Labour Relations in South Africa

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1 REVISED EDITION Labour Relations in South Africa Editor ROBERT VENTER Contributors MATTHEW GROSSETT STEPHEN HILLS OXFORD UNIVERSITY PRESS

2 Contents Foreword Acknowledgements and dedications Copyright acknowledgements viii ix x An introduction to labour relations l 1.1 What is labour relations? Defining labour relations The origins of labour relations The major theories on labour relations The parties to the employment relationships and their respective roles The environment for labour relations in South Africa The historical development of South African labour relations Introduction The origins of South African labour law The industrial era - the introduction of the colour bar Towards an industrial conciliation mechanism The 1930s to the 1970s The Wiehahn Commission of Inquiry into Labour Legislation: Towards the deracialization of South African labour relations The eighties The nineties: An ethos of change and beyond: Challenges for South African labour relations Comparative analysis: Mexico, Poland, and South Africa Introduction

3 framework tor analysis The Mexican situation The Polish situation Participants in South Africa's labour relations system 4.1 Introduction: The tripartite relationship in industrial relations 4.2 The state 4.3 Employees and trade unions 4.4 Employers and employers' organizations 4.5 The The economics of labour relations Introduction The demand and supply of labour The marginal productivity of labour Monopolies and monopsonies Marginal utility of wages and the backward-bending supply curve Intervention in the labour market South African labour market Introduction Unemployment Education and training AIDS in the workplace Affirmative action Labour productivity and the economy An evaluation of the Growth, Employment and Redistribution (GEAR) strategy

4 7 The South African labour legislative framework Introduction Contract of employment The Labour Relations Act 66 of The Basic Conditions of Employment Act 75 of The Occupational Health and Safety Act 85 of The Compensation for Occupational Injuries and Diseases Act 130 of The Unemployment Insurance Act 63 of The Unemployment Insurance Contributions Act 4 of The Employment Equity Act 55 of The Skills Development Act 97 of The Skills Development Levies Act 9 of The labour amendment Acts: A commentary The Insolvency Amendment Bill Managing labour relations in the workplace Introduction Discipline and dismissal Procedural fairness Substantive fairness Dismissals based on operational requirements Grievance and disciplinary procedures The disciplinary code and procedure Collective bargaining and organizational rights Introduction The duty to bargain Organizational rights The collective bargaining process

5 10 Negotiation Introduction Defining negotiation Internal and external factors impacting on negotiations Negotiating tactics Negotiating strategies The negotiating process Dispute resolution Introduction The concept and nature of labour disputes Methods of dispute resolution Dispute resolution under the Labour relations Act 66 of Worker participation in South Africa Introduction Defining worker participation Objectives of worker participation Forms of worker participation Implementing worker participation Essential ingredients for the success of a worker participation Impediments to worker participation Industrial action Introduction Progressions in the law on strikes Strike action Lockout Protected strikes and lockouts under the 1995 Labour Relations Act 480

6 13.6 Secondary strikes Strikes and lockouts in response to dismissals for operational requirements Limitations on the right to strike or recourse to lockout Strikes and lockouts in compliance with the Act Strikes and lockouts not in compliance with the Act Specific provisions relating to the right to strike The practicalities of strike management Labour relations in South Africa: Some future patterns and predictions Introduction The Southern African Development Council, the Non-Aligned Movement, the African Union, the International Labour Organization and NEPAD The continuing role of the Commission for Conciliation, Mediation and Arbitration (CCMA) The National Economic Development and Labour Council (NEDLAC) The ANC-COSATU alliance Labour market flexibility and international compensation The changing face of the employment relationship HIV/AIDS: Implications and strategies Index 529 vn

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