LRM2601 Assignment 6 (ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED

Well-structured LRM2601 Assignment 6 (ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED. (DETAILED ANSWERS - DISTINCTION GUARANTEED!)..... Read the case study and then answer the questions that follow. A TOUGH SITUATION AT GOLDEN WHEELS TRANSPORT SERVICES Sipho is a young, ambitious man pursuing a Diploma in Logistics Management through a part-time programme at the University of South Africa. As the primary breadwinner for his family, he supports his younger sister, who is still in school, and his mother, a former domestic worker now unable to work due to severe arthritis. Recently, Sipho secured a job as a junior dispatcher at Golden Wheels Transport Services, a Johannesburg-based logistics company specialising in transporting goods across South Africa. He was thrilled about the opportunity, as it aligns perfectly with his career aspirations in logistics. Golden Wheels is a mid-sized company known for its efficiency but also for its demanding work environment. The company employs 150 people, many of whom, like Sipho, rely heavily on overtime work to supplement their incomes, as the basic pay is not sufficient to cover their day-to-day living expenses. Overtime is often necessary to ensure that deliveries are completed on time, and it has become an integral part of employees’ earnings. On average, employees can increase their monthly income by 20-30% through overtime, making it a crucial aspect of their financial stability. However, the company has been impacted by rising fuel costs and new government regulations mandating stricter environmental compliance, which have significantly increased operating expenses. Under pressure from top management to reduce costs, Mr Mkhize, the employment relations manager, decides to cut overtime work – a decision that quickly leads to widespread discontent among the workforce. Many employees, who rely on overtime to supplement their income, voice their dissatisfaction, but their concerns are largely dismissed by Mr Mkhize. He explains that the company must comply with government mandates and insists that cutting labour costs is the only viable option. In his view, he is protecting all employees' interests by limiting overtime rather than resorting to retrenchments. When Sipho and a few colleagues approach Mr Mkhize to discuss their concerns, they are met with a dismissive attitude. Mr Mkhize curtly tells them that the decision is final and that they should be thankful to have jobs in the current economic climate. As tensions rise, some employees decide to join the National Union of Transport Workers (NUTW), hoping that the union will advocate for their rights and address their grievances. Out of the 150 employees at Golden Wheels, 70 have elected to join the union, demonstrating a growing dissatisfaction with management’s handling of the situation. Sipho, feeling increasingly disillusioned with management’s dismissive attitude, also joins the union, believing it might be the only way to protect his interests and those of his colleagues. LRM2601 Assessment 06 (Semester 2, 2024) 15 © UNISA 2024 Despite his initial enthusiasm for the union, Sipho is conflicted. He has been approached by several colleagues who encouraged him to stand for election as a shop steward, given his leadership potential and understanding of both the workers’ concerns and the company’s operations. However, Sipho is concerned that becoming actively involved in the union could harm his career progression within Golden Wheels. He fears that management, particularly Mr Mkhize, who views unions as unnecessary and disruptive, might see his union involvement as a lack of loyalty to the company, potentially jeopardising future opportunities for advancement. Mr Mkhize is frustrated by the current situation. He believes that management’s authority should be acknowledged and respected. Although he sympathises with employees’ concerns about the reduction in their income, he feels they should recognise that he is doing everything possible to protect their jobs. In his view, employees must understand that management’s priority is to ensure the long-term survival of the company, not just to address immediate needs. He firmly believes that all employees, regardless of their position, should demonstrate loyalty to the company and trust that management is making decisions with their best interests at heart. Mr Mkhize is particularly resistant to the involvement of the NUTW, which he perceives as an unnecessary and disruptive force. He regards trade unions as relics of the past, no longer relevant in a modern workplace. He believes that the union’s interference will only create divisions and harm the overall harmony of the organisation. Sipho finds himself at a crossroads. On one hand, he understands the financial challenges the company is facing. On the other hand, he is deeply troubled by the perceived lack of fairness and respect toward employees. To Sipho, management’s decision to cut overtime seems like a self-serving move, as those in higher positions earn substantial salaries and don’t depend on overtime to meet their financial obligations. He views this as further evidence of the ongoing power imbalance in the employment relationship, which continues to erode trust between management and workers. Note that the above case study is fictitious. Neither the company (Golden Wheels Transport Services) nor the trade union (the National Union of Transport Workers) exist. The events are constructed to create a context for the assessment questions and do not reflect events in an actual workplace. Therefore, you will not be able to find information on the company or the events described online or in any other source. You need to reflect on and analyse the given information to show that you can apply what you have learned in the lessons to a given scenario to handle typical employment relations matters. Do not approach the assessment as a comprehension test where you expect to find all the answers in the case study. Answer the questions using the relevant theory as your starting point and demonstrate your understanding of the theory by analysing and applying it in your answers. Therefore, simply copying information from the case study, the study material or any other source when answering the question will not earn you any marks. Remember, you must answer all the questions in your own words to show your understanding of the subject matter. You need to support your views by referring to the relevant theoretical information. Cite your sources in the correct format using the Harvard referencing style and provide full details of these sources in the reference list at the end of your document. The mark allocation for each question reflects the expected length and detail of your answers. Answer the questions that follow by applying what you have learned in this module to the scenario described. LRM2601 Assessment 06 (Semester 2, 2024) 16 © UNISA 2024 IMPORTANT These are not theoretical questions. A practical scenario is provided as a means to assess your understanding of the subject matter. Therefore, while it is essential for you to know and explain the relevant theory, purely theoretical answers will not be sufficient. You will not receive any marks for information copied from the study material (or any other source) or for a theoretical discussion of the subject matter. You must apply what you have learned in this module to the scenario to show that you understand the subject matter and how it manifests in real-world circumstances. Question 1: Justice perceptions After employees expressed concerns about the reduction of overtime, Mr Mkhize held a meeting to explain the decision. He reiterated the company's need to comply with government mandates and reduce costs but did not give employees the opportunity to ask questions or voice their concerns. When Sipho suggested exploring alternative cost-saving measures that would not impact overtime, Mr Mkhize dismissed the idea. Meanwhile, Mr Mkhize and senior managers continue to receive annual bonuses despite the company’s financial challenges. Mr Mkhize appears to underestimate the negative impact of his actions on employees. Many feel that their concerns are being ignored and that management neither values their input nor respects their perspectives. Sipho, recognising the growing frustration among his colleagues, decides to schedule a meeting with Mr Mkhize in an attempt to convey these sentiments. His goal is to help Mr Mkhize understand why employees are feeling unhappy. Imagine you are Sipho, and you are preparing for your meeting with Mr Mkhize to express the concerns of your colleagues regarding the decision to reduce overtime and how the situation has been handled by management. Rely on what you have learned about justice perceptions and the criteria applied when making justice judgments to address the following aspects: 1.1 Identify a specific example of perceived distributive injustice from the case study (1 mark). Apply one of the criteria used to evaluate distributive justice (equity, equality, or need) to explain why this situation is perceived as unfair by the employees (2 marks). (3) 1.2 Identify a specific example from the case study where employees perceive the decision-making process as unfair (1 mark). Apply two of the criteria used to evaluate procedural justice (consistency, bias suppression, accuracy, correctability, representativeness, or ethicality) to explain why this process is perceived as unfair (4 marks). (5) 1.3 While Mr Mkhize aimed to foster trust among employees by stating that he had their best interests at heart, his actions ultimately undermined this trust. Explain why Mr Mkhize's actions were perceived as unfair and how it impacted the trust relationship between management and employees. (2) [10] Note: This question relates to employees’ perceptions of justice. However, it is not a theoretical question; therefore, no marks will be awarded for discussing organisational justice and its dimensions or the criteria used to make justice judgments. It requires you to apply your understanding of organisational justice and LRM2601 Assessment 06 (Semester 2, 2024) 17 © UNISA 2024 perceptions of injustice in the workplace. You should rely on what you have learned about the different justice dimensions and the criteria applied to make justice judgements to guide you in understanding why employees would regard management’s decisions and actions as unfair. Question 2: Employment relations as a managerial function Imagine you are Mr Mkhize, and you are currently in a meeting with Sipho, who has voiced the employees' concerns regarding the reduction of overtime and the perceived unfairness in management’s decisions. In your response to Sipho, address the following aspects: 2.1 Explain management’s employment relations responsibilities, focusing on the key management functions of planning, leading, organising, and controlling. (8) 2.2 Discuss the necessity of adopting a strategic approach to managing employment relations. (2) In your response, defend your actions as the employment relations manager by referring to your responsibilities. Additionally, acknowledge any areas where you may have erred in your managerial tasks, reflecting on how your actions were perceived by the employees. [10] Note: This question requires you to demonstrate your understanding of the management functions in employment relations and why a strategic approach to employment relations is required. Question 3: Employer and employee parties and organisational rights It is indicated in the case study that 70 of the 150 Golden Wheels employees have decided to join the National Union of Transport Workers (NUTW), hoping that the union will advocate for their rights and address their grievances. 3.1 Mr Mkhize is concerned about the rising trade union activity at Golden Wheels Transport Services and across the industry. He believes it may be beneficial for the company to join the Road Freight Association (RFA) to access its labour relations expertise when needed. He plans to propose this idea at the next management meeting. If you were Mr Mkhize, how would you present your case to the management team to convince them of the benefits of joining the RFA? Your answer should demonstrate an understanding of the role that entities such as the RFA play in South African employment relations. (5) 3.2 The trade union has submitted a written application to Golden Wheels’ management seeking recognition as a representative of their members in the workplace and requesting that the following rights be granted: • access to the Golden Wheels premises for NUTW officials, • the deduction of union membership fees from their members’ wages and payment thereof to the union • the election of three shop stewards of which one should be a full-time shop steward • leave for trade union officials, shop stewards and members to engage in trade union activities • disclosure of information LRM2601 Assessment 06 (Semester 2, 2024) 18 © UNISA 2024 The union provided evidence of registration with the Department of Employment and Labour as well as its membership. Determine, based on the union’s level of representivity at Golden Wheels Transport Services, which of the organisational rights that they seek should be awarded. Substantiate your answer by referring to the relevant provisions of the Labour Relations Act 66 of 1995. (15) [20] Note: While Golden Wheels Transport Services and the National Union of Transport Workers (NUTW) are fictitious entities, the Road Freight Association (RFA) and the National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) (see Question 4) are actual role-players in the South African labour relations landscape. This question requires you to demonstrate your understanding of the functions fulfilled by these role-players. Given the information provided, you may assume that NUTW is a registered trade union and that it followed the correct procedure to apply for organisational rights. You are not required to discuss this procedure or to explain what the different organisation rights entail. You need to consider the union’s level of representivity at Golden Wheels Transport Services and determine, based on this information, which of the organisational rights the union applied for should be granted. Question 4: Collective bargaining and collective agreements Following a process of collective bargaining, Golden Wheels Transport Services concluded a recognition agreement with the National Union of Transport Workers (NUTW). The company also joined the Road Freight Association (RFA). Mr Mkhize received a signed copy of the following collective agreement that was concluded by the National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) from the RFA (click on the URL to access the collective agreement): NATIONAL BARGAINING COUNCIL FOR THE ROAD FREIGHT AND LOGISTICS INDUSTRY (NBCRFLI) MAIN COLLECTIVE AGREEMENT [ 4.1 Explain what a bargaining council is and indicate which functions the National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) fulfils. In answering the question, consider the relevant provisions of the Labour Relations Act 66 of 1995 as well as the information provided by the NBCRFLI on its website ( 4.2 Consider the parties to the above collective agreement and indicate the bargaining level and unit which it represents. Briefly explain what this bargaining level and unit entails. (5) 4.3 Mr Mkhize has initiated consultation with the National Union of Transport Workers (NUTW) as the first step in aligning the company’s employment relations policies with the collective agreement. The union objects, indicating that the agreement does not apply to Golden Wheels Transport Services as NUTW is not party to the agreement. Determine whether you agree or disagree with the union and provide reasons for your answer. Consider the relevant provisions of the Labour Relations Act (LRA) 66 of 1995 and the collective agreement to substantiate your view. (5) LRM2601 Assessment 06 (Semester 2, 2024) 19 © UNISA 2024 4.4 The NUTW maintains that it should not be subjected to the terms and conditions of the NBCRFLI collective agreement and declares a dispute. Indicate whether this dispute will be regarded as a dispute of right or a dispute of interest, provide reasons for your answer, and briefly explain how this dispute must be resolved. (5) [20] Note: This question requires you to demonstrate your understanding of collective bargaining, collective agreements and dispute resolution. Although it is important for you to know and understand the relevant theoretical information, marks will not be awarded for a purely theoretical answer. Ensure that you read the questions carefully and apply what you have learned about these topics to address the questions asked. Question 5: Transformation Golden Wheels Transport Services has grown steadily over the years, but its workforce remains largely unchanged in terms of representation. While the company employs a diverse range of individuals, particularly at the operational level, the senior management team is not reflective of South Africa’s demographics. Furthermore, Golden Wheels has been slow to implement structured initiatives aimed at promoting equal opportunities and career advancement, especially for previously disadvantaged groups. With increased pressure from the government, Golden Wheels’ leadership recognises the need to prioritise transformation efforts to remain competitive and compliant. Mr Mkhize, the employment relations manager, is tasked with presenting a transformation strategy to senior management. He must ensure that the company’s transformation initiatives comply with South African legislation. 5.1 Identify and briefly describe the three key South African labour relations-related Acts that relate to workplace transformation. In your explanation, outline what each Act requires from employers in terms of transformation initiatives. (9) 5.2 Recommend specific actions that Mr Mkhize should propose for Golden Wheels Transport Services, based on the requirements of each Act identified in question 5.1.