Lonmin SA Labour Union Case Study

7/31/2019 Lonmin SA Labour Union Case Study

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The role of SAtrade unions in

shaping theemployee relations

landscape

MBA FT GROUP 12.1

Sanisha Hurrisunker

Chumani MaqinaLukhanyiso Mpongoshe

Edem Foli

Kayode Ayankoya


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Key Concepts

The Role of Trade Unions in South Africa

How Do Trade Unions Affect Employee

Relations?

The relationship between Government, the

employer & employees to unions & the

evolving relationship

The challenges that unions face in shaping

employee relations


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Key Concepts cont.

When to strike?

Perception of management towards trade

unions

The relationship between labour unions,

the Government the employee and

employers

Avoiding a Lonmin in your company

Conclusion


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Definition of Trade Union

Is regarded as a continuing permanent

organisation created by the workers to protect

themselves at their work, to improve theirconditions of work through collective

bargaining, to seek to better the conditions of

their lives and to provide a means ofexpression for their workers views on matters

of society. (Nel, et al. 2012)


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What Is the Role of Trade Unions in

South Africa? Serve the members best interests through collective

bargaining:

Protecting Working Conditions

Environment

Healthy

Safe

Secure

Compensation and Reward Packages Salary (Basic and Net)

Employee Benefits (e.g. medical aid,

pension/provident fund, bonuses, annual/sick leave;

allowances)


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Relations?According to Lonmins Annual Report for 2011:

Cyril Ramaphosa,director, earned

R 57 000 per month

Outgoing SA CEO, Ian Farmer,earned

R1.2 million per month.


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Relations?

Description Amount

Basic Salary R 5891

Company Contribution toMedical

R556

Company Contribution to

Pension

R874

Company Contribution to

Housing Allowance

R1950

RockDriller Allowance R750

TOTAL MONTHLY COST

TO COMPANY

R10 512

Association of Mining and Construction Workers (AMCU) Trade Union

asking for R12 500 cost to company package per month

Typical Monthly Total Cost to Company Monthly Package of Rock Driller


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Strategic Conflict : Manipulate the allocation or Reallocation ofresources; authority; power

Strike Conflict forms a key part of employment relations:

Managers must be aware of it so that when they arise they have

strategies in place will which help them deal with collective

bargaining and negotiations. Building and Improving relationship within the community must form

an integral part of their Human Resources Strategy

Association of Mining and Construction Union (AMCU):

Will not sign peace agreement

Peace agreement document does not mention any wage

amount or respond to any of the workers demands

Continuously side-lined in negotiation meetings

General lack of trust with management


Relations?


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The relationship between labour unions, the

Government the employee and employers


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The relationship between labour unions, the

Government the employee and employers

Socio

Economic

Climate

Government

Trade

Unions

Employee

Employers


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The challenges that unions face

in shaping employee relations


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1.WITH UNION MEMBERS

Serve member interests. Ability to protect themselves at

work

Improve conditions of workthrough collective bargaining.


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in shaping employee relations 2. WITH THE EMPLOYERS/ BUSINESSES

Employer- Union relationship.

Employer-Employee relationship.

Effectiveness and productivity.

3. WITH THE GOVERNMENT

Contribution to economic growth

Employment creation


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in shaping employee relationsWITH THE EMPLOYERS

To Serve member interests Some leaders not properly politically trained.

Lack of Leadership and management skills.

Unethical mine employers.


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in shaping employee relationsWITH THE EMPLOYERS

NUM President Senzeni Zokwana, receives acheque from the Gift of the Givers Foundationon behalf of Aurora workers.


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WITH THE EMPLOYERS

Ability to protect themselves at

work Educate workers in knowing their

rights, procedures to follow when

they want to protest, and also the

implications of not following

procedures.

Adherance of members to Union

instructions.


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WITH THE EMPLOYERS

Improve conditions of workconditions through collectivebargaining.


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in shaping employee relationsWITH THE EMPLOYERS/ BUSINNESSES

Employer Union relationship. Bridge the gap between the mining houses and

the Union.

Employer employee relationship.

HR to work hand in hand with Unions.


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in shaping employee relationsWITH THE EMPLOYERS/ BUSINNESSES

Effectiveness and productivity

HR Strategy to focus on motivation,

reasonably meeting employees needs and be

aware of social responsibilities of workers.


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in shaping employee relationsWITH THE GOVERNMENT

Contribution to economic growth

Employment creation


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in shaping employee relationsFormer Mine Worker

Comrade Ntsane Monaheng shows off his MBA Award.


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When to strike?


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When to strike?

In the case of Lonmin the workers embarked on

what the Labour Relations Act defines a strike as:

The partial or complete concerted refusal to work,or the retardation or obstruction of work, by

persons who are or have been employed by the

same employer or by different employers, for the

purpose of remedying a grievance or resolving a

dispute in respect of any matter of mutual interest

between employer and employee .


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Steps to take when embarking

on a strike - LRA Strike action must be preceded by the referral of

a dispute to the CCMA or council.

A certificate must be issued, following the

referral, to the effect that the dispute was notresolved.

Receipt of the referral of the dispute by the

council or Commission must be followed by 30

days, or any extended period agreed by parties.

48 hour notice must be given to an employer

before a strike commences.


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Strikes as a weapon

Strikes have a long history in South African

labour relations dating back to more than a

hundred years.

Industrial action has such prominence in SouthAfrica that unions find it impossible to engage or

negotiate with employers without making

constant threats to strike, protest or picket.

The threat by the parties to resort to industrial

action drives the collective bargaining process.


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Implications for managers

Dismissing employees who participate in strikes

is considered a disproportionate counteraction

which should be discouraged by all means.

Managers regarded as occupying a powerful

position in the employment relationship.

Strikes likened to what an engine is to a car in

the collective bargaining process.


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Battle & Warfare


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Battle & Warfare

Strikes and dismissals are ultimate weapons oftrade unions and employers respectively.

Strikes are instruments which are legitimate in

the collective bargaining process and weaken

resistance of employers.

Dismissals end the employment relationship and

the two actions cannot be seen as equivalent.

To dismiss striking workers is not a reciprocalright, but an extraordinary one & should be

exercised only when there are compelling

circumstances.


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Managements perception

towards unions


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Managements perception

towards unions

Interview with MvuleniMapu Former ProvincialChairperson of SAMWU,currently The Director atNMBM Housing Delivery


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Avoiding a Lonmin in your

company


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Avoiding a Lonmin in your

company

Macro Micro

Ongoing relations with

trade unions

HR and Organizational

leadership (trust and

culture)

Understanding of

productivity

Internal conflict at

unions

Legitamacy

Political agenda


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Conclusion


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Conclusion

Should trade unions have dual roles ingovernment and represent their

members?

What is the role of HR in strategically

catering for the human element within the

leadership and corporate goals?

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Lonmin SA Labour Union Case Study

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