Assignment no 3 LRM 4801 PDF

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MODULE CODE: LRM 4801ASSIGNMENT NUMBER:STUDENT NUMBER:SURNAME AND INITIALS:ASSIGNMENT NO 3Advance Labour Relations ManagementDEPARTMENT OF HUMAN RESOURCE MANAGEMENTConfidentialTABLE OF CONTENTS1. Whether centralized or decentralized is suitable for SA conditions.......... 3- Introduction CENTRALIZAT...

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MODULE CODE: LRM 4801 ASSIGNMENT NUMBER:762750 STUDENT NUMBER: SURNAME AND INITIALS:

ASSIGNMENT NO 3

Advance Labour Relations Management DEPARTMENT OF HUMAN RESOURCE MANAGEMENT

TABLE OF CONTENTS Confidential

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1. Introduction

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1

1.1.

CENTRALIZATION AND DECENTRALIZATION IN SA

1.2.

Whether centralized or decentralized is suitable for SA conditions………. 3-4 2. GRIEVANCE HANDLING

2.1. 2.2. 2.3. 2.4. 2.5.

2

5

The definition of grievance……………………………………………..………...5 The difference between a complaint, grievance and a dispute……………...5 The objectives of grievance procedure ………………………………………..5 How a grievance procedure works in practice………………………………...6 The relationship (if any) between grievance and disciplinary procedure…..7 3. STRIKE ACTION………………………………………….............................................7-8

3.1.

The legality of the strike

3.2.

THE WAY IN WHICH MANAGEMENT HANDLED STRIKE………………….9

3.2.1. 3.2.2. 3.2.3. 3.2.4. 3.2.5. 3.3.

8

Practical strike handling……………………………………………………………….9 Security………………………………………………………………….....................10 Ensuring preparedness………………………………………………………………11 Action plan………………………………………………………...............................12 Drawing up of contingency plan……………………………………………………..13 Addendum……………………………………………………………………..... 14

4. Conclusion……………………………………………………………………………… …14 5. List reference…………………………………………………………………………..15

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1. INTRODUCTION The focus of these assessment is based on the comparison of grievance and disciplinary procedure as well as handling of strikes and management. The difference between grievance, complaint and dispute. The centralization and decentralization with its advantages and disadvantages are being discuss for the purpose of comparison. The addendum or news about management of industrial action also forms part of the discussion and assessment.

QUESTION 1: CENTRALIZED AND DECENTRALIZED BARGAINING IN SA Centralization of authority means the power of planning and decision – making are exclusively in the hands of top management. When a union or number of unions representing particular type or level of employee of a company or industry or in different industries, bargain centrally with the company head officer Sonia Bendix (2010:268) Decentralization refers to the dissemination of powers by the top management to the middle or lower –level management. Where a union cannot or does not wish to operate at a centralized level it will approach individual employers for recognition at a particular plant or undertaking or in a specific bargaining unit Sonia Bendix (2010:268) 1.1.

Advantages and disadvantages of Centralized and Decentralized

CENTRALISED BARGAINING ADVANTAGES DISADVANTAGES Wages out of Wages may be at

DECENTRALISED BARGAINING ADVANTAGES DISADVANTAGES of Wages differentiated Danger

minimum levels ( con

according

unions

for union)

particular

employers).

organization

Employers afraid to

and

employers)

to

whipsawing (con for

competition ( pro for

become uncompetitive

(icon

for union) Better

benefits

less Large

–

at

Benefits tailor-made for individual needs Programme tailor- Less

scale

made

training programmes

specific

large –scale training programmes Likelihood

wider scale

spontaneous strikes increases

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of

Industrial action on a

needs Fewer strike actions

for

likelihood

of

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diffuse

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Diffuse

workplace tensions

workplace

tension Increased power of

Workplace

workplace

workplace

representatives may

organization

organization

become

Limits

power

too

and

independent of union

usually

Bargainers may not

(management employees) Bargainers

of

more professional

be

Long term objectives

experienced Objectives may be

Provides

overall,

short -term May led to employer

standards

playoffs and wage

uniform and

sufficiently

inflation

minimum

safeguards Greater

opportunity

democratic decision

for

democratic

– making in unions

decision – making

Possibility

and

of

employer

organizations decreases Cater

Diverse interests represented Greater intra

.2

WHETHER

for

specific

needs Intra – organizational

–

organizational

conflict minimized

conflict More inflexible

More inflexible

CENTRALISED

OR

DECENTRALISED

COLLECTIVE

BARGAINING IS MOST SUITABLE FOR SA CONDITION 1.2.1. The impact of collective bargaining structures on unemployment and figure relating to union representative Centralization is not suitable for South African conditions due to higher volume of industrial action taking place in the country- as all decisions will be channel taken on a top management. Hence some of the institution gives recognition agreement based on the majority representative. Centralization of power is not conducive for South African conditions 3|Page

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because there is also higher unemployment rate and lower economic growth. Therefore the institution should adopt the method of decentralization collective bargaining – lower level bargaining which involves all stakeholders. The understanding of the effect of organization autonomy in South African institutions is such that it compels the decentralization of power. In 1988 Calmfors and Driffill published a paper with a controversial argument that generated considerable debate and research internationally for the next two decades1. They argued that the structure of collective bargaining have an effect on microeconomic performance of a country. In particular, they maintained that the level at which wage bargaining takes place has an impact on wages and, because of that, on the rate of unemployment. Their argument is that wages in a country are lowest when bargaining is either completely decentralised (taking place at national level or is completely decentralized (at plant or company level. According to Simkins and

Clarke (1988) South Africa has a very high rate

of

unemployment but, contrary to popular perception, high levels of unemployment have plaqued the economy for many decades. Charles Simkins calculated that the number of unemployed increase from 1.24 milion in 1960 to 2.3 million in 1977 while the rate of unemployment went up from 18,3 % in 1960 to 22.4% in 1977, Even though employment increased from 9,5 million in 1995 to 1,8 million in 2004. According Statistics South Africa (2018) quarterly labour force survey the official unemployment rate increased by 0.5 of a percentage point to 27.2% compared to the first quarter of 2018. The results of the Quaterly Labour Force Survey for the second quarter of 2018 released by Statistics South Africa today, indicate that the increase in the unemployment rate is a result of a decline of 90000 in the number of people who became unemployed between the first and second quarter of 2018. According to IOL in Business reports indicates that decentralisation is needed in platinum mines. “The National Union of Mineworkers (NUM) has submitted an application to the Labour Court to prevent its loss of official recognition at the Lonmin platinum mines. It disputes the claim of the Association of Mineworkers and Construction Union (Amcu) that it now represents 70 percent of low-skilled workers. That NUM is desperately contesting Lonmin’s plans to recognise Amcu is a destructive function of the institution of centralised bargaining. The merits of centralised bargaining are a persistent source of debate. Some prominent voices have argued that the platinum sector was sufficiently homogeneous to warrant centralised bargaining, notwithstanding the general problems associated with the practice. Even though bargaining is decentralised across the sector, it is still highly centralised on each mine, and this is where real changes are needed – as argued below.

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Decentralised collective bargaining, however, would democratise the institutional framework in which bargaining occurs. Shaft-level workers would have more options than merely paying subscriptions to the dominant union on any given mine”.

QUESTION 2: GRIEVANCE HANDLING 2.1.

Grievance can be defined as “ complaint, other than demands formulated by a collective body, that is related to the way in which the employee is treated or his /her position within the daily working routine and which, because it may result in a dispute, warrants the attention of management ( Nel 1997: 212)

2.2.

According to Nel (1997:212) these are the difference in the definitions:

Dispute Highly formalized manifestation of

Complaint a dissatisfaction

an

Grievance Complaint, other than

conflict in relation to workplace

individual with the outcome

demands formulated by a

related matters which may include

of his/her query or is not

collective body

the failure to address a grievance.

getting a response within a

In the event that the grievance has

reasonable

not

individual

been

resolved

to

the

individual‘s satisfaction to pursue

of

time, may

lodge

an a

complaint with the employer

further a dispute may be lodged through a dispute resolution body

2.3.

OBJECTIVES OF GRIEVANCE PROCEDURE



It creates the opportunity for upward communication from employees



It ensures that complaints are effectively dealt with by management



It creates awareness of employee problems or problem areas which could be subjected to further investigation



It prevents disputes from arising



It renders the disciplinary procedure more acceptable since employees also have a means of objecting to management performance



It emphasize management ‘s concern for the wellbeing of employees



The purpose of the grievance procedure is to enable the employee to have a grievance resolved as quickly and as near to the point of origin as possible; to provide him/her

with access to senior management for the resolving of any

grievance and to ensure that a grievance is resolved in a constructive manner, which is acceptable to both the employee and company ( Bendix 1996) 5|Page

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The intention of both parties is that grievances shall be resolved at the lowest level and as speedily as possible.



The company and the employee agree that, should any member or group of members have a grievance, it should be processed and settle in accordance with the grievance procedure.



The grievance procedure shall not be used by employees for the purpose of amending any provisions of any agreement between the parties.

2.4.

GRIEVANCE PROCEDURE IN PRACTICE

According to (Bendix S: 2000) there are prescriptive steps which have to be followed in the establishment of grievance procedure: 

Any employee

should be given the opportunity to lodge a grievance with

management, without any prejudice or fear of victimisation 

Grievance should be raised with management as soon as possible



Time limits should be established for each stage of the procedure



Grievance are not resolved until the employee declares himself /herself satisfied



The employee should be permitted representation and can declare a dispute if the grievance remains unresolved

2.5.

THE RELATIONSHIP ( IF ANY) BETWEEN GRIEVANCE AND DISCIPLINARY PROCEDURE According to Sonia Bendix (2010) a disciplinary situation includes misconduct and/ or poor performance. If employees have a separate capability procedure they may prefer to address performance issues under this procedure. Grievances are concerns, problems or complaints that employees raise with their employers.

QUESTION 3: STRIKE ACTION 3.1. DETERMINE THE LEGALITY OF THE STRIKE BY REFERRING TO THE PROVISION OF LRA

To be protected a strike must comply with two principle provisions, namely that the subject matter of the strike is legitimate, and that the proper procedures have to be followed

According to section 64 of LRA a strike or lockout will be protected if the following procedures have been followed: 

The dispute must first be referred to a bargaining council/statutory council with jurisdiction or to the CCMA for conciliation.

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If the dispute cannot be resolved by means of conciliation, a certificate must be obtained from the council or CCMA stating that it remains unresolved



Alternatively the parties must wait for a period of 30 days from the date of the referral of dispute.



The union(s) must at least give 48 hours’ notice of the intended strike to the employer.



In the case of proposed lockout, written notice to the trade union, employees (if there is no trade union) or relevant council should be given 48 hours before the commencement of the lockout.



If the state is the employer, a notice of seven days is required for an intended strike or lock –out.



The failure of trade union or employer‘s organisation to comply with the provision of constitution regarding strikes and lockouts does not affect the legality of strike or lockout.

According to section 65 to 68 of LRA the following procedures apply: 1) A person does not commit a delict or a breach of contract by taking part in: a) a protected strike or a protected lockout b) any conduct in contemplation or in furtherance of a protected lockout 2) Despite subsection (2), an employer is not obliged to remunerate an employee for services that the employee does not render during a protected strike or protected lockout, however:

a) if the employee’s remuneration includes payment in kind in respect of accommodation, the provision of food and other basic amenities of life, the employer, at the request of the employee, must not discontinue payment in kind during the strike or lockout ; and b) after the end of the strike or lockout, the employer may recover the monetary value of the payment in kind made at the request of the employee during the strike or lock out 3) An employer may not dismiss an employee for participating in a protected strike or for any conduct in contemplation or furtherance of a protected strike 4) Subsection (4) does not preclude an employer from fairly dismissing an employee in accordance with the provisions of chapter VIII for a reason related to the employee‘s conduct during the strike. 5) Civil legal proceedings may not be instituted against any person for: 7|Page

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a) participating in a protected strike or protected lockout; b) any conduct in furtherance or contemplation of a protected strike or protected lockout c) furthermore the employer cannot interdict anyone from taking part in a protected strike

3.2. THE WAY IN WHICH MANAGEMENT HANDLE THE STRIKE

In order to ensure effective strike management it is important to put contingency measures in place. In the event of any strike action, these measures can assist to mitigate the impact of the strike action, and ensure that service delivery is affected as little as possible. According to (Bendix S: 2000 pgs. 388-390) the following steps should be followed in handling the strike:

3.2.1. PRACTICAL STRIKE HANDLING 

The first step is to decide who the chairperson and members of the strike management team will be and who will be conducted in the event of strike and work stoppage.



As soon as due notice has been received of the strike action, the of the Manager: Employment Relations will ensure that all Heads of Institution are informed of the details of the intended strike action and principle to be applied during the strike action and

the principle to be applied

during the strike action. All supervisors to be

informed of their responsibility during the strike action 

Contingency plans need to be implemented at institutional level according to the particular individual circumstances of each institution



The striking committee need to be established as soon before the intended strike, which will consist of executive management



The striking committee must inform all heads of section of the compulsory completion of two – hour roosters and of their responsibility to forward those details to the striking committee on a daily basis.



Each member of the team has the role to play, so it is important to determine individual responsibilities and communicate them clearly to each team member.



Security measures must be put in place employees and to avoid possible coercion

3.2.2. SECURITY 8|Page

to ensure the safety all non- striking

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Security measures are of a vital importance during the strike action. Planning at the institutional level could include the following: 

Identification of adequate lighting to poorly lit areas



Inspection of fences and gates



Supplementing available security personnel with external resources



Providing security staff with communication system



Setting up external communication links with the SAPS in the event of emergency.



The

employer must apply the ‘’no work, no pay’’ principle to all

employees

participating in the strike 

No leave may be granted during the period of the strike action.

3.2.3. ENSURING PREPAREDNE...