 The LIFO method of selection and

the 'bumping' problem 365 8.9.11 Using skill levels as the method of

selection 366 8.9.12 Severance pay .366 8.9.13 Offer of re-employment .367

8.9.14 Changes in employment practice and the operational requirement used in other contexts. 367

8.10 Grievance procedures. .369 8.10.1 Grievance procedures defined 369 8.10.2 The need for grievance procedures. 370 8.10.3 Open-door policy. 370 8.10.4 Grievance procedures in different

organisations 371 8.10.5 Grievance procedures in practice. 371 8.10.6 Utilisation of the grievance

procedure. 372 8.10.7 Levels for the resolution of disputes....373 8.10.8 Benefits of an effective grievance

procedure .373 8.11 A methodology for making practica!

decisions in the field of labour management 373

8.11.1 The 'Could I' question 374 8.11.2 The'Should I'question 374 8.11.3 Will I get away with it? 375 8.11.4 Will it come as a surprise? 375

9 COLLECTIVE BARGAINING AND ORGANISATIONAL RIGHTS 407 Robert Venter

9.1 Introduction 4ii 9.2 South African collective bargaining in

brief. 412 9.3 The duty to bargain 416 9.4 Representivity. 416 9.4.1 Sufficient representation 416 9.4.2 Majority representation .416 9.4.3 Thirty per cent membership 417 9.5 Organisational rights 417 9.5.1 Trade union access to the workplace 417 9.5.2 Deduction of union dues. .417 9.5.3 Trade union representatives 417 9.5.4 Leave for trade union activities. .418 9.5.5 Disclosure of Information 418

xviii LABOUR RELATIONS IN SOUTH AFRICA

9.5.6 Establishing thresholds of representativity. 419

9.5.7 Exercise of organisational rights 419 9.5.8 Disputes about organisational rights 419 9.6 The collective bargaining process 421 9.6.1 Duty to bargain 421 9.6.2 Bargaining content. 422 9.6.3 Bargaining conduct. 422 9.6.4 Bargaining styles 422 9.6.5 Bargaining levels and structure 422 9.6.6 Bargaining agents 423 9.6.6.1 Trade unions 423 9.6.6.2 Employers' organisations 424 9.6.7 Collective agreements 424 9.6.8 The legal effect of collective

agreements 424 9.6.9 Disputes about collective agreements...424 9.6.10 Union security arrangements. 427 9.6.11 Agency-shop agreements .427 9.6.12 Closed-shop agreements 428 9.6.13 Bargaining structures 429 9.6.13.1 Bargaining councils. 429 9.6.13.2 Statutory councils 432 9.6.13.3 Workplace forums 433

10 NEGOTIATION 435 Andrew Levy

10.1 Introduction 437 10.2 Defining negotiation 438 10.2.1 Distributive bargaining 440 10.2.2 Integrative bargaining .440 10.2.3 Intra-organisational bargaining 440 10.2.4 Attitudinal structuring, and

building relationships. 440 10.3 Internal factors that have an impact

on negotiations .442 10.3.1 Bargaining power. 442 10.3.2 Legitimate power. 443 10.3.3 Referent power. 443

10.3.4 Expert power. 443 10.3.5 Coercive power. 443 10.3.6 Reward power. 444 10.4 External factors that have an impact

on negotiations .444 10.4.1 Economic climate. 444 10.4.2 Political conditions 445 10.4.3 Technology. 446 10.5 Bargaining in good faith 446 10.6 The arguments used in wage

negotiations 447 10.6.1 Affordability. 448 10.6.2 Comparability. 448 10.6.3 Cost of living 448 10.6.4 Productivity. 448 10.6.5 Public policy. 449 10.7 Negotiating tactics 449 10.7.1 Manipulation of data 450 10.7.2 Misleadingthe Opposition 450 10.7.3 Emotive ploys 450 10.7.4 Switching roles 450 10.8 Negotiating strategies 450 10.8.1 Walking away. 451 10.8.2 Dual concerns 451 10.8.3 Contingent outcomes and the

'prisoner's dilemma' 451 10.9 The negotiating process 452 10.9.1 Preparation 452 10.9.2 Collection of data and all relevant

Information 452 10.9.3 Establishing positions 452 10.9.4 Setting out objectives 452 10.9.5 Establishing the tone of the

proceedings. 453 10.9.6 Opening stages. 453 10.9.7 Presenting the argument. 454 10.9.8 Dealing with conflict. 454 10.9.9 The outcome 455 10.9.9.1 Contend 455

CONTENTS xix

10.9.9.2 Concede 456 10.9.9.3 Compromise .456

11 DISPUTE RESOLUTION 459 Andrew Levy

11.1 Introduction: Employment and employment-related disputes. 460

11.2 The Labour Relations Act and its approach to disputes. 461

11.2.1 Stage 1 of the dispute resolution procedure. 462

11.2.2 Stage 2 of the dispute resolution procedure. 463

11.2.3 Stage 3 of the dispute resolution procedure 464

11.3 Disputes of right and disputes of internst .465

11.3.1 Dispute of right 465 11.3.2 Disputesofinterest 466 11.4 The duty to bargain 467 11.5 Models/methods of conflict resolution.,,468 11.5.1 Mediation/conciliation .468 11.5.2 Fact finding 469 11.6 The role of the courts. 469 11.6.1 The Labour Court. 470 11.6.2 The Labour Appeal Court 471 11.6.3 The Constitutione! Court. .472 11.7 Data on disputes and dispute

resolution 472 11.8 In-company means of dispute

resolution 474

12 WORKER PARTICIPATION IN SOUTH AFRICA 503 Robert Venter

12.1 Introduction 505 12.2 Defining worker participation 506 12.3 Objectives of worker participation .506 12.3.1 Ethical or moral objectives 507 12.3.2 Socio-political objectives. 507 12.3.3 Economic objectives. 507

12.3.3.1 More effective decision-making 507 12.3.3.2 Increased job satisfaction 507 12.3.3.3 Better commitment to quality

improvement 507 12.3.3.4 Management-employee ratio 508 12.3.3.5 Labour relations 508 12.3.3.6 Improved communication with in

organisations. 508 12.3.3.7 Increased productivity. 508 12.3.3.8 Cost control 508 12.4 Forms of worker participation 509 12.4.1 Consultation 509 12.4.2 Collective bargaining 510 12.4.3 Joint decision-making 510 12.4.4 Co-management 510 12.4.5 Self-management 510 12.4.6 Financial participation 510 12.5 Implementing worker participation 510 12.5.1 Suggestion schemes 510 12.5.2 Task forces and teams. 511 12.5.3 Dedicated work teams 511 12.5.4 Job enrichment 511 12.5.5 Quality circles. 511 12.5.6 Financial participation 512 12.5.7 Employee stock-ownership plans

(ESOPs) 512 12.5.8 Workplace forums 514 12.5.9 Consultation 517 12.5.10 Joint decision-making 519 12.5.11 Disclosure of Information 520 12.5.12 Dissolution of workplace forums 521 12.5.13 Disputes relating to workplace

forums. 521 12.6 Essential ingredients for the success

of worker participation 522 12.6.1 Management commitment 522 12.6.2 Organisational culture. 523 12.6.3 Management style. 523 12.6.4 The structure of the Organisation 524

XX LABOUR RELATIONS IN SOUTH AFRICA

12.6.5 Ongoing assessment of the participative process 524

12.6.6 Education and training. 524 12.6.7 Incentives and rewards 525 12.6.8 Trade union support, 527 12.6.9 Effective engagement by

subordinates. 527

13 INDUSTRIAL ACTION 531 Andrew Levy

13.1 Introduction 532 13.2 A brief historical examination of

industrial action in South Africa 533 13.3 The emerging union movement 535 13.4 The Industrial Court, the unfair

labour practice and the rise of legalism (1985-1995) 537

13.5 Centralised collective bargaining 538 13.6 The Labour Relations Act 66 of 1995 539 13.7 The seasonal pattern of strike

activity in South Africa. 541 13.8 Is South Africa strike prone? 542 13.9 Developmental stages of legislative

response to industrial action 543 13.9.1 Repression of industrial action 543 13.9.2 Tolerance of industrial action 543 13.9.3 The right to strike and recourse to

lockout 545 13.10 The legal dimensions of industrial

action 545 13.10.1 Introduction 545 13.10.2 Types of strike action 546 13.10.2.1 Go-siows. 546 13.10.2.2 Work-to-rule 547 13.10.2.3 Work-ins or sit-ins 547 13.10.2.4 Other forms of industrial action 547 13.11 Lockouts. 548 13.12 Protected strikes and lockouts

under the 1995 Labour Relations Act 549

13.12.1 The refusal to bargain 550

13.12.2 Secondary (sympathy) strikes. 551 13.12.3 Strikes and lockouts in response

to dismissals for operational requirements. 552

13.12.4 Limitations on the right to strike or recourse to lockout 553

13.12.5 Strikes and lockouts in compliance with the Act. 554

13.12.6 Strikes and lockouts not in compliance with the Act (wildcat strikes) 556

13.13 Specific provisions relating to the right to strike 558

13.13.1 Picketing 558 13.13.2 Essential services 561 13.13.3 Maintenance services 562 13.13.4 Replacement labour. 563 13.13.5 Socio-economic protest action 563 13.14 The practicalities of strike

management 564

14 ETHICS IN LABOUR RELATIONS 585 Hanneli Bendeman

14.1 Introduction 588 14.2 The ethics-labour relations Interface 588 14.3 Ethical dilemmas and conflict in the

workplace 590 14.3.1 Introduction 590 14.3.2 A code of ethics and a code of

conduct 592 14.4 Ethics. 593 14.5 Ethics and the labour relationship. 593 14.6 Ethics and the law. 595 14.7 Integrity in the labour market 596 14.8 Business ethics. 599 14.8.1 Principles 600 14.8.2 Norms. 600 14.8.3 Standards 600 14.8.4 Stakeholders 600 14.9 Ethics and governance 600

CONTENTS XXI

14.9.1 The King Committee on Corporate Governance. 600

14.9.2 An ethics Management Programme 601 14.10 Approaches to business ethics and

labour relations. 601 14.10.1 The scientific approach 602 14.10.2 The managerial approach 602 14.10.3 The organisational interest

approach 602 14.10.4 The guidance approach 602 14.10.5 The control approach 603 14.10.6 The development approach 603 14.11 The gap between business ethics

and labour relations. 604 14.12 Ethical decision-making 606 14.12.1 The utilitarian approach 607

14.12.2 The rights approach 607 14.12.3 The fairness or justice approach 608 14.12.4 The common good approach 608 14.12.5 The virtue approach 608

15 SOME FUTURE PATTERNS AND PREDICTIONS FOR LABOUR RELATIONS IN SOUTH AFRICA 611 Robert Venter

15.1 Introduction .614 15.2 Political transition 615 15.3 Economic transition 615 15.3.1 Labour market flexibility and

international competition 615 15.3.2 The changing face of the

employment relationship 618 15.4 Social transition 619