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PART 4 Labour Relations. The environment for HR. Finding & placing qualified employees. Assessing & developing qualified employees. CHAPTER 13: The Union – management relationship, employee discipline and dismissal. 4. Labour relations. Emerging HR practices. CHAPTER 13 - PowerPoint PPT Presentation
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For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
PART 4
Labour Relations
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
CHAPTER 13:CHAPTER 13:
The UnionThe Union––management management relationship, employee relationship, employee discipline and dismissaldiscipline and dismissal
The environment for HR
Finding & placing qualified employees
Assessing & developing qualified employees
Labour relations
Emerging HR practices
4
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
CHAPTER 13 The Union–management relationship, employee discipline and dismissal
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Chapter outcomes• describe what a union is and explain why employees join unions• understand the basic elements of the Labour Relations Act, No. 66 of
1995 as amended • discuss the role and objectives of the National Economic Development
and Labour Council (NEDLAC)• describe the typical collective bargaining process
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Chapter outcomes• recognise the various sources of poor performance through the
illustration and discussion of an unsatisfactory performance model• explain both good and poor ways to discipline employees• illustrate a model of positive discipline and describe the procedures for
ensuring that discipline achieves its goals• identify the procedures for carrying out the dismissal decision humanely
and tactfully and according to the law
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Labour relations management....that part of management that encompasses a study of those factors and dynamics that emanate from, and are related to, ______________________.
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
The role players in labour relations
_________
_________ __________
Secondary relationship
_________ relationship
________ relationship
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Trade union
.... an ongoing permanent organisation _____________________ to _________ themselves in their work, to improve their _______________ through collective bargaining, to try to improve their _____________ and to offer a mechanism by which workers can put their standpoints.
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Primary goal of a trade union... to promote the interests of its membership through __________________ (standard of living and working conditions).
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Trade union goals• Union security
– –
• Job security• Improved economic conditions• • Fairness and justice• Social action
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Kinds of unions• Industrial unions
– –
• Trade/craft unions–
• Employee association–
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Trade union rights
• Sufficiently representative trade unions– – – –
• Majority representative trade unions– –
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
The formal dimension of labour relations
• Constitution• Labour Relations Act• Basic Conditions of Employment Act• Occupational Health and Safety Act• Compensation for Occupational Injuries and Diseases Act• Unemployment Insurance Act• Employment Equity Act• Skills Development Act• Skills Development Levies Act
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
The Constitution and Fundamental Rights
Labour Relations Act__________ International Conventions
Rights and obligations of employees, unions,
employers and employers’
organisations
Promotion of collective bargaining
and worker participation
Dispute resolution and labour peace
Freedom of association
______________
Unfair dismissal
______________
Strikes and lockouts
Collective agreements
Bargaining Councils
Statutory Councils
_____________
____________
Labour Court
Labour Appeal Court
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Rights and obligations of employees,
unions, employers and
employers’ organisations
Freedom of association
___________
Unfair labour practice
___________
___________
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Promotion of collective
bargaining and worker
participation
___________ __________
__________ __________
Written agreement
Terms & conditions of employment
Between registered trade union(s) and
employer(s)/employers’ organisation(s)
Established for a specific sector in a specific geographical area
Functions:(1) _________________(2) _________________
Aims are to promote(1) _______________________(2) _______________________
Functions:(1) Consultation
(2) Joint decision making(3) Information sharing
Established at request of union(s)/employers’
organisation(s) representing 30%+ of employers/employees
in sector & areaFunction:
Dispute resolution
Difference?
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Dispute resolution and _____
peace
Labour Appeal Court
CCMA Labour Court
Councils & private agencies
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
NEDLAC
EXECUTIVE COUNCIL
Representatives of The State
Organised labour Organised employers
Development organisations
Management Committee Secretariat
Summit
Chambers
Public finance and monetary
policy
Trade and industry Labour market Development
State, employer and union representatives
Community development representatives
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
The phases of the negotiation process
Planning, preparation and
organisation
_______________PHASE
Execution of negotiation
strategies and tactics, and utilisation of
structures in order to achieve objectives
_______________PHASE
Agreements are concluded, and the
maintenance of relations and the administration of
agreements follow
_______________PHASE
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Strike
• Temporary• Stoppage of work• Collective action• Means of expressing a grievance
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Strikes: Procedural requirements
• • • • Ballot?
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Grievance vs gripe
• Grievance–
• Gripe–
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Typical steps in a grievance procedureGrievance procedure ends
Start of dispute settlement process if preferred, eg bargaining council, mediation, conciliation, arbitration, judicial settlement or
strike
Ruling at highest level(top management) ______Settled
________________________________ ______Settled
Manager from higher levelWorker & representative4
working days
Settled
Head of immediate supervisorWorker & representative ______Settled (record)
Immediate supervisorWorker 24 hours
Settled (record)
Verbally
Unsettled
Unsettled
Unsettled
Unsettled
Unsettled
Step 1
Step 2
Step 3
Step 4
Step 5
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
A model for analysing and correcting unsatisfactory
performance___________
_____________
______________
1
2
3
__________
Lack of motivation
__________
Personal problems
__________DisciplineTrain
Transfer/ demote
Change the work ___________
Council/ refer
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Steps in the process of discipline
Clarify responsibility for discipline
_____________________
Communicate disciplinary policy, procedure and rules
___________________
Administer progressive discipline
_____________________
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
The hot-stove rule• Immediate• Warning• Consistent• Impersonal
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Dismissal• Automatically unfair dismissals• Other unfair dismissals
– Substantive fairness (reason)• • •
– Procedural fairness (procedure)• Remedies
– – –
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Dismissal for misconduct
• Substantive fairness– Contravene a workplace rule/standard?– Rule/standard reasonable/valid?– – Rule/standard consistently applied?– – – Nature of job/workplace–
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Dismissal for misconduct (continued)
• Procedural fairness– – – – State case (disciplinary hearing)– – –
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Dismissal for incapacity: Incompetence
• Substantive fairness– Fail to meet __________– Aware of ________________– Fair _________– Appropriate ________
• Procedural fairness– Opportunity to __________– No other _________
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Dismissal for incapacity: Ill health or injury
• Substantive fairness– Capable of performing work– Extent of capability
• Procedural fairness– Adaptation of work circumstances– Alternatives
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Dismissal for operational reasons• _____________ dismissals• Substantive fairness
– ____________ reason• Procedural fairness
– – Attempt to reach consensus– – Method of selection– Severance pay
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Dismissal for operational reasons• Procedural fairness (continue)
– Disclose information• • • • • • •
– Future reemployment– Representations– Consider and respond to representations– Provide reasons– Selection of employees according to set criteria
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Summary• A union has a major impact on an organisation’s management.
Many HR decisions must be shared with the union, and the labour contract limits management’s flexibility for the length of the agreement. Finally, poor relations between management and labour may result in costly and stressful organisational conflict.
• The percentage of organised labour in South Africa has doubled since 1985 to approximately 3 million. This represents about 40% of the workforce.
• The goals of the unions have not changed dramatically since their beginning. Important union goals include job security, improved wages and benefits, favourable working conditions and fair and just treatment for their members.
• The heart of the union structure is the local union, although the national union provides important direction and guidance. The local union often receives assistance from the national union during the collective bargaining process.
• During the organising drive, the union attempts to convince workers that they will be better off by organising. Management tries to convince them that they are better off without the union. Labour legislation provides a number of ground rules regarding the recognition of a union in the workplace.
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Summary• Relations between organised labour and management are strictly
governed by the Labour Relations Act, No. 66 of 1995. Managers and HR administrators who work in unionised organisations must be intimately familiar with this law.
• There are a variety of different collective bargaining strategies. The most common form involves distributive bargaining, or win/lose bargaining, although this strategy seems to be giving way to more cooperative forms such as integrative bargaining and productivity bargaining. Concessionary bargaining, or give-back bargaining, has increased as a result of foreign competition.
• The negotiation process involves a great deal of give and take before an agreement is reached. A bargaining impasse may cause a strike, lockout or other power tactic. However, more often mediation or other third-party techniques will be used to end the impasse.
• Grievance handling is a critical part of labour relations. The multi-step procedure usually includes arbitration as a final step. The grievance process can keep minor disagreements from disrupting the workplace unnecessarily.
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Summary• Many reasons may cause an employee to perform unsatisfactorily.
Some of these reasons may be directly attributable to management’s shortcomings or to some other problem of the organisation. When attempting to determine the cause of poor employee performance, managers should recognise that the employee may not be responsible for the unsatisfactory behaviour.
• Discipline should be applied only when it has been determined that the employee is the cause of the unsatisfactory performance. There are different approaches to the disciplinary process; the most effective technique involves administration of preventive discipline. If discipline must be administered, the positive approach should be used.
• Corrective counselling is a particularly important part of the positive discipline process. It helps build respect and trust between the supervisor and subordinate and encourages the employee to find his or her own solutions to problems. The more the employee participates in the problem-solving process, the greater the chances for a permanent improvement in employee behaviour.
For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Summary• Much of the supervisory resistance to change can be reduced by training
supervisors to follow the hot-stove rule. With this technique, discipline is administered immediately, with a warning, consistently and impersonally. HR managers must ensure that supervisory training programmes provide instruction in applying each of the hot-stove rules.
• Dismissal can be traumatic and costly for both the dismissed employee and the organisation. The dismissal should be thoroughly planned and carried out in a professional manner and according to the law. It is particularly important that the employee be given complete details regarding the dismissal, including why it is taking place and how the dismissal is to be carried out.
• For a dismissal to be fair it must be substantively and procedurally fair.
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