Labour Relations
Labour Relations Act (66 of 1995)
▪ Rules and mechanisms to control communication and to negotiate relationships between
employers and employees.
Purpose:
▪ Enforce fundamental rights relating to labour issues.
▪ Promote economic development, labour peace, social justice and democracy.
▪ Provide a framework for collective bargaining to solve labour disputes.
Implications
▪ Ensures that international labour standards are applied in SA
▪ Gives clear guidelines on how labour disputes can be resolved
▪ Gives “power” to trade unions that they sometimes forget their purpose of protecting the
rights of employees and become involved in politics
Discipline procedure
▪ Discipline is not a form of punishment; it ensures correct behavior.
▪ Coaching and counseling: The manager give support to help the worker to correct the
behavior.
▪ Correction: A formal approach to intervention, i.e. verbal warnings, suspension or dismissals.
▪ Based on the Disciplinary Policy. It is a guideline to the employees about what is accepted
behavior and what is the consequences of unacceptable behavior.
▪ Management Worker
Grievance procedure
▪ A pre-determined procedure / structure which allows the employee the opportunity to
communicate with the employer about a work-related problem which may affect the
performance negatively.
▪ Worker Supervisor Line manager Human resource manager CCMA Labour
court Labour Appeal court
Collective bargaining
▪ Refers to the process that takes place when the employer and trade union negotiate in
terms of their employment.
▪ Issues include working conditions, remuneration, working hours and leave.
▪ Parties try to reconcile conflicting goals.
▪ It allows workers to have more bargaining power.
Business Studies Labour Relations | 1
, Bargaining structures
▪ The LRA allows for the following:
o Bargaining councils
o Statutory councils
o Workplace forum
o Commission for Conciliation, mediation and arbitration (CCMA)
o NEDLEC (National Economic Development and Labour Council)
CCMA (Commission for Conciliation, Mediation and Arbitration)
▪ Independent dispute-resolution body that is not run by a political party, trade union or
business, but it is funded by NEDLAC.
▪ Aim: Settle disputes between employees and employers to prevent labour unrest.
▪ Conciliation: Process whereby commissioner meets with employer and employee in order to
explore ways to settle the dispute by mutual agreement.
▪ Mediation: The commissioner makes a recommendation on how the dispute can be settled.
▪ Arbitration: If both parties are not willing to settle, the commissioner will issue an award
that is a legally binding to both parties.
▪ If one party feels there is a flaw in the arbitration process, the party has six weeks to refer
the matter to the Labour Court.
Probation period
▪ Normally applies to new employees.
▪ Establish if worker can do the work satisfactorily.
▪ Usually three months but may be longer.
▪ Probation may be extended if the employer is not satisfied.
▪ Probation must be discussed in employment contract.
▪ While on probation, worker must be guided and trained to achieve required standard of
performance.
▪ Regular meetings with employee to discuss / evaluate performance.
Role of Trade Unions in Industrial relations
▪ LRA allows trade union to engage in collective bargaining with employers.
▪ It ensures industrial peace and economic development.
▪ It ensures fair treatment of workers, by setting reasonable working standards, i.e.
expectation and consequences of non-performance.
▪ If an agreement with employer can’t be reached, the LRA allows a trade union to organize
industrial action to force employer to negotiate a settlement for a dispute.
Business Studies Labour Relations | 2
Labour Relations Act (66 of 1995)
▪ Rules and mechanisms to control communication and to negotiate relationships between
employers and employees.
Purpose:
▪ Enforce fundamental rights relating to labour issues.
▪ Promote economic development, labour peace, social justice and democracy.
▪ Provide a framework for collective bargaining to solve labour disputes.
Implications
▪ Ensures that international labour standards are applied in SA
▪ Gives clear guidelines on how labour disputes can be resolved
▪ Gives “power” to trade unions that they sometimes forget their purpose of protecting the
rights of employees and become involved in politics
Discipline procedure
▪ Discipline is not a form of punishment; it ensures correct behavior.
▪ Coaching and counseling: The manager give support to help the worker to correct the
behavior.
▪ Correction: A formal approach to intervention, i.e. verbal warnings, suspension or dismissals.
▪ Based on the Disciplinary Policy. It is a guideline to the employees about what is accepted
behavior and what is the consequences of unacceptable behavior.
▪ Management Worker
Grievance procedure
▪ A pre-determined procedure / structure which allows the employee the opportunity to
communicate with the employer about a work-related problem which may affect the
performance negatively.
▪ Worker Supervisor Line manager Human resource manager CCMA Labour
court Labour Appeal court
Collective bargaining
▪ Refers to the process that takes place when the employer and trade union negotiate in
terms of their employment.
▪ Issues include working conditions, remuneration, working hours and leave.
▪ Parties try to reconcile conflicting goals.
▪ It allows workers to have more bargaining power.
Business Studies Labour Relations | 1
, Bargaining structures
▪ The LRA allows for the following:
o Bargaining councils
o Statutory councils
o Workplace forum
o Commission for Conciliation, mediation and arbitration (CCMA)
o NEDLEC (National Economic Development and Labour Council)
CCMA (Commission for Conciliation, Mediation and Arbitration)
▪ Independent dispute-resolution body that is not run by a political party, trade union or
business, but it is funded by NEDLAC.
▪ Aim: Settle disputes between employees and employers to prevent labour unrest.
▪ Conciliation: Process whereby commissioner meets with employer and employee in order to
explore ways to settle the dispute by mutual agreement.
▪ Mediation: The commissioner makes a recommendation on how the dispute can be settled.
▪ Arbitration: If both parties are not willing to settle, the commissioner will issue an award
that is a legally binding to both parties.
▪ If one party feels there is a flaw in the arbitration process, the party has six weeks to refer
the matter to the Labour Court.
Probation period
▪ Normally applies to new employees.
▪ Establish if worker can do the work satisfactorily.
▪ Usually three months but may be longer.
▪ Probation may be extended if the employer is not satisfied.
▪ Probation must be discussed in employment contract.
▪ While on probation, worker must be guided and trained to achieve required standard of
performance.
▪ Regular meetings with employee to discuss / evaluate performance.
Role of Trade Unions in Industrial relations
▪ LRA allows trade union to engage in collective bargaining with employers.
▪ It ensures industrial peace and economic development.
▪ It ensures fair treatment of workers, by setting reasonable working standards, i.e.
expectation and consequences of non-performance.
▪ If an agreement with employer can’t be reached, the LRA allows a trade union to organize
industrial action to force employer to negotiate a settlement for a dispute.
Business Studies Labour Relations | 2
