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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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The Role of Trade Unions in South Africa
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The Role of Trade Unions in South Africa
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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How Do Trade Unions Affect Employee
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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How Do Trade Unions Affect Employee
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
How Do Trade Unions Affect Employee
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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The challenges that unions face
in shaping employee relations
1.WITH UNION MEMBERS
Serve member interests. Ability to protect themselves at
work
Improve conditions of workthrough collective bargaining.
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The challenges that unions face
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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The challenges that unions face
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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The challenges that unions face
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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The challenges that unions face
in shaping employee relations
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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The challenges that unions face
in shaping employee relations
WITH THE EMPLOYERS
Improve conditions of workconditions through collectivebargaining.
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The challenges that unions face
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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The challenges that unions face
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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The challenges that unions face
in shaping employee relationsWITH THE GOVERNMENT
Contribution to economic growth
Employment creation
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The challenges that unions face
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?