industrial relations

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INDUSTRIAL RELATIONS

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CONTENT

1.0 INDUSTRIAL RELATIONS

1.1 Define “Industrial Relations”.

• Industrial relations is the study of how people in power make decisions which effect the relationships between employers and Employees.

• Industrial relations is a multidisciplinary field that studies the employment relationship. Industrial relations is increasingly being called employment relations or employee relations because of the importance of non-industrial employment relationships; this move is sometimes seen as further broadening of the human resource management trend. Indeed, some authors now define human resource management as synonymous with employee relations. Other authors see employee relations as dealing only with non-unionized workers, whereas labor relations is seen as dealing with unionized workers. Industrial relations studies examine various employment situations, not just ones with a unionized workforce. However, according to Bruce E. Kaufman "To a large degree, most scholars regard trade unionism, collective bargaining and labor-management relations, and the national labor policy and labor law within which they are embedded, as the core subjects of the field."

Summary:

• IR Can be the cause of success or failure of business. • IR is effected by the macro environment • The government and unions play a vital role in IR negotiations, from these negotiations laws

sometimes are altered. • Governments have control through legislation to enforce things such as working conditions and

pay. They generally rely on independent tribunals to settle the matters of industrial conflict. • IRC (Industrial Relations Commission) is responsible for the majority of the conciliation and

arbitration in this country • Unions effectiveness depends largely on the number of workers in registered unions vs's the

amount which are independent • Employers like employees don't all have the one union but have ones specialized for their

particular area • Different types of trade unions have different policies and practices, power and influence • Larger firms (with generally larger number of employees) have quite a lot of people involved

with the IR of the business

� Industrial relation means the relationship between employers and employees in course of

employment in industrial organizations. However, the concept of Industrial Relations has a broader meaning. In a broad sense, the term Industrial Relations includes the relationship between the various unions, between the state and the unions as well as those between the various employers and the government. Relations of all those associated in an industry may be called Industrial Relations.

� According to International Labour Organization, Industrial relations comprise

relationships between the state on one hand and the employer’s and employee’s organization on the other, and the relationship among the occupational organizations themselves.

� Definition: According to J.T. Dunlop, “Industrial relations are the complex interrelations among

managers, workers and agencies of the government”


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Features of Industrial Relations:

1. Industrial relations are outcomes of employment relationships in an industrial enterprise. These relations cannot exist without the two parties namely employers and employees.

2. Industrial relations system creates rules and regulations to maintain harmonious relations.

3. The government intervenes to shape the industrial relations through laws, rules, agreements, terms, charters etc.

4. Several parties are involved in the Industrial relations system. The main parties are employers and their associations, employees and their unions and the government. These three parties interact within economic and social environment to shape the Industrial relations structure.

5. Industrial relations are a dynamic and developing concept, not a static one. They undergo changes with changing structure and scenario of the industry as and when change occurs.

6. Industrial relations include both individual relations and collective relationships.

Objectives of Industrial Relations:

1. To maintain industrial democracy based on participation of labour in the management and gains of industry.

2. To raise productivity by reducing tendency of high labour turnover and absenteeism.

3. To ensure workers’ participation in management of the company by giving them a fair say in decision-making and framing policies.

4. To establish a proper channel of communication.

5. To increase the morale and discipline of the employees.

6. To safeguard the interests of the labour as well as management by securing the highest level of mutual understanding and goodwill between all sections in an industry.

7. To avoid all forms of industrial conflicts so as to ensure industrial peace by providing better living and working standards for the workers.

8. To bring about government control over such industrial units which are running at a loss for protecting the livelihood of the employees.

� To safeguard the interest of labor and management by securing the highest level of mutual

understanding and good-will among all those sections in the industry which participate in the

process of production.

� To avoid industrial conflict or strife and develop harmonious relations, which are an essential

factor in the productivity of workers and the industrial progress of a country.

� To raise productivity to a higher level in an era of full employment by lessening the tendency to

high turnover and frequency absenteeism.

• To establish and promote the growth of an industrial democracy based on labor

partnership in the sharing of profits and of managerial decisions, so that ban individuals

personality may grow its full stature for the benefit of the industry and of the country as

well.

• To eliminate or minimize the number of strikes, lockouts and gheraos(to surround management) by providing reasonable wages, improved living and working conditions,

said fringe benefits.

• To improve the economic conditions of workers in the existing state of industrial

managements and political government.

• Socialization of industries by making the state itself a major employer


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• Vesting of a proprietary interest of the workers in the industries in which they are employed.

Importance of Industrial Relations:

1. Uninterrupted Production: The most important benefit of industrial benefits is that it ensures continuity of production. This means continuous employment for all involved right from managers to workers. There is uninterrupted flow of income for all. Smooth running of industries is important for manufacturers, if their products are perishable goods and to consumers if the goods are for mass consumption (essential commodities, food grains etc.). Good industrial relations bring industrial peace which in turn tends to increase production.

2. Reduction in Industrial disputes: Good Industrial relations reduce Industrial disputes. Strikes, grievances and lockouts are some of the reflections of Industrial unrest. Industrial peace helps in promoting co-operation and increasing production. Thus good Industrial relations help in establishing Industrial democracy, discipline and a conducive workplace environment.

3. High morale: Good Industrial relations improve the morale of the employees and motivate the worker workers to work more and better.

4. Reduced wastage: Good Industrial relations are maintained on the basis of co-operation and recognition of each other. It helps to reduce wastage of material, manpower and costs.

5. Contributes to economic growth and development.

Causes of poor Industrial Relations:

1. Economic causes: Often poor wages and poor working conditions are the main causes for unhealthy relations between management and labour. Unauthorized deductions from wages, lack of fringe benefits, absence of promotion opportunities, faulty incentive schemes are other economic causes. Other causes for Industrial conflicts are inadequate infrastructure, worn-out plant and machinery, poor layout, unsatisfactory maintenance etc.

2. Organizational causes: Faulty communications system, unfair practices, non-recognition of trade unions and labour laws are also some other causes of poor relations in industry.

3. Social causes: Uninteresting nature of work is the main social cause of poor Industrial relations. Dissatisfaction with job and personal life culminates into Industrial conflicts.

4. Psychological causes: Lack of job security, non-recognition of merit and performance, poor interpersonal relations are the psychological reasons for unsatisfactory employer-employee relations.

5. Political causes: Multiple unions, inter-union rivalry weaken the trade unions. Defective trade unions system prevailing in the country has been one of the most responsible causes for Industrial disputes in the country.

Suggestions to improve Industrial Relations:

1. Sound personnel policies: Policies and procedures concerning the compensation, transfer and promotion, etc. of employees should be fair and transparent. All policies and rules relating to Industrial relations should be fair and transparent to everybody in the enterprise and to the union leaders.

2. Participative management: Employees should associate workers and unions in the formulation and implementation of HR policies and practices.

3. Responsible unions: A strong trade union is an asset to the employer. Trade unions should adopt a responsible rather than political approach to industrial relations.

4. Employee welfare: Employers should recognize the need for the welfare of workers. They must ensure reasonable wages, satisfactory working conditions, and other necessary facilities for labour. Management should have a genuine concern for the welfare and betterment of the working class.


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5. Grievance procedure: A well-established and properly administered system committed to the timely and satisfactory redressal of employee’s grievances can be very helpful in improving Industrial relations. A suggestion scheme will help to satisfy the creative urge of the workers.

6. Constructive attitude: Both management and trade unions should adopt positive attitude towards each other. Management must recognize unions as the spokesmen of the workers’ grievances and as custodians of their interests. The employer should accept workers as equal partners in a joint endeavor for good Industrial relations.

7. Creating a proper communication channel to avoid grievances and misunderstandings among employees

8. Education and training imparted to the employees

Dunlop's Contribution to Industrial Relations

One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s. According to Dunlop industrial relations system consists of three agents – management organizations, workers and formal/informal ways they are organized and government agencies. These actors and their organizations are located within an environment – defined in terms of technology, labor and product markets, and the distribution of power in wider society as it impacts upon individuals and workplace. Within this environment, actors interact with each other, negotiate and use economic/political power in process of determining rules that constitute the output of the industrial relations system. He proposed that three parties—employers, labor unions, and government-- are the key actors in a modern industrial relations system. He also argued that none of these institutions could act in an autonomous or independent fashion. Instead they were shaped, at least to some extent, by their market, technological and political contexts.

Thus it can be said that industrial relations is a social sub system subject to three environmental constraints- the markets, distribution of power in society and technology. Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labor relationship:

1. Environmental or external economic, technological, political, legal and social forces that impact employment relationships.

2. Characteristics and interaction of the key actors in the employment relationship: labor, management, and government.

3. Rules that are derived from these interactions that govern the employment relationship.

Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial relations may be regarded as a system in the sense that each of them more or less intimately affects each of the others so that they constitute a group of arrangements for dealing with certain matters and are collectively responsible for certain results”. In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are the product of interaction between three key “actors” – workers/unions, employers and associated organizations and government The Dunlop’s model gives great significance to external or environmental forces. In other words, management, labor, and the government possess a shared ideology that defines their roles within the relationship and provides stability to the system.


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PERSPECTIVES OF INDUSTRIAL RELATIONS

1. Unitary perspective

In unitarism, the organization is perceived as an integrated and harmonious system, viewed as one happy family. A core assumption of unitary approach is that management and staff, and all members of the organization share the same objectives, interests and purposes; thus working together, hand-in-hand, towards the shared mutual goals. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as unnecessary and conflict is perceived as disruptive.

From employee point of view, unitary approach means that:

• Working practices should be flexible. Individuals should be business process improvement oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required.

• If a union is recognized, its role is that of a further means of communication between groups of staff and the company.

• The emphasis is on good relationships and sound terms and conditions of employment.

• Employee participation in workplace decisions is enabled. This helps in empowering individuals in their roles and emphasizes team work, innovation, creativity, discretion in problem-solving, quality and improvement groups etc.

• Employees should feel that the skills and expertise of managers supports their endeavors.

From employer point of view, unitary approach means that:

• Staffing policies should try to unify effort, inspire and motivate employees. • The organization's wider objectives should be properly communicated and discussed with

staff. • Reward systems should be so designed as to foster to secure loyalty and commitment. • Line managers should take ownership of their team/staffing responsibilities. • Staff-management conflicts - from the perspective of the unitary framework - are seen as

arising from lack of information, inadequate presentation of management's policies. • The personal objectives of every individual employed in the business should be discussed

with them and integrated with the organization’s needs.

2. Pluralistic perspective � In pluralism the organization is perceived as being made up of powerful and divergent

sub-groups - management and trade unions. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed could in fact be channelled towards evolution and positive change. Realistic managers should accept conflict to occur. There is a greater propensity for conflict rather than harmony.

They should anticipate and resolve this by securing agreed procedures for settling disputes. The implications of this approach include:


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• The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation.

• Independent external arbitrators should be used to assist in the resolution of disputes. • Union recognition should be encouraged and union representatives given scope to carry

out their representative duties • Comprehensive collective agreements should be negotiated with unions

3. Marxist perspective

This view of industrial relations is a byproduct of a theory of capitalist society and social change. Marx argued that:

I Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism.

I Capitalism would foster monopolies.

I Wages (costs to the capitalist) would be minimized to a subsistence level.

I Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident.

This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background. It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital.

1.2 Discuss the concept of ‘Industrial Relations’.

Concept of Industrial Relations:

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.” The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

The relationships which arise at and out of the workplace generally include the relationships between


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individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. Industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.

1.3 Explain the role of participants in industrial relations.

� An industrial relations system consists of the whole gamut of relationships between employers and employees and employers which are managed by the means of conflict and cooperation. A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.

Actors in the IR system: Three main parties are directly involved in industrial relations: Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes. Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions. Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court and the like. It also includes third parties and labor and tribunal courts.

SCOPE: The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.


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The scope or industrial relations is quite vast. The main issues involved here include the following:

1. Collective bargaining 2. Machinery for settlement of industrial disputes 3. Standing orders 4. Workers participation in management 5. Unfair labor practices

The Role of Government in Industrial Relations

� Industry and government work together to keep the economy moving. � The government plays a vital role in the industrial operations of the Zimbabwe. From economic

development to taxation laws and labor policies, government actions help bring about a system of uniformity and policy within the workplace. The Role of Industrial Relations

o The government's role in industrial relations is vitally important to the economy and establishes a relationship between employers and trade unions.

Laws o The government establishes laws that must be abided in the workplace. Some of these

include taxation, federal minimum wage and child labor laws. Regulations

o In an industrial work setting, many hazards present themselves to workers. One of the most effective watchdogs between the government and the employer is the Occupational Safety & Health Administration (OSHA). Safety regulations mandated by the government are policed through this organization.

The Most Recent Role o As the economic downturn became reality, the government had to take an

aggressive role to try to prevent another Great Depression. Through the Troubled Asset Relief Fund, also known as TARP, money was given to big corporations in trouble to avoid a collapse and drive the economy further down.

• Industrial relations describes the complex series of interactions and communications between industry management and employee unions.

• Aside from employers and employees, the government is the most influential force in the field of industrial relations.

Industrial Relations and Politics

o The top-level management of an industry represent financially powerful organizations, while employee unions wield strong voter/populist support. These two types of organizations are among the most politically influential. Both petition and lobby to influence the outcome of elections or the creation of legislation.

Laws and Regulations o Governments have created extensive legislation designed to protect and regulate

employees and employers. The field of industrial relations is constantly evolving to meet the demands of new legislation and regulations.

Regulation of Public Services o The employers and employees of industries that provide an essential public service

operate under heavier restrictions than members of other industries. Either party must notify the government before striking or instituting a lockout. The government may forcefully settle a dispute if a compromise is not reached quickly.

Court Rulings o Industrial relations disputes that cannot be resolved independently are often resolved

as legal disputes in court. The ruling in the case creates a precedent, which shapes future, similar conflicts, and may result in the creation of legislation.

Growing influence of government o The government has become an increasingly prominent figure in the industrial relations

arena. Management and unions often depend on the government to resolve disputes or change legislation to resolve a conflict.


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Management Role in Industrial Relations?

Industry management is one of two key players in the realm of industrial relations. Industrial relations describes the relationship between management (often top-level management) and employee organizations (like unions).

Top-level management

o Top-level management must communicate and negotiate with employee organizations to avoid strikes, law-suits and protests. This level of management interacts with employee organizations on a large-scale, as opposed to lower tiers of management which mostly rely on human resources to conduct employee interactions.

Low-level management

o Low-level (or local) management interacts with employees on an individual basis (often through a human resources department). All levels of management are involved in industrial relations, but low-level management has little or no say in big-picture decisions (employee compensation and benefit alterations).

Managements purpose in industrial relations

o In an industrial relations negotiation, management represents the interest of the company (and shareholders if applicable). Management must work with employees to develop compensation packages and policies that are acceptable for both parties.

Problems for management in industrial relations

o When the relationship between management and employees sour, management may be forced to develop a crisis-management plan. If an employee organization initiates a large-scale strike or protest, management must act quickly (either give-in to employee demands or find an alternate solution) to avoid crippling profit losses.

History of management's involvement in industrial relations

o Historically, management is depicted as a foe of employees and their organizations. While this stereotype is not entirely true, the media often portrays management as the "bad guy" of the two organizations (unions are usually cast as the hero of the "little guy"). This negative media attention (and historical stereotype) can lead to extremely damaging public relations, which can eventually cripple an entire industry.

The Role of Trade Unions in Industrial Relations Trade unions, also known as labor unions in the Zimbabwe, are organizations of workers in a common trade who have organized into groups dedicated to improving the workers' work life. A trade union generally negotiates with employers on behalf of its members, advocating for improvements such as better working conditions, compensation and job security. These unions play an important role in industrial relations -- the relationship between employees and employers.

Function o In industrial relations, trade unions represent the interest of their members. By contrast,

an employer represents his own interests, as well as the interests of those with financial stakes in the company. However, because both trade unions and employers can only earn a livelihood through the continued viability of the businesses that they work for and own, both parties will defend the interests of their industry.

Effects o The advocacy of trade unions has provided a number of improvements in the working


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conditions of many workers. For example, in the coal industry, advocacy by the UMA has led to safer working conditions for coal miners. However, given trade unions work in the interests of their members specifically, rather than the companies that employ these workers, unions can sometimes advocate policies that, while beneficial to workers in the short term, may harm the company's long-term health.

Expert Insight o According to Bernhard Ebbinghaus, a professor at the Industrial Relations Research

Institute and European Union Center at the University of Wisconsin, Madison, the role of trade unions changed significantly in the last decades of the 20th century. As union membership declined due to structural changes in the economy, unions became more active in maintaining vestiges of the welfare state. This includes resisting privatization of public institutions and roles, and advocating for public benefits for a country's citizens.

Importance of Industrial Relations:

The healthy industrial relations are key to the progress and success. Their significance may be discussed as under –

1. Uninterrupted production – The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.

2. Reduction in Industrial Disputes – Good industrial relations reduce the industrial disputes.

Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.

3. High morale – Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.

4. Mental Revolution – The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer’s authority. It will naturally have impact on production because they recognize the interest of each other.

6. Reduced Wastage – Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.


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Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

1.4 Differentiate between Industrial Relations and human relations.

DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND HUMAN RELATIONS:

The term “Industrial Relations” is different from “Human Relations”. Industrial relations refer to the relations between the employees and the employer in an industry. Human relations refer to a personnel-management policy to be adopted in industrial organizations to develop a sense of belongingness in the workers improves their efficiency and treat them as human beings and make a partner in industry.

Industrial relations cover the matters regulated by law or by collective agreement between employees and employers. On the other hand, problems of human relations are personal in character and are related to the behavior of worker where morale and social elements predominated. Human relations approach is personnel philosophy which can be applied by the management of an undertaking. The problem of industrial relations is usually dealt with a three levels – the level of undertaking, the industry and at the national level. To sum up the term “Industrial Relations” is more wide and comprehensive and the term “Human Relations” is a part of it.

Determining factors of industrial relations –

Good industrial relations depend on a great variety of factors. Some of the more obvious ones are listed below:

1. History of industrial relations – No enterprise can escape its good and bad history of industrial relations. A good history is marked by harmonious relationship between management and workers.

A bad history by contrast is characterized by militant strikes and lockouts. Both types of history have a tendency to perpetuate themselves. Once militancy is established as a mode of operations there is a tendency for militancy to continue. Or once harmonious relationship is established there is a tendency for harmony to continue.

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2. Economic satisfaction of workers – Psychologists recognize that human needs have a certain priority. Need number one is the basic survival need. Much of men conducted are dominated by this need. Man works because he wants to survive. This is all the more for underdeveloped countries where workers are still living under subsistence conditions. Hence economic satisfaction of workers is another important prerequisite for good industrial relations.

3. Social and Psychological satisfaction – Identifying the social and psychological urges of workers is a very important steps in the direction of building good industrial relations. A man does not live by bread alone. He has several other needs besides his physical needs which should also be given due attention by the employer. An organization is a joint venture involving a climate of human and social relationships wherein each participant feels that he is fulfilling his needs and contributing to the needs of others. This supportive climate requires economic rewards as well as social and psychological


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rewards such as workers’ participation in management, job enrichment, suggestion schemes, re-dressal of grievances etc.

4. Off-the-Job Conditions – An employer employs a whole person rather than certain separate characteristics. A person’s traits are all part of one system making up a whole man. His home life is not separable from his work life and his emotional condition is not separate from his physical condition. Hence for good industrial relations it is not enough that the worker’s factory life alone should be taken care of his off-the-job conditions should also be improved to make the industrial relations better.

5. Enlightened Trade Unions – The most important condition necessary for good industrial relations is a strong and enlightened labor movement which may help to promote the status of labor without harming the interests of management, Unions should talk of employee contribution and responsibility. Unions should exhort workers to produce more, persuade management to pay more, mobilize public opinion on vital labor issues and help Government to enact progressive labor laws.

6. Negotiating skills and attitudes of management and workers – Both management and workers’ representation in the area of industrial relations come from a great variety of backgrounds in terms of training, education, experience and attitudes. These varying backgrounds play a major role in shaping the character of industrial relations. Generally speaking, well-trained and experienced negotiators who are motivated by a desire for industrial peace create a bargaining atmosphere conducive to the writing of a just and equitable collective agreement. On the other hand, ignorant, inexperienced and ill-trained persons fail because they do not recognize that collective bargaining is a difficult human activity which deals as much in the emotions of people as in their economic interests. It requires careful preparation and top –notch executive competence. It is not usually accomplished by some easy trick or gimmick. Parties must have trust and confidence in each other. They must possess empathy, i.e. they should be able to perceive a problem from the opposite angle with an open mind. They should put themselves in the shoes of the other party and then diagnose the problem. Other factors which help to create mutual trust are respect for the law and breadth of the vision. Both parties should show full respect for legal and voluntary obligations and should avoid the tendency to make a mountain of a mole hill.

7. Public policy and legislation: - when Government, regulates employee relations, it becomes a third major force determining industrial relations the first two being the employer and the union. Human behavior is then further complicated as all three forces interact in a single employee relation situation. Nonetheless, government in all countries intervenes in management – union relationship by enforcing labor laws and by insisting that the goals of whole society shall take precedence over those of either of the parties. Government intervention helps in three different ways 1) it helps in catching and solving problems before they become serious. Almost everyone agrees that it is better to prevent fires them to try stopping them after they start; 2) It provides a formalized means to the workers and employers to give emotional release to their dissatisfaction; and 3) It acts as a check and balance upon arbitrary and capricious management action.

8. Better education: - with rising skills and education workers’ expectations in respect of rewards increase. It is a common knowledge that the industrial worker in India is generally illiterate and is misled by outside trade union leaders who have their own axe to grind. Better workers’ education can be a solution to this problem. This alone can provide worker with a proper sense of responsibility, which they owe to the organization in particular, and to the community in general.

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9. Nature of industry: - In those industries where the costs constitute a major proportion of the total cast, lowering down the labor costs become important when the product is not a necessity and therefore, there is a little possibility to pass additional costs on to consumer. Such periods, level of employment and wages rise in decline in employment and wages. This makes workers unhappy and destroys good industrial relations


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Difference Between Industrial Relations and Employee Relations

Industrial Relations vs. Employee Relations

Most of us think we know what industrial relations are. The study of employment and labor market is what makes the subject matter of this vast area of research. It is a field that analyzes the factors that affect the workplace. However, it is the workplace that directly affects our style of living and even our culture in a lot of ways. There is another related concept called employee relations that confuses many because of its similarities with industrial relations. It is a fact that looking at a workplace from the perspective of workers unions is no longer relevant in these times. Let us see if there is any difference between these two related concepts.

Industrial Relations

The field of study that covers employment relationships in their entirety is called industrial relations. In general, it is believed to be the study of relations between the employees and employers. There are a multitude of factors at play at the workplace that shape up the relations between workers, employers, and the government. The field of industrial relations came into existence with the advent of the industrial revolution as an important tool to understand the complex relations between employers and employees. There are many different ways to look at industrial relations as there are the perspectives of workers, employers, government, and the perspective of the society. If you are a worker, you would obviously associate industrial relations with better wages, safety at workplace, job security, and training at workplace. On the other hand, industrial relations for an employer are all about productivity, conflict resolution and employment laws.

Employee Relations

‘Employee relations’ is a concept that is being preferred over the older industrial relations because of the realization that there is much more at the workplace than industrial relations could look or cover. In general, employee relations can be considered to be a study of relations between employees as well as employer and employees so as to find ways of resolving conflicts and to help in improving productivity of the organization by increasing motivation and morale of the workers. The field is concerned with providing information to employees regarding the goals of the organization so that they have a better understanding of the aims and policies of the management. Employees are also informed about their poor performances and ways and means to correct performance. Employee relations also take care of grievances and the problems of the employees and let them know all about their rights and what to do in case of discrimination.

What is the difference between Industrial Relations and Employee Relations?

• Though it was industrial relations that came into existence earlier, it is employee relations that is increasingly being used to refer to workplace relations these days.

• Falling union memberships around the world have made people realize that relations between employers and employees are more important than the focus given to these relations by industrial relations.

• It is human beings called employees that form the backbone of all operations in an organization and the study of relations between employees and employees and employers are more important than the laws and institutions that govern relations at the workplace.


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FUNDAMENTAL RIGHTS OF EMPLOYEES

ACT EXTRACT 4 Employees’ entitlement to membership of trade unions and workers committees (1) Notwithstanding anything contained in any other enactment, every employee shall, as between

himself and his employer, have the following rights— (a) the right, if he so desires, to be a member or an officer of a trade union; (b) where he is a member or an officer of a trade, the right to engage in the lawful activities of such

trade union for the advancement or protection of his interests; (c) the right to take part in the formation and registration of a trade union; (d) the same rights, mutatis mutandis, as are set out in paragraphs (a), (b), and (c) in relation to

workers committees. (2) Every employee shall have the right to be a member of a trade union which is registered for the

undertaking or industry in which he is employed if he complies with the conditions of membership. (3) No term or condition of employment and no offer of employment shall include a requirement

that an employee or prospective employee shall undertake— (a) if he is a member or officer of a trade union or workers committee, to relinquish his membership or

office of such trade union or workers committee; or (b) not to take part in the formation of a trade union or workers committee; and any such requirement shall be void. (4) Without prejudice to any other remedy that may be available to him in any competent court,

any person who is aggrieved by any infringement or threatened infringement of a right specified in subsection (1) shall be entitled to apply under Part XII for either or both of the following remedies— (a) an order directing the employer or other party concerned to cease the infringement or

threatened infringement, as the case may be; (b) an order for damages for any loss or prospective loss caused either directly or indirectly, as a result

of the infringement or threatened infringement, as the case may be.

4A Prohibition of forced labour (1) Subject to subsection (2), no person shall be required to perform forced labour. (2) For the purposes of subsection (1) “forced labour” does not include—

(a) any labour required in consequence of the sentence or order of a court; or (b) labour required of any person while he is lawfully detained which, though not required in

consequence of the sentence or order of a court— (i) is reasonably necessary in the interests of hygiene or for the maintenance or management of

the place at which he is detained; or (ii) is permitted in terms of any other enactment; or (c) any labour required of a member of a disciplined force in pursuance of his duties as such or any

labour required of any person by virtue of an enactment in place of service as a member of any such force; or

(d) any labour required by way of parental discipline; or (e) any labour required by virtue of an enactment during a period of public emergency or in the

event of any other emergency or disaster that threatens the life or well-being of the community, to the extent that the requiring of such labour is reasonably justifiable in the circumstances of any situation arising or existing during that period or as a result of that other emergency or disaster, for the purpose of dealing with that situation.

(3) Any person who contravenes subsection (1) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment.

5 Protection of employees against discrimination (1) No employer shall discriminate against any employee or prospective employee on grounds of

race, tribe, place of origin, political opinion, colour, creed, gender, pregnancy, HIV/AIDS status or, subject to the Disabled Persons Act [Chapter 17:01], any disability referred to in the definition of “disabled person” in that Act, in relation to— (a) the advertisement of employment; or (b) the recruitment for employment; or (c) the creation, classification or abolition of jobs or posts; or (d) the determination or allocation of wages, salaries, pensions, accommodation, leave or other such

benefits; or (e) the choice of persons for jobs or posts, training, advancement, apprenticeships, transfer,

promotion or retrenchment; or (f) the provision of facilities related to or connected with employment; or (g) any other matter related to employment. (2) No person shall discriminate against any employee or prospective employee on the grounds of

race, tribe, place of origin, political opinion, colour, creed, gender, pregnancy, HIV/AIDS status or, subject to the Disabled Persons Act [Chapter 17:01], any disability referred to in the definition of “disabled person” in that Act, in relation to— (a) the advertisement of employment; or (b) the recruitment of persons; or (c) the introduction of prospective employees for jobs or posts; or (d) any other matter related to employment.


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(2a) No employer shall fail to pay equal remuneration to male and female employees for work of equal value. (3) Any person who contravenes subsection (1) or (2) shall be guilty of an offence and liable to a fine

not exceeding level eight or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment. (4) Without prejudice to any other remedy that may be available to him in any competent court,

any person who is aggrieved by any act or omission of an employer in contravention of subsection (1) shall be entitled to claim or apply under Part XII, as the case may be, for either or both of the following remedies— (a) damages from the employer for any loss caused directly or indirectly as a result of the

contravention; (b) an order directing the employer to redress the contravention, including an order to employ any

person, notwithstanding that the vacancy in question has already been filled and notwithstanding that the employer may be liable to any claim arising from the need to dismiss or terminate the services of any other employee who has been engaged.

(5) Without prejudice to any other remedy that may be available to him in any competent court, any person who is aggrieved by any act or omission of any person in contravention of subsection (2) shall be entitled to claim or apply under Part XII, as the case may be, for either or both of the following remedies— (a) damages from such person for any loss caused either directly or indirectly as a result of the

contravention; (b) an order directing such person to redress the contravention. (6) For the purposes of this section, a person shall be deemed to have discriminated if his act or

omission causes or is likely to cause persons of a particular race, tribe, place of origin, political opinion, colour, creed or gender to be treated— (a) less favourably; or (b) more favourably; than persons of another race, tribe, place of origin, political opinion, colour, creed or gender, unless it is shown that such act or omission was not attributable wholly or mainly to the race, tribe, place of origin, political opinion, colour, creed or gender of the persons concerned. (6a) Where, notwithstanding that any act or omission referred to in subsection (6) is not attributable

wholly or mainly to the race, tribe, place of origin, political opinion, colour creed or gender of a person, it is nevertheless shown that any act, practice or requirement by an employer causes persons of a particular description by race, tribe, place of origin, political opinion, colour, creed or gender to be treated less favourably than persons of any other such description, it shall be presumed, unless the act, practice or requirement concerned can be justified on any of the grounds specified in subsection (7), that such person was unlawfully discriminated against. (7) Notwithstanding subsections (1) and (2), no person shall be deemed to have discriminated

against another person— (a) on the grounds of gender or pregnancy where— (i) in accordance with this Act or any other law, he provides special conditions for female

employees; or (ii) in accordance with this Act or any other law, or in the interests of decency or propriety, he

distinguishes between employees of different genders; or (iii) it is shown that the act or omission concerned was done or omitted to be done, as the case

may be, by or on behalf of a men’s or women’s or boys’ or girls’ organization in the bona fide pursuit of the lawful objects of such organization;

(b) on the grounds of political opinion or creed where it is shown that the act or omission concerned was done or omitted to be done, as the case may be, by or on behalf of a political, cultural or religious organization in the bona-fide pursuit of the lawful objects of such organization;

(c) on the grounds of race or gender if the act or omission complained of arises from the implementation by the employer of any employment policy or practice aimed at the advancement of persons who have been historically disadvantaged by discriminatory laws or practices;

(d) if the act or omission complained of arises from the implementation by the employer of any employment policy or practice aimed at assisting disabled persons as defined in the Disabled Persons Act [Chapter 17:01];

(e) if any distinction, exclusion or preference in respect of a particular job is based on the narrowly defined inherent operational requirements, needs and necessities of that particular job.

(8) It shall be no defence to a charge in respect of a contravention of subsection (1) or (2) to prove that— (a) the employee or prospective employee concerned was not in fact taken into employment by the

employer concerned or that such employee would, in any case, not have been taken into such employment for any other lawful reason; or

(b) the employee or prospective employee concerned has left or has not left the employment of the employer concerned; or

(c) the employee or prospective employee concerned has subsequently been taken into employment by the employer concerned in circumstances showing that he has not been discriminated against; or

(d) the employer concerned subsequently withdrew or did not fill the vacancy; or (e) the person charged is no longer committing any contravention of subsection (1) or (2); or (f) the employee or prospective employee concerned was party to the alleged contravention or did

not complain about it; or (g) it was in the business interests of the person charged to commit the contravention; or


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(h) the contract or agreement which forms the subject of the charge was entered into prior to the fixed date.

6 Protection of employees’ right to fair labour standards (1) No employer shall—

(a) pay any employee a wage which is lower than that to fair labour specified for such employee by law or by agreement made under this Act; or

(b) require any employee to work more than the maximum hours permitted by law or by agreement made under this Act for such employee; or

(c) fail to provide such conditions of employment as are specified by law or as may be specified by agreement made under this Act; or

(d) require any employee to work under any conditions or situations which are below those prescribed by law or by the conventional practice of the occupation for the protection of such employee’s health or safety; or

(e) hinder, obstruct or prevent any employee from, or penalise him for, seeking access to any lawful proceedings that may be available to him to enable him lawfully to advance or protect his rights or interests as an employee.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment.

7 Protection of employees’ right to democracy in the work place (1) No person shall—

(a) hinder, obstruct or prevent any employee from forming or conducting any workers committee for the purpose of airing any grievance, negotiating any matter or advancing or protecting the rights or interests of employees;

(b) threaten any employee with any reprisal for any lawful action taken by him in advancing or protecting his rights or interests.

(2) Every employer shall permit a labour officer or a representative of the appropriate trade union, if any, to have reasonable access to his employees at their place of work during working hours for the purpose of— (a) advising the employees on the law relating to their employment; and (b) advising and assisting the employees in regard to the formation or conducting of workers

committees and trade unions; and (c) ensuring that the rights and interests of the employees are protected and advanced; and shall provide such labour officer or representative of the appropriate trade union or employment board, if any, with reasonable facilities and access for the exercise of such functions. (3) Any person who contravenes subsection (1) or (2) shall be guilty of an offence and liable to a fine

not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment. (4) Notwithstanding subsection (3), nothing done to prevent any disruption of normal production

processes, or any interference with the efficient running of an undertaking or industry shall be held to be in contravention of subsection (1) or (2).


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1.5 Discuss ways in which employees may be organized in trade unions or staff association membership.

Make notes

ACT EXTRACT 27 Right to form trade unions or employers organizations (1) Subject to this Act, any group of employees may form a trade union. (2) Subject to this Act, any group of employers may form an employers organization. (3) Subject to this Act, any group of trade unions or employers organizations may form a federation.

28 Requirements for formation of trade unions and employers organizations (1) Every trade union, employers organization or federation shall—

(a) subject to subsection (2), before it raises funds from any source; and (b) within six months of its formation; adopt a written constitution which shall provide for— (i) the qualifications for membership, including membership fees, if any; and (ii) the right of any person to membership if he is prepared to abide by the rules and conditions

of membership; and (iii) the number of officials and office bearers, their powers and functions and their appointment

or election; and (iv) the holding of annual general meetings; and (v) the submission by any official or office bearer to re-appointment or re-election if a petition

therefor is made— A. within one year of his appointment or election, as the case may be, by not less than

three quarters; or B. later than one year of his appointment or election, as the case may be, by not less than

one quarter; of the members of the trade union, employers organization or federation; and (vi) the call and conduct of meetings of members or representatives of members of the trade

union, employers organization or federation; and (vii) the prohibition of discrimination against any members or class of members on grounds of

race, tribe, place of origin, political opinion, colour, creed, gender, pregnancy, HIV/AIDS status or, subject to the Disabled Persons Act [Chapter 17:01], any disability referred to in the definition of "disabled person" in that Act; and

(viii) the amendment of the constitution; and (ix) the winding up of the trade union, employers organization, or federation; and failure to so provide in the constitution shall constitute an unfair labour practice by the trade union, employers organization, or federation concerned. (2) A trade union, employers organization or federation may, notwithstanding subsection (1) and

before it has adopted a written constitution in terms of that subsection, raise funds in respect of membership fees to an amount not exceeding such amount as may be specified by the Minister by statutory instrumentfor the purposes of this subsection. (3) Every trade union, employers organization or federation shall, within six months of its formation,

submit two copies of its constitution to the Minister, and shall within one month of any amendment of its constitution submit copies of such amendment with a statement of the purpose thereof to the persons and authorities mentioned in this subsection. (4) It shall be the duty of every official or office bearer of a trade union, employers organization or

federation to ensure compliance with this section. 29 Registration of trade unions and employers organizations and privileges thereof (1) Subject to this Act, any trade union, employers organization or federation may, if it so desires,

apply for registration. (2) Every trade union, employers organization or federation shall, upon registration, become a body

corporate and shall in its corporate name be capable of suing and being sued, of purchasing or otherwise acquiring, holding or alienating property, movable or immovable, and of doing any other act or thing which its constitution requires or permits it to do, or which a body corporate may, by law, do. (3) [Repealed] (4) Subject to this Act, a registered trade union or federation of such unions shall be entitled—


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(a) to be assisted by a labour officer or designated agent of the appropriate employment council in its dealings with employers; and

(b) through its duly authorized representatives, to the right of access to employees conferred by subsection (2) of section seven; and

(c) to be provided by employers with the names and other relevant particulars, including particulars as to wages of all employees who are employed in the industry or undertaking for which the trade union or federation is registered, and who are members of the trade union or federation concerned; and

(d) to make representations to a determining authority or the Labour Court; and (e) … {Repealed] (f) to form or be represented on any employment council; and (g) to recommend collective job action; and (h) to levy, collect, sue for and recover union dues; and (i) to act as an agent union in terms of section thirty-one;and (j) to exercise any other right or privilege conferred by this Act on registered trade unions or

federations thereof. (4a) In addition to the privileges specified in subsection (4), an official or office-bearer of a registered

trade union or federation shall be entitled to take such reasonable paid or unpaid leave during working hours as may be agreed under a collective bargaining agreement for the purpose of enabling the official or office-bearer to perform the functions of his office: Provided that if the parties negotiating a collective bargaining agreement fail to agree on the

extent of paid or unpaid leave for the purposes of this subsection, either or both of the parties to the dispute may refer the matter to a labour officer who shall thereupon deal with it in terms of section 93. (5) Subject to this Act, a registered employers organization shall be entitled—

(a) to be assisted by a labour officer or a designated agent of the appropriate employment council in its dealings with trade unions or workers committees; and

(b) through its duly authorized representatives, to be provided by trade unions and workers committees with the names and other relevant particulars of all their members; and

(c) to make representations to a determining authority or the Labour Court; and (d) … {Repealed] (e) to form or be represented on any employment council; and (f) to exercise any other right or privilege conferred by this Act on registered employers organizations. 30 Unregistered trade unions and employers organizations (1) No unregistered trade union or employers organization may in its corporate name—

(a) make representations to the Labour Court; or (b) be assisted by a labour officer or a designated agent of any employment council. (2) No unregistered trade union or employers organization may, whether in its corporate name or

through any of its members— (a) … {Repealed] (b) form or be represented on any employment council; or (c) be entitled to be provided with the particulars specified in paragraph (c) of subsection (4) or

paragraph (b) of subsection (5) of section twenty-nine. (3) No unregistered trade union may, whether in its corporate name or otherwise—

(a) recommend collective job action; or (b) have the right of access to employees conferred by subsection (2) of section seven;or (c) levy, collect or recover union dues by means of a check-off scheme. 31 When trade union may act as agent union (1) Subject to subsection (2), a registered trade union may act as the agent union of employees in

any undertaking or industry who are not otherwise represented by a registered trade union if— (a) not less than fifty per centum of the employees concerned arein favour of such trade union

representing them; or (b) an unregistered trade union or a registered trade union which otherwise represents the employees

concerned requests the registered trade union to act as its agent union; or (c) the Minister so requests. (2) Except where the Minister has requested a registered trade union to act as an agent union or has

consented to such a request in terms of paragraph (c) of subsection (1), a registered trade union that desires so to act shall apply to the Minister in writing, setting out the circumstances giving rise to the application. (3) On receipt of an application in terms of subsection (2), the Minister may, after taking into

account—


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(a) the extent to which the registered trade union appreciates the interests and needs of the employees concerned; and

(b) the views of any employers or employees who may be affected; and (c) any levies or dues the registered trade union proposes to levy from the employees concerned;

and (d) the ability of the registered trade union to act as an agent union; grant or refuse the application. (4) No registered trade union shall act as an agent union—

(a) for a period of more than three years unless, before the expiry of three years after commencing so to act, the Minister extends such period; or

(b) after a trade union representing the employees concerned has been registered or has re-acquired its competency to represent the employees concerned.

(5) A registered federation of trade unions may act, mutatis mutandis,as an agent union with respect to the members of one of its component unions or undertakings. (6) The Minister may on his own initiative or on the application of any interested party, at any time,

revoke the authority of a registered trade union or federation of trade unions to act as an agent union. 32 Agent union to disclose other agencies A registered trade union or federation of trade unions which is acting as an agent union for any

employees may, in terms of section thirty-one,become the agent union for any other employees if it discloses to such other employees its prior agency. 33 Application for registration (1) Every application for registration by a trade union or employers organization or federation shall,

subject to section thirty-four,be made to the Registrar in the prescribed form. (2) The Registrar shall cause notice to be published in the Gazette of every application made in

terms of this section, and in such notice shall invite any person who wishes to make any representations relating to the application to lodge such representations with the Registrar within such period, not being less than thirty days from the date of the notice, as may be specified in the notice, and to state whether or not he wishes to appear in support of his representations at accreditation proceedings. 34 Requirements of application for registration An application for registration of a trade union or employers organization or federation shall contain

the following information— (a) the name of the trade union or employers organization or federation; and (b) the names and relevant particulars of the persons intending to secure the registration; and (c) the coverage of the proposed trade union or employers organization or federation with regard to

the undertakings or industries concerned, with such exclusions as may be intended; and (d) the affiliates to and the affiliations of the trade union or employers organization or federation,

including international, national or local unions, organizations or workers communities; and (e) sources of funds and material, both current and anticipated, for organizing the trade union or

employers organization or federation, and the address of its bank; and shall be accompanied by a copy of its constitution or operational rules. 35 Requirements of constitution of registered trade unions or employers organizations The constitution of every registered trade union or employers organization or federation shall, in

addition to the matters referred to in section twenty-eight,provide for— (a) consultation between the various governing bodies or branches of the trade union or employers

organization and members thereof before such trade union or employers organization or federation—

(i) enters upon a collective bargaining agreement; or (ii) recommends collective job action; or (iii) embarks upon any new programme which is likely to substantially affect the rights and

interests of its members; or (iv) increases fees and other dues payable by its members; or (v) assigns an official to represent its members in a particular matter that is of considerable

significance to its members; and (b) the keeping of books of accounts and the submission of such books of accounts for auditing

within three months of the end of each financial year, and the making available to members of certified true copies of the audited accounts and the auditor’s report thereon; and


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(c) the prohibition of the use of union or association dues of the trade union or employers organization or federation for electioneering for the trade union or employers organization or federation or for political purposes; and

(d) [Repealed] (e) the equitable sharing of the funds of the trade union or employers organization with any of its

branches; and (f) the maintenance of a register of members and a record of the fees, if any, paid by each member

and the periods to which those fees relate; and (g) the giving to any person who is refused membership or who is expelled of written reasons for such

refusal or expulsion; and (h) such other matters as may be prescribed. 36 Registration of trade unions, employers organizations and federations (1) Subject to this Act, the Registrar may, after considering any representations lodged in terms of

subsection (2) of section thirty-three and after the holding of accreditation proceedings, if any, grant or refuse an application for the registration of a trade union or employers organization or federation. (2) When granting any application for registration in terms of subsection (1), the Registrar may, after

consultation with the applicant, increase or reduce the interests or area in respect of which the applicant applied for registration. (3) Where the Registrar grants an application for registration of a trade union or employers

organization, he shall enter in his register— (a) the name of the trade union or employers organization; and (b) every undertaking or industry in respect of which the trade union or employers organization is

registered; and (c) such other particulars as may be prescribed; and shall issue the trade union or employers organization with a certificate of registration in the prescribed form. (4) The Registrar shall, on request, supply any interested person with his reasons for any decision

made by him in terms of this section. 37 [Repealed]

38 [Repealed]

1.5 Describe the main forms of company structure and relate them to purpose and methods of communications with the workforce.

MAKE NOTES

The starting point for any effective enterprise policy to install procedures and mechanisms to promote sound labour relations is communication, because it is relevant to a whole range of issues and other matters such as productivity, small group activities, joint consultation, performance appraisals, and motivation, as well as to organizational performance. The performance of an organization is affected by the manner in which that organization communicates with its employees. This involves information exchange, and not merely one-way communication. The performance of employees in an organization is conditioned by the performance of others in the organization. Changes in an organization can be brought about in an effective way where there is sufficient understanding between management and employees. For this purpose two-way communication tends to enhance understanding and cooperation and influence behaviour in a desired direction. But for effective two-way communication there should be a knowledge of communication and communication skills, a structure of communication channels, and access by all employees to such channels. Communication is essential not only in relation to existing employees but also in relation to new employees who must be made aware of what the job entails. Making available to employees the means of communicating their opinions and problems is also important to an effective performance appraisal system. The link between productivity and communication is to be found in the fact that proper productivity management requires concerted or joint action between management and workers. For this purpose confidence between management and workers is essential, and the starting point of confidence-


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building is sharing information (and not merely 'top-town' communication). This has prompted the view that productivity management is also information management - information helps to promote the commitment that is necessary to improve productivity. Two-way communication can also promote productivity improvement through innovation and creativity. Effective communication would:

� Create an atmosphere of trust, which is important to promoting increased productivity. If the environment generates mistrust, workers are likely to be suspicious as to whether they are receiving a fair share of the benefits of productivity gains. Without two-way communication workers would not be in a position even to judge whether their share is a fair one.

� Promote an atmosphere of 'intimacy' and commitment to the group, which in turn would bind people together and prompt cooperation. It is basic human psychology that a high degree of communication and working together for a common goal tend to create a feeling of intimacy among those involved in these processes.

� Promote - especially where the elements of trust and intimacy are present integration of the worker in the activities of the group and a feeling of 'belonging' leading to greater motivation and productivity.

� Promote participation, which involves common goals, teamwork, discipline/commitment and cooperation. Communication is a great motivator and makes people feel secure in their jobs, helps to identify the contribution of workers with the enterprise's success, and enhances the quality of working life. It therefore leads to greater job satisfaction.

� Develop the skills and attitudes of the individual, engendering self-confidence and a sense of self worth. In a highly hierarchical and 'top-down' form of management there is little scope for development of the individual which is needed for innovation and creativity which, in turn, promote better productivity. Innovation and creativity result in better utilization of available resources which, in the final analysis, is what productivity is.

� Create a high degree of consensus in decision making. With consensus implementation of decisions will be quicker and easier because disputes or differences of opinion would be less likely compared to enterprises where decisions are taken unilaterally with little consultation and information-sharing.


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2.0 TRADE UNIONISM

2.1 Define a ‘trade union’.

A trade union is an organization of workers who have banded together to achieve common goals such as protecting the integrity of its trade, achieving higher pay, increasing the number of employees an employer hires, and better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members (rank and file members) and negotiates labour contracts (collective bargaining) with employers. The most common purpose of these associations or unions is "maintaining or improving the conditions of their employment".[1]

This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. The agreements negotiated by a union are binding on the rank and file members and the employer and in some cases on other non-member workers. Trade unions traditionally have a constitution which details the governance of their bargaining unit and also have governance at various levels of government depending on the industry that binds them legally to their negotiations and functioning.

Over the last three hundred years, trade unions have developed into a number of forms. Aside from

collective bargaining, activities vary, but may include:

• Provision of benefits to members: Early trade unions, like Friendly Societies, often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses. In many developed countries, these functions have been assumed by the state; however, the provision of professional training, legal advice and representation for members is still an important benefit of trade union membership.

• Protection of workers: Unions prevent exploitation of workers, increase their wages thereby reducing inequality.

• Industrial action: trade unions may enforce strikes or resistance to lockouts in furtherance of particular goals.

• Political activity: trade unions may promote legislation favorable to the interests of their members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties (such as the Labor Party in Britain) for public office. In some countries (e.g., the Nordic countries and the Philippines), trade unions may be invited to participate in government hearings about educational or other labor market reforms.

Trade unions are now accepted as valuable institutions helping to regulate the labour markets in our country. The concept of social partnership is helping to further this acceptance, and is elevating the trade union from its well-entrenched role at the micro level, within firms, to the macro level where it can contribute to national planning and national development. A trade union is an organization based on membership of employees in various trades, occupations and professions, whose major focus is the representation of its members at the workplace and in the wider society. It particularly seeks to advance its interest through the process of rule-making and collective bargaining. According to the interpretation clauses in the Industrial Relations Act a Trade Union is

An association or organization registered as a trade union for the purposes of the

regulation of the relations between workmen and masters, or between workmen and

workmen, or between masters and masters, or the imposing of restrictive conditions on

the conduct of any trade or business, and also the provision of benefits to members,

not being an association or organization of employers.


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2.2 Outline the principal forms of employer organization. Make notes

2.3 Consider the advantages and disadvantages of recognizing a trade union for collective bargaining purposes.

QWhat are the advantages and disadvantages for management and employees from

recognizing a union for the purposes of collective bargaining?

Definition of collective bargaining “Employees do not negotiate individually and on their own behalf, but do so collectively though representative.” (The Donovan Commission, 168). Collective bargaining can be defined as an arrangement for settling wages and conditions of employment by an agreement between an employer, and an association of employees. It has been regarded traditionally e.g. by Webbs (10), as the collective alternative to individual bargaining. “It is not an act of exchange itself but, rather a rule making process designed to control the terms of employment contracts.” (Flanders, 168) Chamberlain (151) consider that collective bargaining fulfills three functions • a means of contracting for the sale of labor

• a form of industrial government

• a method of management The collective bargaining process can be viewed by three different perspectives which are not necessarily conflicting its other and each of these perspectives represents a different stage in bargaining process. The first one is that collective bargaining regulates the sale of labour. This is the marketing concept of collective bargaining and is concerned with the labour with is bought and sold in the market place. In other words it takes into account the terms and condition under which is labour bought e.g. working hours and working conditions. It is more a economic approach to the nature of collective bargaining and shows the exchange relationships between employers and employees. By the second perspective collective bargaining is viewed as a form of industrial government. This is the governmental concept of collective bargaining. In this case is seen as a political power relationship. It determines the relations between management and trade union representatives and finds solutions by modifying the terms of collective agreements when necessary. As a governmental concept collective bargaining is focused on the continuity of management union relationship and the continuous process of rule making which takes place between the two groups. The third and the last perspective is the industrial relation or managerial relations concept of collective bargaining. Here it is just a simple system of industrial relations where management and unions have equal than competing interests.


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As collective bargaining between employees and trade unions matures we have a progress from the first perspective to the second one and finally to the last one. The nature and depth of collective bargaining differs not only between different negotiating parties but also within the same negotiating groups in different time. The essence of the collective bargaining process is its representative nature, its power basis, its adaptability, and its flexibility to particular circumstances. (1) The objective of collective bargaining is a collective agreement between the union and the employer. This agreement governs wages and benefits for the employees it cover for a fixed period of time. This fixed term collective agreement provides a period of labour peace. Strikes and lock-outs are allowed only when a collective agreement has expired, and then only after the collective agreement process has taken place. Such an agreement requires that workers are involved in the settlement of wages and conditions as a group and implies, therefore, that they are organized and represented by a trade union which has obtained the right to negotiate on behalf of its members. It is necessary also that some recognized procedure for negotiation has been established. These conditions are necessary in order have the existence of collective bargaining. Collective bargaining allows freedom of association and exists in all industrialized countries. However it varies between different countries or even between different organizations in the same country, and it evolves over the time. The result of collective bargaining process are the collective agreements. There are two types of such agreements, the procedural and the substantive. Procedural agreements regulate the relations between employers and employees, define the bargaining units and determine the status and facilities for trade union representatives in the bargaining process. Substantive agreements on the other hand, are concerned with the definition of jobs, the wage of employees and the conditions under which they work. Collective bargaining agreements contain the current detailed settlements of wages and conditions together with a specification of the procedures to be taken in the event of any dispute. It is not only entails reaching an agreement on terms, but also extends to their subsequent interpretation and administration in the day to day relationship of the parties involved. As far as, trade unions are recognized by employers for the purposes of collective bargaining, unions are trying by negotiating with employers on behalf of their members to secure job for employees, and to achieve formal or informal acceptance of the arrangements for redundancy and work sharing. There are also trying to improve the working hours and the pay system during holidays. Lately the working hours per week have been reduced. Another main objective of unions’ negotiations is to improve the working conditions in order employees to avoid working accidents by persuading employers and government to provide to employees the right job equipment e.g. protective clothes. The collective bargaining is a process of resolving the conflicting desires of employers and unions. In case of a disagreement between the two parties we may have strikes, lock-outs or some other sanctions not only from employees but from employers as well (e.g. lock-outs, threats of liquidation e.t.c.). Each of the two parties have their own weapons against a possible disagreement or in order to threat the other party.


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The costs of a disagreement for the employer are the loss of profits during a dispute or even the loss of consumers goodwill by not be able to respond to order dates. On the other hand employees are loosing their income by participating in trade union sanctions. This has as a result employees not to be able to meet their future financial commitments. The cost of agreement to each party is the difference between its future income, flow on its own, and on its opponent’s terms. Neither the employer nor the union necessarily exert their full bargaining power but may hold potential gains in reserve for the future. Collective bargaining has its own structure which is the structure of any stable bargaining agreements. This structure includes the bargaining units, bargaining levels, bargaining form and the bargaining scope. The bargaining units are the members which take part in the collective bargaining which are employers or management on one hand and employees and trade unions on the other. The bargaining levels is about the levels in which bargaining takes place. These levels are the multi-employer or single employer bargaining which is subdivided to centralized and decentalized bargaining. These are different methods which are used by employers according to different circumstances. The bargaining form is concerned with the formality or informality of the bargaining process, if it is written or unwritten respectively. Finally the bargaining scope is about the subjects of negotiations between the two parties, what desires are going to be negotiated between management and trade unions. Different structures of collective bargaining have different drawbacks to each or the two parties, it depends on the certain time that collective bargaining is taken place which structure is going to be implemented, and how it is going to be formed. The structure varies also according to the demands of each party and the conditions under which bargaining takes place. By the recognition of trade unions by employers for collective bargaining purposes there are many impacts on employers-management and trade unions-employees respectively. The relationship between these two parties is based on the bargaining power that each party enjoys. For that reason if there is not a reasonable power between the two sides, the one with the greater power will be able to impose its policies and demands on the other side. This means that employers or employees may ultimately impose sanctions on their weaker opponent. The most usual sanctions are strike, lock-outs, threats of removal the plant and machinery, withdrawing of overtime or mass suspension, stoppages e.t.c. In order to examine the impacts of collective bargaining we must first classify it into ‘multi-employer bargaining’ and ‘single employer bargaining. Single employer bargaining can be subdivided into centralized and decentralized bargaining. Multi-employer bargaining is where a number of employers can reach an industry-wide or national agreement on pay and conditions with the recognized unions in the industry as a whole. With decentralized bargaining, enterprises may have full delegated authority to settle pay claims and other conditions of employment.


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Employer adopt their own strategy concerned with bargaining levels in order to deal with trade union. It depends on the certain time and different conditions under which bargaining is taken place and can even change their bargaining levels between different times of negotiation. Each one of the different classifications has its own drawbacks to both sides. With ‘multi-employer’ bargaining employers are having the best use of their negotiating resources. However as management remains in certain establishment levels it is easier for management to concentrate on managing the business effectively. They can also treat employees equitably and they are preventing pay ‘leap-frogging’ by the unions. There are also certain disadvantages like the reduction of the opportunity to negotiate domestic deals to cope with local labour market conditions. A second one is that employers are paying something for nothing to all employees, thus requiring changes in working practices and productivity to be negotiated locally. Finally some employers have to pay more than they can afford because of their business condition. On the other hand the advantages for trade unions are that ‘multi-employer’ concentrates on unions bargaining power and negotiating skills, all employees get something and the unions role is established and legislated throughout the industry. In contrast to these benefits their ability to negotiate more important and beneficial desires is reduced locally and the maintenance of close day-to-day relationships at company level is not needed. As far as the centralized bargaining is concerned employers have uniform terms and conditions within the company. Its is easier to estimate labour costs and the relationship between the negotiating parties is more stable. They have also cheaper parity claims. Its major disadvantages are that the conflicting demands are derived from diverse product markets like labour markets and technology. There is also a formalization of collective agreements, the communication becomes harder and it is difficult to monitor workplace arrangements effectively. For the trade union centralized bargaining provides more effective and efficient use of union resources and negotiating skills and better coordination between bargaining groups. However the status and power of shop stewards is weaker and it creates tensions in decentralized unions, such as in the engineering workers union, where considerable autonomy is vested locally. Finally with decentralized bargaining managers have better managerial authority for industrial relations and they have also improved lines of communication with helps them to find faster solution in order to face potential disputes. Another advantage is that management is more possible to achieve a flexible approach to workplace change, and the shop steward power is consolidated so there are better communication lines for intraplant employees. The disadvantages of decentralized bargaining are that claims for pay parity rise between different workplaces and negotiating groups because of the need to monitor of labour cost control becomes more difficult and complicated. As a conclusion we see that collective bargaining is the method by which employers on one hand and trade unions on the other are trying to negotiate. Trade unions act on behalf of their members which are the employees. The negotiations subject is about employees and the improvement of their wage and conditions of work. Collective bargaining is a flexible process and can be applied and adopted to wide variety of contexts, where the parties want this. It is influenced by many factors like the state of economy, managerial relations, public and legal policy, the bargaining power of employers or employees e.t.c. For that reason it is not stable and varies according to the certain conditions under which is implemented. Collective bargaining is more likely to exist in Public sector rather than in Private and in manual workers rather than in non-manual. It depends also on the kind of business, for example it is more likely used by


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manufacturing companies. Its existence depends very much on employers as they have to recognize a trade union and they also form the different classifications of collective bargaining.

2.4 Function of workers’ committees and collective bargaining strategies.

Formation of workers committees (1) Subject to this Act and any regulations, employees employed by any one employer may appoint

or elect a workers committee to represent their interests: Provided that no managerial employee shall be appointed or elected to a workers committee, nor

shall a workers committee represent the interests of managerial employees, unless such workers committee is composed solely of managerial employees appointed or elected to represent their interests. (1a) Subject to subsection (1b), the composition and procedure of a workers committee shall be as

determined by the employees at the workplace concerned. (1b) Notwithstanding subsection (1a), if a trade union is registered to represent the interests of not less

than fifty per centum of the employees at the workplace where a workers committee is to be established, every member of the workers committee shall be a member of the trade union concerned. (2) For the purposes of appointing or electing a workers committee, employees shall be entitled to—

(a) be assisted by a labour officer or a representative of the appropriate trade union; and (b) reasonable facilities to communicate with each other and meet together during working hours at

their place of work; and (c) be provided by their employer with the names and relevant particulars of all employees

employed by him; so however, that the ordinary conduct of the employer’s business is not unduly interfered with. (3) In the event of any dispute arising in relation to the exercise of any right referred to in subsection

(2), either party to the dispute may refer to it to the labour officer mentioned in paragraph (a) of that subsection, or, in the absence of such labour officer, any other labour officer, and the determination of the labour officer on the dispute shall be final unless the parties agree to refer it to voluntary arbitration.

Functions of workers committees (1) A workers committee shall—

(a) subject to this Act, represent the employees concerned in any matter affecting their rights and interests; and

(b) subject to subsection (3), be entitled to negotiate with the employer concerned a collective bargaining agreement relating to the terms and conditions of employment of the employees concerned; and

(c) subject to Part XIII, be entitled to recommend collective job action to the employees concerned; and

(d) where a works council is or is to be constituted at any workplace, elect some of its members to represent employees on the works council.

(2) Subject to subsection (3), where a workers committee has been appointed or elected to represent employees, no person other than such workers committee and the appropriate trade union, if any, may— (a) act or purport to act for the employees in negotiating any collective bargaining agreement; or (b) direct or recommend collective job action to the employees. (3) Where an appropriate trade union exists for any employees, a workers committee of those

employees may negotiate a collective bargaining agreement with an employer— (a) in the case where the trade union has no collective bargaining agreement with the employer

concerned, only to the extent that such negotiation is authorized in writing by the trade union concerned; or

(b) in the case where there is a collective bargaining agreement, only to the extent permitted by such collective bargaining agreement; or

(c) where the Minister certifies in writing that— (i) the issue in question was omitted from or included in the principal collective bargaining

agreement when it should not have been so omitted or included; and


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(ii) the parties to the principal collective bargaining agreement have failed or are not in a position to reach an agreement on such an issue.

Effect of collective bargaining agreements negotiated by workers committees

(1) Every collective bargaining agreement which has been negotiated by a workers committee shall

be referred by the workers committee to the employees and the trade union concerned, and, if approved by the trade union and by more than fifty per centum of the employees, shall become binding on the employer and the employees concerned: Provided that where there is any conflict between the terms and conditions of any such collective

bargaining agreement and collective bargaining agreement negotiated by an appropriate trade union, the latter shall prevail unless the terms and conditions of the former collective bargaining agreement are more favourable to the employees concerned, in which case such last-mentioned terms and conditions shall prevail. (2) Where a collective bargaining agreement which has been negotiated by a workers committee

contains any provision which is, or has become— (a) inconsistent with this Act or any other enactment; or (b) … {Repealed] (c) unreasonable or unfair, having regard to the respective rights of the parties; the Minister may direct the parties to the agreement to negotiate, within such period as he may specify, an amendment to the agreement in such manner or to such extent as he may specify, and he may give such other directions relating to the operation of the agreement pending its amendment as he may deem fit, and such directions shall be binding on the parties. (3) Where the Minister has made a direction in terms of subsection (2), it shall be the duty of the

parties to the collective bargaining agreement concerned to negotiate an amendment to the agreement in good faith, and to report back to the Minister within the period specified in the direction the extent to which they have been able or unable to agree in amending the agreement. (4) The Minister may, after considering any report submitted to him in terms of subsection (3), amend

the collective bargaining agreement concerned in accordance with the report of the parties or in such other manner as he may deem necessary in the national interest, having regard to the considerations specified in paragraphs (a), (b) and (c) of subsection (2), and the agreement, as amended, shall, subject to this Act, be binding on the employer and the employees concerned. (5) A collective bargaining agreement negotiated in terms of this section shall not be affected by—

(a) where the employer is a corporate body, a change in membership of the management or ownership of the employer; or

(b) a change in membership of the workers committee or the employees concerned; or (c) a transfer of the undertaking or industry in which the employees concerned are employed. (6) Any person who is aggrieved by any determination or direction in terms of subsection (2) or any

amendment of a collective bargaining agreement in terms of subsection (4) may appeal to the Labour Court.

Composition, procedure and functions of works councils (1) In every establishment in which a workers committee representing employees other than

managerial employees has been elected, there shall be a works council. (2) A works council shall be composed of an equal number of members representing the employer

and the workers committee. (3) The procedure of a works council shall be as determined by the employer and the workers

committee at the establishment concerned. (4) Without prejudice to the provisions of any collective bargaining agreement that may be

applicable to the establishment concerned, the functions of a works council shall be— (a) to focus the best interests of the establishment and employees on the best possible use of its

human, capital, equipment and other resources, so that maximum productivity and optimum employment standards may be maintained; and

(b) to foster, encourage and maintain good relations between the employer and employees at all levels, and to understand and seek solutions to their common problems; and

(c) to promote the general and common interest, including the health, safety and welfare of both the establishment and its workers; and


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(d) in general, to promote and maintain the effective participation of employees in the establishment, and to secure the mutual co-operation and trust of employees, the employer and any registered trade union representing employees in the establishment, in the interests of industrial harmony.

(5) Without prejudice to the provisions of any collective bargaining agreement that may be applicable to the establishment concerned, a works council shall be entitled to be consulted by the employer about proposals relating to any of the following matters— (a) the restructuring of the workplace caused by the introduction of new technology and work

methods; (b) product development plans, job grading and training and education schemes affecting

employees; (c) partial or total plant closures and mergers and transfers of ownership; (d) the implementation of an employment code of conduct; (e) the criteria for merit increases or payment of discretionary bonuses; (f) the retrenchment of employees, whether voluntary or compulsory: Provided that any matter involving the retrenchment of five or more employees within a period of six

months shall be governed by sections twelve C and twelve D, unless otherwise agreed by the employer with the members of the works council representing the workers committee. (6) Before an employer may implement a proposal relating to any matter referred to in subsection

(5), the employer shall— (a) afford the members of the works council representing the workers committee a reasonable

opportunity to make representations and to advance alternative proposals; (b) consider and respond to the representations and alternative proposals, if any, made under

paragraph (a) and, if the employer does not agree with them, state the reasons for disagreeing; (c) generally, attempt to reach consensus with the members of the works council representing the

workers committee on any matter referred to in subsection (5).

Collective Bargaining (Intro)

Good relations between the employer and employees are essential for the success of industry. In order to maintain good relations, it is necessary that industrial disputes are settled quickly and amicably. One of the efficient methods of resolving industrial disputes and deciding the employment conditions is Collective Bargaining. Industrial disputes essentially refer to differences or conflicts between employers and employees.

• Collective Bargaining is a process in which the management and employee representatives meet and negotiate the terms and conditions of employment for mutual benefit. Collective bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment. It is termed Collective because both the employer’s negotiators and the employees act as a group rather than individuals. It is known as Bargaining because the method of reaching an agreement involves proposals and counter-proposals, offers and counter offers. There should be no outsiders involved in the process of collective bargaining.

According to Walton and McKersie the process of Collective Bargaining consists of

four types of activities:

1) Distributive Bargaining: It involves haggling over the distribution of surplus. Various activities involved in this activity are wages, salaries, bonus and other financial issues. In this activity, both the parties face a win/lose situation.

2) Integrative Bargaining: Also known as Interest-Based Bargaining, issues which are not damaging to either party are discussed. It is a negotiation strategy in which both the parties collaborate to find a win-win solution to their problems. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Issues brought up may be better job evaluation procedures, better performance appraisal methods or training programmes etc.

3) Attitudinal structuring: Attitudinal structuring refers to efforts by negotiators to shape their opponents' perceptions about the nature of the issues to be negotiated. By cultivating an atmosphere of friendliness, mutual respect, trust, and cooperation, negotiators can encourage their opponents to view issues largely in integrative terms and participate in joint problem solving. This activity involves shaping and reshaping some perceptions like trust/distrust, friendliness/hostility, co-operative/non-


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cooperative between the labour and management. When there is a backlog of bitterness between both the parties, attitudinal structuring is required to maintain smooth and harmonious industrial relations.

4) Intra-Organisational Bargaining: It is a type of manoeuvring to achieve consensus among the workers and management. Even within the union there may be differences between different groups as may be the case with the management. Intra-organisational consensus is required for the smooth acceptance of the outcome of Collective Bargaining.

Objectives of Collective Bargaining:

1. To maintain cordial relations between the employer and employees. 2. To protect the interests of the workers through collective action and by preventing unilateral

actions from being taken by the employer. 3. To ensure the participation of trade unions in industry. 4. To avoid the need for government intervention as collective bargaining is a voluntary

collective process. 5. To promote Industrial democracy.

Characteristics of Collective Bargaining:

1. It is a group or collective action as opposed to individual action. It is initiated through the representatives of the employees.

2. It is a flexible and dynamic process where-in no party adopts a rigid attitude. 3. It is a continuous process, which provides a mechanism for continuous negotiations and

discussions between management and the trade unions. 4. It is a voluntary process without any third-party intervention. Both workers and management

voluntarily participate in the negotiations, discuss and arrive at a solution. That is why it is known as a bipartite process where workers’ representatives and management get an opportunity for clear, face-to-face communication.

5. It ensures industrial democracy at the workplace; it is a self-run government in action. 6. It is a two-way process. It is a mutual give and take rather than a take home all method of

arriving at a solution to a dispute.

Process of Collective Bargaining

1. Preparation for Negotiation: Preparation for negotiation in Collective Bargaining is as important as the negotiation process itself. Upto 83% of the outcomes are influenced by pre-negotiation process. Such preparation is required for both management as well as the union representatives. From the management’s point of view, pre-negotiation preparation is required as:

• Management should decide when and how to open the negotiations/dialogue. • Management must choose the representatives to negotiate at the negotiation table. • Draft for likely decisions should be prepared in advance so that the final agreement draft can

be prepared as soon as the negotiation process is over. • From the employees’ side also, preparation is required for the following reasons: • The union should collect the information related to the financial position of the company and

their ability to pay the employees. • The union must also be aware of the various practices followed by other companies in the

same region or industry. • The union must assess the attitudes and expectations of the employees over concerned issues

so that the outcome of negotiations does not face any resistance from them.

2. Identifying issues for Bargaining: The second step in bargaining process is the determination of issues which will be taken up for negotiations. The different types of issues are: • Wage-related issues: Include wage or salary revision, allowance for meeting increased cost of living

like Dearness Allowance (D.A), financial perks, incentives etc. • Supplementary economic benefits: These include pension plans, gratuity plans, accident

compensation, health insurance plans, paid holidays etc.


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• Administrative issues: Include seniority, grievance procedures, employee health and safety measures, job security and job changes.

The wage and benefits issues are the ones which receive the greatest amount of attention on the bargaining table.

3. Negotiation: When the first two steps are completed, both parties engage in actual negotiation process at a time and place fixed for the purpose. There a re two types of negotiations:

• Boulwarism: In this method, the management themselves takes the initiative to find out through comprehensive research and surveys the needs of the employees. Based on the analysis of the findings, the company designs its own package based on the issues to be bargained. Thereafter, a change is incorporated only when new facts are presented by the employees or their unions.

• Continuous Bargaining: Involves parties to explore particular bargaining problems in joint meetings over a long period of time, some throughout the life of each agreement. The basic logic behind this method is that all persistent issues can be addressed through continuous negotiation over a period of time. The success of negotiations depends on the skills and abilities of the negotiators.

4. Initial negotiated agreement:When two parties arrive at a mutually acceptable agreement either in the initial stage or through overcoming negotiation breakdown, the agreement is recorded with a provision that the agreement will be formalized after the ratification by the respective organizations.

5. Ratification of agreement: Ratification of negotiated agreement is required because the representatives of both the parties may not have ultimate authority to decide various issues referred to for collective bargaining. The ratification of agreement may be done by the appropriate manager authorized for the purpose in the case of management, or trade executives in the case of the employees. Ratification is also required by the Industrial Disputes Act. It is important that the agreement must be clear and precise. Any ambiguity leads to future complications or other such problems.

6. Implementation of agreement: Signing the agreement is not the end of collective bargaining, rather it is the beginning of the process when the agreement is finalized, it becomes operational from the date indicated in the agreement. The agreement must be implemented according to the letter and spirit of the provisions made by the agreement agreed to by both parties. The HR manager plays a crucial role in the day-to-day administration implementation of the agreement.

2.5 Formal procedures governing collective relations: - participation, consultation, grievance and dispute handling (Labor Relations Act as amended). ACT EXTRACT

COLLECTIVE BARGAINING AGREEMENTS NEGOTIATED BY TRADE UNIONS AND EMPLOYERS

ORGANIZATIONS

74 Scope of collective bargaining agreements (1) This Part shall apply to collective bargaining agreements negotiated by registered trade unions,

employers and employers organizations or federations thereof: Provided that nothing in this Part contained shall prevent an unregistered trade union or employers

organization from negotiating a collective bargaining agreement. (2) Subject to this Act and the competence and authority of the parties, trade unions and employers

or employers organizations may negotiate collective bargaining agreements as to any conditions of employment which are of mutual interest to the parties thereto.


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(3) Without derogation from the generality of subsection (2), a collective bargaining agreement may make provision for— (a) rates of remuneration and minimum wages for different grades and types of occupations; (b) benefits for employees; (c) deductions which an employer may make from employees’ wages, including deductions for

membership fees and union dues, and deductions which an employer may be required or permitted by law or by order of any competent court to make;

(d) methods of calculating, or factors for adjusting rates of pay, and the dates, times and modes of payment;

(e) all issues pertaining to overtime, piece-work, periods of vacation and vacation pay and constraints thereon;

(f) the demarcation of the appropriate categories and classes of employment and their respective functions;

(g) the conditions of employment for apprentices; (h) the number of hours of work and the times of work with respect to all or some of the employees; (i) the requirements of occupational safety; (j) the maintenance of, and access by the parties to, records of employment and pay; (k) procedures for dealing with disputes within an undertaking or industry; (l) housing and transport facilities or, in their absence, an allowance for the same; (m) measures to combat workplace violence and handlng its aftermath. (4) Nothing contained in any collective bargaining agreement shall prevent either or both of the

parties from seeking to renegotiate or amend the agreement after twelve months of its operation in order to take account of changed circumstances in the industry or undertaking concerned. (5) A collective bargaining agreement shall not contain any provision which is inconsistent with this

Act or any other enactment, and any collective bargaining agreement which contains any such provision shall, to the extent of such inconsistency, be construed with such modifications, qualifications, adaptations and exceptions as may be necessary to bring it into conformity with this Act or such other enactment. (6) The existence of a collective bargaining agreement shall not preclude an employer and his

employees from agreeing to the introduction of higher rates of pay or other more favourable conditions of employment before the expiry of such collective bargaining agreement, so however that the rights and interests of the employees are not thereby diminished or adversely affected: Provided that the collective bargaining agreement shall be endorsed to reflect such higher rates of

pay or other more favourable conditions of employment. 75 Obligation to negotiate in good faith (1) All parties to the negotiation of a collective bargaining agreement shall—

(a) disclose all information relevant to the negotiation, including information contained in records, papers, books and other documents; and

(b) make no false or fraudulent misrepresentations in regard to matters relevant to the negotiation; and

(c) earnestly and expeditiously endeavour to arrive at a successful conclusion in the negotiation; so as to ensure that the entire negotiation is conducted in absolute good faith. (2) It shall constitute an unfair labour practice to fail to negotiate in absolute good faith, or in any

way to bring about a situation that undermines the basis of negotiating in absolute good faith. 76 Duty of full disclosure when financial incapacity alleged (1) When any party to the negotiation of a collective bargaining agreement alleges financial

incapacity as a ground for his inability to agree to any terms or conditions, or to any alteration of any terms or conditions thereof, it shall be the duty of such party to make full disclosure of his financial position, duly supported by all relevant accounting papers and documents, to the other party. (2) Where there is any dispute as to whether or not full disclosure has been made in terms of

subsection (1), either party to the dispute may refer it to a labour officer, and the determination of the labour officer on the dispute shall be final unless the parties agree to refer it to voluntary arbitration. (3) Any person who fails or refuses to comply with a determination that is binding upon him in terms

of subsection (2) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment. 77 Representation of parties The parties to the negotiation of a collective bargaining agreement may be represented by

committees, delegates or agents: Provided that—


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(i) the powers of such committees, delegates or agents shall be specified in writing and certified by the parties they represent;

(ii) copies of such documents shall be served by each party on the other party or parties prior to the commencement of negotiations.

78 Ratification of collective bargaining agreements (1) Every collective bargaining agreement which has been negotiated by a party and which is

required to be ratified by the members thereof or by a constituent branch or other party thereto shall be deemed not to have been ratified unless every portion of the collective bargaining agreement has been ratified. (2) Notwithstanding subsection (1), where the national interest so demands, the Minister may direct

that any portion of a collective bargaining agreement which has not been ratified shall be put into effect prior to the ratification of the other portions of the collective bargaining agreement: Provided that where a collective bargaining agreement itself stipulates that it shall not be valid unless

ratified in toto,the Minister shall not exercise his powers in terms of this subsection except in relation to provisions dealing with wages and benefits which have been ratified. 79 Submission of collective bargaining agreements for approval or registration (1) After negotiation, a collective bargaining agreement shall be submitted to the Registrar for

registration. (2) Where any provision of a collective bargaining agreement appears to the Minister to be—

(a) inconsistent with this Act or any other enactment; or (b) … {Repealed] (c) unreasonable or unfair, having regard to the respective rights of the parties; he may direct the Registrar not to register such collective bargaining agreement until it has been suitably amended by the parties thereto. (3) Where a collective bargaining agreement is not registered or approved in terms of subsection (2)

until it has been amended, it shall be the duty of the parties concerned to negotiate for such amendment in absolute good faith and to duly participate in proceedings necessary therefor, and failure to do so shall constitute an unfair labour practice. 80 Publication of collective bargaining agreements (1) Upon registration of a collective bargaining agreement the Minister shall publish the agreement

as a statutory instrument. (2) The terms and conditions of a registered collective bargaining agreement shall become effective

and binding— (a) from the date of publication of the agreement in terms of subsection (1); or (b) from such other date as may be specified in the agreement. 81 Amendment of registered collective bargaining agreements by Minister (1) Where a collective bargaining agreement which has been registered contains any provision

which is or has become— (a) inconsistent with this Act or any other enactment; or (b) … {Repealed] (c) unreasonable or unfair, having regard to the respective rights of the parties; the Minister may direct the parties to the agreement to negotiate within such period as he may specify for the amendment of the agreement in such manner or to such extent as he may specify. (2) Where the Minister has made a direction in terms of subsection (1), it shall be the duty of the

parties to the collective bargaining agreement concerned to negotiate in absolute good faith for the amendment of the agreement and to report back to the Minister within the period specified in the direction as to the extent to which they have been able or unable to agree in amending the agreement. (3) Upon receipt of the report of the parties in terms of subsection (2), the Minister shall consider the

same and may thereafter amend the collective bargaining agreement in accordance with the report of the parties or in such other manner as is consistent with the considerations specified in paragraphs (a), (b) and (c) of subsection (1). (4) Where the Minister amends a collective bargaining agreement in terms of subsection (3), he shall

direct the Registrar to register such amendment and section eighty shallapply, mutatis mutandis, in relation thereto. (5) Any person who is aggrieved by any action taken by the Minister in terms of this section may

appeal to the Labour Court.


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82 Binding nature of registered collective bargaining agreements (1) Where a collective bargaining agreement has been registered it shall—

(a) with effect from the date of itspublication in terms of section eighty-five,or such other date as may be specified in the agreement, be binding on the parties to the agreement, including all the members of such parties, and all employers, contractors and their respective employees in the undertaking or industry to which the agreement relates;

(b) remain binding despite— (i) a change of employer; or (ii) a change of ownership of the undertaking or industry concerned; or (iii) a change in the membership or structure of the trade union or employers organization; (c) remain binding until— (i) it is replaced by a substitute agreement, notwithstanding any provision therein contained that

it shall expire by lapse of time; (ii) it is terminated by the mutual agreement of the parties thereto. (2) This section shall apply, mutatis mutandis,in respect of any part of a collective bargaining

agreement. (3) Any person who fails to comply with a collective bargaining agreement which is binding upon

him shall, without derogation from any other remedies that may be available against him for its enforcement— (a) commit an unfair labour practice for which redress may be sought in terms of Part XII; and (b) be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a

period not exceeding two years or to both such fine and such imprisonment. (4) If a registered collective bargaining agreement provides a procedure for the conciliation and

arbitration of any category of dispute, that procedure is the exclusive procedure for the determination of disputes within that category. 82A Copies of collective bargaining agreement (1) Each party to the negotiation of a collective bargaining agreement shall be provided with a

copy of the agreement. (2) A copy of a collective bargaining agreement in force shall be posted in a conspicuous place in

every undertaking in respect of which it applies. (3) A copy of a collective bargaining agreement in force shall be made available for examination

free of charge on request by any employee bound by its terms at the offices of the trade union that was a party to its negotiation. 82B Codes of best practice, guidelines and model agreements The Minister shall publish in the Government Gazette codes of best practices, guidelines and model

agreements which the employers and employees may have regard to when performing their duties but they are not obliged to follow them.

Objectives of Trade Unions

• Trade unions are formed to protect and promote the interests of their members. Their

primary function is to protect the interests of workers against discrimination and unfair labor practices. Trade unions are formed to achieve the following objectives:

1 RepresentationTrade unions represent individual workers when they have a problem at work. If an employee feels he is being unfairly treated, he can ask the union representative to help sort out the difficulty with the manager or employer. Unions also offer their members legal representation. Normally this is to help people get financial compensation for work-related injuries or to assist people who have to take their employer to court.

2 Negotiation Negotiation is where union representatives, discuss with management, the issues which affect people working in an organization. There may be a difference of opinion between management and union members. Trade unions negotiate with the employers to find out a solution to these differences. Pay, working hours, holidays and changes to working practices are the sorts of issues that are negotiated. In many workplaces there is a formal


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agreement between the union and the company which states that the union has the right to negotiate with the employer. In these organizations, unions are said to be recognized for collective bargaining purposes.

3 Voice in decisions affecting workers The economic security of employees is determined not only by the level of wages and duration of their employment, but also by the management’s personal policies which include selection of employees for layoffs, retrenchment, promotion and transfer. These policies directly affect workers. The evaluation criteria for such decisions may not be fair. So, the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interests.

4 Member services During the last few years, trade unions have increased the range of services they offer their members. These include:

5 Education and training - Most unions run training courses for their members on employment rights, health and safety and other issues. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications.

6 Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt.

7 Financial discounts - People can get discounts on mortgages, insurance and loans from unions.

8 Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed.

Functions of Trade Unions

Trade unions perform a number of functions in order to achieve the objectives. These functions can be broadly classified into three categories: (i) Militant functions, (ii) Fraternal functions Militant Functions One set of activities performed by trade unions leads to the betterment of the position of their members in relation to their employment. The aim of such activities is to ensure adequate wages, secure better conditions of work and employment, get better treatment from employers, etc. When the unions fail to accomplish these aims by the method of collective bargaining and negotiations, they adopt an approach and put up a fight with the management in the form of go-slow tactics, strike, boycott, surrounding a manager, etc. Hence, these functions of the trade unions are known as militant or fighting functions. Thus, the militant functions of trade unions can be summed up as:

• To achieve higher wages and better working conditions • To raise the status of workers as a part of industry • To protect labors against victimization and injustice

Fraternal Functions Another set of activities performed by trade unions aims at rendering help to its members in times of need, and improving their efficiency. Trade unions try to foster a spirit of cooperation and promote friendly industrial relations and diffuse education and culture among their members. They take up welfare measures for improving the morale of workers and generate self confidence among them. They also arrange for legal assistance to its members, if necessary. Besides, these, they undertake many welfare measures for their members, e.g., school for the education of children, library, reading-rooms, in-door and out-door games, and other recreational facilities. Some trade unions even undertake publication of some magazine or journal. These activities,


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which may be called fraternal functions, depend on the availability of funds, which the unions raise by subscription from members and donations from outsiders, and also on their competent and enlightened leadership. Thus, the fraternal functions of trade unions can be summed up as:

• To take up welfare measures for improving the morale of workers • To generate self confidence among workers • To encourage sincerity and discipline among workers • To provide opportunities for promotion and growth • To protect women workers against discrimination

Functions of a Trade Union

Trade unions should: 1. Where appropriate, maintain jointly with management and other trade unions effective

arrangements at industry or local levels for negotiation, consultation, and communication and for settling grievances and disputes;

2. Take all reasonable steps to ensure that their officials and members observe all arrangements; 3. Provide for the training of delegates in the scope of their powers and duties and the day-to-

day operation of the unions; 4. Provide adequate educational opportunities for the advancement of their members; 5. Be properly staffed to serve the needs of their members, and allow for effective lines of

communication between such staff and the rank and file membership; 6. Encourage members to take part in their activities by adopting such means as would best

allow them to do so, including the compilation and distribution of information; 7. Make available information pertaining to the rules and policies of the union; 8. Provide adequate advisory services for their members and in particular assist them to

understand the terms and conditions of their employment; and 9. Identify trends in industrial relations to help their members to anticipate and keep abreast of

change.

Importance of Trade Unions

� The existence of a strong and recognized trade union is a pre-requisite to industrial peace. Decisions taken through the process of collective bargaining and negotiations between employer and unions are more influential. Trade unions play an important role and are helpful in effective communication between the workers and the management. They provide the advice and support to ensure that the differences of opinion do not turn into major conflicts. The central function of a trade union is to represent people at work. But they also have a wider role in protecting their interests. They also play an important educational role, organizing courses for their members on a wide range of matters. Seeking a healthy and safe working environment is also prominent feature of union activity.

Trade unions help in accelerated pace of economic development in many ways as follows:

• By helping in the recruitment and selection of workers. • By inculcating discipline among the workforce • By enabling settlement of industrial disputes in a rational manner • By helping social adjustments. Workers have to adjust themselves to the new working

conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

Trade unions are a part of society and as such, have to take into consideration the national

integration as well. Some important social responsibilities of trade unions include:

• Promoting and maintaining national integration by reducing the number of industrial disputes


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• Incorporating a sense of corporate social responsibility in workers • Achieving industrial peace

The Role of Trade Unions Generally, it is possible to summarize the various functions which Zimbabwe trade unions have

undertaken:

1. Political role, using collective power to influence decisions on behalf of members and the wider society. There are many who recognize that power relations are at the basis of industrial relations, and that trade unions are political institutions. Some recognize the trade unions as exercising a countervailing power against the state, and the private sector, on behalf of their membership which comprises mainly the working classes.

2. Market role, by intervention wage bargaining and thus impacting on the economy. The point has to be made that the trade union’s economic or market function in the Zimbabwe is generally reactive. Trade unions direct their efforts at protecting their workers against the ravages of inflation, and trying to improve living standards which have been depressed for historical reasons. They also try to defend their member’s right to work and are supportive of both macro and micro economic policies which would be conducive to high employment.

3. Regulatory roleby setting standards in relation to jobs and terms and conditions. The strength of the trade union at the workplace level determines its ability to perform its job regulation function. Strong trade unions have entered into arrangements where the power of management has to be shared with the union at the workplace. Jointly agreed procedures for dealing with major issues in the workplace e.g. grievances, discipline, job evaluation, redundancy, work changes, safety and health, along with the right to negotiate terms and conditions through collective bargaining, provide the sound basis for unions to perform regulatory functions. Trade unions are currently trying to expand such joint arrangements to cover areas such as training, equal rights for part-time employees, sexual harassment, treatment of those with chronic diseases, and other areas. On the other hand, some employers are seeking to side step the trade union by engaging in direct contract with employees rather than encouraging union participation.

4. Democratizing role, in creating industrial democracy at the workplace. The trade union’s rank and file are provided with the opportunity of electing their stewards, committees of management, and through the delegate system, their executives and other leaders. The process of preparation for collective bargaining also encourages worker participation. Trade unions are fertile institutions for the furtherance of participatory democracy, for the freedom of assembly, the right to speak freely and the right to exercise choice. Traditionally the separation between capital and labour has created a situation where it has been accepted that management is imbued with the right to manage, which is interpreted to mean that workers are mere resources to be manipulated like any other resource. Paternalistic, autocratic and top- down management has been characteristic of the social relations in the workplace. Indeed, there is a notion that the plantation has created the model of relations for other workplaces in the Zimbabwe.

5. Service role, in promoting the intervention of members. Trade unions attempt to develop services which are valuable to their members as individuals, outside of the scope of collective bargaining. In the early stages, this took the form of mutual assistance, but with the onset of the welfare state, with provisions for national insurance and similar schemes, this demand has abated. Yet trade unions have recognized the need to expand their role in assisting their members in a variety of areas, and so have undertaken a number of non-traditional ventures on behalf of their members. Some of the most successful cooperative organizations, particularly credit unions in the Zimbabwe,


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have been developed by trade unions on behalf of their members. Trade unions have also developed housing land-lease schemes, transport and service stations, banks, laundermats, cinemas, stores, insurance programmes and other schemes for the benefit of members. Trade unions also supply legal and medical services for their members. Some trade unions recognize the high cost of legal representation in the Zimbabwe and seek to provide legal assistance to their members. This is especially important in areas where the collective bargaining and grievance handling process is highly regulated.

6. Enhancement rolein helping to develop the human potential of members. Trade unions provide the opportunity for workers to develop pride in themselves, to reach positions of leadership and to excel, where without this vehicle of mobility, many would have had a stultified existence. Many persons who have moved on to management and other leadership roles can testify to their beginnings as shop stewards who were given basic training and opportunity for leadership in the labour movement. The role of trade union education is critical to helping members to develop their potential.

7. Welfare rolein providing assistance to particular groups. Some trade unions have actively engaged in providing welfare services for members and even for the wider community. This takes various forms including the employment of those who have disabilities, as an example to the wider community, the provision of family services including nurseries, child care centres and old people’s homes, as well as play and recreational centres in depressed areas.

Reasons for Joining Trade Unions

The important forces that make the employees join a union are as follows:

1. Greater Bargaining Power The individual employee possesses very little bargaining power as compared to that of his employer. If he is not satisfied with the wage and other conditions of employment, he can leave the job. It is not practicable to continually resign from one job after another when he is dissatisfied. This imposes a great financial and emotional burden upon the worker. The better course for him is to join a union that can take concerted action against the employer. The threat or actuality of a strike by a union is a powerful tool that often causes the employer to accept the demands of the workers for better conditions of employment.

2. Minimize Discrimination The decisions regarding pay, work, transfer, promotion, etc. are highly subjective in nature. The personal relationships existing between the supervisor and each of his subordinates may influence the management. Thus, there are chances of favoritisms and discriminations. A trade union can compel the management to formulate personnel policies that press for equality of treatment to the workers. All the labor decisions of the management are under close scrutiny of the labor union. This has the effect of minimizing favoritism and discrimination.

3. Sense of Security The employees may join the unions because of their belief that it is an effective way to secure adequate protection from various types of hazards and income insecurity such as accident, injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers.

4. Sense of Participation The employees can participate in management of matters affecting their interests only if they join trade unions. They can influence the decisions that are taken as a result of collective bargaining between the union and the management.

5. Sense of Belongingness Many employees join a union because their co-workers are the members of the union. At times, an


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employee joins a union under group pressure; if he does not, he often has a very difficult time at work. On the other hand, those who are members of a union feel that they gain respect in the eyes of their fellow workers. They can also discuss their problem with’ the trade union leaders.

6. Platform for self-expression The desire for self-expression is a fundamental human drive for most people. All of us wish to share our feelings, ideas and opinions with others. Similarly the workers also want the management to listen to them. A trade union provides such a forum where the feelings, ideas and opinions of the workers could be discussed. It can also transmit the feelings, ideas, opinions and complaints of the workers to the management. The collective voice of the workers is heard by the management and give due consideration while taking policy decisions by the management.

7. Betterment of relationships Another reason for employees joining unions is that employees feel that unions can fulfill the important need for adequate machinery for proper maintenance of employer-employee relations. Unions help in betterment of industrial relations among management and workers by solving the problems peacefully.

The Pros and Cons of joining a Trade Union

Although joining a Trade Union is not a silver bullet to solving all your work-related woes, it can be advantageous in many ways. It is important to understand what benefits and disadvantages can be derived from becoming a Trade Union member.

Advantages

These are some of the main benefits derived from joining a Trade Union:

• Trade Unions provide members with the opportunity to access the benefits of collective bargaining

• Trade Unions shield workers from exploitation and victimisation by management i.e. lack of adherence to labour laws, unfair dismissals etc

• Trade Unions assist members by offering them educational programmes that expose them to their rights both in the workplace and in homes

• In some instances, Trade Unions provide its members with legal assistance during disciplinary matters or legal suits

• Trade Unions also negotiate wage and salary matters with employers.

Disadvantages

Trade Unions are not the final line of protection in labour issues. Therefore, as much as they provide its members with legal, financial and labour advice, they have disadvantages. Among the major ones are as follows:

• Collective bargaining by Trade Unions can sometimes lump all workers, both productive and unproductive, in the same space thereby inhibiting hard-working individuals from being rewarded appropriately.

• By nature of Trade Union involvement or participation workers tend to become more critical and conscious of management methods and activities.This could possibly hinder their chances at training and promotions, especially if these are solely at management's discretion.

• Cost of productivity and loss of employment can be disadvantages -“Specifically if unions strike or have a go slow, a lot of man- hours are lost in the process and the employer may fire some key workers. Also where union demands are increasingly high, employers may opt to shed off "excess" staff and in turn employ even less workers as a result,” elaborates Silvia Chipampwe, a Trade Unionist with the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW).


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Reasons why some employees dislike trade unions The Reasons are:

1. The Lack of a compelling reason. 2. They identify with management. 3. They distrust Union. 4. They fear the corruption in Union.

Originally, trade unions helped get workers benefits, better working conditions and equal treatment. While trade unions still fight for the rights of workers against big corporations and businesses, they also have some disadvantages that make some workers refuse to join.

Individual vs. Majority

o The union represents a large group of people. Decisions are made basically democratically, where majority rules. As an individual member, you may not agree with all the decisions that are made. The decisions made are typically final, and anyone who does not like the decisions are essentially out of luck, because he has no individual voice. An individual also does not have the right, when part of a union, to negotiate directly with the employer for himself.

Union Dues

o Union dues typically come directly out of a union member's paycheck just like taxes. The money collected from the union dues go to support the union's activities. In fact, even if the employee is not a part of the union, she may be required to pay union dues anyway if she works at a unionized establishment. Any member who does not pay the dues could be laid off at the union's request.

Labor Strikes

o A labor strike is where every union member refuses to work until certain demands are met, bringing production to a standstill. Ideally, this will cripple the business and force the employer and owners to accept the demands of the union. While seeking better benefits, higher pay and safer working conditions is a noble cause, labor strikes can be difficult for workers. Employers don't always meet the union's demands during strikes, and lost wages during strikes aren't recovered. Once the strike is over, union members have no guarantee that they'll even have a job to go back to because employers aren't required by law to rehire them.

Fines

o A union can levy fines on a member who breaks the rules of the union's constitution or acts in a way considered not becoming of a union member. These fines can be brought about because of a union member crossing a picket line, seeking out a different union or being too productive. Production quotas are commonplace in trade

unions. The courts will enforce the fines.


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Top Five Reasons You Can't Blame Employees For Joining A Union

Reason Number 5: Ignoring employee complaints

You don't like to be ignored. Neither do your employees. When you overlook employee complaints, and especially claims of discrimination and payroll concerns, or fail to resolve them quickly and efficiently, resentment grows. Give employees orders without explanations, or ask them to perform jobs that they are not suited to do, and they begin to feel more like a number, as opposed to a valuable member of a productive team.

Unions know this. Indeed, one of the key promises made in every union campaign is to provide employees a "stronger voice on the job." To the underappreciated employee, this can be an attractive selling point.

You need an effective complaint-handling system – one that gives you employee feedback on a regular basis. Periodic group meetings and mini-surveys are good places to start. That way, if a union starts promising your employees a "voice" in the workplace, they'll understand that they already have opportunities to be heard, and they'll more likely conclude that they don't need to pay a union representative for that privilege.

And keep this in mind: if you shut down employee complaints, you're not getting the benefit of their ideas and suggestions either.

Reason Number 4: Lack of respect

It goes without saying that, just as employees do not like being ignored, they also do not like being disrespected. Disciplining employees in front of others, assigning blame before reviewing the facts, and generally playing favorites are all factors that can cause employees to feel disrespected, and turn to a union for help.

To counter this, ensure that your supervisors are well-trained on effectively communicating with employees, especially about sensitive subjects like discipline or job performance. Helping managers become better leaders and advocates for their employees makes the managers better "caretakers" of employees and reduces employee vulnerability to the traditional union sales pitch.

Actually, the Golden Rule about treating others the way you'd like to be treated, is a pretty good business model for your supervisors to follow with their employees.

Reason Number 3: Lack of concern about safety

Employees expect to work in a safe environment. They expect safety training, appropriate equipment, and clear guidelines and procedures for responding to and reporting workplace accidents. Too often, employers fail to meet these basic expectations. Not only does this leave your organization susceptible to potential OSHA citations, it also opens the door to a union-organizing campaign.

Workplace safety has historically been a focal point for unions. Unions promote themselves as being able to secure more safety training, resulting in fewer workplace accidents. They advertise that they are able to walk employees through the sometimes complicated workers' compensation procedures.

Employers who address safety issues early on are therefore better suited to counter the inevitable union promise to create a "safer" workplace. This begins with management and supervisor safety training. Remember, safety is not simply a book of rules and regulations, but a culture of smart behavior that needs to be encouraged from the top down. Employers who actively promote a safe work environment will not only find that they are well prepared for a union campaign, but also that they have protected themselves from costly OSHA citations, and created a more productive business environment.


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Reason Number 2: Non-competitive pay and benefits

The bottom line in an organizing drive often comes down to wages and benefits. Unions argue consistently that representation leads to higher wages, better health care, and a secure retirement. The "union advantage," employees are told, will put more money in their pockets.

That's not necessarily true, of course, and in fact it's sometimes the reverse. But perception can become reality and if your employees believe that your organization is easily capable of providing more but just chooses not to, they are easy union targets.

Employers who provide fair and competitive wages and benefits are less susceptible to this argument. Employees talk to their friends and neighbors at competing businesses and learn quickly if they are being paid less than others. To the extent that employees feel they are earning less, they will be more likely to believe that the union can get them more.

Participate in wage-benefit surveys where you can and make sure you are competitive in your industry and your location. If your position in the community is not at the top of the scale, be prepared to explain why, including the trade-offs of the other non-monetary advantages of working at your company, which employees may not always focus on. The more honest you are with your employees the more likely they are to believe you when you explain that a union is not the answer to their concerns.

Reason Number 1: Reason You Can't Blame Employees for Joining a Union: Favoritism

As should be obvious by now, the number one reason employees join a union is because they feel their employer is treating them "unfairly." That can mean lots of different things, but nowhere is it more evident than when an employer takes inconsistent disciplinary action. Where employees feel that they have been subjected to discipline which they did not deserve, or did not expect, or that another employee got a break that they did not, union organizing may not be far off.

The solution here is a simple one: establish clear policies and regulations and follow them. Too often, employers satisfy the first step, but fail to meet the second. You also need to train and update managers and supervisors on employment policies, and make sure that they are being implemented effectively and consistently.

To sum it up: a good pro-employee management style is also a good way to stay union free. Employers that take this approach will:

1)Prove to employees that their employer cares about them;

2) Improve working conditions before the threat of union organizing arises;

3) Detect issues that could be exploited by unions; and

4) Provide an established mechanism for implementing pro-employee practices and responding credibly to any imminent organizing threat.


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3.0 COLLECTIVE BARGAINING

3.1 Define collective bargaining.

The ILO Right to Organize and Collective Bargaining Convention (No. 98), 1949 describes collective bargaining as:

"Voluntary negotiation between employers or employers' organizations and workers' organizations, with a view to the regulation of terms and conditions of employment by collective agreements."

Collective bargaining could also be defined as negotiations relating to terms of employment and conditions of work between an employer, a group of employers or an employers' organization on the one hand, and representative workers' organizations on the other, with a view to reaching agreement.

There are several essential features of collective bargaining, all of which cannot be reflected in a single

definition or description of the process:

i. It is not equivalent to collective agreements because collective bargaining refers to the process or means, and collective agreements to the possible result, of bargaining. Collective bargaining may not always lead to a collective agreement.

ii. It is a method used by trade unions to improve the terms and conditions of employment of their members.

iii. It seeks to restore the unequal bargaining position between employer and employee. iv. Where it leads to an agreement, it modifies, rather than replaces, the individual contract of

employment, because it does not create the employer-employee relationship. v. The process is bipartite, but in some developing countries the State plays a role in the form of a

conciliator where disagreements occur, or where collective bargaining impinges on government policy.

Conditions for Successful Collective Bargaining

1. Pluralism and the Freedom of Association

A pluralistic outlook involves the acceptance within a political system of pressure groups (e.g. religious groups, unions, business associations, political parties ) with specific interests with which a government has dialogue, with a view to effecting compromises by making concessions. Pluralism implies a process of bargaining between these groups, and between one or more of them on the one hand and the government on the other. It therefore recognises these groups as the checks and balances which guarantee democracy. It is natural that in labour relations in a pluralist society, collective bargaining is recognised as a fundamental tool through which stability is maintained, while the freedom of association is the sine qua non because without the right of association the interest groups in a society would be unable to function effectively. Thus pluralism's

"theme is that men associate together to further their common interests and desires; their associations exert pressure on each other and on the government; the concessions which follow help to bind society together; thereafter stability is maintained by further concessions and adjustments as new associations emerge and power shifts from one group to another."

(H.A. Clegg: A New Approrach to Industrial Democracy, Blackwell, Oxford, UK, 1960 at 20).

There can, therefore, be no meaningful collective bargaining without the freedom of association accorded to both employers and workers.


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2. Trade Union Recognition

The existence of the freedom of association does not necessarily mean that there would automatically be recognition of unions for bargaining purposes. Especially in systems where there is a multiplicity of trade unions, there should be some pre-determined objective criteria operative within the industrial relations system to decide when and how a union should be recognised for collective bargaining purposes. The accepted principle is to recognise the most representative union, but what criteria is used to decide it and by whom may differ from system to system. In some systems the issue would be determined by requiring the union to have not less than a stipulated percentage of the workers in the enterprise or category in its membership. The representativeness may be decided by a referendum in the workplace or by an outside certifying authority (such as a labour department or an indepenedent statutory body). There could be a condition that once certified as the bargaining agent, there cannot be a change of agent for a prescribed period (e.g. one or two years) in order to ensure the stability of the process.

3. Observance of Agreements

Especially in developing countries where there is a multiplicity of unions, unions are sometimes unable to secure observance of agreements by their members. Where a labour law system provides for sanctions for breaches of agreements, the labour administration authorities may be reluctant to impose sanctions on workers. Where there is frequent non-observance of agreements or understandings reached through the collective bargaining process, the party not in default would lose faith in the process.

4. Support of Labour Administration Authorities

Support by the labour administration authorities is necessary for successful collective bargaining. This implies that they will:

i. Provide the necessary climate for it. For instance, they should provide effective conciliation services in the event of a breakdown in the process, and even provide the necessary legal framework for it to operate in where necessary, e.g. provision for the registration of agreements.

ii. Will not support a party in breach of agreements concluded consequent to collective bargaining.

iii. As far as is practicable, secure observance of collective bargaining agreements. iv. Provide methods for the settlement of disputes arising out of collective bargaining if the parties

themselves have not so provided.

5. Good Faith

Collective bargaining is workable only if the parties bargain in good faith. If not, there will be only the process of bargaining without a result viz. an agreement. Good faith is more likely where certain attitudes are shared among employers, workers and their organizations e.g. a belief and faith in the value of compromise through dialogue, in the process of collective bargaining, and in the productive nature of the relationship collective bargaining requires and develops. Strong organizations of workers and employers contribute to bargaining in good faith, because there would be some parity in the bargaining strength of the two parties.

6. Proper Internal Communication

Both the management and union should keep their managers and members respectively well informed, as a lack of proper communication and information can lead to misunderstandings and even to strikes. Sometimes managers and supervisors who are ill-informed may inadvertently mislead workers who work under them about the current state of negotiations, the management's objectives and so on. In fact, it is necessary to involve managers in deciding on objectives and solutions, and such participation is likely to ensure greater acceptance - and therefore better implementation - by them.


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Advantages of Collective Bargaining

1. First, collective bargaining has the advantage of settlement through dialogue and consensus rather than through conflict and confrontation. It differs from arbitration where the solution is based on a decision of a third party, while arrangements resulting from collective bargaining usually represent the choice or compromise of the parties themselves. Arbitration may displease one party because it usually involves a win/lose situation, and sometimes it may even displease both parties.

2. Second, collective bargaining agreements often institutionalize settlement through dialogue. For instance, a collective agreement may provide for methods by which disputes between the parties will be settled. In that event the parties know beforehand that if they are in disagreement there is an agreed method by which such disagreement may be resolved.

3. Third, collective bargaining is a form of participation. Both parties participate in deciding what proportion of the 'cake' is to be shared by the parties entitled to a share. It is a form of participation also because it involves a sharing of rule-making power between employers and unions in areas which in earlier times were regarded as management prerogatives, e.g. transfer, promotion, redundancy, discipline, modernisation, production norms. However, in some countries such as Singapore and Malaysia, transfers, promotions, retrenchments, lay-offs and work assignments are excluded by law from the scope of collective bargaining.

4. Fourth, collective bargaining agreements sometimes renounce or limit the settlement of disputes through trade union action. Such agreements have the effect of guaranteeing industrial peace for the duration of the agreements, either generally or more usually on matters covered by the agreement.

5. Fifth, collective bargaining is an essential feature in the concept of social partnership towards which labour relations should strive. Social partnership in this context may be described as a partnership between organised employer institutions and organised labour institutions designed to maintain non-confrontational processes in the settlement of disputes which may arise between employers and employees.

6. Sixth, collective bargaining has valuable by-products relevant to the relationship between the two parties. For instance, a long course of successful and bona fide dealings leads to the generation of trust. It contributes towards mutual understanding by establishing a continuing relationship. The process, once the relationship of trust and understanding has been established, creates an attitude of attacking problems together rather than each other.

7. Seventh, in societies where there is a multiplicity of unions and shifting union loyalties, collective bargaining and consequent agreements tend to stabilise union membership. For instance, where there is a collective agreement employees are less likely to change union affiliations frequently. This is of value also to employers who are faced with constant changes in union membership and consequent inter-union rivalries resulting in more disputes in the workplace than otherwise.

8. Eighth - perhaps most important of all - collective bargaining usually has the effect of improving industrial relations. This improvement can be at different levels. The continuing dialogue tends to improve relations at the workplace level between workers and the union on the one hand and the employer on the other. It also establishes a productive relationship between the union and the employers' organization where the latter is involved in the negotiation process.


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3.2 Explain the process of bargaining and negotiations at various levels (industry sector, undertaking and depot).

Collective bargaining Collective bargaining is the foundation of labour relations and constitutes the spearhead of the trade union movement. Around the world, negotiation mainly occurs at the following levels: - National: confederations/national trade union centres that bargain with the other social partners

(governments and national employers’ associations) social pact/national agreements on economic and social policy.

- Sectoral: federations/national sectoral unions that bargain with the national employers’ associations national collective agreements for a specific sector of the economy.

- Enterprise: company/enterprise unions that bargain with the employers an enterprise collective agreement.

In a significant number of countries, the prevailing model of labour relations involves an intervention of the state based on national legislation which regulates, and sometimes limits, collective bargaining and the right to organise. Moreover, one has to bear in mind that economic difficulties faced by a country could have direct consequences on the improvement achieved through collective bargaining as regards workers’ conditions. In countries where negotiation at the company level prevails, trade unions are prevented from elaborating national strategies, thus contributing to maintain differences in treatment and division among the workers in different enterprises of the same sector. On the other hand, in countries where negotiation is more centralised via sectoral collective agreements, the recourse to collective bargaining at the enterprise level is less common. Over the last 20 years, a process aiming at decentralizing production (globalisation of production via delocalisation and outsourcing) took place. This paved the way to the progressive weakening of trade unions and the reduction of bargaining at the sectoral and company level. The introduction of new technologies and the development of new forms of work organisation have resulted in a constant modification and fragmentation of production patterns within small units, and in the re-organisation of production networks on an international scale. This process, mainly driven by Multinational Enterprises (MNEs), has guaranteed greater productivity gains that were rarely distributed to workers through the extension of collective bargaining. All the global developments, mainly driven by technological changes, were also accompanied by the introduction of neo-liberal economic policies through the Structural Adjustment Plans (SAPs). These policies were based on liberalisation of trade, privatisation of public services, reduction of welfare provisions and flexibility of labour market policies. As part of the effort to build a global network of trade unions, there is a need to strengthen and broaden the linkage between enterprises and sectoral collective agreements, both at the national/regional and global level. This process would facilitate labour unions, thus achieving global objectives and responding to the main challenges imposed by globalisation.

The relevance of collective bargaining

Collective bargaining plays a vital role in settling and preventing industrial disputes. Specifically its importance is evident from the following:

1. Increase the economic strength of unions and management.

2. Establish uniform conditions of employment with a view to avoiding industrial disputes and maintaining stable peace in the industry.

3. Secure a prompt and fair settlement of grievances.


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4. Avoids interruptions in work which follow strikes, go-slow tactics and similar coercive activities;

5. Lay down fair rates of wages and norms of working conditions;

6. Achieve an efficient operation of the plant;

7. Promote the stability and prosperity of the industry;

8. Provides a method or the regulation of the conditions of employment of those who are directly concerned about them;

9. It provides a solution to the problem of sickness in industry, and ensure old age pension benefits and other fringe benefits;

10. It creates new and varied procedures for the solution of the problems as and when they arise-Ã problems which vex industrial relations; and its form can be adjusted to meet new situations. Since basic standards are laid down, the employee is assured that he will be required to work under the stipulated audit;

11. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

12. As a vehicle of industrial peace, collective bargaining has no equal. It is the most important and significant aspect of labor-management relations, and extends the democratic principle from the political to the industrial field.

13. It builds up a system of industrial jurisprudence by introducing civil rights in industry. In other words, it ensures that management is conducted by rules rather than by arbitrary decisions;

The role of collective bargaining Collective bargaining is the foundation of contemporary labour relations. It is the primary means of action for unions which strengthen their importance through its recourse. One and a half century ago the first collective agreements negotiated in Europe covered issues such as wages and work schedule. Obviously, wages are always at the centre of discussions, even though many other matters are negotiated through collective agreements today. Collective agreements represent a “labour legislation” which settles the working conditions of millions of workers. They address a variety of issues such as:

- Wage (schedule, piecework, and other forms of bonus); - Work-schedule, overtime and related pay, night work, rest periods; - Annual holidays (length, period, economic treatment); - Absence related to illness or other reasons (e.g. pregnancy, trade union activities,

studies) and corresponding wage compensation; - Dismissal; - Social welfare (e.g. pension funds and medical insurance funds); - Productivity objectives; - Consultation process; - Procedural agreements.

Often collective bargaining does not only address the various issues mentioned above, but also provides for their practical implementation and follow-up, thus regulating the relationships between employers and workers.


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The different levels of bargaining The most common levels of negotiation are: (a) national or central (upper level); (b) sectoral or

industrial (intermediate level); (c) enterprise (lower level).

1. National / central (social pacts) Level The national/central level is defined according to its range of action. Generally, this level covers all industrial sectors. The national/central bargaining was developed to support the implementation of welfare policies (e.g. unemployment indemnities, pensions), vocational training and employment policies. The agreements resulting from this level of bargaining play a major role both in case of important macroeconomic problems and difficulties in the control of the wage dynamic, and in the restructuration of employment and labour market. Compared to the other levels or bargaining, the national/central level protects the economic and social rights of workers in general, striving to influence the economic policy in their favour. Generally, main players at this level are trade union confederations/national centres, national employers’ organisations and the government. Content

Generally, this level of bargaining covers aspects related to:

a) the remuneration - wage policy

b) the labour market - employment problems - vocational training - activelabour market policies

c) economic policy and social protection of workers:

- pensions - health and safety provisions - welfare provisions

This type of negotiation is quite common in the event of a particular social and economic crisis. A decision - taken at this level by workers, employers and the government - to open a tripartite negotiation on major national policy issues has an important symbolic and political outcome. The negotiation of a “social pact” acknowledges the need to find a compromise which goes beyond the specific interests of the three parties. In most cases “social pacts” set the orientation and general framework for the extension of negotiation between workers and employers at the sectoral or enterprise level. By doing so, the “social pact” promotes an income policy based on the control of wage increases according to the projected inflation rate.

2. Sectoral / industrial Level Sectoral bargaining has been the principal feature of the contractual structure in many countries (e.g. chemical industry, metallurgical industry, transport, etc.). Traditionally, the national agreement has played the role of unifying labour conditions of sectoral workers by assuring a minimum framework of workers’ rights.


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The main players are, on one side, the national organization of employers and, on the other side, the trade unions organized by sector. In general, the elaboration phase of the platform is a trade union initiative preceding the launch of the bargaining process. Sectoral bargaining is mostly related to wages, holidays, workings hours, workplace security, indemnities, pensions, disciplinary and reclamation procedures and other aspects of working conditions. The sectoral agreements can be specific and sometimes parties can agree to reach more than one agreement, each one on a specific topic (e.g. wage and hours of work or pensions or security). Higher level agreements do not necessarily apply rigidly all the way down the line. An agreement for example, might set a minimum basic wage rate for an industry as a whole, which should not be undercut by companies that are party to the agreement. In this way such an agreement would set a wage floor, but not a wage ceiling, encouraging trade unions at local level to improve further the agreement at the enterprise level. The trade union establishes the platform of claims which will be the object of negotiations at the sectoral level (national) and it sets the framework for further negotiations that can take place at the enterprise level. Content

Sectoral bargaining takes into account almost all the labour relations aspects, such as:

-qualifications and work distribution

-wage structure

-schedules and periods of work

-trade union rights

-right to be informed

-right to follow-up the application of the collective agreement. The `contents' of the sectoral agreement might also cover the following issues:

• Wages

• Regional supplements

• Productivity bonuses

• Pensions

• Hours of work

• Overtime

• Shift working

• Standby duty

• Call out arrangements

• Night work

• Holidays

• Sickness leave and allowances

• Maternity/paternity leave

• Travelling and subsistence allowances

• Health and safety

• Collection of trade union subscriptions

• Facilities for trade union representatives

• Recognition agreement

• Grievance procedure

• Discipline procedure

• Disputes procedure

In conclusion sectoral collective agreements apply to all companies that belong to the national employers’ organization or to the sector concerned by the extention process layed down by national legislation.

3. Enterprise Level Unlike the national/sectoral bargaining, which concerns general provisions, at the enterprise level specific provisions and conditions are negotiated in relation with the specific working environment of the enterprise.


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The platform of claims is generally linked to a trade union initiative. At this level, the parties can vary. The initiative can come from the trade union representatives, or by representatives of a workers’ committee. On the other side, the management negotiates for the enterprise. In small companies, the employer himself goes to the bargaining table.

Type of agreements at the enterprise level There are different types of agreements at the enterprise level. Here are two of them: - Agreements that integrate or adapt the sectoral agreement. They take into consideration the particular situation of an enterprise and add some specific advantages. These agreements often are concluded in large enterprises. - Autonomous agreements. In this case, the enterprise level agreement has a complete liberty to add additional provisions or new ones because there is no sectoral agreement signed between workers’ and employers’ organizations at a higher level. Nowadays, the trend is to separate the themes negotiated at the sectoral level (e.g. basic wage standards) from the agreements at the enterprise level (e.g. wage according to productivity).

Content In general, it concerns problems linked to the enterprise’s specific situation, like its productivity, working schedule, labour conditions, labour organization, etc. The enterprise level agreement can integrate or adapt a sectoral agreement. When this occurs, the provisions of the sectoral agreement are considered as a minimum standard and the enterprise agreement can add further provisions or new ones. Traditionally, enterprise level negotiations were limited to wage increases, respecting generally the ones fixed at superior levels. Nowadays new qualifying issues such as work schedule, training qualifications, wage structure, productivity, health and safety, vocational training are integrated in enterprise agreements. In particular the issue of productivity has been negotiated at the enterprise level. Productivity increases are not only bargained according to the national wage fixing system, but as a component of all the factors that can influence productivity, such as technological innovations, the work length or the production layout. The content of this level of bargaining can vary according to the following factors:

− The dimension of the enterprise;

− The economic situation of the company. In periods of crisis, the negotiations are aimed towards protecting employment and there is less bargaining on the issue of wages;

− The employment dynamic. Negotiation are directly associated with the dynamic of the labour market.

The major topics discussed at the bargaining table are: a) Reduction and flexibly of working hours

In the 90’s it became an instrument for job creation and a way to improve productivity. Related topics at the enterprise level bargaining are: the work length, the sharing out of working hours, overtime, shifts working (number of shifts, standby duty, etc.).

b) Organization, versatility and mobility of labour


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This issue is often linked to the restructuring of the working process. The evolution of the enterprise has a great impact on the traditional qualification of workers. The range of qualifications and skills required by the enterprise has increased as well as the need to introduce flexibility and mobility of labour. Technological changes are now a threat to the protection of the professional status of workers and of their income. This has become a key negotiation topic at the enterprise level.

c) Training and vocational training

Versatility and mobility are conceivable only after an appropriate training. For the trade unions, training is seen as a form of protection against new technologies and structural changes in the production process. Employers are also sensible to the necessity to adapt workers qualifications to the new production requirements. Even when trade unions are consulted about the training programs, the employers rarely accept to negotiate their orientations or objectives. Enterprise agreement covering training and vocational training include clauses, such as retraining, redeployment of workers and job creation (youth training agreements).

d) Wages and bonus

Recently, wage flexibility became an important element of wage bargaining. In practice wage agreements are fixed according to a past inflation index (if there is no national bargaining), to the increase of productivity and in relation with quality improvements in working process.

e) Employment and labour market policies

Active labour market policies can support the development of enterprise agreements favouring working hours reduction (and eventually a cut in wages) and preservation of existing staff and job security (as a remedy to the introduction of new technologies).

Finally there are other issues which could be negotiated at the enterprise or at the workplace levels such as:

- Interpretation and implementation of national agreements at the enterprise/ workplace level;

- Respect of the existing agreements and practices; - Bonus, promotions, subsidies; - Overtime, shift work, staff; - General questions about labour conditions and OSH; - Disciplinary measures (internal settlement, procedure for the resolution of

grievances); - Respect of collective agreements. Implementation, interpretation and conciliation.


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What should be bargained at each level The distinction between issues that are negotiated at various levels must be fully appreciated by trade unionists. As we have suggested, there may be different approaches at the country level and from sector to sector. The following checklist should assist trade unionists in identifying the `packages' of issues which are negotiated at the enterprise level and/or workplace higher levels (or not negotiated at all):

WHERE BARGAINED:

NOT BARGAINED AT ALL

WORKPLACE LEVEL HIGHER LEVEL

Basic rates of pay or salary Hours of work Times of starting, finishing, breaks, etc. Promotions Bonus payments (including productivity) Grade rates Shift premia Arrangements for who works shifts Number of days holiday Holiday pay When holidays are taken Call-out pay Standby pay Maternity Pay Paternity pay Sick pay Flexibility (doing different jobs) Mobility (doing same job in different places) Clothing and footwear allowances Free laundry Covering for absent workers Travelling allowances Meal allowances Canteen prices and subsidies First aid allowances Training allowances Trade union rights (time off, meetings at work, etc).

Bargaining procedures When trade unionists prepare for negotiations with employers the first stage to their preparations is to be clear about the rules under which bargaining will take place. The kinds of issues, which are relevant here, can be represented by the following questions that trade union officers should ask themselves:

•Is this an individual or a collective issue? •Are there existing procedures or agreements that I must follow? •Are these agreements substantive or procedural? •Am I recognised by the employer for consultation and negotiation?

•Am I raising new negotiation issues? Or am I seeking to change existing formal or informal

agreements?


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•Is my employer seeking to pull out or diminish national/regional/enterprise agreements? If so, is this being done unilaterally or with the collusion of other employers? •Should I test the waters as to how management/the employer will react before the meeting? •Can I negotiate on my own or do I need authority or help from another part of the union? •Is this a problem only affecting one individual at the moment, but which could affect others in the future (e.g. redundancy)? •Is this a problem concerning a group of members, but can I best deal with it by taking a test case?

3.3 Evaluate the influence of privatization on collective Bargaining structures.

Make notes

3.4 Explain the role of the third party in the provision for conciliation,

meditation and arbitration. Make notes

3.5 Explain the principal elements of collective employment law

relating to industrial action. Make notes

3.6 Describe the significant developments in Zimbabwe relating to

industrial relations.

Make notes

Bargaining Form and Tactics

� A collective bargaining process generally consists of four types of activities- distributive bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining. Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one party’s gain is another party’s loss. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, distributive bargaining tends to be more competitive. This type of bargaining is also known as conjunctive bargaining.

•

1. Integrative bargaining: This involves negotiation of an issue on which both the parties may gain, or at least neither party loses. For example, representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. Here, both the parties are trying to make more of something. In general, it tends to be more cooperative than distributive bargaining. This type of bargaining is also known as cooperative bargaining. Cooperative /Integrative Bargaining: Integrative bargaining is similar to problem solving


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sessions in which both sides are trying to reach a mutually beneficial alternative, i.e. a win-win situation.

• Both the employer & the union try to resolve the conflict to the benefit of both parties. Both sides share information about their interests and concerns and they create a list of possible solutions to best meet everyone’s needs.

• For Example, when companies are hit by recession, they cannot offer the kind of wages and benefits demanded by workers. At the same time they cannot survive without the latter’s support. Both parties realize the importance of surviving in such difficult times and are willing to negotiate the terms of employment in a flexible way.

2. Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management. When there is a backlog of bitterness between both the parties, attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It develops a bargaining environment and creates trust and cooperation among the parties.

3. Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management. Even within the union, there may be differences between groups. For example, skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. Within the management also, there may be differences. Trade unions maneuver to achieve consensus among the conflicting groups.

5. Conjunctive / Distributive Bargaining: Distributive bargaining is the most common type of bargaining & involves zero-sum negotiations, in other words, one side wins and the other loses. Both parties try to maximize their respective gains. They try to settle economic issues such as wages, benefits, bonus, etc. For Example, Unions negotiate for maximum wages & the management wants to yield as little as possible – while getting things done through workers.

In distributive bargaining, unions and management have initial offers or demands, target points (e.g.: desired wage level), resistance points (e.g.: unacceptable wage levels) & settlement ranges (e.g.: acceptable wage level). Another name for this type of bargaining is conjunctive bargaining.

6. Productivity Bargaining:

The concept of productivity bargain involves a good understanding of the following concepts. Based on these concepts both the parties must develop a productivity linked scheme.

• Difference between productivity & work intensity • How to conduct work study • ILO guidelines for work study – Personal needs allowance, Fatigue allowance, hazardous

allowance, etc. • Other Methods like MOST (Maynard Operational Sequence Techniques) • Systems improvement and method improvement • Required Skills and Knowledge for productivity settlement

7. Composite Bargaining: Workers believed that productivity bargaining agreements increased their workloads. Rationalization, introduction of new technology, tight productivity norms have added to this burden and made the life of a worker somewhat uneasy. As an answer to such problems, labor has come in favor of composite bargaining.


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• In this method, labor bargains for wages as usual, but goes a step further demanding equity in matters relating to work norms, employment levels, manning standards, environnemental hagards , sub-contracting clauses etc. This works in the favor of the workers, for e.g., when unions negotiate standards they ensure the workload of workers don’t exceed.

8. Concessionary Bargaining:

Quite opposite to the other forms of bargaining, where the unions demanded from the employers, in concessionary bargaining, the objective is to giving back to management some of what it has gained in previous bargaining. Why should labor be willing to give back what it has worked so hard to obtain? A good example is the agreement between General Motors & the International Union of Electric Workers that granted GM around the-clock operations, wages and benefits concessions for the new hires, and a two-week mass vacation. The concessions were made to save over 3,000 jobs.

• In some cases, despite a financial crisis, the union may not be willing to concede. This

may be because the union doesn’t view management’s arguments as credible. Thus,

the degree of trust and credibility between the management and the union may

influence the extent to which concessionary bargaining occurs.

Characteristics of Collective Bargaining

• It is a group process, wherein one group, representing the employers, and the other, representing the employees, sit together to negotiate terms of employment.

• Negotiations form an important aspect of the process of collective bargaining i.e., there is considerable scope for discussion, compromise or mutual give and take in collective bargaining.

• Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions of employment and the ways in which certain employment-related issues are to be regulated at national, organizational and workplace levels.

• Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labor management relations over a period of time in an enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and understanding serve as the byproducts of harmonious relations between the two parties.

• It a bipartite process. This means there are always two parties involved in the process of collective bargaining. The negotiations generally take place between the employees and the management. It is a form of participation.

• Collective bargaining is a complementary process i.e. each party needs something that the other party has; labor can increase productivity and management can pay better for their efforts.

• Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other.

• Collective Bargaining is continuous process. It enables industrial democracy to be effective. It uses cooperation and consensus for settling disputes rather than conflict and confrontation.

• Collective bargaining takes into account day to day changes, policies, potentialities, capacities and interests.

• It is a political activity frequently undertaken by professional negotiators.


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Collective Bargaining Process

� Collective bargaining generally includes negotiations between the two parties (employees’ representatives and employer’s representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Often employees are represented in the bargaining by a union or other labor organization. The result of collective bargaining procedure is called the collective bargaining agreement (CBA). Collective agreements may be in the form of procedural agreements or substantive agreements. Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes.

This will normally include procedures in respect of individual grievances, disputes and discipline. Frequently, procedural agreements are put into the company rule book which provides information on the overall terms and conditions of employment and codes of behavior. A substantive agreement deals with specific issues, such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of work, etc. In many companies, agreements have a fixed time scale and a collective bargaining process will review the procedural agreement when negotiations take place on pay and conditions of employment. The collective bargaining process comprises of five core steps:

1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employer’s representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.

2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.

3. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as ‘brainstorming’. The exchange of messages takes place and opinion of both the parties is sought.

4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when ‘what ifs’ and ‘supposals’ are set forth and the drafting of agreements take place.

5. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.


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Importance of Collective Bargaining

Collective bargaining includes not only negotiations between the employers and unions but also includes the process of resolving labor-management conflicts. Thus, collective bargaining is, essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the management should be conducted by rules rather than arbitrary decision making. It establishes rules which define and restrict the traditional authority exercised by the management.

Importance to employees

• Collective bargaining develops a sense of self-respect and responsibility among the employees.

• It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group.

• Collective bargaining increases the morale and productivity of employees. • It restricts management’s freedom for arbitrary action against the employees. Moreover,

unilateral actions by the employer are also discouraged. • Effective collective bargaining machinery strengthens the trade unions movement. • The workers feel motivated as they can approach the management on various matters

and bargain for higher benefits. • It helps in securing a prompt and fair settlement of grievances. It provides a flexible means

for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

Importance to employers

1. It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers.

2. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management.

3. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making.

4. Collective bargaining plays a vital role in settling and preventing industrial disputes.

Importance to society

1. Collective bargaining leads to industrial peace in the country 2. It results in establishment of a harmonious industrial climate which supports which helps the

pace of a nation’s efforts towards economic and social development since the obstacles to such a development can be reduced considerably.

3. The discrimination and exploitation of workers is constantly being checked. 4. It provides a method or the regulation of the conditions of employment of those who are

directly concerned about them.


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4.0 CONTRACT OF EMPLOYMENT 4.1 Define a contract of employment.

• A contract of employment is an agreement between an employer and employee and is the basis of the employment relationship.

• Most employment contracts do not need to be in writing to be legally valid, but it is better if they are.

• A contract 'starts' as soon as an offer of employment is accepted. Starting work proves that you accept the terms and conditions offered by the employer.

• Most employees are legally entitled to a Written Statement of the main terms and conditions of employment within two calendar months of starting work. This should include details of things like pay, holidays and working hours.

• An existing contract of employment can be varied only with the agreement of both parties.

4.2 Essentials of a valid contract of employment. HERALD EXTRACT A CONTRACT of employment is an agreement entered into between an employer and an employee at the time the employee is hired that outlines the exact nature of their business relationship, specifically what compensation the employee will receive in exchange for specific work performed. It is an oral or written, express or implied agreement specifying terms and conditions under which a person consents to perform certain duties as directed and controlled by an employer in return for an agreed upon wage or salary. Whether stated or not in the contract, both the employee and the employer owe the duty of mutual confidence and trust, and to make only lawful and reasonable demands on each other. Every employee is under the obligation to carry assigned duties, or the employer’s instructions to the best of his or her abilities. The employer is under the obligation to protect the employee from harm or injury, and make fair compensation for any loss or damage resulting from any job-related accident or facilitate the same. Employment contracts take many different forms. All employees at a company may be asked to sign the same form contract or each employee may have a contract with the employer that is applicable just to his or her employment agreement. An employer and an employee may simply have an oral agreement regarding the kind of work the employee will do, for how long, and at what rate of pay. Sometimes there is no written or oral agreement but the behaviour of the employer and the employee can be viewed as an implied employment contract. These are all legal arrangements in terms of the Labour Act Chapter 28:01, Section 12(1) which clearly states that . . . “every person who is employed by or working for any other person and receiving or entitled to receive any remuneration in respect of such employment or work shall be deemed to be under a contract of employment with that other person, whether such contract is reduced to writing or not”. The agreement must comply with the general formalities or features of a contract at common law as was ruled in Southampton Assurance Company of Zimbabwe v Mutuma 1990(1) ZLR. Offer and acceptance are the first stages in establishing an agreement that may form a legally binding contract. The terms that will bind the parties are included here. Offer is an expression on willingness to be bound on terms. Terms established by the offer and only those included at this stage form part of the contract. The party(s) to whom the offer has been made communicates a full and unconditional acceptance of the terms of the offer, Monteiro v Wankie Colliery Co Ltd HH-100-95. The offer has to express the willingness of a party to enter a bargain or a contract. The offer usually has a date until it is valid. However, if the date is not present, then it is valid until accepted or rejected. Once rejected, the offer is not valid any more. Parties to any employment contract should have the legal capacity to act. Legal capacity refers to the ability to perform valid juristic acts.


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Any person above the age of 18 can enter into a contract but there are certain persons who, in the eyes of the law, have limited legal capacity and which in a way prevents or limit them from entering into contracts. Such person includes minors, insolvent, mentally ill, drunkard, prohibited immigrant or specified persons. General content and variation terms are essential. In terms of the Act Section 12, the following details should be contained in any employment contract: a) the name and address of the employer; (b) the period of time, if limited, for which the employee is engaged; (c) the terms of probation, if any; (d) the terms of any employment code; (e) particulars of the employee’s remuneration, its manner of calculation and the intervals at which it will be paid; (f) particulars of the benefits receivable in the event of sickness or pregnancy; (g) hours of work; (h) particulars of any bonus or incentive production scheme; (i) particulars of vacation leave and vacation pay; (j) particulars of any other benefits provided under the contract of employment. Section 12 (3) of the Act further stipulate that, a contract of employment that does not specify its duration or date of termination, other than a contract for casual work or seasonal work or for the performance of some specific service, shall be deemed to be a contract without limit of time. Provided that a casual worker shall be deemed to have become an employee on a contract of employment without limit of time on the day that his period of engagement with a particular employer exceeds a total of six weeks in any four consecutive months. Section 12 (4) also provide for notice clauses to be included in terms of termination as follows and I quote: “Except where a longer period of notice has been provided for under a contract of employment or in any relevant enactment, and subject to subsections (5), (6) and (7), notice of termination of the contract of employment to be given by either party shall be — (a) three months in the case of a contract without limit of time or a contract for a period of two years or more; (b) two months in the case of a contract for a period of one year or more but less than two years; (c) one month in the case of a contract for a period of six months or more but less than one year; (d) two weeks in the case of a contract for a period of three months or more but less than six months; (e) one day in the case of a contract for a period of less than three months or in the case of casual work or seasonal work”. In terms of the Act, the contract is required to spell out the terms of probation and any other general issues related or connected to employment. Basically it must be lawful and must not be in any way violates statutes, public policy or morality. In Mutandiro v PTC –HH-43-01, an agreement to ignore the labour laws of the land was held invalid as was an agreement tainted by corruption in Babbage & Galloway v Electroreps S-241-95 (Gwisai, Labour and Employment Law in Zimbabwe 2006). Consideration — This is the bargain element of the contract, also known as “the price of a promise”. A simple contract may be a bad bargain, but it must be a bargain to be enforceable. Legal relations — This means that the parties view the agreement as a legally enforceable contract and a breach of the contract could result in a remedy being sought. Intention — The parties must intend that the agreement is to establish a legally binding contract rather than simply a social/domestic arrangement. Certainty — The terms of the contact must be clear and certain and not vague or ambiguous on the essential features — Carthew Gabriel and Fox and Carney (Pvt) Ltd 1978 (1) SA 598 (RAD). Absence of critical information on critical issues such as remuneration may render contracts invalid, unless this could be reasonably inferred. In addition to the above, performance is also critical. The contract must be physically and lawfully capable of performance. A contract whereby one can employ someone to perform dirty work like stealing cars on his behalf is capable of performance physically but unlawful. Conclusively a contract of employment should carry the following elements: a) Offer- There must be a definite, clearly stated offer to do something. b) Acceptance — Only what is offered can be accepted. This means that the offer must be accepted exactly as offered without conditions. c) Intention of legal consequences — A contract requires that the parties intend to enter into a legally binding agreement. d) consideration — In order for a contract to be binding it must be supported by valuable consideration. That is to say, one party promises to do something in return for a promise from the other party to provide a benefit of value (the consideration). .

ESSENTIALS OF A VALID CONTRACT OF EMPLOYMENT

1. An offer is a definite undertaking or promise made by the employer with the intention that it shall become binding on him as soon as it is accepted by the party to whom it is addressed. By law, such offer can be made orally, expressly or in writing. This requirement for a valid contract forms the basis and foundation upon which other essentials are built.


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2. An acceptance is a final and unqualified expression of assent to the terms of the offer by the employee. The employee indicates acceptance by word, in writing or by conduct. If the employer prescribes a mode of expressing acceptance, then only that means of communication would be valid, otherwise acceptance can be by word or conduct, and in a manner commensurate to the offer.

3. The price paid in exchange for the service rendered or work done is known as Consideration. It is therefore the exchange of wages for work done between the employer and the employee. If the rate is agreed upon, then that will be the binding rate between the parties, but if none is agreed upon, the position of the law is that the rate shall be that which is current in similar trades in the area or what the custom of the trade dictates, Peters of Oron v. Symmons (1924)

4. For the contract of employment (Contract of Service) to be valid, its terms and conditions must be certain just as the parties must be certain and be capable of being identified reasonably. The contract will therefore not be binding where the terms and conditions are too ambiguous and uncertain. The terms and conditions spelling-out the obligations of the employer and those of the employee must be clear enough to give both sides comfort.

5. 'Concensus ad idem' (Mutual consent) is another essential requirement that must be manifest to give the contract of employment validity. The presence of Misrepresentation, Mistake, Fraud, Duress or Undue Interference affects the validity of this contract.

6. To be valid, a contract of employment must be legal and in accordance with the maxim, 'Ex turpicausa non orituractio', the contract will be void if entered principally with the objective of performing an act prohobited by law. Both in its objective and mode of performance, the proposed contract must be legal, thus a contract for smuggling and procurement of girls for sexual gratification would be null and void as will one intended to defraud tax authorities e.g., by understating salaries in order to pay less Tax.

7. The condition of Contractual Capacity concerns the Insane, Infants and Women. Contracting parties must be of contractual age for them to be vested with Capacity to contract validly.

4.3 The obligations of an employer under a valid contract. Please note employer’s obligations are the rights of the employee

An employer owes their employee the following duties, which again can be implied by the law or may be found in the employment contract. 1. Duty to pay the employee the agreed amount if the employee arrives for work and is able to work. 2. Provide the employee with work to do, (this is limited). However, for example, if the employee is paid by commission and the employer does not give the employee any work or if not working could damage the employee's reputation, for example if you are a senior executive in a company. Then the employer may have broken their duty to the employee. 3. Observe Health & Safety Regulations. 4. Give employees correct information about rights under their contract. 5. Give employees reasonable opportunity to have their complaints looked at. 6. There is no duty to provide references to an employee. (except where the reference is required by the Financial Service Authority.) However, if a reference is provided the employer owes a duty to the employee to make sure the reference is completed with reasonable skill and care and is true, accurate and fair. The employer also owes a duty to the receiver of the reference not to make any negligent statements about the employee.


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7. The employer and employee also owe each other a duty of "Mutual Trust & Confidence", basically they must show respect for each other. Examples of breaches:

• Harassing or victimising employees, particularly in front of other employees who are less senior than the victim.

• Physical violence by employer or employee. • Theft by employee. • There is no duty to pay Contractual Sick Pay. • There is an obligation on an employer to pay statutory sick pay for the first 28 weeks an

employee is absent due to sickness in any period of 3 years. If an employee is eligible. • Employees entitled to at least 4 weeks holiday in any one year period.

4.4 Employee obligations under a valid contract. Please note employee’s obligations are the rights of the employer

These may be explained in the contract of employment, but the law also says that there are certain obligations and duties owed by an employee to their employer, even if the contract does not mention them. These include: 1. To do what a reasonable employee would do in any situation. 2. Duty to be honest. 3. Not to disrupt business, for example, taking part in industrial action. 4. Disclose wrongdoing (does not include "spent" convictions). But, the employee must disclose wrongdoing by other employees, even if this will incriminate them. 5. Carry out and follow orders of the employer, (as long as they are legal). 6. Not to disclose the employer's confidential information. 7. Work with reasonable care and skill. 8. Look after the employer's property if using it. 9. Not to compete in business against the employer while still working for them as an employee. 10. Not to take bribes. 11. Be prepared to change when the job changes, for example, if computers or other machinery are introduced to help the employee do their job. 12. Give any inventions to employer if these are developed by the employee during their employment.


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4.5 Discuss the provisions of the workers’ compensation scheme and pensions and other short term benefits.

Make notes

4.6 Strikes and their prevention.

Strikes can be devastating for both employees and management, so it's best to avoid them altogether - if possible.

� Keep communications open. Always be willing to sit down with union representatives.

� Stay on as friendly terms as possible with shop stewards and union representatives. Invite them out socially and pay attention to what they say. The stronger a relationship you cultivate with them, the more likely it is that they won't fight you on smaller issues.

� Understand and clearly state management's position. Remember that bargaining in good faith means keeping the lines of communication open - it does not, however, mean that you have to give in to all of the union's demands.

� Point out the downside of striking to employees. Note that in most states they cannot collect unemployment, nor will they have health coverage. In addition, striking workers can be permanently replaced. Be careful, however, that you don't say anything that could be perceived as a threat.

4.7 Dismissals and retrenchments.

What is retrenchment?

Retrenchment is defined as the cutting down or reduction of employees and this mainly happens when a company or institution is changing management or is in financial difficulties. In order to survive it cuts down the number of employees.

What is dismissal?

Dismissal is when an employee is involved in corruption or is underperforming hence he is dismissed. The Namibian courts use the principle of fairness in determining if a dismissal is lawful. Any employee, who is dismissed without a valid and fair reason and not in compliance with fair procedure, shall be regarded to have been dismissed unfairly.

What’s the right move on dismissal?

In order to be able to dismiss an employee the internal process needs to be substantially fair and this includes:

• An employee may not be dismissed unless a disciplinary hearing is held. • The employee should be informed of the charges against him/her and be given sufficient time

to prepare for the hearing. • The presiding official at the hearing should be unbiased and should make fair a ruling on the

matter and determine an appropriate sentence. • An employee may only be dismissed if there are sufficient fair grounds therefore.


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4.8 Conditions of employment.

Terms and conditions of employment are those matters that define the essential aspects of the contract of employment or employment relationship. Maximum work periods and minimum rest periods;

• minimum paid annual leave; • minimum rates of pay, including overtime rates; • conditions of hiring out workers, in particular the supply of workers by temporary employment

undertakings; • health, safety and hygiene at work; • protective measures with regard to the terms and conditions of employment of pregnant

women or women who have recently given birth, of children and of young people; • Equality of treatment between men and women and other provisions of non-discrimination.

Such terms can be determined by law or by collective agreement. Employers have an obligation, to inform employees of the conditions applicable to the contract or other employment relationship in relation to:

• identities of the parties; • place of work; • title, grade, nature or category of the work for which the employee is employed or a brief

specification or description of the work; • initial amount and frequency of pay; • date of commencement of the contract of employment or employment relationship, and its

expected duration in the case of fixed-term work; • length of the employee’s normal working day or week; • Information on paid leave and periods of notice, should the employee’s contract or

employment relationship be terminated.

4.9 Ways of terminating contracts of employment. A contract can be terminated on the following grounds;

• Performance

• Agreement

• Set off • Merger or confusion.

• Supervening impossibility

• Novation

• Delegation

• Cession

• Prescription

• Death

• Breach of contract

• Insolvency

• Judgment

• Vis major – an act of God or the state.

1. Termination by operation of law:

For example if an employee dies.

2. Redundancy

3. Completion of the contract: An employment contract for a fixed-term, or for the completion of a certain task/project, ends automatically at the end of the period, or on completion of the task/project.


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4. Termination by notice: Either party may terminate a contract of employment by giving the proper period of notice of termination. The period of notice may be set out in the employee's contract of employment or an applicable award or agreement. In the absence of a right to terminate by giving a specified period of notice, an employee is entitled to ’reasonable notice‘. This can often be a relatively long period of time, and will vary depending on the circumstances, including the employee’s age, seniority and length of service. 5. Termination by breach of contract: A party may terminate a contract of employment in some circumstances if the other party breaches the contract of employment. Not every breach of contract will justify the termination of that contract. Whether a particular breach justifies termination will depend on the nature of the breach and the particular circumstances of the case. 6. Performance The contract has been completed by all parties according to the agreement. 7. Agreement to end

The parties have agreed to end the contract. This means that they contractually agree to end the contract and are bound by that decision.

8. Illegality This occurs when the carrying out of the contract has become illegal. 9. Breach of contract This is when the refusal or inability to complete a fundamental term (condition) of the contract is a breach of contract and therefore allows for the ending of a contract.[4] However, this could potentially lead to a claim for damages if there have been any losses or expenses as a result of the breach. 10. Mistake A contract may be ended if the agreement is based on a fundamental mistake or mistaken belief about property. For example, if the parties discover that the property no longer exists. 11. Unfair and unequal agreements A contract may also come to an end where the process of making the agreement can be shown to be unfair and improper, or if it results in gross inequality. 12. Unconscionable agreements Unconscionable behavior in regards to contracts includes unjust, unfair or unscrupulous conduct which is considered contrary to community standards. In business-to-business contracts of less than $3 million, a small business (not a publicly listed company) may allege unconscionable conduct where a stronger party has exploited its bargaining power to impose contractual terms or engage in conduct that would be unreasonable in the context of a particular commercial relationship Unconscionable contracts can also be brought to an end under the Competition and Consumer Actif there has been unacceptable behaviour by a company. Additionally, unjust contracts, both by companies and persons, may be enforceable through the Fair Trading Acts of each State. 13. Pressured agreements A contract may also end if a person has only entered into an agreement because of threats, fear or actual force (duress). 14. Children's agreements

A person under the age of 18 is considered a child and therefore cannot be held liable to pay for non-essential items they may have ordered. A contract for a non-essential good can be abandoned by a child and it comes to an end.


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ACT EXTRACT

GENERAL CONDITIONS OF EMPLOYMENT

11 Employment of young persons (1) Subject to subsection (3), no employer shall employ any person in any occupation—

(a) as an apprentice who is under the age of thirteen years; (b) otherwise than as an apprentice who is under the age of fifteen years. (2) Any contract of employment entered in contravention of subsection (1), and any contract of

apprenticeship with an apprentice between the ages of thirteen and fifteen years which was entered into without the assistance of the apprentice’s guardian, shall be void and unenforceable against the person purportedly employed under such contract, whether or not (in the case of a contravention of paragraph (b) of subsection (1)) such person was assisted by his guardian, or was married or otherwise tacitly or expressly emancipated, but such person may enforce any rights that have accrued to him by or under such contract. (3) A person under the age of fifteen years but not younger than thirteen years may—

(a) perform work other than work referred to in subsection (4) at a school or technical or vocational institution that is carried out as an integral part of a course of training or technical or vocational education for which the school or institution is primarily responsible;

(b) perform work in an undertaking, other than work referred to in subsection (4), that is carried out in conjunction with a course of technical or vocational education.

(4) No employer shall cause any person under the age of eighteen years to perform any work which is likely to jeopardise that person’s health, safety or morals, which work shall include but not be limited to work involving such activities as may be prescribed. (5) Any employer who employs any person in contravention of subsection (1) or (4) shall be guilty of

an offence and liable to a fine not exceeding level seven or to imprisonment not exceeding two years or to both such fine and such imprisonment. 12 Duration, particulars and termination of employment contract (1) Every person who is employed by or working for any other person and receiving or entitled to

receive any remuneration in respect of such employment or work shall be deemed to be under a contract of employment with that other person, whether such contract is reduced to writing or not. (2) An employer shall, upon engagement of an employee, inform the employee in writing of the

following particulars— (a) the name and address of the employer; (b) the period of time, if limited, for which the employee is engaged; (c) the terms of probation, if any; (d) the terms of any employment code; (e) particulars of the employee’s remuneration, its manner of calculation and the intervals at which it

will be paid; (f) particulars of the benefits receivable in the event of sickness or pregnancy; (g) hours of work; (h) particulars of any bonus or incentive production scheme; (i) particulars of vacation leave and vacation pay; (j) particulars of any other benefits provided under the contract of employment. (3) A contract of employment that does not specify its duration or date of termination, other than a

contract for casual work or seasonal work or for the performance of some specific service, shall be deemed to be a contract without limit of time: Provided that a casual worker shall be deemed to have become an employee on a contract of

employment without limit of time on the day that his period of engagement with a particular employer exceeds a total of six weeks in any four consecutive months. (4) Except where a longer period of notice has been provided for under a contract of employment

or in any relevant enactment, and subject to subsections (5), (6) and (7), notice of termination of the contract of employment to be given by either party shall be— (a) three months in the case of a contract without limit of time or a contract for a period of two years

or more; (b) two months in the case of a contract for a period of one year or more but less than two years; (c) one month in the case of a contract for a period of six months or more but less than one year; (d) two weeks in the case of a contract for a period of three months or more but less than six months; (e) one day in the case of a contract for a period of less than three months or in the case of casual

work or seasonal work. (5) A contract of employment may provide in writing for a single, non-renewable probationary

period of not more than—


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(a) one day in the case of casual work or seasonal work; or (b) three months in any other case; during which notice of termination of the contract to be given by either party may be one week in the case of casual work or seasonal work or two weeks in any other case. (6) Whenever an employee has been provided with accommodation directly or indirectly by his

employer, the employee shall not be required to vacate the accommodation before the expiry of a period of one month after the period of notice specified in terms of subsection (4) or (5). (7) Notwithstanding subsection (4) or (5), the parties to any contract of employment may, by mutual

agreement, waive the right to notice: Provided that where the termination is at the initiative of the employer, the employee shall have a

right to payment for a period corresponding to the appropriate period of notice required in terms of subsection (4) or (5). 12A Remuneration and deductions from remuneration` (1) Remuneration payable in money shall not be paid to an employee by way of promissory notes,

vouchers, coupons or in any form other than legal tender. (2) Remuneration may be payable in kind only in industries or occupations where such payment is

customary, and shall be subject to the following conditions— (a) any such payment shall be appropriate for the personal use and benefit of the employee and the

employee’s family; (b) the value attributed to such payment shall be fair and reasonable; (c) equipment or clothing required to protect the health and safety of the employee shall not be

computed as part of the remuneration of the employee; (d) no payment shall be made in the form of liquor or drugs; (e) remuneration in kind shall not substitute entirely for remuneration in money. (3) Subject to any collective bargaining agreement, wages shall be paid at regular intervals on

working days at or near the workplace. (4) Remuneration shall be paid directly to the employee except as otherwise provided by law or a

collective bargaining agreement. (5) All remuneration shall be accompanied by a written statement showing—

(a) the name of the employer and employee; and (b) the amount of remuneration and the period in respect of which it is paid; and (c) the component of the remuneration representing any bonus or allowance; and (d) any deductions; and (e) the net amount received by the employee. (6) No deduction or set-off of any description shall be made from any remuneration except—

(a) where an employee is absent from work on days other than industrial holidays or days of leave to which he is entitled, the proportionate amount of his remuneration only for the period of such absence;

(b) amounts which an employer is compelled by law or legal process to pay on behalf of an employee;

(c) where an employee has received an advance of remuneration due, the amount of such advance, up to an amount not exceeding twenty-five per centum of the gross remuneration owed;

(d) by written stop-order for contributions to insurance policies, pension funds, medical aid societies, building societies, burial societies and registered trade unions;

(e) by written consent of an employee, for repayment of money lent by the employer on terms that have been mutually agreed to between the parties concerned;

(f) an amount recovered for payments made in error. (7) The aggregate amount of permissible deductions that may be made from the remuneration of

any employee in any pay interval shall not exceed twenty-five per centum of the employee’s gross remuneration for that interval: Provided that upon termination of an employee’s service, an employer may deduct from the total

remuneration due to the employee an amount equal to any balance which may be due to the employer in terms of paragraph (a), (c), (e) or (f). 12B Dismissal (1) Every employee has the right not to be unfairly dismissed. (2) An employee is unfairly dismissed—

(a) if, subject to subsection (3), the employer fails to show that he dismissed the employee in terms of an employment code; or

(b) in the absence of an employment code, the employer shall comply with the model code made in terms of section 101(9).


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(3) An employee is deemed to have been unfairly dismissed— (a) if the employee terminated the contract of employment with or without notice because the

employer deliberately made continued employment intolerable for the employee; (b) if, on termination of an employment contract of fixed duration, the employee— (i) had a legitimate expectation of being re-engaged; and (ii) another person was engaged instead of the employee. (4) In any proceedings before a labour officer, designated agent or the Labour Court where the

fairness of the dismissal of an employee is in issue, the adjudicating authority shall, in addition to considering the nature or gravity of any misconduct on the part of the dismissed employee, consider whether any mitigation of the misconduct avails to an extent that would have justified action other than dismissal, including the length of the employee’s service, the employee’s previous disciplinary record, the nature of the employment and any special personal circumstances of the employee. 12C Retrenchment (1) An employer who wishes to retrench five or more employees within a period of six months shall—

(a) given written notice of his intention— (i) to the works council established for the undertaking; or (ii) if there is no works council established for the undertaking or if a majority of the employees

concerned agree to such a course, to the employment council established for the undertaking or industry; or

(iii) if there is no works council or employment council for the undertaking concerned, to the Retrenchment Board, and in such event any reference in this section to the performance of functions by a works council or employment council shall be construed as a reference to the Retrenchment Board or a person appointed by the Board to perform such functions on its behalf;

and (b) provide the works council, employment council or the Retrenchment Board, as the case may be,

with details of every employee whom the employer wishes to retrench and of the reasons for the proposed retrenchment; and

(c) send a copy of the notice to the Retrenchment Board. (2) A works council or employment council to which notice has been given in terms of subsection (1)

shall forthwith attempt to secure agreement between the employer and employees concerned or their representatives as to whether or not the employees should be retrenched and, if they are to be retrenched, the terms and conditions on which they may be retrenched, having regard to the considerations specified in subsection (11). (3) If, within one month after receiving notice in terms of subsection (1), a works council or

employment council secures an agreement between the employer and employees concerned or their representatives on the matters referred to in subsection (2), the works council or employment council shall— (a) send the employer its written approval of the retrenchment of the employees concerned in

accordance with the agreement; and (b) send the Retrenchment Board a copy of the approval. (4) If, within one month after receiving a notice in terms of subsection (1), a works council or

employment council has failed to secure an agreement between the employer and the employees concerned or their representatives on the matters referred to in subsection (2), it shall refer the matter to the Retrenchment Board by sending the Board written notice of the disagreement, together with copies of all documents which the employer and employees concerned may have submitted to the works council or employment council and copies of the minutes of any proceedings and deliberations. (5) No employer shall retrench any employee without affording the employee the notice of

termination to which the employee is entitled. (6) The Retrenchment Board shall consider any matter referred to it in terms of subparagraph (iii) of

paragraph (a) of subsection (1), or subsection (4), and, having regard to the factors referred to therein, shall, within two weeks of the matter being referred to it, recommend to the Minister in writing whether or not the proposed retrenchment should be permitted and, if so, the terms and conditions upon which it should be effected. (7) For the purpose of formulating recommendations in terms of subsection (6), the Retrenchment

Board may in its discretion invite and receive representations, whether oral or written, from any interested parties. (8) If the Retrenchment Board fails to make a recommendation within the period specified in

subsection (6), the Minister shall require the Board to forward to him all documents in the matter and shall give his decision in the matter in terms of subsection (9) as if the Board had made a recommendation in terms of subsection (6).


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(9) The Minister shall consider without delay any recommendation submitted to him by the Retrenchment Board and, having regard to the factors referred to in subsection (11), shall— (a) approve the proposed retrenchment, subject to such terms and conditions as he may consider

necessary or desirable to impose; or (b) refuse to approve the proposed retrenchment; and shall cause the Retrenchment Board, the works council or employment council, as the case may be, to notify the employer and employees concerned in writing of the decision in the matter. (10) …. {Repealed] (11) In deciding whether or not to approve the retrenchment of employees in terms of this section,

due regard shall be paid— (a) to the following general considerations— (i) that the retrenchment of employees should be avoided so far as possible, where this can be

done without prejudicing the efficient operation of the undertaking in which the employees concerned are employed;

(ii) that the consequences of retrenchment to employees should be mitigated so far as possible; (b) to the following considerations in particular cases— (i) the reasons put forward for the proposed retrenchment; and (ii) the effect of the proposed retrenchment upon the employees concerned, including their

prospects of finding alternative employment and the terminal benefits to which they will become entitled.

12D Special measures to avoid retrenchment (1) Every employer shall ensure that, at the earliest possible opportunity, his employees are kept

informed of and consulted in regard to any major changes in production, programmes, organisation or technology that are likely to entail the retrenchment of any group of five or more employees in a six-month period. (2) Subject to this section, before giving notice of the intention to retrench any employees in terms of

section twelve C, an employer may agree with the employees concerned, or with any workers committee, works council or employment council which represents the employees, to have recourse to either or both of the following measures for a period not exceeding twelve months— (a) subject to subsection (4), placing the employees on short-time work; or (b) instituting a system of shifts as provided in subsection (5). (3) An agreement entered into in terms of subsection (2) shall have effect notwithstanding anything

to the contrary contained in any employment regulations, collective bargaining agreement or other contract or agreement applicable to the employees concerned. (4) While an employee is on short-time work referred to in paragraph (a) of subsection (2), he shall be

paid the hourly equivalent of his weekly or monthly wage for the hours he has actually worked: Provided that an employee shall receive not less that fifty per centum of his current weekly or monthly

wage, as the case may be. (5) For the purposes of paragraph (b) of subsection (2), an employer may divide all or any of the

employees concerned into shifts and may— (a) require each shift to work on alternate half-days, days, weeks or months: Provided that no shift shall be without work for more than one month at a time or for an

aggregate of more than six months in any period of twelve months; (b) pay each employee on shift for the hours, weeks or months he has actually worked. (6) Before having recourse to any measure referred to in subsection (1), an employer shall give not

less than seven days’ written notice to every employee affected by the measure. (7) Any time during which an employee is not engaged in full-time work as a result of a measure

resorted to in terms of this section shall be regarded as unpaid compulsory leave and shall not be deemed to interrupt continuity of employment. 13 Wages and benefits upon termination of employment (1) Subject to this Act or any regulations made in terms of this Act, whether any person—

(a) is dismissed from his employment or his employment is otherwise terminated; or (b) resigns from his employment; or (c) is incapacitated from performing his work; or (d) dies; he or his estate, as the case may be, shall be entitled to the wages and benefits due to him up to the time of such dismissal, termination, resignation, incapacitation or death, as the case may be, including benefits with respect to any outstanding vacation and notice period, medical aid, social security and any pension, and the employer concerned shall pay such entitlements to such person or his estate, as the case may be, as soon as reasonably practicable after such event, and failure to do so shall constitute an unfair labour practice.


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(1a) Wages and benefits payable to any person or to his or her estate in terms of this section shall not form part of or be construed as a retrenchment package which an employee is entitled to where his or her employment has been terminated as a result of retrenchment in terms of section 12C. (2) Any employer who without the Minister’s permission withholds or unreasonably delays the

payment of any wages or benefits owed in terms of subsection (1) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment. (3) The court convicting an employer of an offence in terms of subsection (2) may order him to pay—

(a) to the employee concerned; or (b) to any person specified by it for the benefit of the employee concerned; in addition to any other penalty which it may impose, an amount which, in its opinion, will adequately compensate the employee concerned for any prejudice or loss he has suffered as a result of the contravention concerned, within such period and in such instalments as may be fixed by such court. (4) The court may at any time on the application of the employer, employee or specified person

concerned, for good cause shown, vary an order made in terms of subsection (3). (5) Sections 348 and 349 of the Criminal Procedure and Evidence Act [Chapter 9:07] shall apply,

mutatis mutandis,in relation to the amount specified in an order made in terms of subsection (3) as if such amount were a fine referred to in those sections. (6) Nothing contained in this section shall be construed as precluding a person referred to in

subsection (1) or his representative or the executor of his estate, as the case may be, from claiming over and above any wages or benefits to which he or his estate is entitled in terms of subsection (1), damages for any prejudice or loss suffered in connection with such dismissal, termination, resignation, incapacitation or death, as the case may be. 14 Sick leave (1) Unless more favourable conditions have been provided for in any employment contract or in any

enactment, sick leave shall be granted in terms of this section to an employee who is prevented from attending his duties because he is ill or injured or undergoes medical treatment which was not occasioned by his failure to take reasonable precautions. (2) During any one-year period of service of an employee an employer shall, at the request of the

employee supported by a certificate signed by a registered medical practitioner, grant up to ninety days’ sick leave on full pay. (3) If, during any one-year period of service of an employee, the employee has used up the

maximum period of sick leave on full pay, an employer shall, at the request of the employee supported by a certificate signed by a registered medical practitioner, grant a further period of up to ninety days’ sick leave on half pay where, in the opinion of the registered medical practitioner signing the certificate, it is probable that the employee will be able to resume duty after such further period of sick leave. (4) If, during any one-year period of service, the period or aggregate periods of sick leave exceed—

(a) ninety days’ sick leave on full pay; or (b) subject to subsection (3), one hundred and eighty days’ sick leave on full and half pay; the employer may terminate the employment of the employee concerned. (5) An employee who so wishes may be granted accrued vacation leave instead of sick leave on

half pay or without pay. 14A Vacation leave (1) In this section— “qualifying service”, in relation to vacation leave accrued by an employee, means any period of

employment following the completion of the employee’s first year of employment with an employer. (2) Unless more favourable conditions have been provided for in any employment contract or in any

enactment, paid vacation leave shall accrue in terms of this section to an employee at the rate of one twelfth of his qualifying service in each year of employment, subject to a maximum accrual of ninety days’ paid vacation leave: Provided that, if an employee is granted only a portion of the total vacation leave which may have

accrued to him, he may be granted the remaining portion at a later date, together with any further vacation leave which may have accrued to him at that date, without forfeiting any such accrued leave. (3) All Saturdays, Sundays and public holidays falling within a period of vacation leave shall be

counted as part of vacation leave. (4) An employee who becomes ill or is injured during a period of vacation leave may cancel his

vacation leave and apply for sick leave. (5) Where an employee has no vacation leave accrued, he may be granted vacation leave without

pay.


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14B Special leave Special leave on full pay not exceeding twelve days in a calendar year shall be granted by an

employer to an employee— (a) who is required to be absent from duty on the instructions of a medical practitioner because of

contact with an infectious disease; (b) who is subpoenaed to attend any court in Zimbabwe as a witness; (c) who is required to attend as a delegate or office-bearer at any meeting of a registered trade

union representing employees within the undertaking or industry in which the employee is employed;

(d) who is detained for questioning by the police; (e) on the death of a spouse, parent, child or legal dependant; (f) on any justifiable compassionate ground. 14C Weekly rest and remuneration for work during public holidays (1) Every employee shall be entitled to not less than twenty-four continuous hours of rest each week,

either on the same day of every week or on a day agreed by the employer and employee. (2) Subject to subsection (3), an employee shall be granted leave of absence during every public

holiday, and shall be paid his current remuneration for that day if it occurs on a day on which he would otherwise have been required to work. (3) Where an employee consents to work on a public holiday he shall be paid not less than twice his

current remuneration for that day, whether or not that day is one on which he would otherwise have been required to work. 15 Death of employer Except where more favourable conditions have otherwise been provided for in the employment

contract concerned or in terms of any relevant enactment, including any regulations made in terms of this Act, or in any agreement or determination made or given effect to in terms of any enactment, a contract of employment between an employee and an employer who is an individual shall not be terminated on the death of the employer but shall continue to have effect until the expiration of the period after which it would have terminated had due notice of termination been given on the day on which the employer died, and during such period the employee shall be entitled to such wages and other benefits as are provided for in the employment contract from the person legally representing the deceased employer in his capacity as such. 16 Rights of employees on transfer of undertaking (1) Subject to this section, whenever any undertaking in which any persons are employed is

alienated or transferred in any way whatsoever, the employment of such persons shall, unless otherwise lawfully terminated, be deemed to be transferred to the transferee of the undertaking on terms and conditions which are not less favourable than those which applied immediately before the transfer, and the continuity of employment of such employees shall be deemed not to have been interrupted. (2) Nothing in subsection (1) shall be deemed—

(a) to prevent the employees concerned from being transferred on terms and conditions of employment which are more favourable to them than those which applied immediately before the transfer, or from obtaining terms and conditions of employment which are more favourable than those which applied immediately before, or subsequent to, the transfer;

(b) to prevent the employees concerned from agreeing to terms and conditions of employment which are in themselves otherwise legal and which shall be applicable on and after the transfer, but which are less favourable than those which applied to them immediately before the transfer:

Provided that no rights to social security, pensions, gratuities or other retirement benefits may be diminished by any such agreement without the prior written authority of the Minister;

(c) to affect the rights of the employees concerned which they could have enforced against the person who employed them immediately before the transfer, and such rights may be enforced against either the employer or the person to whom the undertaking has been transferred or against both such persons at any time prior to, on or after the transfer;

(d) to derogate from or prejudice the benefits or rights conferred upon employees under the law relating to insolvency.

(3) It shall be an unfair labour practice to violate or evade or to attempt to violate or evade in any way the provisions of this section.


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Factors Guiding Code of Conduct

The code of discipline and conduct communicates to the employees, the expected behavior and the professional responsibilities. The significance of code of conduct is that each employee should behave and perform in a way that preserves the company values and commitments. The code expects employees to conduct business with integrity and honesty. Moreover, it expects the employer to be an equal opportunity employer. The Code of Conduct policy of a company is determined on the basis of following factors: 1. Honesty and integrity: The organization expects the employees to observe honesty and integrity and such conduct should be fair and transparent. The employees should show truthfulness in actions throughout their tenure in the organization.

2. Disclosure of information: The employees should not disclose the company information to third parties and other outside organizations. However the employers should reveal the various policies of the organization to their employees and make them aware about the code of conduct and other policies.

3. Harassment: The work environment should be free from all kinds of harassments, especially sexual harassments and verbal harassments. No physical harassments like hitting or pushing are acceptable on part of employees.

4. Outside employment: Employees should not indulge in to any kind of concurrent employment without the prior knowledge of employer.

5. Conflict of interest: An employee should not indulge into other professions or services or other interests which might conflict with the interest of the company. This means personal interests should not overshadow organizational interests.

6. Confidentiality: Employees should protect company’s confidential information. The financial records and unpublished data should be kept within the organizations and should not be spread outside the organization.

7. Equal opportunity employer: This factor expects the employer to be an equal opportunity, that is, no discrimination should be done on the basis of caste, color, race, gender, religion or physical disabilities.

8. Misusing company resources: Employees should not misuse company resources, intellectual property, time and other facilities. They are provided to them for business purposes and thus, should be used in a cost effective way.

9. Health and safety: An employer should provide a safe and healthy work environment to its employees. Proper cleanliness and lightening should be provided. A health and safety committee can be set up by the employer consisting of representatives of workers as well.

10. Payment and gifts: The employees should neither accept nor offer any kind of illegal payments, donations, remuneration and gifts from outsiders.


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Effective Employee Discipline

� Discipline is the key to success. Theodore Roosevelt has said “With self-discipline almost

everything is possible”. Self-discipline makes employee realize what is required at work. Discipline can be positively related to performance. It is the bridge between goals and accomplishments. Effective discipline should be aimed at the behavior, and not at the employee personality. This is because the reason for discipline is to improve performance rather than punishing the employee.

Discipline in the workplace is the means by which supervisory personnel correct behavioural deficiencies and ensure adherence to established company rules. The purpose of discipline is correct behaviour. It is not designed to punish or embarrass an employee.

Often, a positive approach may solve the problem without having to discipline. However, if unacceptable behaviour is a persistent problem or if the employee is involved in a misconduct that cannot be tolerated, management may use discipline to correct the behaviour.

In general, discipline should be restricted to the issuing of letters of warning, letters of suspensions, or actual termination. Employers should refrain from “disciplining” employees by such methods as altering work schedules, assigning an employee to do unpleasant work, or denying vacation requests.

Examples of Misconduct

Examples of misconduct which could result in discipline:

1. Excessive tardiness 2. Failure to notify of an absence 3. Insubordination 4. Rude or abusive language in the workplace 5. Failure to follow “Departmental Rules or Policies “, i.e., not wearing safety equipment, not

following correct cash handling procedures 6. Dishonesty 7. Theft

Of course, discipline may be required for a number of other misconducts. The question that needs to be asked is if the Employer has “just cause” to impose a form of discipline.

Just Cause and its Affect on Discipline

In reviewing whether or not management was correct in its choice to discipline, arbitrators have looked at a number of factors. These factors must be taken into account by management when deciding to use discipline:

1. Did the employee clearly understand the rule or policy that was violated? For example, were the work rules or policy provided to the employee prior to the violation. It is management responsibility to prove that the employee knew the rule or policy. 2. Was the rule or policy consistently and fairly enforced by management? For example, did management have a history of ignoring the departmental policy on wearing safety equipment, but singled out an employee for discipline anyway. 3. Did the employee know that violating the rule or policy could lead to discipline?

4. The seriousness of the offense in terms of violating company rules of conduct or company

obligations. For example, being a few minutes late for a shift would not be viewed as being as serious an


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offense as striking another employee or stealing University property. 5. The long service of the employee.

6. The previous good (or bad) work record of the employee.

7. Provocation. Was the employee pushed into acting rudely or violently as a result of management or a customer’s actions? This is a very common defense for employees involved in insubordination. 8. Did the employee admit to the misconduct and apologize for their behavior? Arbitrators will often rule harshly against employees who are deceptive during an investigation and who show no remorse for their actions. This list is not exhaustive, but it does include some of the more important factors that should be reviewed prior to issuing discipline.

Factors necessary for effective disciplinary system include:

1. Training of supervisors is necessary: Supervisors and managers need to be trained on when and how discipline should be used. It is necessary to provide training on counseling skills as these skills are used while dealing with problem employees. Moreover, discipline decisions taken by trained supervisors are considered fair by both employees and managers.

2. Centralization of discipline: Centralized means that the discipline decisions should be uniform throughout the organization. The greater the uniformity, higher will be the effectiveness of discipline procedure.

3. Impersonal discipline: Discipline should be handled impersonally. Managers should try to minimize the ill feelings arising out of the decisions by judging the offensive behavior and not by judging the person. Managers should limit their emotional involvement in the disciplinary sessions.

4. Review discipline decisions: The disciplinary decisions must be reviewed before being implemented. This will ensure uniformity and fairness of the system and will minimize the arbitrariness of the disciplinary system.

5. Notification of conduct that may result in discipline: Actions that lead to misconduct can be listed and documented so the employees are aware of such actions. This will enable them to claim that they have not been notified, in advance, regarding the same.

6. Information regarding penalties: The employer should define the penalties and other actions like warnings, reprimands, discharge and dismissal well in advance. All these action plans must be communicated to the employees.

7. Discipline shall be progressive: Discipline system should be progressive in nature. In a progressive discipline approach the severity of actions to modify behavior increases with every step as the employee continues to show improper behavior. The advantage of this approach is that employees can’t take it for granted.

8. Documentation: Effective discipline requires accurate, written record keeping and written notification to the employees. Thus less chance will be left for the employee to say the he “did not know” about the policy.

9. Discipline should be fair: The disciplinary decision should be fair enough for the employee. Both over-penalization and under-penalization are considered to be unfair for the problem employee. Moreover, an internal fairness is to be maintained, that is, two employees who have committed the same offense should be equally punished.

10. Discipline shall be flexible and consistent: The manager administering discipline must consider the effect of actions taken by other managers and of other actions taken in the past. Consistent discipline helps to set limits and informs people about what they can and cannot do. Inconsistent discipline leads to confusion and uncertainty.

11. Disciplinary action should be prompt: The effective discipline should be immediate. The longer time lag between the misconduct offense and the disciplinary action will result in ineffectiveness of the discipline.


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DISCIPLINE – Keys to handling disciplinary issues in the workplace

The Employer establishes the facts of each case

• It is important for the employer to carry out necessary investigations of potential disciplinary matters without unreasonable delay to establish the facts of the case. In some cases this will require the holding of an investigatory meeting with the employee before proceeding to any disciplinary hearing. In others, the investigatory stage will be the collation of evidence by the employer for use at any disciplinary hearing.

• Employers should try not to rely on evidence from only one person/witness but look for other corroborative evidence if this is possible.

• In misconduct cases, where practicable, different people should carry out the investigation and disciplinary hearing.

• If there is an investigatory meeting this should not by itself result in any disciplinary action. Although there is no statutory right for an employee to be accompanied at a formal investigatory meeting, such a right may be allowed under an employer’s own procedure.

• In cases where a period of suspension with pay is considered necessary, this period should be as brief as possible, should be kept under review and it should be made clear that this suspension is not considered a disciplinary action.

And informs the employee of the problem

• If it is decided that there is a disciplinary case to answer, the employee should be notified of this in writing. This notification should contain sufficient information about the alleged misconduct or poor performance and its possible consequences (i.e. the outcome, any disciplinary sanction) to enable the employee to prepare to answer the case at a disciplinary meeting. It would normally be appropriate to provide copies of any written evidence, which may include any witness statements, with the notification.

• It should not be a surprise to the Employee later on that dismissal is a possibility. • The notification should also give details of the time and venue for the disciplinary meeting and

advise the employee of their right to be accompanied at the meeting. The Employer holds a meeting with the employee to discuss the problem

• The meeting should be held without unreasonable delay whilst allowing the employee reasonable time to prepare their case.

• Employers and employees (and their companions) should make every effort to attend the meeting. At the meeting the employer should explain the complaint against the employee and go through the evidence that has been gathered. The employee should be allowed to set out their case and answer any allegations that have been made. The employee should also be given a reasonable opportunity to ask questions, present evidence and call relevant witnesses. They should also be given an opportunity to raise points about any information provided by witnesses. Where an employer or employee intends to call relevant witnesses they should give advance notice that they intend to do this.

• The Employer should be consistent in what it is accusing the Employee of and disciplinary sanctions should only be imposed in respect of allegations that have been properly investigated and bought to the employees attention.

And allows the employee to be accompanied at the meeting

• Workers have a statutory right to be accompanied by a companion where the disciplinary meeting could result in a formal warning being issued; or the taking of some other disciplinary action; or the confirmation of a warning or some other disciplinary action (appeal hearings).

• The chosen companion may be a fellow worker, a trade union representative, or an official employed by a trade union. A trade union representative who is not an employed official must have been certified by their union as being competent to accompany a worker.

• To exercise the statutory right to be accompanied workers must make a reasonable request. What is reasonable will depend on the circumstances of each individual case. However, it would not normally be reasonable for workers to insist on being accompanied by a companion whose presence would prejudice the hearing nor would it be reasonable for a worker to ask to be accompanied by a companion from a remote geographical location if someone suitable and willing was available on site.

• The companion should be allowed to address the hearing to put and sum up the worker’s case, respond on behalf of the worker to any views expressed at the meeting and confer with the worker during the hearing. The companion does not, however, have the right to answer questions on the worker’s behalf, address the hearing if the worker does not wish it or prevent the employer from explaining their case.


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The Employer decides on appropriate action

• After the meeting decide whether or not disciplinary or any other action is justified and inform the employee accordingly in writing.

• Where misconduct is confirmed or the employee is found to be performing unsatisfactorily it is usual to give the employee a written warning. A further act of misconduct or failure to improve performance within a set period would normally result in a final written warning.

• If an employee’s first misconduct or unsatisfactory performance is sufficiently serious, it may be appropriate to move directly to a final written warning. This might occur where the employee’s actions have had, or are liable to have, a serious or harmful impact on the organisation.

• A first or final written warning should set out the nature of the misconduct or poor performance and the change in behaviour or improvement in performance required (with timescale). The employee should be told how long the warning will remain current. The employee should be informed of the consequences of further misconduct, or failure to improve performance, within the set period following a final warning. For instance that it may result in dismissal or some other contractual penalty such as demotion or loss of seniority.

• A decision to dismiss should only be taken by a manager who has the authority to do so. The employee should be informed as soon as possible of the reasons for the dismissal, the date on which the employment contract will end, the appropriate period of notice and their right of appeal.

• Some acts, termed gross misconduct, are so serious in themselves or have such serious consequences that they may call for dismissal without notice for a first offence. But a fair disciplinary process should always be followed, before dismissing for gross misconduct.

• Disciplinary rules should give examples of acts which the employer regards as acts of gross misconduct. These may vary according to the nature of the organisation and what it does, but might include things such as theft or fraud, physical violence, gross negligence or serious insubordination.

• Where an employee is persistently unable or unwilling to attend a disciplinary meeting without good cause the employer should make a decision on the evidence available.

And provides employees with an opportunity to appeal

• Where an employee feels that disciplinary action taken against them is wrong or unjust they should appeal against the decision. Appeals should be heard without unreasonable delay and ideally at an agreed time and place. Employees should let employers know the grounds for their appeal in writing.

• The appeal should be dealt with impartially and wherever possible, by a manager who has not previously been involved in the case.

• Workers have a statutory right to be accompanied at appeal hearings. • Employees should be informed in writing of the results of the appeal hearing as soon as

possible. It is also important that clear records are kept of the whole disciplinary process.

EMPLOYEE RIGHTS AT A DISCIPLINARY HEARING

1. Right to be present and to state your case; 2. Right to representation by a trade union representative or a colleague; 3. Right to present evidence in your defence; 4. Right to call witnesses; 5. Right to respond to and cross-examine the employer's evidence and witnesses; 6. Right to an interpreter, if required. 7. Workers have a statutory right to be accompanied by a companion where the

disciplinary meeting could result in a formal warning being issued; or the taking of some other disciplinary action; or the confirmation of a warning or some other disciplinary action (appeal hearings).

8. The chosen companion may be a fellow worker, a trade union representative, or an official employed by a trade union. A trade union representative who is not an employed official must have been certified by their union as being competent to accompany a worker.


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9. To exercise the statutory right to be accompanied workers must make a reasonable request. What is reasonable will depend on the circumstances of each individual case. However, it would not normally be reasonable for workers to insist on being accompanied by a companion whose presence would not prejudice the hearing nor would it be reasonable for a worker to ask to be accompanied by a companion from a remote geographical location if someone suitable and willing was available on site.

10. The companion should be allowed to address the hearing to put and sum up the worker’s case, respond on behalf of the worker to any views expressed at the meeting and confer with the worker during the hearing. The companion does not, however, have the right to answer questions on the worker’s behalf, address the hearing if the worker does not wish it or prevent the employer from explaining their case.

Grievance in Industry

� Grievance means any type of dissatisfaction or discontentment arising out of factors related to an employee’s job which he thinks are unfair. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair, unjust or inequitable. In an organization, a grievance may arise due to several factors such as:

• Violation of management’s responsibility such as poor working conditions • Violation of company’s rules and regulations • Violation of labor laws • Violation of natural rules of justice such as unfair treatment in promotion, etc.

Various sources of grievance may be categorized under three heads: (i) management policies, (ii) working conditions, and (iii) personal factors

1. Grievance resulting from management policies include:

o Wage rates o Leave policy o Overtime o Lack of career planning o Role conflicts o Lack of regard for collective agreement o Disparity between skill of worker and job responsibility

2. Grievance resulting from working conditions include:

o Poor safety and bad physical conditions o Unavailability of tools and proper machinery o Negative approach to discipline o Unrealistic targets

3. Grievance resulting from inter-personal factors include

o Poor relationships with team members o Autocratic leadership style of superiors o Poor relations with seniors o Conflicts with peers and colleagues

It is necessary to distinguish a complaint from grievance. A complaint is an indication of employee dissatisfaction that has not been submitted in written. On the other hand, a grievance is a


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complaint that has been put in writing and made formal. Grievances are symptoms of conflicts in industry. Therefore, management should be concerned with both complaints and grievances, because both may be important indicators of potential problems within the workforce. Without a grievance procedure, management may be unable to respond to employee concerns since managers are unaware of them. Therefore, a formal grievance procedure is a valuable communication tool for the organization.

Grievance Procedure

� Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance. The grievance procedures differ from organization to organization. 1. Open door policy 2. Step-ladder policy Open door policy: Under this policy, the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. Such a policy works well only in small organizations. However, in bigger organizations, top management executives are usually busy with other concerned matters of the company. Moreover, it is believed that open door

policy is suitable for executives; operational employees may feel shy to go to top management. Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step procedure for getting his grievance redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with superior’s decision, then he discusses his grievance with the departmental head. The departmental head discusses the problem with joint grievance committees to find a solution. However, if the committee also fails to redress the grievance, then it may be referred to chief executive. If the chief executive also fails to redress the grievance, then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties. The Model Grievance Procedure specifies the details of all the steps that are to be followed while redressing grievances. These steps are: STEP 1: In the first step the grievance is to be submitted to departmental representative, who is a representative of management. He has to give his answer within 48 hours. STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee can take his grievance to head of the department, who has to give his decision within 3 days. STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he can take the grievance to Grievance Committee. The Grievance Committee makes its recommendations to the manager within 7 days in the form of a report. The final decision of the management on the report of Grievance Committee must be communicated to the aggrieved employee within three days of the receipt of report. An appeal for revision of final decision can be made by the worker if he is not satisfied with it. The management must communicate its decision to the worker within 7 days. STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary arbitration.


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Employee Health and Safety

� For smooth functioning of an organization, the employer has to ensure safety and security of his employees. Health and safety form an integral part of work environment. A work environment should enhance the wellbeing of employees and thus should be accident free. The terms health, safety and security are closely related to each other. Health is the general state of well-being. It not only includes physical well-being, but also emotional and mental wellbeing. Safety refers to the act of protecting the physical well-being of an employee. It will include the risk of accidents caused due to machinery, fire or diseases. Security refers to protecting facilities and equipment from unauthorized access and protecting employees while they are on work.

In organizations the responsibility of employee health and safety falls on the supervisors or HR manager. An HR manager can help in coordinating safety programs, making employees aware about the health and safety policy of the company, conduct formal safety training, etc. The supervisors and departmental heads are responsible for maintaining safe working conditions. Responsibilities of managers:

• Monitor health and safety of employees • Coach employees to be safety conscious • Investigate accidents • Communicate about safety policy to employees

Responsibilities of supervisors/departmental heads:

• Provide technical training regarding prevention of accidents • Coordinate health and safety programs


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• Train employees on handling facilities an equipment • Develop safety reporting systems • Maintaining safe working conditions

Issues in Employee Health & Safety

Organizations frame many approaches to ensure health and safety of their employees. But not all of the approaches focus on contribution of both work design and employee behavior to safety. An organizational approach to safety is effective only when both the work design and employee behavior work in coordination towards it. Many organizational and individual issues emerge in management of employee health and safety. They can be summarized as follows: 1. Physical Work Settings: The physical settings of work affect the performance of employees to a great extent. Some of these factors include temperature, noise levels, and proper lighting affect job performance. Other work setting factors include size of work area, kinds of materials used, distance between work areas, cubicle arrangement, et al.

2. Sick Building Syndrome: It is a situation in which employees experience acute health problems and discomfort due to the time spent in a building (particularly their workplace). Some factors that lead to sick buildings include poor air quality, inadequate ventilation, improper cleanliness, rodents, stench of adhesives and glues, et al.

3. Ergonomics: The term comes from the Greek word ergon, which means “work,” and omics which means “management of.” Ergonomics is the study of physiological, psychological, and engineering design aspects of a job, including such factors as fatigue, lighting, tools, equipment layout, and placement of controls. It is the interface between men and machines. Ergonomics is taken into consideration when designing the workstation for computer operators. Problems of back ache, eye strain and headache arise due to long working hours spent in front of computers.

4. Engineering of Work Equipments and Materials: Accidents can be prevented in a way by proper placements of dangerous machines. Moreover design of such machines and equipments also plays an important role in safety. Providing safety guards and covers on equipments, emergency stop buttons and other provisions help in reducing the accidents considerably.

5. Cumulative Trauma and Repetitive Stress: Cumulative trauma disorder occurs when same muscles are used repetitively to perform some task. This results in injuries of musculoskeletal and nervous system. Employees encounter high levels of mental and physical stress also.

6. Accident Rates and Individuals: An individual approach to safe environment helps in reducing the accident rates. This is generally because more problems are caused by careless employees than by machines or employer negligence. A positive attitude towards work environment and other practices promotes employee safety.

HIV_AIDS

The HIV and AIDS epidemic has become a global crisis affecting all levels of society. Increasingly affected is the business world, which is suffering not only from the human cost to the workforce but also in terms of losses in profits and productivity that result in many new challenges for both employers and employees. HIV and AIDS are having a direct and indirect impact on business. In southern Africa, it is estimated that more than 20% of the economically active population in the 15â€“49-year-old age group are infected with HIV. Employers are experiencing reduced productivity as a result of employee absenteeism, illness and death. Consequently, employers are being challenged to manage the impact of HIV and AIDS in the workplace, which include dealing with issues of stigma and discrimination and developing comprehensive workplace policies and programmes.

As a response to HIV and AIDS several sectors, sub-sectors and private sector organizations in Zimbabwe have developed and started implementing HIV workplace policies and programmes. Sector


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wide policies have been developed for the Public Sector, agriculture, textile, mining, transport, Energy, motor industry, the SME, and the informal sectors. In scaling-up the workplace response NAC is working in close collaboration with key players in the workplace who include International Labour Organisation, UNAIDS, Public Service Commission, Ministry of Labour and Social Services, Ministry of Health and Child Welfare, Employers Confederation of Zimbabwe, Zimbabwe Congress of Trade Unions, Zimbabwe

Business Council on AIDS and relevant Civil Society Organisations.

The ILO Code of Practice on HIV/AIDS and the world of work identifies ten key

principles that should be core to any comprehensive workplace strategy to protect

the rights at work of infected and affected workers.

The ILO Code: 10 Key Principles

1. Recognition of HIV/AIDS as a workplace issue 2. Non-discrimination on the basis of real or perceived HIV status 3. Gender equality must be an integral consideration in a workplace response 4. Healthy work environment for all concerned parties 5. Social dialogue in developing and implementing a workplace strategy 6. No screening for purposes of exclusion from employment 7. Confidentiality of HIV-related personal information 8. Continuation of employment relationship 9. Prevention strategies in the workplace 10. Care and support for infected and affected workers

The impact of HIV_AIDS

1. A lower labour force; 2. Lower labour productivity through absenteeism and illness; 3. Cost pressures for companies through benefit payments and replacement costs; 4. Lower labour income, as employees bear some of the AIDS-related costs; 5. HIV/AIDS results in increased costs to the employer 6. Decreased productivity through the loss of skilled and experienced workers 7. Consequential recruitment and training of new employees, through increased demand on the

company’s medical system and through absenteeism of both ill workers and affected relatives and friends.

8. Reduced productivity at the level of the firm has a negative impact on a country’s competitiveness and economic growth.

9. Ill workers and impoverished families result in a contracting consumer base and falling demand for goods and services

10. Can further undermine investment and enterprise development. 11. The demands made on the social protection systems and national health services as a result of

treatment and care of HIV positive persons often limit the investment capacity and choices of national budgets, inhibiting development agendas.

.Employee Welfare

Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Labor welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries.


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Labor welfare has the following objectives:

1. To provide better life and health to the workers 2. To make the workers happy and satisfied 3. To relieve workers from industrial fatigue and to improve intellectual, cultural and material

conditions of living of the workers.

The basic features of labor welfare measures are as follows:

1. Labor welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status.

2. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining

3. Labor welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time.

4. Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency.

5. The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarized as follows:

• They provide better physical and mental health to workers and thus promote a healthy work environment

• Facilities like housing schemes, medical benefits, and education and recreation facilities for workers’ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity.

• Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.

• Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.

• The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies.

Employee Welfare Schemes

Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety.

STATUTORY WELFARE SCHEMES The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water should be provided. 2. Facilities for sitting: In every organization, especially factories, suitable seating

arrangements are to be provided. 3. First aid appliances: First aid appliances are to be provided and should be readily

assessable so that in case of any minor accident initial medication can be provided to the needed employee.


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4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition.

5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.

6. Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.

7. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts.

8. Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.

9. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings.

10. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

NON STATUTORY SCHEMES Many non-statutory welfare schemes may include the following schemes:

1. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up

2. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs

3. Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.

4. Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee.

5. Maternity & Adoption Leave – Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies.

6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.

7. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.


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5.0 INDUSTRIAL DISPUTES

Industrial Disputes

• Industrial disputes are organised protests against existing terms of employment or conditions of work. According to the Labour Act, an Industrial dispute means –

o “Any dispute or difference between employer and employer or between employer and workmen or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person”

o In practice, Industrial dispute mainly refers to the strife between employers and their employees. An Industrial dispute is not a personal dispute of any one person. It generally affects a large number of workers’ community having common interests.

Causes of Industrial Disputes

� The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments.

The non-economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc.

R Wages and allowances: Since the cost of living index is increasing, workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. In 2002, 21.4% of disputes were caused by demand of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes.

R Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4%


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respectively. In 2003, a similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by personnel, and only 0.4% were caused by retrenchment.

R Indiscipline and violence:From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to indiscipline respectively. During the year 2003, indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar trend was observed in 2004 where indiscipline accounted for 40.4% of disputes.

R Bonus:Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively.

R Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and working hours.

R Miscellaneous:The miscellaneous factors include - Inter/Intra Union Rivalry - Charter of Demands - Work Load - Standing orders/rules/service conditions/safety measures - Non-implementation of agreements and awards etc.

Prevention of Industrial Disputes:

• The consequences of an Industrial dispute will be harmful to the owners of industries, workers, economy and the nation as a whole, which results in loss of productivity, profits, market share and even closure of the plant. Hence, Industrial disputes need to be averted by all means.

• Prevention of Industrial disputes is a pro-active approach in which an organisation undertakes various actions through which the occurrence of Industrial disputes is prevented. Like the old saying goes, “prevention is better then cure”.

1. Model Standing Orders: Standing orders define and regulate terms and conditions of employment and bring about uniformity in them. They also specify the duties and responsibilities of both employers and employees thereby regulating standards of their behaviour. Therefore, standing orders can be a good basis for maintaining harmonious relations between employees and employers. Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required to frame standing orders in consultation with the workers. These orders must be certified and displayed properly by the employer for the information of the workers.

2. Code of Industrial discipline: The code of Industrial discipline defines duties and responsibilities of employers and workers. The objectives of the code are: • I To secure settlement of disputes by negotiation, conciliation and voluntary arbitration. • I To eliminate all forms of coercion, intimidation and violence. • I To maintain discipline in the industry. • I To avoid work stoppage. • I To promote constructive co-operation between the parties concerned at all levels.

3. Works Committee: The Industrial Dispute Act, 1947 has provided for the establishment of works committees. In case of any industrial establishment in which 100 or more workers are employed, a works committee consisting of employees and workers is to be constituted; it shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations among the employees and workers.


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4. Joint Management Councils: 5. Suggestion Schemes: 6. Joint Councils:

7. Collective Bargaining: Collective Bargaining is a process in which the representatives of the employer and of the employees meet and attempt to negotiate a contract governing the employer-employee-union relationships. Collective Bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment.

8. Labour welfare officer: The factories Act, 1948 provides for the appointment of a labour welfare officer in every factory employing 500 or more workers. The officer looks after all facilities in the factory provided for the health, safety and welfare of workers. He maintains liaison with both the employer and the workers, thereby serving as a communication link and contributing towards healthy industrial relations through proper administration of standing orders, grievance procedure etc.

9. Tripartite bodies: Several tripartite bodies have been constituted at central, national and state levels. The India labour conference, standing labour committees, Wage Boards and Industries Committees operate at the central level. At the state level, State Labour Advisory Boards have been set up. All these bodies play an important role in reaching agreements on various labour-related issues. The recommendations given by these bodies are however advisory in nature and not statutory.

Settlement of Industrial Disputes:

1. Conciliation: • Conciliation refers to the process by which representatives of employees and employers are

brought together before a third party with a view to discuss, reconcile their differences and arrive at an agreement through mutual consent. The third party acts as a facilitator in this process. Conciliation is a type of state intervention in settling the Industrial Disputes. The Industrial Disputes Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands.

• Conciliation Officer: The appropriate government may, by notification in the official gazette, appoint such number of persons as it thinks fit to be the conciliation officer. The duties of a conciliation officer are:

i. To hold conciliation proceedings with a view to arrive at amicable settlement between the parties concerned.

ii. To investigate the dispute in order to bring about the settlement between the parties concerned.

iii. To send a report and memorandum of settlement to the appropriate government.

iv. To send a report to the government stating forth the steps taken by him in case no settlement has been reached at.

The conciliation officer however has no power to force a settlement. He can only persuade and assist the parties to reach an agreement. The Industrial Disputes Act prohibits strikes and lockouts during that time when the conciliation proceedings are in progress.

2. Arbitration: • A process in which a neutral third party listens to the disputing parties, gathers information about

the dispute, and then takes a decision which is binding on both the parties. The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens to both the parties and then gives his judgement.

Advantages of Arbitration:


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• It is established by the parties themselves and therefore both parties have good faith in the arbitration process.

• The process in informal and flexible in nature. • It is based on mutual consent of the parties and therefore helps in building healthy Industrial

Relations.

Disadvantages: • Delay often occurs in settlement of disputes. • Arbitration is an expensive procedure and the expenses are to be shared by the labour and the

management. • Judgement can become arbitrary when the arbitrator is incompetent or biased. • There are two types of arbitration:

a) Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both the parties

through mutual consent and the arbitrator acts only when the dispute is referred to him.

b) Compulsory Arbitration: Implies that the parties are required to refer the dispute to the arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement voluntarily, or when there is some other strong reason, the appropriate government can force the parties to refer the dispute to an arbitrator.

3. Adjudication: • Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Adjudication means

intervention of a legal authority appointed by the government to make a settlement which is binding on both the parties. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery:

i. Labour court ii. Industrial Tribunal iii. National Tribunal

a) Labor Court: • The appropriate government may, by notification in the official gazette constitute one or more

labour courts for adjudication of Industrial disputes relating to any matters specified in the second schedule of Industrial Disputes Act. They are:

i. I Dismissal or discharge or grant of relief to workmen wrongfully dismissed. ii. I Illegality or otherwise of a strike or lockout. iii. I Withdrawal of any customary concession or privileges.

• Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold its

proceedings expeditiously and shall, within the period specified in the order referring such a dispute, submit its report to the appropriate government.

b) Industrial Tribunal: • The appropriate government may, by notification in the official gazette, constitute one or more

Industrial Tribunals for the adjudication of Industrial disputes relating to the following matters: i. I Wages ii. I Compensatory and other allowances iii. I Hours of work and rest intervals iv. I Leave with wages and holidays v. I Bonus, profit-sharing, PF etc. vi. I Rules of discipline vii. I Retrenchment of workmen viii. I Working shifts other than in accordance with standing orders

• It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its report to

the appropriate government within the specified time.

c) National Tribunal: • The central government may, by notification in the official gazette, constitute one or more National

Tribunals for the adjudication of Industrial Disputes in i. I Matters of National importance


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ii. I Matters which are of a nature such that industries in more than one state are likely to be interested in, or are affected by the outcome of the dispute.

It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its report to the central government within the stipulated time.

FORMS OF INDUSTRIAL ACTION

Industrial actionis any organized action, such as stopping work or refusing to work normally, which aims to obtain better pay and working conditions. It is used to remedy a grievance or to resolve a dispute of ay matter of mutual interest between employer and employee. Industrial action can mean a total stoppage of work or a performance of work only partly withheld, e.g. slowing down or insisting on exaggerated observances of work regulations and safety provisions. In this case we speak of a go-slow or a work-to-rule.

The different forms of industrial action

Strikes

• The most important one is the strike. During a strike, workers refuse to work in order to get more money or better working conditions. To be valid in law, a strike must be conducted by a trade union and must peruse an aim that can be regulated by a collective agreement. When the strike fulfils these criterions, it is an official strike.

• Different forms of strikes can be identified according to tactics used and to the basis on which

they are organized. • The all-out strike is a strike by all workers in a particular union, organization or trade. • We speak of a general strike if all branches of the economy withdraw their labour and the

whole public life is thereby brought to a standstill. This form of strike is used as a means of upholding or restoring the law.

• The protected or official strike is organized by a recognized trade union or it has the approval of such a trade union. Usually it is initiated with a preliminary strike ballot held among the union members of the establishments involved in the dispute. In many cases standing rules of a union say that strike action in the official strike must be backed by a qualified majority vote and that it must have the approval of the union’s executive committee.

• The unofficial strike, on the contrary doesn’t have the approval of a trade union. It is often an immediate reaction and frequently it is used to apply pressure during delicate negotiations or when management actions are perceived as illegitimate.

• The wildcat strike is an unofficial strike called at short notice. • Another form of an unofficial strike is the token strike which is a short strike usually used as a

warning of further strikes if worker’s demands are not met.

Go Slow

• Beside the strike there are other forms of industrial action such as the go-slow. In a go-slow, workers work more slowly than usual as a protest or they perform their work only partly. One form of a go-slow is the work-to-rule. It means that there is a meticulous observance of work regulations and safety provisions by the workers. Furthermore workers are working only according to rules agreed between the union and the management, e.g. they don’t do overtime. By doing a go-slow, workers want to disrupt the establishment’s normal practice or bring it to a standstill. A work-to-rule is no breach of contract, but is has the implication that tasks are carried out inefficiently. This form of industrial action is almost exclusively found in the public service, because strikes by career public servants are prohibited.

Picketing

• When workers are standing at the entrance to an enterprise in order to persuade workers who

whish to work not to enter but to join the strike, this is called picketing. You can distinguish


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between to forms of picketing; primary and secondary picketing. The purpose of a picketline, e.g. a line of picketers, is to promote the effectiveness of strike action.

• Primary picketing is legal; workers are standing at the entrance to the enterprise they work for. • Secondary picketing is illegal; workers who are on strike from one firm try to dissuade workers of

a firm not involved with the strike from going to work.

Overtime Ban

• The overtime ban limits the working hours to the agreed contract of employment for normal hours. It is used by unions to show that workers are prepared to take further collective action if their commands are not met. This form of industrial action can be especially effective where reduction takes place overnight, e.g. in coal mines.

Sit-in and lock-in

• Two other forms of industrial action which are very similar are the sit-in and the work-in. • Sit-ins are mass occupations of the work premises by the workers where production ceases to

continue. It aims to protest against management decisions and in the case of a closure it prevents the movement of machinery to other premises. This is called a redundancy sit-in. When workers refuse to stop working in order to show that the firm is still a viable concern we speak of a work-in. It is used when there is a threat or an order of closure.

Sick Out

• An organized job action in which employees absent themselves from work on the pretext of illness.

Lock Out

• Finally, there is the lock-out. Employees are excluded by the employer from the employers´

workplace for the purpose to compel the employers to accept a demand of respect of any matter of mutual interest between employer and employee. Thereby, employers want their employees to agree to detrimental changes to employment conditions proposed by management.

Advantages and disadvantages Advantages

• There are general advantages and disadvantages of industrial action and advantages and disadvantages of the particular forms.

• Advantages are for example that it clears the air. Employers and employees may have grievances that an industrial dispute can bring out into the open. Once the dispute is resolved, the atmosphere could improve. Moreover, new rules that were previously contested could be modified. Thereby the feeling around the factory gets better. Furthermore management goals may be changed and managers could consult unions in any further change of working practice. Industrial action can provide each side, the employees´ and the employer’s one, with better understanding of the other side’s desires and objectives.

• An official strike has the advantage that workers don’t commit a crime or a breach of

contract. That means that employees can’t be dismissed. At an employees request the employer mustn’t discontinue payment in kind. For the employer it has the advantage that he isn’t obliged to remunerate the workers during the strike.

• The go-slow and the work-to-rule have the advantage for the employees that it is difficult for

the employer to fight against. This is the form of industrial action mostly chosen by career public servants, because they haven’t got the right to strike.

• Primary picketing can be a manifestation of freedom of opinion.


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• The sit-in and the work-in offer the employees a degree of control over the premises and they

strengthen group solidarity and moral.

Disadvantages

• Naturally, industrial action also has got disadvantages for employers and for employees, too. As for the employers, industrial action may be bad, because if it causes production to stop machinery and other resources will be lying idle and business costs can’t be covered. Moreover, industrial action can lead to poor future relationships with customers. Grievances can carry on after the settlement of the action leading to poor motivation and communication. Furthermore, managers who are concerned with settling a dispute will neglect planning for the future.

• Disadvantages for the employees may be that if industrial action fails, then it can leave the employees in a weaker position than before. Members may also leave union if they feel that the union is unable to support them. Prolonged industrial action may lead to the closure of the plant and employees would then be made redundant.

• As a disadvantage of the official strike and of the go-slow for the employees it must be said

that they might loose their wages.

• The overtime ban has the drawback for employees that it can result in a loss of wages. As for the employers, it can lead to decreased costs for the business and it can lead to a fall in the production.

• The primary picketing has the disadvantage that often it isn’t peaceful as workers sometimes

are physically preventing entry. This is in principle contrary to the freedom of labour. Picketing can be prohibited by the burgomaster, who is responsible for public order and safety. This is a disadvantage for the employees.

• Sit-ins and work-ins are illegal occupations of the work premises.

Strikes

� A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. When workers collectively cease to work in a particular industry, they are said to be on strike. According to Labour Act, a strike is “a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment”. This definition throws light on a few aspects of a strike. Firstly, a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Secondly, it also includes the refusal of a number of employees to continue work under their employer.

In a strike, a group of workers agree to stop working to protest against something they think is unfair where they work. Labors withhold their services in order to pressurize their employment or government to meet their demands. Demands made by strikers can range from asking for higher wages or better benefits to seeking changes in the workplace environment. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems.


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Causes of strikes: Strikes can occur because of the following reasons:

• Dissatisfaction with company policy • Salary and incentive problems • Increment not up to the mark • Wrongful discharge or dismissal of workmen • Withdrawal of any concession or privilege • Hours of work and rest intervals • Leaves with wages and holidays • Bonus, profit sharing, Provident fund and gratuity • Retrenchment of workmen and closure of establishment • Dispute connected with minimum wages

TYPES OF STRIKE

1. Economic Strike: Under this type of strike, labors stop their work to enforce their economic demands such as wages and bonus. In these kinds of strikes, workers ask for increase in wages, allowances like traveling allowance, house rent allowance, dearness allowance, bonus and other facilities such as increase in privilege leave and casual leave.

2. Sympathetic Strike: When workers of one unit or industry go on strike in sympathy with workers of another unit or industry who are already on strike, it is called a sympathetic strike. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike.

3. General Strike: It means a strike by members of all or most of the unions in a region or an industry. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer. It may also be an extension of the sympathetic strike to express generalized protest by the workers.

4. Sit down Strike: In this case, workers do not absent themselves from their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for employer to defy the union and take the workers' places. In June 1998, all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the non-acceptance of their demands by the state government.

5. Slow Down Strike: Employees remain on their jobs under this type of strike. They do not stop work, but restrict the rate of output in an organized manner. They adopt go-slow tactics to put pressure on the employers.

6. Sick-out (or sick-in): In this strike, all or a significant number of union members call in sick on the same day. They don’t break any rules, because they just use their sick leave that was allotted to them on the same day. However, the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike.

7. Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions. In 2004, a significant number of advocated went on wildcat strike at the City Civil Court premises in Bangalore. They were protesting against some remarks allegedly made against them by an Assistant Commissioner


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Lockouts

� A lockout is a work stoppage in which an employer prevents employees from working. It

is declared by employers to put pressure on their workers. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers’ weapon while a strike is raised on part of employees. Acc to Industrial Disputes Act 1947, lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him. A lockout may happen for several reasons. When only part of a trade union votes to strike, the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work.

For example, if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive, the employer may declare a lockout until the workers end the strike. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement.

PICKETING When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets are workers who are on strike that stand at the entrance to their workplace. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. The purpose of picketing is:

• to stop or persuade workers not to go to work • to tell the public about the strike • to persuade workers to take their union's side

TO SURROUND It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. The workers may surround the members of the management by blocking their exits and forcing them to stay inside their cabins. The main object to surround is to inflict physical and mental torture to the person being surrounded and hence this weapon disturbs the industrial peace to a great extent.

Measures for Improving Industrial Relations

The following measures should be taken to achieve good industrial relations:

• Strong and Stable Union: A strong and stable union in each industrial enterprise is essential for good industrial relations. The employers can easily ignore a weak union on the plea that it hardly represents the workers. The agreement with such a union will hardly be honored by a large section of workforce. Therefore, there must be strong and stable unions in every enterprise to represent the majority of workers and negotiate with the management about the terms and conditions of service.

• Mutual Trust: Both management and labor should help in the development of an atmosphere of mutual cooperation, confidence and respect. Management should adopt a progressive outlook and should recognize the rights of workers. Similarly, labor unions should persuade their members to work for the common objectives of the


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organization. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes.

• Workers’ Participation in Management: The participation of workers in the management of the industrial unit should be encouraged by making effective use of works committees, joint consultation and other methods. This will improve communication between managers and workers, increase productivity.

• Mutual Accommodation. The employers must recognize the right of collective bargaining of the trade unions. In any organization, there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude. One must clearly understand that conflicting attitude does not lead to amicable labor relations; it may foster union militancy as the union reacts by engaging in pressure tactics. The approach must be of mutual “give and take rather than “take or leave.” The management should be willing to co-operate rather than blackmail the workers.

• Sincere Implementation of Agreements. The management should sincerely implement the settlements reached with the trade unions. The agreements between the management and the unions should be enforced both in letter and spirit. If the agreements are not implemented then both the union and management stop trusting each other. An environment of uncertainty is created. To avoid this, efforts should be made at both ends to ensure the follow up of the agreements.

• Sound Personnel Policies: The following points should be noted regarding the personnel policies. The policies should be:

o Formulated in consultation with the workers and their representatives if they are to be implemented effectively.

o Clearly stated so that there is no confusion in the mind of anybody. o Implementation of the policies should be uniform throughout the organization to

ensure fair treatment to each worker.

• Government’s Role: The Government should play an active role for promoting industrial peace. It should make law for the compulsory recognition of a representative union in each industrial unit. It should intervene to settle disputes if the management and the workers are unable to settle their disputes. This will restore industrial harmony.

• Progressive Outlook: There should be progressive outlook of the management of each industrial enterprise. It should be conscious of its obligations and responsibilities to the owners of the business, the employees, the consumers and the nation. The management must recognize the rights of workers to organize unions to protect their economic and social interests.

ACT EXTRACT PART XII

RESOLUTION OF DISPUTES AND UNFAIR LABOUR PRACTICES

93 Powers of labour officers (1) A labour officer to whom a dispute or unfair labour practice has been referred, or to whose

attention it has come, shall attempt to settle it through conciliation or, if agreed by the parties, by reference to arbitration. (2) If the dispute or unfair labour practice is settled by conciliation, the labour officer shall record the

settlement in writing. (3) If the dispute or unfair labour practice is not settled within thirty days after the labour officer

began to attempt to settle it under subsection (1), the labour officer shall issue a certificate of no settlement to the parties to the dispute or unfair labour practice. (4) The parties to a dispute or unfair labour practice may agree to extend the period for conciliation

of the dispute or unfair labour practice referred to in subsection (3).


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(5) After a labour officer has issued a certificate of no settlement, the labour officer, upon consulting any labour officer who is senior to him and to whom he is responsible in the area in which he attempted to settle the dispute or unfair labour practice — (a) shall refer the dispute to compulsory arbitration if the dispute is a dispute of interest and the parties

are engaged in an essential service; or (b) may, with the agreement of the parties, refer the dispute or unfair labour practice to compulsory

arbitration; or (c) may refer the dispute or unfair labour practice to compulsory arbitration if the dispute or unfair

labour practice is a dispute of right; and the provisions of section ninety-eight shall apply to such reference to compulsory arbitration. (6) {Repealed] (7) If, in relation to any dispute—

(a) after a labour officer has issued a certificate of no settlement in relation to the dispute or unfair labour practice, it is not possible for any reason to refer the dispute or unfair labour practice to compulsory arbitration as provided in subsection (5); or

(b) a labour officer refuses, for any reason, to issue a certificate of no settlement in relation to any dispute or unfair labour practice after the expiry of the period allowed for conciliation under subsection (3) or any extension of that period under subsection (4);

any party to the dispute may, in the time and manner prescribed, apply to the Labour Court— (i) for the dispute or unfair labour practice to be disposed of in accordance with paragraph (b)

of subsection (2) of section eighty-nine, in the case of a dispute of interest; or (ii) for an order in terms of paragraph (c) of subsection (2) of section eighty-nine, in the case of a

dispute of right. 94 Prescription of disputes (1) (1) Subject to subsection (2), no labour officer shall entertain any dispute or unfair labour

practice unless— (a) it is referred to him; or (b) has otherwise come to his attention; within two years from the date when the dispute or unfair labour practice first arose. (2) Subsection (1) shall not apply to an unfair labour practice which is continuing at the time it is

referred to or comes to the attention of a labour officer. (3) For the purpose of subsection (1), a dispute or unfair labour practice shall be deemed to have first

arisen on the date when— (a) the acts or omissions forming the subject of the dispute or unfair labour practice first occurred; or (b) the party wishing to refer the dispute or unfair labour practice to the labour officer first became

aware of the acts or omissions referred to in paragraph (a), if such party cannot reasonably be expected to have known of such acts or omissions at the date when they first occurred.

95 [Repealed]

96 [Repealed]

97 … {Repealed]

98 Effect of reference to compulsory arbitration under Parts XI and XII (1) In this section, “reference to compulsory arbitration”, in relation to a dispute, means a reference

made in terms of paragraph (d) of subsection (1) of section eighty-nine or section ninety-three. (2) Subject to this section, the Arbitration Act [Chapter 7:15] shall apply to a dispute referred to

compulsory arbitration. (3) Before referring a dispute to compulsory arbitration, the Labour Court or the labour officer, as the

case may be, shall afford the parties a reasonable opportunity of making representations on the matter. (4) In ordering a dispute to be referred to compulsory arbitration, the Labour Court or labour officer,

as the case may be, shall determine the arbitrator’s terms of reference after consultation with the parties to the dispute. (5) In referring a dispute to compulsory arbitration—

(a) the Labour Court; or (b) the labour officer, after consulting any labour officer who is senior to him and to whom he is

responsible in the area in which he attempted to conciliate the dispute; as the case may be, shall appoint as an arbitrator a person whose name appears on a list referred to in subsection (6):


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Provided that the labour officer who attempted to conciliate the dispute which is referred to arbitration shall not be appointed as the arbitrator in that dispute. (6) The Minister, in consultation with the Senior President of the Labour Court and the appropriate

advisory council, if any, appointed in terms of section nineteen, shall from time to time prepare a list of arbitrators consisting of— (a) any labour officer, ex officio, or designated agent whom he considers to be experienced or

qualified in arbitration; and (b) any other person whom he considers to be experienced or qualified in arbitration. (7) In referring a dispute to compulsory arbitration by a person other than a labour officer, or a

designated agent for the employment council which is registered to represent the undertaking or industry to which the parties belong, the Labour Court or labour officer shall determine the share of the costs of the arbitration to be borne by each party (8) Where a party to a dispute referred to compulsory arbitration is made up of more than one

employer, employee, employers organisation, or trade union, the costs of the arbitration shall be paid in the proportions agreed upon by the constituent members of the party or, failing agreement, in the proportions determined by the arbitrator or arbitrators. (9) In hearing and determining any dispute an arbitrator shall have the same powers as the Labour

Court. (10) An appeal on a question of law shall lie to the Labour Court from any decision of an arbitrator

appointed in terms of this section. (11) Where the Labour Court or a labour officer has referred a dispute to compulsory arbitration, no

employee, workers committee, trade union, employer or employers organisation shall engage in collective job action in respect of the dispute. (12) Any person who contravenes subsection (11) shall be guilty of an offence and liable to a fine not

exceeding level eight or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment. (13) At the conclusion of the arbitration the arbitrator shall submit sufficient certified copies of his

arbitral award to each of the parties affected by it. (14) Any party to whom an arbitral award relates may submit for registration the copy of it furnished

to him in terms of subsection (13) to the court of any magistrate which would have had jurisdiction to make an order corresponding to the award had the matter been determined by it, or, if the arbitral award exceeds the jurisdiction of any magistrates court, the High Court. (15) Where arbitral award has been registered in terms of subsection (14) it shall have the effect, for

purposes of enforcement, of a civil judgment of the appropriate court. 99 [Repealed]

100 [Repealed]

101 Employment codes of conduct (1) An employment council or, subject to subsections (1a), (1b) and (1c), a works council may apply

in the manner prescribed to the Registrar to register an employment code of conduct that shall be binding in respect of the industry, undertaking or workplace to which it relates. (1a) Where an employment council has registered a code governing employers and employees

represented by it, no works council may apply for the registration of a code in respect of any industry, undertaking or workplace represented by the employment council unless it first refers the code to the employment council for its approval. (1b) Where a code is registered by a works council in respect of any industry, undertaking or

workplace represented by an employment council and the employment council subsequently registers its own code, the code registered by the employment council shall supersede that of the works council, unless the works council refers it to the employment council for approval. (1c) Where an employment council refuses to approve a code made by a works council in terms of

subsection (1a) or (1b), the works council may refer the matter to a labour officer, and the determination of the labour officer on the matter shall be final unless the parties agree to refer it to voluntary arbitration. (2) On application being made in terms of subsection (1), the Registrar shall, if he is satisfied that the

employment code concerned provides for the matters referred to in subsection (3), register the employment code in the manner prescribed. (3) A employment code shall provide for—

(a) the disciplinary rules to be observed in the undertaking, industry or workplace concerned, including the precise definition of those acts or omissions that constitute misconduct;

(b) the procedures to be followed in the case of any breach of the employment code;


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(c) the penalties for any breach of the employment code, which may include oral or written warnings, fines, reductions in pay for a specified period, suspension with or without pay or on reduced pay, demotion and dismissal from employment;

(d) the person, committee or authority that shall be responsible for implementing and enforcing the rules, procedures and penalties of the employment code;

(e) the notification to any person who is alleged to have breached the employment code that proceedings are to be commenced against him in respect of the alleged breach;

(f) the right of a person referred to in paragraph (e) to be heard by the appropriate person, committee or authority referred to in paragraph (d) before any decision in his case is made;

(g) a written record or summary to be made of any proceedings or decisions taken in terms of the employment code, which record or summary shall be made at the time such proceedings and decisions are taken.

(4) An applicant referred to in subsection (2) may, at any time after the registration of a employment code, apply in the manner prescribed to the Registrar to register any amendment to the employment code, and subsection (3) shall apply, mutatis mutandis,in relation to that amendment. (5) Notwithstanding this Part, but subject to subsection (6), no labour officer shall intervene in any

dispute or matter which is or is liable to be the subject of proceedings under a employment code, nor shall he intervene in any such proceedings. (6) If a matter is not determined within thirty days of the date of the notification referred to in

paragraph (e) of subsection (3), the employee or employer concerned may refer such matter to a labour officer, who may then determine or otherwise dispose of the matter in accordance with section ninety-three. (7) [Repealed] (8) [Repealed] (9) The Minister may, after consultation with representatives of trade unions and employers

organizations, by statutory instrumentpublish a model employment code of conduct. (10) An employment council or works council may, by making application in terms of subsection (1),

adopt the model employment code referred to in subsection (9), subject to such modifications as may be appropriate to the industry, undertaking or workplace concerned.

PART XIII COLLECTIVE JOB ACTION

102 Interpretation in Part XIII In this Part— “disposal order” means an order made in terms of section one hundred and seven; “essential service” means any service—

(a) the interruption of which endangers immediately the life, personal safety or health of the whole or any part of the public; and

(b) that is declared by notice in the Gazette made by the Minister, after consultation with the appropriate advisory council, if any, appointed in terms of section nineteen, to be an essential service;

“lawful collective job action” means collective job action which is not prohibited in terms of subsection (3) of section one hundred and four; “lock-out” means any one or more of the following acts or omissions by any person who is or has

been an employer— (a) the exclusion by him of any person or number of persons, who are or have been in his employ,

from any premises on which work provided by him is or has been performed; or (b) the total or partial discontinuance by him of his business or of the provision of work; or (c) the breach or termination by him of the contracts of employment of any person or number of

persons in his employ; or (d) the refusal or failure by him to re-employ any person or number of persons who have been in his

employ; if that exclusion, discontinuance, breach, termination, refusal or failure is in consequence of a dispute regarding conditions of employment or other matters, and the purpose of that exclusion, discontinuance, breach, termination, refusal or failure is to induce or compel any persons who are or have been in his employ or in the employ of other persons to agree to or comply with any demands concerning conditions of employment or re-employment or other matters made by him or on his behalf or by or on behalf of any other person who is or has been an employer; “show cause order” means an order made in terms of section one hundred and six;


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103 Appeal against declaration of essential service Any person who is aggrieved by any statutory instrumentbythe Minister declaring any service or

occupation to be an essential service may appeal against such notice to the Labour Court, and the Labour Court may vary or revoke the statutory instrument as it deems just. 104 Right to resort to collective job action (1) Subject to this Act, all employees, workers committees and trade unions shall have the right to

resort to collective job action to resolve disputes of interest. (2) Subject to subsection (4), no employees, workers committee, trade union, employer, employers

organisation or federation shall resort to collective job action unless— (a) fourteen days’ written notice of intent to resort to such action, specifying the grounds for the

intended action, has been given— (i) to the party against whom the action is to be taken; and (ii) to the appropriate employment council; and (iii) to the appropriate trade union or employers organisation or federation in the case of

members of a trade union or employers organisation or federation partaking in a collective job action where the trade union or employers organisation or federation is not itself resorting to such action;

and (b) an attempt has been made to conciliate the dispute and a certificate of no settlement has been

issued in terms of section ninety-three. (3) Subject to subsection (4), no collective job action may be recommended or engaged in by—

(a) any employees, workers committee, trade union, employer, employers organisation or federation—

(i) if the persons concerned are engaged in an essential service; or (ii) if the issue in dispute is a dispute of right; or (iii) if the parties to the dispute have agreed to refer the dispute to arbitration; or (b) any employees, workers committee or employer, if there is in existence a registered trade union or

employers organisation which represents the interests of the employees or employers concerned and that trade union or employers organisation has not approved or authorised the collective job action; or

(c) any trade union, employers organisation or federation unless the trade union, employers organisation or federation is registered; or

(d) any workers committee, if there is in existence a union agreement which provides for or governs the matter in dispute, and such agreement has not been complied with or remedies specified therein have not been exhausted as to the issue in dispute; or

(e) any workers committee, trade union or employers organisation, except with the agreement of the majority of the employees or employers, as the case may be, voting by secret ballot.

(4) Nothing in subsection (1), (2) or (3) shall be deemed to prevent collective job action from being resorted to— (a) in order to avoid any occupational hazard which is reasonably feared to pose an immediate

threat to the health or safety of the persons concerned: Provided that— (i) the occupational hazard has not been deliberately caused by the persons resorting to

the collective job action; (ii) the collective job action resorted to shall remain proportional in scope and locality to the

occupational hazard in question; (iii) the collective job action shall diminish in proportion as such occupational hazard

diminishes; (b) in defence of an immediate threat to the existence of a workers committee or a registered trade

union. 104A Picketing (1) In the section— “picket” means a gathering of members and supporters of a trade union or workers committee for

either or both of the following purposes— (a) demonstrating peacefully— (i) in support of any collective job action; or (ii) in opposition to any lock-out; and


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(b) peacefully persuading other members of the trade union or workers committee or employees of the industry, undertaking or workplace represented by the trade union or workers committee to take part in the collective job action or demonstration.

(2) A registered trade union or workers committee may authorise a picket. (3) Notwithstanding any other law regulating the right of assembly, a picket authorised in terms of

subsection (2) may be lawfully conducted— (a) outside the premises of an employer or in any place to which the public has access; and (b) if so authorised by a collective bargaining agreement, or a code of picketing agreed between

the Minister and the appropriate advisory council, if any, appointed in terms of section nineteen and prescribed by regulations made in terms of section one hundred and nineteen, inside the premises of the employer concerned in any area that does not substantially affect production.

105 Lock-outs and actions connected therewith No employer or employers organization shall—

(a) threaten, recommend or engage in a lock-out, except in accordance with sections onehundred and two and one hundred and four; or

(b) without the consent of the Minister, lay off, suspend or dismiss any employee or withhold wages or benefits due to any employee as a consequence of or in connection with a lock-out.

(2) No employer or employers organisation or federation, or official or office-bearer of such employers organisation or federation, shall threaten, recommend, encourage, incite, organise or engage in an unlawful collective job action referred to in paragraph (b) of the definition of that term in section two.

(3) Where more than one person referred to in subsection (2) threatened, recommended, encouraged, incited, organised or engaged in the unlawful collective job action, their liability therefor shall be joint and several. 106 Show cause orders (1) Whenever a workers committee, trade union, employers organisation or federation of registered

trade unions or employers organisations (hereafter in this section called a “responsible person”) threatens, recommends, encourages, incites, organises or engages in any collective action referred to in subsection (1) of section one hundred and nine (hereinafter in this section and section one hundred

and seven called an “unlawful collective action”), the Minister, acting on his own initiative or upon the application of any person affected or likely to be affected by the unlawful collective action, may issue an order calling upon the responsible person to show cause why a disposal order should not be made in relation thereto: Provided that the Minister may call both parties to appear before him or her for submissions before he

or she issues a show cause order if he or she deems it necessary that they appear. (2) A show cause order—

(a) shall specify— (i) the date, time and place at which the responsible person must appear before the Labour

Court to show cause why a disposal order should not be made; and (ii) the order or action desired or proposed; (b) may direct that pending the issuance of a disposal order, the unlawful collective action

concerned be terminated, postponed or suspended. 107 Disposal orders (1) On the return day of a show cause order the Labour Court shall, at the time and place specified

in the order, inquire into the matter and shall afford the parties concerned an opportunity of making representations in the matter. (2) After conducting an inquiry in terms of subsection (1), the Labour Court may issue a disposal order

directing that— (a) the unlawful collective action be terminated, postponed or suspended; or (b) the issue giving rise to the unlawful collective action concerned be referred to another authority

to be dealt with in terms of Part XII and that, pending the determination of the issue in terms of that Part, the unlawful collective action concerned be terminated, postponed or suspended.

(3) Without derogation from the generality of the powers conferred upon the Labour Court in terms of subsection (2) to make a disposal order, such order may provide for— (a) in the case of an unlawful collective action other than a lock-out— (i) discharge or suspension of an employer’s liability to pay all or part of the wages or benefits

due to specified employees or categories of employees engaged in the unlawful collective action, in respect of the duration of such collective action or part thereof;


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(ii) the employer, to take disciplinary action in terms of the code or law, or lay off or suspend with or without pay, specified employees or categories of employees engaged in the unlawful collective action;

(iii) the lay off or suspension, with or without pay, of specified employees or categories of employees not engaged in the unlawful collective action for such period as may be specified where such lay off or suspension is necessitated by the collective action;

(iv) the dismissal of specified employees or categories of employees engaged in the unlawful collective action;

(v) the prohibition of the collection of union dues by any trade union concerned for such period as may be specified;

(vi) the suspension or rescission of the registration of the trade union involved in the collective job action;

(vii) the taking of disciplinary action by the employer in the case of employees on collective job action, in terms of the code or any other sanction as the circumstances permit, in respect of defiance of a show cause order;

(b) in the case of an unlawful collective action consisting of a lock-out— (i) where wages or benefits due to employees have been withheld or suspended, the payment

of such wages or benefits; (ii) the resumption of the normal operations of the undertaking concerned; (iii) where any employees have been laid off, suspended or dismissed, the reinstatement of such

employees with all necessary wages, compensation and other related benefits; (iv) the suspension or dismissal of specified managerial employees who are responsible for or

have provoked, or contributed to, the lock-out. 108 Protection of persons engaged in lawful collective action (1) In this section and section one hundred and nine— “lawful collective action” means any collective job action that complies with this Part in respect of its

notification and other matters provided for under this Part, and “unlawful collective action” shall be construed accordingly. (2) It shall not be a delict or breach of contract for any workers committee, registered trade union,

registered employers organisation or registered federation of registered trade unions or employers organisations (hereinafter in this section called a “protected person”) to threaten, recommend or engage in a lawful collective action, and no protected person shall be liable to any civil liability or proceedings therefor other than as specified in this Part: Provided that such immunity from suit shall not extend to wilful acts or omissions threatening or

resulting in the destruction of, or damage to, property other than the perishing of goods caused by employees’ absence from work on account of such collective action. (3) All individual employees and officials or office-bearers of a protected person, shall be entitled to

the same immunity as is conferred upon a protected person in terms of subsection (2) and, in addition, his employment shall not be terminated on the ground that he has threatened, recommended or engaged in any lawful collective action. (4) An employer is not obliged to remunerate an employee for services that the employee does not

render during the lawful collective action except where the employee’s remuneration includes payment in kind by way of accommodation, the provision of food and other basic amenities of life, in which event the employer shall not discontinue such payment in kind unless the employee declines such remuneration: Provided that, at the conclusion of the collective action, the employer may recover the monetary

value of such remuneration by action instituted in the Labour Court. (5) An employer may not employ any person for the purpose of performing the work of an employee

who is locked out. 109 Liability of persons engaged in unlawful collective action (1) If a workers committee, trade union, employers organisation or federation of registered trade

unions or employers organisations (hereinafter in this section called a “responsible person”), or any individual employer or employee or group of individual employers or employees, recommends, advises, encourages, threatens, incites, commands, aids, procures, organises or engages, in any collective action which is prohibited in terms of subsection (3) of section one hundred and four, the responsible person, and every official or office-bearer of the responsible person, or, as the case may be, individual employer or employee or group of individual employers or employees, shall be guilty of an offence and liable to a fine not exceeding level fourteen or to imprisonment for a period not exceeding five years or to both such fine and such imprisonment. (2) Any person other than a person referred to in subsection (1) who recommends, advises,

encourages, threatens, incites, commands, aids or procures any collective action which is prohibited in


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terms of subsection (3) of section one hundred and four, with the intention or realising that there is a risk or possibility of bringing about such collective action, shall be guilty of an offence and liable to a fine not exceeding level fourteen or to imprisonment for a period not exceeding five years or to both such fine and such imprisonment. The test referred to in section 3 of the Public Order and Security Act [Chapter 11:17] shall apply to

determining whether or not the person whose conduct is in issue realised that there was a risk or possibility that his conduct might bring about the collective action referred to in this subsection. (3) The Minister may, by order in writing served on—

(a) a trade union or employers organisation which he believes on reasonable grounds to be in contravention of subsection (1); and

(b) the employment council to which the trade union or employers organisation referred to in paragraph (a) is a party; and

(c) any employer who is party to a collective bargaining agreement with the trade union referred to in paragraph (a);

suspend for such period, not exceeding twelve months, as shall be specified in the order, the right of the trade union to levy, collect or recover union dues by means of a check-off scheme, or the right of the employersorganisation to collect membership fees. (4) An order referred to in subsection (3) may be issued together with, or independently or instead of,

a show cause order. (5) If—

(a) criminal proceedings against a trade union or employers organisation referred to in paragraph (a) of subsection (3)—

(i) are not instituted within thirty days of the date of service of the order referred to in subsection (3) on the trade union or employers organisation; or

(ii) end otherwise than in conviction; or (b) the Labour Court declines to grant a disposal order; the order shall be deemed to have been cancelled with effect from the last day for the institution of criminal proceedings in terms of paragraph (a), or the date of acquittal or withdrawal of the criminal proceedings, or the date when the Labour Court declined to grant an order referred to in paragraph (b), whichever is the earliest date. (6) In addition to any penalty that may be imposed under subsection (1) or (2) and without

derogation from any other remedy available under any other law— (a) a responsible person, and every official or office-bearer of the responsible person, and every

individual employer or employee who participates in any unlawful collective action; or (b) a person referred to in subsection (2); as the case may be, shall be jointly and severally liable, at the suit of any injured party, for any injury to or death of a person, loss of or damage to property or other economic loss, including the perishing of goods caused by employees’ absence from work, caused by or arising out of or occurring during such collective action. (7) Subject to Part XIX of the Criminal Procedure and Evidence Act [Chapter 9:07], a court which has

convicted a person of any offence in terms of subsection (1) that involves any loss, damage, injury or death for which that person is liable in terms of this section shall forthwith award compensation to any person who has suffered personal injury or whose right or interest in property of any description has been lost or diminished as a direct result of the offence. 110 Appeals (1) Any person who is aggrieved by—

(a) a show cause order or the refusal to make such order; or (b) a disposal order made by an appropriate authority or by the refusal of any such authority to make

such order; may appeal to the Labour Court. (2) The lodging of an appeal in terms of subsection (1) shall not affect any order appealed against: Provided that pending the determination of the appeal, the Minister or the appropriate authority

may give such directions to, or impose such restrictions on, any of the parties as he considers fair and reasonable, taking into account the respective rights of the parties and the public interest. 111 Cessation of collective job action Whenever—

(a) the underlying cause of any collective job action or lock-out which is threatened, anticipated or in force has been removed; or


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(b) the issue, dispute or complaint giving rise to any collective job action or lock-out which is threatened, anticipated, or in force has been determined or resolved in terms of Part XII orthis Part; or

(c) any collective job action by a workers committee or trade union is threatened, anticipated or in force and the executive of such workers committee or trade union or federation thereof, acting in terms of its constitution, has ordered the suspension of such collective job action; or

(d) the termination, postponement or suspension of any collective job action or lock-out is directed in any show cause order or disposal order which has been given;

any person who is or might become involved in such collective job action or lock-out shall, as the case may be, forthwith cease or refrain from participating in or threatening such collective job action or lock-out. 112 Offences under Part XIII (1) Any person who contravenes or fails to comply withI

(a) subsection (2) or (3) of section one hundred and four; or (b) sectionone hundred and five ; or (c) a direction made in terms of paragraph (b) or (c) of subsection (2) of section one hundred and

six; or (d) the terms of a disposal order; or (e) sectionone hundred and eleven; shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment. (2) When imposing any penalty or sentence upon conviction for an offence in terms of subsection

(1), the court shall take into account— (a) the terms of any show cause order or disposal order which has been made relating to the offence

concerned, and the extent to which the convicted person has complied with it; and (b) the extent to which the dispute concerned has been resolved.

KEY TERMINOLOGY Constructive dismissal

Constructive dismissal is a form of unfair dismissal. It occurs when an employer commits a 'fundamental breach' of the contract of employment inconsistent with a continuing employer/employee relationship. Such a breach entitles the employee to resign but the burden of establishing the fundamental breach is on the employee. Constructive dismissal might arise, for example, if the employee's pay or hours are reduced without agreement.

Mitigation

Alleviation; abatement or diminution of a penalty or punishment imposed by law. “Mitigating circumstances” are such as do not constitute a justification or excuse of the offense in question, but which, in fairness and mercy, may be considered as extenuating or reducing the degree of moral culpability.

Forced labour


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Forced labour takes different forms, including debt bondage, trafficking and other forms of modern slavery. The victims are the most vulnerable – women and girls forced into prostitution, migrants trapped in debt bondage, and sweatshop or farm workers kept there by clearly illegal tactics and paid little or nothing. The ILO has worked since its inception to tackle forced labour and the conditions that give rise to it and has established a Special Action Programme on Forced Labour to intensify this effort.

Unfree labour

is a generic or collective term for those work relations, especially in modern or early modern history, in which people are employed against their will by the threat of destitution, detention, violence (including death), lawful compulsion, or other extreme hardship to themselves or to members of their families. Unfree labour includes all forms of slavery, and related institutions (e.g. debt slavery, serfdom, corvée and labour camps). Many of these forms of work may be covered by the term forced labour, which is defined by the International Labour Organization (ILO) as all involuntary work or service exacted under the menace of a penalty.


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