LRM4801 Assignment 13 Answers (Due date: 10 January 2024)

LRM4801 Assignment 13 Answers (Due date: 10 January 2024) APPENDIX A: ASSESSMENT 13 Please Note: This written Assessment must be submitted in PDF format via myUnisa. Instructions on how to submit the Assessment are provided in section 6 of this document. You are expected to meet particular requirements relating to the layout and technical presentation of Assessments: • The cover page or first page of your document should display information such as the module code, Assessment number, and your name and student number. • Always include a table of contents on the second page by listing the headings and subheadings in your Assessment. The headings and subheadings should describe the content of the sections and should not simply include the question numbers. These headings and subheadings should be numbered, and the page numbers should be provided (see the table of contents on page 30 of tutorial letter HRMALL6/301/4/2023 for an example). • Then start with an introduction, which gives the reader an indication of what to expect from the rest of the document. Note that there should only be one introduction to the Assessment as a whole, and not an introduction per question. • The introduction is followed by a discussion. This is also called the body of the Assessment. This is where you answer the questions asked. Use headings and subheadings that are properly numbered. This will not only help you to arrange your thoughts, but will also enable the reader to grasp your reasoning more easily. We recommend that you use the following classification and numbering system: Use the decimal classification system up to four decimals, the alphabetical classification for the fifth level and small Roman numerals for the sixth level. For example:1, 1.2, 1.2.1, 1.2.1.2, (a), and (iii). • Finally, end your Assessment with a conclusion. This is a brief summary of the most important aspects addressed in the Assessment. If possible, give your own opinion based on theoretical principles, because this will add to the value of your answer. Do not introduce any new information in the conclusion. Again, there should be only one conclusion at the end of the Assessment, and not a conclusion per question. • Cite all the sources you have consulted in the text and provide full details in a list of references at the end of your Assessment. Use the Harvard referencing method. Detailed referencing guidelines are provided under Referencing and Plagiarism in the Labour Relations Management LibGuide. These guidelines are also available in the Study and skills resources folder under Additional Resources on the myUnisa module site. Learning outcomes After completing this assessment, you should be able to • explain what environmental analysis entails • identify and analyse the most important internal environmental variables that may affect labour relations management in an organisation and critically evaluate their impact • identify and analyse the most important external environmental variables that may affect labour relations management in an organisation and critically evaluate their impact • interpret the impact of the Acts on the formulation and implementation of labour relations strategies, policies, procedures and practices • determining how to empower employees by means of involvement and participation in decision making • compile a policy on collective bargaining that is in line with the organisation’s approach to labour relations management and its employment relations and organisational strategies • analyse the different phases of the collective bargaining process and apply them in a business environment • understand the legal provisions relating to dismissal and apply these provisions in drawing up and utilising retrenchment procedures in the workplace Assessment 10 LRM4801 9 © UNISA 2023 • understand and apply the provisions of the Constitution and the LRA with regard to strikes and other forms of industrial action • formulate and critically discuss a general strike management plan for an organisation • critically explain what is meant by controlling the quality of employment relations management • explain why it is necessary to measure the effectiveness of the employment relations subsystem All the questions in this assessment relate to a specific case study. This means that you are required to apply what you have learned in Lessons 01 to 10 to this case study. Please note that the case study creates a particular context in which you are required to address labour relations-related matters. Do not approach the assessment as a comprehension test where you expect to find the answers in the case study. Answer the questions by using the relevant theory as your starting point; and demonstrate your understanding of the theory by analysing and applying it in your answers to the questions. To complete this assessment, you are required to consult a variety of sources including the relevant lessons; some of the suggested books; the relevant e-reserves; relevant news reports; information obtained from reliable internet sites and so forth. Make sure that you meet the requirements in terms of technical presentation as discussed in section 5 of this document. Read the following case study that relates to employment relations at ArcelorMittal South Africa: ArcelorMittal South Africa – Navigating challenges and innovations in the Steel industry ArcelorMittal South Africa stands as the foremost steel producer in sub-Saharan Africa, boasting a legacy spanning back to its inception in 1928. ArcelorMittal holds the top position in significant worldwide sectors such as automotive, construction, household appliances and packaging. It stands out in terms of pioneering research and development, cutting-edge technology, substantial internal sources of raw materials and exceptional distribution networks. With a workforce of over 10 000 employees, the organisation has been a key player in the regional steel market, contributing to industries in South, West and East Africa. ArcelorMittal South Africa, as a part of the ArcelorMittal global conglomerate, operates capital-intensive facilities in the areas of Vanderbijlpark, Vereeniging, eMhalahleni and New Castle. The organisation’s consistent profitability during the steel market's ups and downs showcases the outcomes of extensive business restructuring efforts and the fostering of a culture focused on ongoing enhancement. This has firmly established ArcelorMittal South Africa as one of the global leaders in producing steel at minimal cash costs. ArcelorMittal South Africa’s main purpose is to support Africa’s industrial ambitions by producing sustainable steel. Their vision is to “add value to all our stakeholders through our market leadership position in Sub-Saharan Africa by producing quality steel products safely, being an employer of choice, while striving to be among the lowest-cost steel producers in the world”. In order to achieve this vision, their mission includes: • protecting the health and safety of their employees • pursuing operational excellence in all business processes • producing innovative high-quality steel solutions for their customers on time • protecting their environment and caring for the communities in which they operate • being a fair employer as well as a career and skills developer • being a responsible citizen ArcelorMittal has three strategic priorities, which include 1) restructuring to become the forerunner in South Africa’s manufacturing backbone; 2) repositioning for global cost-effectiveness; and 3) building resilience by rejuvenating the balance sheet for improved sustainability, flexibility and agility. ArcelorMittal’s brand values encapsulate the following: Assessment 13 LRM4801 10 © UNISA 2023 • Leadership: This is cultivated by embracing visionary thinking, challenging norms and embracing innovation. • Safety: This is paramount, initiating success by ensuring the well-being of their workforce. • Sustainability: They focus on thriving in the future competitive landscape. • Quality: This stands as a fundamental element defining their competitive advantage. • Smarter steels for people and planet: This reflects their commitment to innovative use of technical expertise, aspiring to spearhead the industry’s decarbonisation for a positive global impact. In 2022, the company faced a production decrease of 20.4% compared to 2021 and a stark decline of 44.1% from its peak output in 2019. In July this year, ArcelorMittal South Africa announced a half-year loss, blaming the countries’ ongoing electricity crisis, high inflation and weak demand from key steelconsuming consumers. ArcelorMittal South Africa expressed challenges in sustaining an operational flow vital for an integrated steelmaking process while remaining cost-effective. As a result, the company reported a further R1bn loss in market share, suggesting that investors are taking a dim view of the company’s outlook. In light of this situation, the ArcelorMittal South Africa Board and Management have been compelled to initiate a process considering the gradual closure of the company’s long-steel unit, which may involve placing it under care and maintenance for the time being. ArcelorMittal South Africa mentioned that the potential impact of this decision could affect around 3 500 positions, encompassing both permanent employees and contractors. The long-steel unit manufactures fencing materials, rails, rods and bars utilised across construction, mining and manufacturing industries. The decision made by the ArcelorMittal South Africa board and management follows an exhaustive exploration of all available alternatives stated Chief Executive Officer Kobus Verster. Verster further emphasised that they are obligated to secure the longterm sustainability of the business for the benefit of both the company and its stakeholders. Solidarity described the company’s announcement as unexpected and noted that they had not yet received formal notification regarding the proposed job cuts. Solidarity highlighted in a statement that a consultation process involving impacted stakeholders, including trade unions, should unquestionably have taken place before such an announcement. Source: Adapted from: ArcelorMittal Sout Africa. 2022. Integrated Report 2022. Available at: ArcelorMittal South Africa. n.d. Who we are. Available at November 2023]. Banya, N. 2023. ArcelorMittal South Africa reports first-half loss amid power crisis. Reuters, 27 July 2023. Available at: 27/ [Accessed: 28 November 2023]. Banya, N. 2023. ArcelorMittal South Africa shares tumble on plan to close long steel ops. Reuters, 28 November. Available at: Creamer, T. 2023. 3 500 jobs at risk as ArcelorMittal mulls closure of longs unit at New Castle, Vereeniging. Creamer Media’s Engineering News, 28 November 2023. Available at: 500-jobs-at-risk-as-arcelormittal-mulls-closure-of-longs-units-at-newcastle-vereenigning- [Accessed: 28 November 2023]. Nyambura, H. 2023. ArcelorMittal to cut 3 500 jobs in SA as growth slows. Moneyweb, 28 November 2023. Available at: [Accessed: 28 November 2023]. Assessment 10 LRM4801 11 © UNISA 2023 Question 1 Suppose that you are the employment relations manager for ArcelorMittal South Africa. You have been tasked to conduct and environmental analysis for the organisation specifically determining those factors that impact on labour relations management. Consult ArcelorMittal South Africa’s Integrated Annual Report for 2022 to assist you in conducting your analysis. 1.1 Briefly explain what environmental scanning entails and outline the process you will follow to conduct an environmental analysis. (6) 1.2 Identify three (1 mark each) internal environmental factors that may impact on labour relations management at ArcelorMittal South Africa specifically. Explain (1 mark each) what each of these factors entail and comment on the impact of these factors on the way labour relations is managed in this particular organisation. (6) 1.2 Identify four (1 mark each) external environmental factors that may impact on labour relations management at ArcelorMittal South Africa specifically. Explain (1 mark each) what each of these factors entail and comment on the impact of these factors on the way labour relations are managed in this particular organisation. (8) [20] Question 2 Read the following press statement from NUMSA and answer the questions that follow: NUMSA REJECTS AMSA’S PROPOSAL TO SLASH BENEFITS AND WAGES OF WORKERS 22 February 2023 Press statement The National Union of Metalworkers of South Africa (NUMSA) rejects the proposal to slash benefits, wages and conditions made by the management of ArcelorMittal South Africa. NUMSA, AMSA management and other registered trade unions met for the first round of wage talks earlier this week as part of the first round of wage talks. NUMSA has presented a detailed list of demands including: • 15% wage increase • 1 year collective agreement • scrapping of labour brokers and service providers and all workers must be insourced • integration of House Main agreement • R5000 for housing allowance • 6 months fully paid maternity leave • 14 days paternity leave • that these wage talks and the agreements reached must be extended to all workers (i.e. wage staff and salaried staff) • 100% short-time and layoff payment • gain sharing and not KPI Plant specific demands: • heat, dust and chemical allowance for exposed employees • scrapping of K grading • gain sharing and not KPI AMSA did not respond to our demands. Instead, they made a proposal to slash salaries and benefits. They want to down various conditions, and reverse all of the gains which workers have negotiated over the Assessment 13 LRM4801 12 © UNISA 2023 years. On top of the outrageous proposal to reduce wages, some of the proposals include forfeiting accrued leave and reducing sick leave and other benefits. They want workers to give up all their benefits and sacrifice themselves and their families, so that executive management and the board can fatten their pockets even further! They are entirely driven by greed. What they are proposing is unfair labour practice, and we reject it with the contempt it deserves. We are not surprised that under the leadership of Kobus Vester, AMSA has demonstrated once again, that it has no empathy and no sympathy for the suffering of its employees. At the height of the Covid-19 pandemic it attempted to impose a 25% salary cut on the workforce. We rejected their attempts and they responded cruelly, by slashing jobs and dismissing workers through a section 189 process. The management of AMSA are notorious for exploiting workers for their labour and paying them very poorly. The fact that labour brokering, is alive and well at AMSA, despite a court ruling, which NUMSA secured, says a lot about how the management views workers and their families. The constitutional court was clear that labour brokering, which is a modern form of slavery, can only be limited to three months, and thereafter, all temporary workers must be absorbed into the workforce and must receive the same benefits and wages as permanent employees. But AMSA is unapologetic for this brutal practice, even though it is dehumanising for those who are subjected to it. We will meet the employer for another round of wage talks on the 7th off March. Aluta continua! The struggle continues! Issued by Kabelo Ramokathali Sedibeng Regional Secretary Source: NUMSA. 2023. NUMSA rejects AMSA’s proposal to slash benefits and wages of workers. NUMSA. Available at: [Accessed: 28 November 2023]. 2.1 The ability of an organisation’s leadership has a definitive impact on its labour relations. Arguably, according to the above press statement, the leadership of ArcelorMittal South Africa has contributed to the conflict situation and poor relations demonstrated in the above statement. Compile a report to Mr Kobus Vester in which you discuss conflict as a key ingredient making employment relations dynamic at ArcelorMittal South Africa. In your report, you should address the following aspects: 2.1.1 The main specific cause(s) of conflict at ArcelorMittal South Africa. Provide reasons to substantiate your answer. (2) 2.1.2 The specific variable(s) that may serve as moderators or aggravators of conflict at ArcelorMittal South Africa. Provide reasons to substantiate your answer. (2) 2.1.3 The stage of conflict that is most relevant to the current situation as portrayed in the press statement at ArcelorMittal South Africa and briefly substantiate your answer by providing examples from the press statement above. (3) 2.1.4 Any signs of rising conflict at ArcelorMittal South Africa and provide examples from the press statement. (3) 2.2 Consult ArcelorMittal South Africa’s Integrated Annual Report for 2022 by clicking on the link and answer the following questions: 2.2.1 Analyse ArcelorMittal South Africa’s report and identify two methods they are using to monitor, measure or evaluate employment relations. (4) 2.2.2 Differentiate between direct involvement and indirect participation. (2) Assessment 10 LRM4801 13 © UNISA 2023 2.2.3 In ArcelorMittal South Africa’s report they are providing feedback on a form of direct involvement that is applied in the company. Examine this report and identify the form of direct involvement that is mentioned in the report. (2) 2.2.4 Read the case study and report again and identify a form of indirect participation that is mentioned in the case study. (2) [20] Question 3 3.1 Compare centralised and decentralised collective bargaining by outlining the main characteristics of each approach. (2) 3.2 Determine the level at which bargaining takes place at ArcelorMittal South Africa and provide reasons for your answer. (3) 3.3 Argue the appropriateness (or inappropriateness) of bargaining, at the level identified in 3.2 above, by considering the advantages and disadvantages of centralised and decentralised collective bargaining. Give reasons for your answer. (10) 3.4 The outcome of collective bargaining is the conclusion of a collective agreement. Different types of collective agreements can be concluded. Assess NUMSA's set of demands stated above and discern the specific category of collective agreement that would result if there were an agreement between NUMSA and ArcelorMittal South Africa on these demands. (5) [20] Question 4 From the case study, it is clear that ArcelorMittal South Africa is considering retrenchments and that procedurally, according to Solidarity, they have already made some mistakes in terms of the procedure they followed. As employment relations manager at ArcelorMittal South Africa, you are responsible for consulting with NUMSA and Solidarity on the retrenchment process. 4.1 Section 189 of the LRA regulates retrenchments and, in some instances, additional requirements, as outlined in section 189A, apply. Would section 189A apply in this instance? Give reasons for your answer. (3) 4.2 Provide NUMSA and Solidarity with a written notice in terms of section 189(3) of the LRA. Include all the necessary information that should be legally disclosed to the union. (10) 4.3 NUMSA and Solidarity responds to the written notice and requests the personal information of all the employees that are considered for retrenchment. They require this information to determine the impact of the possible retrenchment and the loss of income because of the loss of employment. Respond to them in writing about this request, by referring to section 16(2) of the LRA. (4) 4.4 Determine whether or not the retrenchments would be substantively fair by referring to the relevant provisions of the LRA. (3) [20] Assessment 13 LRM4801 14 © UNISA 2023 Question 5 Read the following news report and answer the questions that follow: Labour Court scuppers AMSA’s attempts to squash NUMSA strike The National Union of Metalworkers of South Africa (NUMSA) has welcomed the decision of the Labour Court to dismiss the application by steel producer ArcelorMittal South Africa (AMSA) to interdict the ongoing national strike at all its plants. NUMSA members have been on strike since May 11, demanding a 10% across-the-board wage increase. According to research firm FocusEconomics, the inflation rate was forecast to average at about 5.3% for the current year, making NUMSA’s wage increase demands nearly double the current inflation rate. “We know AMSA can afford our demands, they are just being greedy by refusing to compromise,” NUMSA alleged on May 24. On the first day of the strike, AMSA brought an urgent application to the Labour Court in Johannesburg to interdict the strike by employees at its blast furnaces, coke batteries and steel plants. AMSA made the application on the basis that it had referred two disputes with the Essential Services Committee (ESC). One of the disputes was for the ESC to investigate whether the operation of coke batteries and blast furnaces used in the production of steel, should be designated an essential service. The second dispute was for certain aspects in the steel production process to be designated as a maintenance service application. If AMSA had succeeded with these applications, it would have meant that workers in these divisions of AMSA would have been blocked from participating in any legal strike action in the future. NUMSA argued in court that there was a pending investigation on the matter, and that it was wellestablished that a court would not interdict a strike based on a pending ESC investigation, saying that AMSA was being opportunistic, with the goal of undermining the right to strike and divide workers. The union opposed the application on the grounds that, because the committee had not yet made a ruling on the matter, the court should not consider it as grounds to interdict the strike, because the right to strike is a constitutional right and should not be interfered with. NUMSA also argued that if AMSA were to be granted an interdict purely on the basis that it referred a case of a maintenance services dispute to the ESC, it would create a bad precedent because then any other employer could simply make an application to the ESC to frustrate the constitutional right to strike. The right to strike can only be limited when the ESC has already decided that the whole or part of the service provided by an employer, is in fact a maintenance service. On May 11, Labour Court judge Dephny Mahosi interdicted the strike temporarily – but only for workers in the blast furnaces, coke batteries and the steel plant – until a final judgment was made. A final decision on the matter has now been handed down and it confirmed that all AMSA employees, without exception, have the right to strike. The Labour Court found that the matter of the ESC was still in its infancy, with several determinations still to be made. The court agreed with NUMSA that the right to strike was an entrenched right, which should be limited only when absolutely necessary. “We have been vindicated by the court. All workers at AMSA have the right to strike and as a union, we will always do whatever it takes to defend this right,” NUMSA said. NUMSA said it would intensify the strike at all AMSA plants nationwide in response to the company’s actions. Assessment 10 LRM4801 15 © UNISA 2023 “We are calling on all workers to unite behind their demands to ensure a total shutdown of all production. AMSA seemingly has unlimited funds with which to bash and undermine workers’ rights. They have forced us into this position,” NUMSA claimed. On May 24, NUMSA members marched to AMSA’s offices in Vanderbijlark to hand over a memorandum of demands. AMSA, meanwhile, said it did not permit the march by NUMSA members, as the “strike action initiated by NUMSA has been marred by numerous acts of violence and intimidation of non-striking employees, despite the strike and picketing rules agreed between the company and the union”. It said these unlawful acts included the shooting of an employee, who is currently recovering in hospital; multiple cases of assault or attempted assault of non-striking employees; intimidation of employees and their families in the workplace, en route to work and at their homes; multiple instances of stoning and attempted damage to employees’ and contractors’ vehicles; and road blockades and other disruptions intended to prevent access to company premises. Cases have been opened with the South African Police Service for investigation. “Given that NUMSA has, thus far, not made any reasonable effort to address the unlawful and disruptive conduct of its members and has not demonstrated that it is willing or able to do so, we do not have any confidence that the union will be inclined to or capable of ensuring that the process to hand over a memorandum at our offices will be carried out peacefully,” said AMSA CEO Kobus Verster. The company did, however, offer to receive the memorandum in writing by email or fax. “The company respects the rights of employees to embark on industrial action, but this must be in compliance with the law and having regard for the rights of others,” Verster added. The steel producer further notes that it had, on May 20, tabled two improved alternative final offers for consideration by NUMSA and fellow trade union Solidarity. These offers entail a 6% increase on all remuneration elements, including allowances, standby and medical aid, plus a R5 000 one-off cash payment; or a 6.5% increase on all remuneration elements, including allowances, standby and medical aid, but without any cash payment. “Unfortunately, both NUMSA and Solidarity have indicated they would not move from their previously held demands of a 7% increase, with a R5 000 one-off cash payment,” AMSA said. “We believe the offers we have tabled in an effort to put an end to the wage dispute are fair and more than competitive when compared to recent agreements in similar sectors,” said Verster. Source: Parker, D. 2022. Labour Court scuppers AMSA’s attempts to squash NUMSA strike. Creamer Media’s Engineering News, 24 May 2022. Available at: 5.1 Do you agree with the management of ArcelorMittal South Africa that employees in the operation of coke batteries and blast furnaces used in the production of steel should not permitted to strike because they are regarded as essential services? Provide reasons for your answer by defining “essential services” in terms of the Labour Relations Act 66 of 1995 (LRA) and considering the provisions of the LRA concerning strikes and essential services. (9) 5.2 ArcelorMittal South Africa, meanwhile, said it did not permit the march by NUMSA members. Argue whether or not ArcelorMittal South Africa is in a position to permit or not permit the strike of NUMSA members. Substantiate your answer by referring to the provisions of the LRA concerning strikes. (6) [15] Assessment 13 LRM4801 16 © UNISA 2023 Technical requirements A further 5 marks will be awarded for the layout and technical presentation of your Assessment. Please make sure that you meet the technical requirements outlined on the first page of this document. Also, refer to the guidelines for answering written Assessments that are available as an additional resource under Study skills and resources on the LRM4801 myUnisa module site. [5] TOTAL: [100]