REVISED EDITION Labour Relations in South Africa Editor ROBERT VENTER Contributors MATTHEW GROSSETT STEPHEN HILLS OXFORD UNIVERSITY PRESS
Contents Foreword Acknowledgements and dedications Copyright acknowledgements viii ix x An introduction to labour relations l 1.1 What is labour relations? 3 1.2 Defining labour relations 3 1.3 The origins of labour relations 4 1.4 The major theories on labour relations 7 1.5 The parties to the employment relationships and their respective roles 9 1.6 The environment for labour relations in South Africa 18 1.7 29 The historical development of South African labour relations 32 2.1 Introduction 33 2.2 The origins of South African labour law 34 2.3 The industrial era - the introduction of the colour bar 34 2.4 Towards an industrial conciliation mechanism 36 2.5 The 1930s to the 1970s 38 2.6 The Wiehahn Commission of Inquiry into Labour Legislation: Towards the deracialization of South African labour relations 41 2.7 The eighties 42 2.8 The nineties: An ethos of change 43 2.9 1999 and beyond: Challenges for South African labour relations 46 2.10 46 Comparative analysis: Mexico, Poland, and South Africa 49 3.1 Introduction 50 111
3.2 3.3 3.4 3.5 framework tor analysis The Mexican situation The Polish situation 50 51 56 60 6 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 5.1 5.2 5.3 5.4 5.5 5.6 5.7 The 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 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 63 65 66 67 84 90 92 93 94 100 102 104 105 110 112 114 114 117 120 129 134 137 139
7 The South African labour legislative framework 142 7.1 Introduction 148 7.2 Contract of employment 148 7.3 The Labour Relations Act 66 of 1995 166 7.4 The Basic Conditions of Employment Act 75 of 1997 192 7.5 The Occupational Health and Safety Act 85 of 1993 202 7.6 The Compensation for Occupational Injuries and Diseases Act 130 of 1993 204 7.7 The Unemployment Insurance Act 63 of 2001 206 7.8 The Unemployment Insurance Contributions Act 4 of 2002 209 7.9 The Employment Equity Act 55 of 1998 209 7.10 The Skills Development Act 97 of 1998 215. 7.11 The Skills Development Levies Act 9 of1999 216 7.12 The labour amendment Acts: A commentary 219 7.13 The Insolvency Amendment Bill 223 7.14 224 8 Managing labour relations in the workplace 239 8.1 Introduction 242 8.2 Discipline and dismissal 244 8.3 Procedural fairness 245 8.4 Substantive fairness 253 8.5 Dismissals based on operational requirements 276 8.6 Grievance and disciplinary procedures 284 8.7 The disciplinary code and procedure 289 8.8 294 9 Collective bargaining and organizational rights 349 9.1 Introduction 350 9.2 The duty to bargain 350 9.3 Organizational rights 351 9.4 The collective bargaining process 354 9.5 363
10 Negotiation 365 10.1 10.2 10.3 10.4 10.5 10.6 10.7 Introduction Defining negotiation Internal and external factors impacting on negotiations Negotiating tactics Negotiating strategies The negotiating process 367 367 368 373 374 375 379 11 Dispute resolution 381 11.1 Introduction 383 11.2 The concept and nature of labour disputes 383 11.3 Methods of dispute resolution 384 11.4 Dispute resolution under the Labour relations Act 66 of 1995 390 11.5 405 12 Worker participation in South Africa 438 12.1 Introduction 440 12.2 Defining worker participation 441 12.3 Objectives of worker participation 441 12.4 Forms of worker participation 446 12.5 Implementing worker participation 448 12.6 Essential ingredients for the success of a worker participation 456 12.7 Impediments to worker participation 463 12.8 465 13 Industrial action 469 13.1 Introduction 470 13.2 Progressions in the law on strikes 471 13.3 Strike action 474 13.4 Lockout 479 13.5 Protected strikes and lockouts under the 1995 Labour Relations Act 480
13.6 Secondary strikes 481 13.7 Strikes and lockouts in response to dismissals for operational requirements 482 13.8 Limitations on the right to strike or recourse to lockout 483 13.9 Strikes and lockouts in compliance with the Act 484 13.10 Strikes and lockouts not in compliance with the Act 485 13.11 Specific provisions relating to the right to strike 487 13.12 The practicalities of strike management 495 13.13 495 14 Labour relations in South Africa: Some future patterns and predictions 519 14.1 Introduction 520 14.2 The Southern African Development Council, the Non-Aligned Movement, the African Union, the International Labour Organization and NEPAD 520 14.3 The continuing role of the Commission for Conciliation, Mediation and Arbitration (CCMA) 522 14.4 The National Economic Development and Labour Council (NEDLAC) 522 14.5 The ANC-COSATU alliance 522 14.6 Labour market flexibility and international compensation 523 14.7 The changing face of the employment relationship 525 14.8 HIV/AIDS: Implications and strategies 526 14.9 526 Index 529 vn