Industrial RelationsLAKEN MARAIS2013

What is IR ???Relationships between employees & employers within the

organizational settings.Employees: Workers seek to improve the terms and conditions of

employment. They exchange views with management and voice grievances. They also want to share decision making of management. Workers generally unite to form unions against the management and get support from these unions

Employers: Employers possess certain rights. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

Government: The central and state government influences and regulates industrial relations through laws, rules, agreements.

IR is concerned with:Focusing on Collectives (not Individuals): Management/Labour

unions.How two parties (Employers & Labour Unions) interact with

the State.IR covers ALL aspects of the Employment relationship: HR,

employee relations, & labour relations.Major Role: Manage relationship between Employing

organisations & relevant organs of state, e.g. CCMA

Impact on Productivity • Complex relationships arise out of the Workplace which

impacts on productivity• These Include:1. Relationships between workers2. Relationship between workers & their employer.3. Relationship between employers.4. Relationships employers & workers have with organizations

formed to promote their respective interests5. Relations between organizations at all levels.6. IR deals with processes through which these relationships

are expressed: Collective bargaining, Grievance & Dispute settlement, Management of conflict between employers, workers, & trade unions.

Levels of IR

NATIONA

L LEVE

L

• FORMULATION OF LABOUR RELATIONS POLICY:• e.g. Tripartism, LRA, State.

INDUSTRY LEVE

L

• COLLECTIVE BARGAINING• Btw employer organisations & unions, determination of wages, terms of

employment.

ENTERPRI

SE LEVE

L

• MORE DIRECT RELATIONSHIP• Btw employers & workers, although unions often represent workers

interests.

“Sound” IR System

Employment creation, job security, increased

employment opportunities.

Raising living standards through better working terms

& conditions.

Society-wide productivity improvement, industrial

competitiveness, minimising workplace conflict, resolution of industrial conflict through

peaceful means

MASLOW HIERARCHY

Theoretical Perspectives & Ideologies of IR• PLURALIST: Employer & workers have conflicting goals but are

interdependent.

• UNITARISM: Regards the employer & workers as having similar goals & being committed to achieving those goals.

• RADICALISM: Views workers as owners of capital, & social corporatism views that employers & workers have the same goals, who appreciate structured conflict & the presence of trade unions.

Justice Perceptions• Distributive Justice: Employees must perceive FAIRNESS of

outcomes & distribution of Justice.

• Procedural Justice: Employees must perceive that processes & procedures are FAIR.

• Interpersonal Justice: Employees must perceive the treatment they receive from employers as FAIR & they must feel that they are communicated to about the REASONS for decisions.

Power Dynamics• Power can be INTERPERSONAL or SOCIAL UNIT POWER.• INTERPERSONAL POWER: Between employer & Employee

• SOCIAL UNIT POWER: Between employers as represented by employers’ organizations & employees as represented by trade unions.

• Therefore, Power is gained through: Reward, legitimacy, coercion, knowledge or reference.

Conflict Dynamics• Dynamic process concerning change, which influences

emotions.• Caused by:Different valuesAttitudesPerceptionsDifferent objectivesCommunication obstaclesLack of resourcesPersonality differences• Co-operation & Participation dynamics: Co-operation & joint-

decision-making & participation is KEY in employment relationship to avoid conflict.

Factors Influencing Labour RelationsSocial FactorsPolitical FactorsEconomic FactorsInstitutional FactorsMicro/Organisational FactorsTechnological factorsInternational Factors

Roles/Functions of Trade UnionsRecruitment of membersLiaising with Union officialsConsulting & Negotiating with employersEnsuring management sticks to the rules/lawOrganising & attending meetingsParticipating in workplace forums & health & safety committeesEngaging in Collective BargainingCreation of Collective AgreementsEnrolling members to the UnionDiscussing workplace problems/issues with managementActing as liaison between employees & management discussing

valid complaints, ensuring management uses official languages to communicate to discuss particular resolutions of management with employees.

………• Collective process in which representatives of both

management & employees participate. • Continuous process which aims at establishing stable

relationships between parties involved.• Not only involves Bargaining agreement, but also

Implementation of agreement.• Attempts to achieve discipline in the industry.• Flexible approach, as parties involved have to adopt flexible

attitude towards negotiations.