human resource’s role_17 august 2016
TRANSCRIPT
Luyolo Geza
Managing Director August 18, 2016
Human Resource’s Role in Maintaining Effective Working Relationships
with Trade Unions
Overview
The South African Labour Relations is verydynamic and aggressive in nature
Although that’s the case, it is amongst the bestlabour relations legislations in the world
Why is that?
The Labour Relations Act 66 of 1995 (asamended) seeks to strike a balance betweenthe employer & employee interests
There is law governing [1] the relationship betweenemployers and individual employees (employment law),and
Legal rules governing relationship between employersand employee collectivities, or between managementand organised labour (collective labour law).
Highlights of SA Historical Background
Between 1911 and 1918 a succession of laws waspromulgated in South Africa with various sectors and labourin general
After large scale industrial unrest on the Witwatersrand in1992 was a comprehensive attempt made to regulaterelations between management and organised labour, i.e.:
Industrial Conciliation Act of 1924
Wage Act, 1925
Industrial Conciliation Act in 1937
Botha Commission of Inquiry led to legislation that had a far-reaching effect the labour structure
The Commission recommended that black trade unionsshould be dealt with in separate legislation
In 1953, The Black Labour Relations Regulations Act
This resulted in “dualistic system of labour relations”: Blacks LR
Whites, Indians, Coloureds until beginning of the 1980’s
Following recommendations from the Wiehahn Commission,the country's labour laws were deracialised, significantamendments were made to the Industrial Conciliation Act →renamed to Labour Relations act 28 of 1956
Highlights of SA Historical Background (cont.)
The current LRA, Act 66 of 1995 brought another turning point
Its broad agenda focused on:
o Co-operative
o Encourages union-management cooperation
o Transformed bargaining styles.
The aims of the current LRA are wider and more ambitious thanthose of its predecessor, which aimed mainly at avoidingindustrial unrest
Whilst the 1956 LRA left it to the labour courts to encouragecollective bargaining as preferred method of resolvingworkplace disputes, the current LRA expressly commitsemployers and employee to workplace democracy
Which entails active promotion of participative managementand join-decision making
What Is HR’s Role in Maintaining Effective Working Relationships
with Trade Unions?
Negotiating Labour Agreements
Labour unions protects workers rights and negotiate for betteremployment terms and conditions through collective bargaining
A healthy working relationship between management andunion officials is vital to prevent and resolve workplace disputes
The HR department supports, guides and trains managers tohelp the maintain effective working relations with unions
For example: Building Trust in the Workplace
Managing Unionised Environments
Labour Relations Foundations
Strategic Grievance Handling
Strategies for Workplace Conflict
Why this kind of training is important? Given our historic background
It defined the culture of bargaining
Shaped the future approach
Created gaps and trust issues
Given leadership competences
Given organisational culture etc.
Negotiating Labour Agreements (cont.)
When a workforce becomes unionised, the company negotiatesa labour agreement with local union officials
The labour agreement governs the relationship between thecompany and the union
It lists items that are subject to collective bargaining, such as:
Wages
Benefits
Discipline, and but not limited to
Training.
It also reserves certain items to the sole authority ofmanagement, such as which product to produce and thelocation of production
HR helps managers prepare for negotiations by gatheringrelevant data and helping plan the bargaining strategy
The union officials do the same
Resolving Grievances
While the labour agreement is the foundation for therelationship, most of the day-to-day interaction between theunion and management involves the practicalities ofimplementation, as no agreement can account for everyeventuality
When disputes arises, the union raises a grievance on behalf ofits members or group members
HR supports supervisors to resolve grievances in a positive andconstructive manner by providing:
Training on the content of the labour agreement
Skills required to deal with grievances rationally and objectively and or,
Standards, guidelines, policies and procedures
HR can also conduct training on the following:
Building Trust in the Workplace
Managing Unionised Environments
Labour Relations Foundations
Strategic Grievance Handling
Strategies for Workplace Conflict
Implementing Non-Adversarial Negotiations
Traditionally, our labour relations history tells us that therelationship between management and the union has beenadversarial
With both parties engaged in position-based bargaining
But our current LRA, encourages collective bargaining andemployee participation
As such, companies are implementing non-adversarialnegotiations, such as “interest-based” bargaining
Interest-based bargaining requires parties to invest time andeffort to understand each others interests and helps themdevelop a more constructive relationship over time
What is the role of HR then?
HR can assist managers to move toward interest-basedbargaining by providing training and coaching
HR professionals can also support managers by sourcing best-practice examples of interest-based bargaining from their HRnetworks
Facilitating Communication between Management & Union Officials
Unions have a significant effect on management decision-making
They challenge supervisory authority and prevent a companyfrom formulating HR policy unilaterally
Such restrictions can create tension between management andthe union
However, managers benefit from meeting regularly with unionsto build their relationship and discuss forthcoming changes inthe workplace that will impact employees’ terms and conditions
How can HR be off assistance?
HR Can facilitate communication between management andunion officials by organising meetings, providing guidance andsharing expertise
Facilitating Communication between Management & Union Officials - Example
How can HR be off assistance?
HR Can facilitate communication between management andunion officials by organising meetings, providing guidance andsharing expertise
Area / Line Meetings
Union / Management
Meetings
Business Committee Meetings
Negotiating Committee
Central Bargaining
Line manager, HR, shop stewardand employees.
BU manager, HR, FT & PT shop stewards
Senior Management, HR, BU manager, FT & PT shop stewards
Executives, Mgt, HR, BU manager, Union Officials,FT shop stewards
Facilitating Communication between Management & Union Officials - Example
What are the long term benefits?
Area / Line Meetings
Union / Management
Meetings
Business Committee Meetings
Negotiating Committee
Central Bargaining
Line manager, HR, shop stewardand employees.
BU manager, HR, FT & PT shop stewards
Senior Management, HR, BU manager, FT & PT shop stewards
Executives, Mgt, HR, BU manager, Union Officials,FT shop stewards
meeting regularly with unions to build their relationship and discuss forthcoming changes etc.
Big picture view / alignment
Worker participation
Healthy relations
On-going key communication
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Any Questions & Comments?
Luyolo Geza
Managing Director Mobile 076 972 5744