LRM3601
OCT/NOV EXAM 2025
UNIQUE NO.
DUE DATE: 0CTOBER 2025
, CONFIDENTIAL
Page 4 of 6 LRM3601
Oct/Nov 2025
ANSWER ALL THREE QUESTIONS.
Read the case study for the three questions and then answer ALL the questions.
Ubuntu Textiles (Pty) Ltd
Ubuntu Textiles is a medium-sized clothing manufacturer in Durban employing 350 workers, of
whom 60% are members of the South African Clothing and Textile Workers’ Union (SACTWU).
Ubuntu Textiles operates in a highly challenging environment. The South African clothing and textile
industry faces intense global competition from cheaper imports, rising production costs due to
increasing electricity tariffs, and frequent load-shedding that disrupts operations. High regional
unemployment has placed additional pressure on the company to create and sustain jobs, while
strict labour legislation requires full compliance with fair labour practices. Furthermore, shifts
towards automation and the Fourth Industrial Revolution (4IR) are reshaping the sector, creating
uncertainty about the future of traditional manufacturing jobs.
Recently, the company has experienced several challenges:
1. Labour Relations Environment: Employees complain that management decisions are often
top-down, with little worker consultation. Management argues that consultation slows down
production. Tensions are rising between shop stewards and supervisors.
2. Policies and Strategy: Ubuntu Textiles’ employment relations policy was last updated in
2017. It makes little reference to current labour legislation amendments or issues such as
decent work and workplace transformation. The HR manager is pressured to align the policy
with organisational strategy and sustainability goals.
3. Conflict: A dispute has arisen after 25 workers were informed that their employment
contracts would be ended due to “operational requirements.” Workers argue that this amounts
to unfair dismissal since there was no consultation.
Some employees have threatened strike action, stating that management clearly does not
care about them. According to them, management's production targets are unrealistic,
jeopardising their well-being. Moreover, wages are not market related.
4. Worker Participation: Employees feel excluded from decision-making, particularly regarding
production targets, health and safety, and shift allocations. Union leaders are pushing for
stronger participatory structures such as joint decision-making and consultation forums.
Ubuntu Textiles now faces the urgent task of revising its labour relations practices to restore trust,
comply with legislation, and ensure a sustainable and fair working environment.
[TURN OVER]
OCT/NOV EXAM 2025
UNIQUE NO.
DUE DATE: 0CTOBER 2025
, CONFIDENTIAL
Page 4 of 6 LRM3601
Oct/Nov 2025
ANSWER ALL THREE QUESTIONS.
Read the case study for the three questions and then answer ALL the questions.
Ubuntu Textiles (Pty) Ltd
Ubuntu Textiles is a medium-sized clothing manufacturer in Durban employing 350 workers, of
whom 60% are members of the South African Clothing and Textile Workers’ Union (SACTWU).
Ubuntu Textiles operates in a highly challenging environment. The South African clothing and textile
industry faces intense global competition from cheaper imports, rising production costs due to
increasing electricity tariffs, and frequent load-shedding that disrupts operations. High regional
unemployment has placed additional pressure on the company to create and sustain jobs, while
strict labour legislation requires full compliance with fair labour practices. Furthermore, shifts
towards automation and the Fourth Industrial Revolution (4IR) are reshaping the sector, creating
uncertainty about the future of traditional manufacturing jobs.
Recently, the company has experienced several challenges:
1. Labour Relations Environment: Employees complain that management decisions are often
top-down, with little worker consultation. Management argues that consultation slows down
production. Tensions are rising between shop stewards and supervisors.
2. Policies and Strategy: Ubuntu Textiles’ employment relations policy was last updated in
2017. It makes little reference to current labour legislation amendments or issues such as
decent work and workplace transformation. The HR manager is pressured to align the policy
with organisational strategy and sustainability goals.
3. Conflict: A dispute has arisen after 25 workers were informed that their employment
contracts would be ended due to “operational requirements.” Workers argue that this amounts
to unfair dismissal since there was no consultation.
Some employees have threatened strike action, stating that management clearly does not
care about them. According to them, management's production targets are unrealistic,
jeopardising their well-being. Moreover, wages are not market related.
4. Worker Participation: Employees feel excluded from decision-making, particularly regarding
production targets, health and safety, and shift allocations. Union leaders are pushing for
stronger participatory structures such as joint decision-making and consultation forums.
Ubuntu Textiles now faces the urgent task of revising its labour relations practices to restore trust,
comply with legislation, and ensure a sustainable and fair working environment.
[TURN OVER]
