EXAM PACK
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Oct 2016
Grand strategy options for the management of employment relations
1. Strategies relating to union elimination and/or avoidance
Aggressive control or exploitation
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o Based on view that labour is just another factor of production that has to be controlled
o Hostile attitude toward employees – regards them as something that can be exploited
o Disregards the employee’s personal dignity, rights, needs and interests.
o Management will try to get the most out of labour at the lowest pay.
Unilateral employee maintenance and care
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o Management creates the impression that they will care for the needs, concerns and problems of employees
o Management takes paternalistic care of employees
o Aggressive response to union involvement and management tries to prevent unionization
o Workers retain jobs as long as they stay within the lines laid down
Unitarist human resource management
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o Employees have potential, strong motivation and the ability to contribute to the organizations development
o Employees are valuable assets and attempts are made to gain their commitment to achieve organisational goals
o The strategy regards trade unions as unnecessary and management will use direct forms of worker representation
o In order to attract the right people, management will design and develop sophisticated recruitment and selection techniques.
2. Grand strategies relating to union recognition and collective bargaining
Antagonistic control or exploitation
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o Trade unions play a policing role – they control and watch over management practices
o They guard the rights of employees
o Union intercede if employees are abused or exploited
Constitutional and adversarial employee maintenance / care
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o Management projects the image that they are fair, care for employees and heed their needs and concerns.
o Unions are accepted (under protest)
o Management enter into agreements with unions regarding employee wellbeing
o The strategy relies on rigid structure, control, reporting levels
o Emphasis on containing labour cost
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Constitutional human resource management
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o Focus is on individual employee and their roles and powers
o Employees who do the work have control over the processes
o Less distinction between management and employees
Integrative negotiated employee maintenance and care
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o Open and accommodating relationship with union
o Management tries to negotiate order, stability and peace with the union
o Management still retains ultimate control and protects their prerogative
Integrative negotiated human resource management
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o Focus is on individual employees
o More open and accommodating attitude toward unions
3. Strategies for full trade union empowerment
Joint employee care and maintenance
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o Focus is on employee well being, marked shift toward pro-unionism (favors unions)
o Permanent structures are created for cooperating with trade unions and information is freely shared
o Shift toward joint problem solving
Joint governance
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o Aims to achieve maximum empowerment of both individuals and collective entities
o Trade unions regarded as equals with management steering the organization
o Issues are dealt with on a joint problem-solving basis
o Organization is jointly managed by union and management
o Conflict and disputes are processed through agreed dispute resolution mechanisms - part of the organisations governance strategy
The vertical axis represents the individualism dimension. This refers to management’s approach to dealing with or managing the relationship between individual employees
and the organisation as the employing entity
The horizontal axis represents a continuum relating to management’s approach to the management of relations with formal worker representative groups. This collectivism
dimension essentially revolves around the type of relationships management would prefer to have with trade unions.
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Definition of a Strike
A strike is defined 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, and every reference to “work” in this definition includes overtime work, whether it is voluntary or compulsory.
The definition of a strike consists of three elements:
A refusal to work
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Concerted or collective action
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A specific purpose relating to a matter of mutual interest between the employer and employee
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In order for an action to constitute a strike in terms of the LRA, it must comply with all three of the above elements.
Procedural Requirements of a strike
According to the LRA, a strike or lockout will be protected if the following procedures are followed:
The dispute must 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.
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Alternatively, the parties should wait for a period of 30 days from the date of the referral of the dispute.
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The union(s) must give at least 48 hours’ written notice of the intended strike to the employer.
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If the state is the employer, a notice period of seven days is required for an intended strike or lockout.
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The Pre-Negotiation Phase
Careful planning, preparation and organisation are essential before negotiations can begin.
Preparation and planning for the initial negotiations start the moment the two parties make their first contact with each other.
When agreement is reached, the preparation phase for the next round of negotiations begins.
The more comprehensive and complex the subjects of negotiation, the more time and will be required.
These topics may vary from procedures (such as grievance, disciplinary, retrenchment) to independent matters (such as working hours, wages, leave, bonuses, health and
safety etc)
Decisions have to be taken about pre-negotiation issues, such as the levels at which to negotiate, the appropriate units, the scope of negotiations, and the strategies to be
followed during negotiations.
The interactive negotiation phase
The process starts when the parties exchange greetings, sit down and get down to the nuts and bolts.