INDUSTRIAL RELATIONS AND NEGOTATIONS

IRN201B Chapter 1
1 Semester 2020 Introduction to Labour Relations
CHAPTER 1
Introduction to Labour Relations

Learning objectives

1. Define labour relations (LR).

2. Describe the organisational rationale for labour relations.
3. Describe the roles of organisational stakeholders in labour relations.
4. Explain the nature of and role of rights and duties in labour relations.
5. Explain the interest and concerns of employers and employees.
6. Describe the employer stakeholder perspective on LR.
7. Explain the nature of demand and supply of labour.
8. Describe the employee stakeholder perspective on LR.

BENDIX 1-23
 INDUSTRIAL RELATIONS AND NEGOTATIONS
(IRN201B)

Lecturer details
Name of Lecturer: Prof WK Kupolati
Email address: kupolatiwk@tut.ac.za
Telephone number: 012 382 5227
Office location: Building 3 Room 516
Consultation: Mondays, Thursdays & Fridays (09.30 – 11.30)
1. Prescribed textbook
• BENDIX, S., 2014. Labour Relations in Practice: An outcomes-based approach. Cape
Town: Juta & Co.
2. Recommended resources
 www.ccma.org.za, www.labour.gov.za, www.ccma.co.za (SA Labour Guide)
 HR Future (Subject related periodical)
 South African Journal of Labour Relations (Scientific journal)
 NEL, P.S., SWANEPOEL, B.J., KIRSTEN, M., ERASMUS, B.J. & POISAT, P.
 2011. South African Employment Relations - theory and practice. Seventh edition.
Pretoria: Van Schaik.
 VENTER, R & LEVY, A. 2011. Labour Relations in South Africa. Cape Town: Oxford
University Press
 GROGAN, J. 2009. Workplace law. Tenth edition. Cape Town: Juta & Co.
 BENDIX, S. 2010. Industrial relations in South Africa. Fifth edition. Cape Town. Juta
& Co.
 EHLERS, L.I. 2007. Labour Relations systems, procedures and practice.
 Pretoria: EAMS Publishing. (May be downloaded from MyTutor)
DATE Block SECTION
1st Block 1 Introduction Topic 1 Introduction to labour relations (Chapter 1)
1st Block 1 Topic 2 Labour law (Chapter2) Employment contracts (Chapter 5)
Topic 3
1st Block 1 Topic 4 Fair employment practice (Chapter 4)

2nd Block 2 Topic 5 Employee wellness (Chapter 6)

2nd Block 2 Topic 6 Employee advancement (Chapter 7)

2nd Block 2 Test 1 Topic 1- 5 (60% theory + 40% application)

3rd Block 3 Topic 7 Communication and grievances (Chapter 8) Discipline and

Topic 8 dismissal (Chapter 9)
3rd Block 3 Topic 9 Employee representation (Chapter 3)

3rd Block 3 Topic 10 Collective bargaining (Chapter 3)

Test 2 Topic 6- 9 (60% theory + 40% application)
4th Block 4 Topic 11 Dispute resolution (Chapter 10) Industrial action (Chapter
Topic 12 10)
4th Block 4 Revision Exam preparation

4th Block 4 Revision & Topic 10-12 (60% theory + 40% application)
Project hand-in
CHAPTER 1
Introduction to Labour Relations

Learning objectives

1. Define labour relations (LR).

2. Describe the organisational rationale for labour relations.
3. Describe the roles of organisational stakeholders in labour relations.
4. Explain the nature of and role of rights and duties in labour relations.
5. Explain the interest and concerns of employers and employees.
6. Describe the employer stakeholder perspective on LR.
7. Explain the nature of demand and supply of labour.
8. Describe the employee stakeholder perspective on LR.

BENDIX 1-23
 CHAPTER 1
Introduction to Labour Relations
Learning objectives

9. Discuss the role of conflict in LR stakeholder interactions.

10.Describe the role of power in LR stakeholder interactions.
11. Describe the need for policies and procedures in LR.

12. Describe the role of the LR practitioner in LR.

13. Draw and explain a diagram of external societal influences on LR.
14. Draw and explain a diagram of the labour relations system.
15. Describe the causes and outcomes of labour relations interaction
in different organisational scenarios.

BENDIX 1-23
 Define labour relations (LR)

“ Labour relations encompasses the ongoing

process of interaction and power testing between
parties which may include the state, employers
and their organisations, as well as employees and
their unions”
(Finnemore 2009)
 Describe the organisational rationale for labour
relations
• Why do organisations exist?
– Manufacture goods
– Provide a service
• Private or
• Public
– The main focus is to be cost-effective in pursuit of
this purpose
 Describe the roles of organisational stakeholders in labour
relations
EMPLOYER MANAGEMENT EMPLOYEE SHOP STEWARD

Founds Input in vision, Performs job for Represent

organisation, mission, establish which he was employees vis
funding, creates policies and employed, input in management and
vision, mission, operational work processes interests of union
strategic plan, procedures, directs
monitor and and controls day-to-
controls day operations,
organisation employ employees
and control and
direct them

BENDIX 9-10
 Explain the nature of and role of rights and duties in labour
relations
Employee (EE) Employer (ER) Employee (EE) Employer (ER)
Rights Duties Duties Rights

Paid for work performed Pay the ee Perform work diligently Demand service from ee

Paid at agreed time and Perform to expected Demand work up to

place Pay regularly as agreed standards standard

Work in healthy and safe Eradicate/limit health Obey lawful/reasonable Issue reasonable and
conditions hazards instructions lawful instructions

Work in job for which he Not unlawfully deprive Present himself for work
was employed ee of work /status at proper time and place To determine time and
place of work
To maintain respect and
promote the interests of
the er Ensure mutual respect is
maintained and that
interests of organisation
 Explain the interest and concerns of ERs and EEs
• The employer’s main concerns are
– Produce goods and services
– Profit (private organisation)
– Efficiency
– Cost effectiveness
– change
– Image of the organisation
• The employee’s main concerns are
– Earning a living
– Earning the highest possible salary
– Job security
– Job satisfaction, recognition, fair treatment and respect
Bendix 8-9
 Describe the employer stakeholder perspective
on LR
• The Employer
– Found the organisations

– Directs and controls all aspects of the organisations (known as

the employer prerogative)

– Believes that employees are there to perform the job they are
employed for at the required standards

– Will usually pay employees only what the market requires and
not more (see labour economics section)
Bendix 9-10
Explain the nature of demand and supply of labour

Class Discussion
(Take notes)

Bendix 11-13
 Describe the employee stakeholder
perspective on
• The employee
– Sees the organisation merely as a place to work to
make a living
– May or may not be concerned with the success
– May also find a sense of identity within an
organisation
– Perceive their work as valuable to the organisation
– Enjoys interaction in the workplace

Bendix 14-15
 Discuss the role of conflict in LR stakeholder
interactions
• Employers and employees will always have
conflicting interests
• Sources of conflict are
– Maximising profits
– Maximising efficiency
– Employers’ expectations vs employees’ expectations
– See page 18 for major sources of conflict

Bendix 18
 Describe the role of power in LR stakeholder
interactions
• Where there is potential for conflict, there will
be power play

• Class discussion- Where does the power lie in

SA Employment relationships and why?

Bendix 19
 Describe the need for policies and procedures
(P&P) in LR
• Any matter in an organisation needs to be dealt with
consistently and effectively
• Policies and procedures provides a framework for
consistent and effective functioning of an
organisation
• The P&P should be known to all
• Examples of policies are
– Financial policies - Recruitment policy
– Equity policy - Labour relations policy
– Sales policy - HRM policy
Bendix 19-21
 Describe the role of the LR practitioner in LR

• Class discussion- What is the role of HRM in

an organisation?

Bendix 21-22
 Describe the role of the LR practitioner in LR
IR Practitioner:
• Promote fair and equitable practices
• Formulate policies and procedures
• Ensure legal compliance
• Ensure continuous training and communication
• Assist in recruitment / advertising of vacancies
• Prevent and resolve conflict
• Mediate conflicts
• Interact with shop stewards
• Advise on handling industrial action
• Contribute to strategic objectives re employees
Bendix 21-22
 Draw and explain a diagram of
external societal influences on LR
Global events
History

Jobs
SOCIAL ECONOMIC SYSTEM
SYSTEM

LABOUR RELATIONS
SYSTEM

Social Spending Tax

Human nature Technology

POLITICAL SYSTEM

Nature
Draw and explain a diagram of the
labour relations system
 Case Studies

• p10, p14, p16, p20