P.S.
2023
IOP3704 Assignment 03 Complete Answers
Employment Relations
Unique Number: 649690
Due Date: 16 October 2023 @ 9 A.M.
Textbook Used: Employment Relations in South Africa: A Psychological Perspective by
Matjie (2023) 1st Edition. (Page numbers included for Q2-Q5)
, Answers:
Question 1: Identify the main disturbing issues in this case study, and in your opinion,
explain how each could have been better handled by the parties involved. (14)
Breakdown in wage negotiations
Strike action has been taken as a result of the university's and the union's prolonged failure
to achieve a salary raise agreement. If all parties had been more prepared to make
concessions and establish common ground, this situation might have been resolved more
amicably. In order to meet the objectives of the trade union while also taking into account
the budgetary limitations of Bantu University, they may have looked into different
alternatives like performance-based bonuses and higher pay perks.
Inflation rate and wage decline
The trade union claims that Bantu University's offer of 4% is too low because accepting it
would cause employees' wages to shrink and their purchasing power to decrease. The
average inflation rate is projected to be 6,9%. If Bantu University had considered the rate
of inflation, offered a more appropriate wage rise, and perhaps also gave perks to bridge
the difference, this problem could have been addressed better, preserving the purchasing
power of the workforce and preventing a wage loss.
Equal pay across races
The labor organization is pushing for equal compensation for equal work for all employees,
regardless of color. If Bantu University had adopted a transparent pay structure that ensures
2023
IOP3704 Assignment 03 Complete Answers
Employment Relations
Unique Number: 649690
Due Date: 16 October 2023 @ 9 A.M.
Textbook Used: Employment Relations in South Africa: A Psychological Perspective by
Matjie (2023) 1st Edition. (Page numbers included for Q2-Q5)
, Answers:
Question 1: Identify the main disturbing issues in this case study, and in your opinion,
explain how each could have been better handled by the parties involved. (14)
Breakdown in wage negotiations
Strike action has been taken as a result of the university's and the union's prolonged failure
to achieve a salary raise agreement. If all parties had been more prepared to make
concessions and establish common ground, this situation might have been resolved more
amicably. In order to meet the objectives of the trade union while also taking into account
the budgetary limitations of Bantu University, they may have looked into different
alternatives like performance-based bonuses and higher pay perks.
Inflation rate and wage decline
The trade union claims that Bantu University's offer of 4% is too low because accepting it
would cause employees' wages to shrink and their purchasing power to decrease. The
average inflation rate is projected to be 6,9%. If Bantu University had considered the rate
of inflation, offered a more appropriate wage rise, and perhaps also gave perks to bridge
the difference, this problem could have been addressed better, preserving the purchasing
power of the workforce and preventing a wage loss.
Equal pay across races
The labor organization is pushing for equal compensation for equal work for all employees,
regardless of color. If Bantu University had adopted a transparent pay structure that ensures
