, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
Question 1
1.1. Critically analyse how union involvement is likely to influence the design and structure of
the remuneration system at Mpofu Cleaning Centre, considering the nature of its workforce and
operational context
Union involvement is a critical factor in shaping the design and structure of remuneration systems.
At Mpofu Cleaning Centre, where the majority of the workforce is unionised, the General Services
Workers Union (GSWU) will exert significant influence to ensure fairness, transparency, and equity
in pay structures. Research highlights that unions often resist individualised pay-for-performance
models, as these may foster unhealthy competition, subjective assessments, and undermine solidarity
(Remuneration Management, 2019). Instead, unions typically advocate for collective or team-based
incentives, standardised performance measures, and equal pay structures to promote cohesion and
fairness among employees (HRM3705, 2017).
In terms of structure, the union is likely to push for remuneration policies that limit managerial
discretion and emphasise historical or collectively agreed standards. This means performance-based
pay schemes must be negotiated, jointly administered, and include transparent criteria for evaluation.
Given the operational context of Mpofu Cleaning Centre—labour-intensive, low-skilled, and
urban-based services—the union’s influence is even stronger. In such industries, where workers are
vulnerable to exploitation, unions serve as a protective mechanism against arbitrary pay practices
and demand systems that emphasise group rewards over individual differentials (Remuneration
Management, 2019).
Thus, the design of Mpofu’s remuneration system will be reshaped towards collective fairness,
reduced managerial discretion, and team-oriented structures that reflect both the workforce’s
unionised nature and the service-oriented operational environment.
1.2. Evaluate the strategic role of the union in shaping the level of remuneration and bargaining
outcomes at Mpofu Cleaning Centre, with reference to collective bargaining, labour market
dynamics, and demand-side strategies.
Unions play a strategic role in determining not only the level of remuneration but also the overall
bargaining outcomes in organisations such as Mpofu Cleaning Centre. Through collective bargaining,
unions negotiate salaries, benefits, allowances, and conditions of employment. In South Africa,
collective bargaining is well established and ensures that employee wages are protected against
inflationary erosion, while also securing additional benefits such as overtime and bonuses
(Remuneration Management, 2019). At Mpofu, the GSWU will likely use its bargaining power to
resist excessive managerial control in remuneration decisions and to secure equitable, predictable
increases that align with inflation and industry standards.
Labour market dynamics also shape these negotiations. South Africa’s high unemployment and large
pool of semi-skilled labour place downward pressure on wages. However, unionised employees
typically secure wage premiums and better benefits compared to non-unionised workers (HRM3705,
2017). The GSWU will therefore act strategically to protect its members from market-driven wage
suppression by negotiating minimum wage standards and advocating for conditions that sustain
decent livelihoods.
Question 1
1.1. Critically analyse how union involvement is likely to influence the design and structure of
the remuneration system at Mpofu Cleaning Centre, considering the nature of its workforce and
operational context
Union involvement is a critical factor in shaping the design and structure of remuneration systems.
At Mpofu Cleaning Centre, where the majority of the workforce is unionised, the General Services
Workers Union (GSWU) will exert significant influence to ensure fairness, transparency, and equity
in pay structures. Research highlights that unions often resist individualised pay-for-performance
models, as these may foster unhealthy competition, subjective assessments, and undermine solidarity
(Remuneration Management, 2019). Instead, unions typically advocate for collective or team-based
incentives, standardised performance measures, and equal pay structures to promote cohesion and
fairness among employees (HRM3705, 2017).
In terms of structure, the union is likely to push for remuneration policies that limit managerial
discretion and emphasise historical or collectively agreed standards. This means performance-based
pay schemes must be negotiated, jointly administered, and include transparent criteria for evaluation.
Given the operational context of Mpofu Cleaning Centre—labour-intensive, low-skilled, and
urban-based services—the union’s influence is even stronger. In such industries, where workers are
vulnerable to exploitation, unions serve as a protective mechanism against arbitrary pay practices
and demand systems that emphasise group rewards over individual differentials (Remuneration
Management, 2019).
Thus, the design of Mpofu’s remuneration system will be reshaped towards collective fairness,
reduced managerial discretion, and team-oriented structures that reflect both the workforce’s
unionised nature and the service-oriented operational environment.
1.2. Evaluate the strategic role of the union in shaping the level of remuneration and bargaining
outcomes at Mpofu Cleaning Centre, with reference to collective bargaining, labour market
dynamics, and demand-side strategies.
Unions play a strategic role in determining not only the level of remuneration but also the overall
bargaining outcomes in organisations such as Mpofu Cleaning Centre. Through collective bargaining,
unions negotiate salaries, benefits, allowances, and conditions of employment. In South Africa,
collective bargaining is well established and ensures that employee wages are protected against
inflationary erosion, while also securing additional benefits such as overtime and bonuses
(Remuneration Management, 2019). At Mpofu, the GSWU will likely use its bargaining power to
resist excessive managerial control in remuneration decisions and to secure equitable, predictable
increases that align with inflation and industry standards.
Labour market dynamics also shape these negotiations. South Africa’s high unemployment and large
pool of semi-skilled labour place downward pressure on wages. However, unionised employees
typically secure wage premiums and better benefits compared to non-unionised workers (HRM3705,
2017). The GSWU will therefore act strategically to protect its members from market-driven wage
suppression by negotiating minimum wage standards and advocating for conditions that sustain
decent livelihoods.
