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2025 - DUE 7 July 2025
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,QUESTION 1: LABOUR RELATIONS THEORY
Ubuntu AutoTech South Africa (UASA) operates within the complex and union-dense
environment of the South African automotive sector, which presents a unique backdrop for
analysing its labour relations strategy. As the company undergoes large-scale digital
transformation and automation—hallmarks of the Fourth Industrial Revolution (4IR)—its
management approach can be understood through both pluralist and radical theoretical lenses.
The pluralist theory of labour relations, rooted in the work of Fox (1966), sees the workplace
as composed of diverse interest groups, primarily management and labour, each with legitimate
but often conflicting objectives. This perspective accepts the inevitability of conflict and regards
trade unions as essential actors in negotiating workplace stability and ensuring equity. At UASA,
elements of the pluralist model can be seen in its formal engagement with unions through
recognised bargaining forums and its participation in structures like the Automotive Industry
Bargaining Council (AIBC). The company's willingness to involve trade unions in strategic
planning and transformation processes suggests a pluralist leaning, particularly in how it
manages structured dialogue and collective bargaining.
However, the radical perspective, derived from Marxist theory and advanced by scholars like
Hyman (1975), interprets conflict not merely as a difference of opinion but as a reflection of
deep structural inequalities inherent in capitalist employment relations. From this view,
management’s embrace of digital automation could be construed as a strategy to suppress labour
costs, weaken worker power, and entrench capitalist control. UASA’s digital shift has resulted in
job displacement, increased performance monitoring, and deskilling of traditional roles—all of
which reinforce the power imbalance between capital and labour. Union resistance to automation
and reskilling policies indicates a recognition of these risks, aligning with the radical critique of
4IR as a tool for employer domination rather than shared prosperity.
While UASA adopts formal pluralist mechanisms, the dominant labour relations theory
shaping its transformation is arguably radical. The strategic direction of its automation efforts
and the centralisation of decision-making in management reflect an overarching goal to preserve
profit margins and corporate competitiveness in a volatile global market. The resulting
tensions—such as increased strike activity, contestations over retrenchments, and pushback
against unilateral decision-making—highlight systemic conflict that transcends surface-level
negotiation. As noted by Buhlungu and Webster (2006), South African labour relations continue
to be influenced by structural inequality, and companies like UASA cannot be divorced from the
country’s legacy of adversarial labour relations.
Moreover, UASA’s reluctance to implement union-proposed alternatives to retrenchment, such
as work-sharing or phased reskilling, reinforces the radical critique. The transformation process,
though couched in business sustainability, reflects limited worker agency and participation. The
management’s narrative of “inevitable” technological change thus becomes a tool to justify
exclusionary practices. In this way, the theory-in-use departs from pluralist ideals of mutual
accommodation and reflects the radical assertion that power and control in the workplace remain
largely vested in capital.
, In sum, while UASA superficially operates within a pluralist institutional framework—engaging
with unions and following collective bargaining protocols—the underlying dynamics of its
digital transformation reveal a predominantly radical labour relations approach. This duality
underscores the importance of contextualising theory within South Africa’s socio-economic and
historical landscape, where union strength, inequality, and employer resistance continue to shape
industrial relations.
📚 REFERENCES (APA 7th)
Buhlungu, S. & Webster, E. (2006). Work restructuring and the future of labour in South
Africa. Work Organisation, Labour and Globalisation, 1(1), 61–79.
Fox, A. (1966). Industrial Sociology and Industrial Relations. Royal Commission on
Trade Unions and Employers' Associations, Research Paper No. 3.
Hyman, R. (1975). Industrial Relations: A Marxist Introduction. London: Macmillan.
Webster, E., Britwum, A., & Bhowmik, S. (2017). Globalisation, Work and Employment:
A South African Perspective. Routledge.
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Question 2: Employment Relations Role-Players (15 Marks)
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QUESTION 2: Employment Relations Role-Players (15 Marks)
Examines the key role-players in UASA’s employment relations framework—including
management, trade unions, bargaining councils, and state bodies—and evaluates their impact at
the organisational, sectoral, and national levels, with insights into power dynamics and stability
in the automotive industry.
The employment relations framework at Ubuntu AutoTech South Africa (UASA) reflects the
layered and institutionalised nature of industrial relations in South Africa. The interplay between
management, trade unions, bargaining councils, and state bodies significantly shapes
workplace dynamics and determines the stability and responsiveness of the automotive industry
in the face of challenges such as digital transformation, economic volatility, and policy shifts.
At the organisational level, management plays a critical role in setting the strategic direction
for operations and workforce planning, especially as UASA transitions into a digital
manufacturing model. Management at UASA is tasked with navigating the tension between
operational efficiency and employee welfare. In response to automation, for example,