An Integrated Systems Approach to Teaching Labour ...

Buys, Ehlers and Schaap

An Integrated Systems Approach to Teaching Labour Relations in South Africa Michiel A Buys, Lukas I Ehlers and Pieter Schaap University of Pretoria Labour Relations is a multi-disciplinary and dynamic field and the outcomes of interaction within the Labour Relations system impacts at the heart of society. The diverging objectives of management and labour lays a foundation for conflict, which often spurt on changes in societal variables. Against the backdrop of this scenario it should become apparent that Labour Relations cannot be studied and understood if it is not done in accordance with an integrated systems approach. Such an approach will enable students to gain insights in the multiple variables impacting on relationships, as well as into the dynamic relationships between such variables. In this paper the authors will endeavour to propose and elaborate on the principles that form part of an integrated systems approach toward teaching Labour Relations. Introduction "My plea is for greater boldness. The problems of unions and union-management relations present enormously important, challenging problems for our society. They clearly are problems which call for the best efforts of social scientists in several disciplines, including psychology. One might expect them to be among the foremost concerns of a broadly conceived field of industrial psychology. Yet they remain a stepchild" Kornhauser (1961:241242). The following challenges for labour relations practitioners presently exist, which necessitates training in this regard: •

Labour relations practitioners need to experience purpose in their role in the organisation and be able to generate purpose for other people.

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A Labour Relations practitioner needs to be visionary, and be able to cope with change constructively.

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A Labour Relations practitioner needs to communicate clearly on all levels inside and outside of the organisation

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A Labour Relations practitioner must have the ability to rise above his own prejudice and attitudes.

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An organisation cannot afford to employ personnel which may be prejudiced or rigid when dealing with people possessing a different personality composition, culture or race.

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A Labour Relations practitioner must be self-motivated and an activator of others.

Cornerstone principles of labour relations Any Labour Relations system is based on six cornerstone principles, which are briefly discussed in the following section of this paper. In teaching Labour Relations, special emphasis should be placed on the importance of adhering to these basic principles at all levels of interaction in the relationship.

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1. Understanding the reason for the existence of organisations and the need to study labour relations Any organisation, irrespective of its objectives, exists to satisfy needs of the community which can only be in the form of goods, services or activities which stems from the three primary societal systems namely the socio-welfare, political, and economical system. An organisation can only exist for as long as there is a specific need in the community and the organisation satisfies the need as the community wishes in terms of cost, quality, place and political correctness. All organisations need a clear objective that is understood by all members of the organisation and which is aligned with the needs of society, as well as the four primary production factors, namely Entrepreneurship, Resources, Capital and Labour. Organisations can be viewed as systems which are influenced by external environmental conditions (Economic, Social, Political) and internal conditions in the organisation (Individuals, Groups, Organisation systems) The labour force of an organisation needs to be available, capable, motivated and productive to ensure organisational goal achievement, and subsequently organisations strive to attract suitable labour, train and develop the labour force, perform administrative functions relating to the labour force and to maintain labour peace. The study of labour relations therefore provides a foundation for understanding how relations with the labour force and variables that influence the relationship, can best be managed to reach organisational objectives. 2. The principles of fairness, nondiscriminating and respect for human dignity needs to be applied in all facets of human interaction within a labour relationship An action or behaviour could be considered fair if there is balance between the parties, if both parties received equitable treatment, if there is conformity with universally accepted standards and if consistency was exhibited. The concept is so laden with nuances and subjective assessments and its interpretation so dependent on circumstances that it would be virtually impossible to establish clear standards of fairness in any labour relations system. The South African Industrial Court (Brassey et al, 1987:12) provided the following interpretation of fairness: " The notion of fairness is philosophically as well as rationally difficult to understand. In truth, however, it is not the notion that causes the difficulty so much as its application. ‘Do unto others as you would have them do unto you' is a pretty fair reflection of the notion. The difficulty is that not everyone wants the same thing done to them." 3. Parties need to respect their respective rights and duties Every right has an accompanying duty. Any person who is involved in a relationship who claims a right without accepting performing the accompanying duty, will be acting as if the right is a privilege, thereby achieving an unfair advantage from a relationship, since another party to the relationship will eventually be responsible for performing the accompanying duty. Harmonious interaction between humans, is based on individuals accepting the accompanying duties when claiming rights. Once a contract of employment has been entered into, whether in writing, verbally or tacitly, it is accepted that the parties have by implication agreed to certain rights and duties. The duties of one party constitute the rights of the other. Thus the employee has the right to remuneration, whereas the employer has the right to expect that the employee does his work to the best of his ability, and as a consequence an employee cannot claim remuneration for periods where he did not perform his duty of rendering services to his employer. A demand for payment under these circumstances will create an imbalance leading to a feeling of uneasiness within the employer. This uneasiness can be commonly referred to as an unfair 65


labour practice and will in most cases lead to efforts by the suffering party to rectify the existing imbalance, thereby leading the parties into conflict. It should however be emphasised that rights and duties are also established in the psychological contract between an employer and employee, in that both parties have certain expectations that are not necessarily verbalised or agreed to in writing between the parties. In this regard an employee may have an expectation of promotion after working diligently for a period, but the employer failed to notice the above average effort of the employee. The employee will in most of these cases feel unfairly treated and may try to remedy the situation by lodging a grievance, thereby bringing the parties into conflict. 4. Labour relations should be managed in accordance with a pluralist approach Fox, according to Finnemore (1997) rejected the autocratic unitary approach of managing conflict in labour relations and proposed the pluralist approach whereby labour relations are viewed as a coalition of interests, a miniature democratic state composed of sectional groups with divergent interests over which the government tries to maintain some kind of dynamic equilibrium. The crux of pluralism in labour relations according to Finnemore (1997) is that: •

Conflict is accepted as natural to and inherent in the relationship between employer and employee, but a common interest in the survival of the organisation makes compromise both necessary and possible.

5. An objective approach to conflict management needs to be followed The following basic principles should be adhered to when attempting to resolve conflict: (Ehlers 1992) •

Parties should establish common objectives that will maximise the benefits of all stakeholders in the enterprise.

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Participants should accept that conflict is a natural and necessary phenomenon in Labour relations, and follow a consensus approach in search of mutually acceptable agreements or resolutions of conflict that may arise between them.

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All participants should participate in good faith and strive towards maximum transparency and share important information.

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Parties should enjoy equal status during the process of finding solutions to problems. Dominance, personal insults and negative attitudes are counterproductive to finding solutions to problems in relationships.

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Parties should agree to self-correcting mechanisms to prevent and deal with conflict in the relationship, as soon as possible during the formation of the relationship or in the earliest possible stage after the identification of conflict.

6. Labour law is not the most appropriate method for solving problems in labour relations Labour legislation should never be viewed as the ultimate definition of the rules and processes needed to manage labour relations, since the human factor is omnipresent in all labour relationships. Emphasis should therefor be placed on the understanding regarding labour relations as a system that is delicately balanced, and the development of interpersonal skills for communication, conflict resolution, problem solving and other areas of human interaction in labour relations. McIntyre (In Brassey 1994:19) emphasises the differences between the legalistic- and a relations-based approach to dealing with labour relations problems, and further hints that law practitioners might lack expertise in this regard: "The balance between the two forces is delicate... Our experience with labour relations has shown that the courts, as a general rule, are not the best arbiters of disputes which arise from time to time... Judges do

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not have the expert knowledge always helpful and sometimes necessary in the resolution of labour problems." Managing labour relations in accordance with a systems approach Labour Relations can be simply defined as human relations in and around the workplace, and can be viewed as a system comprising input, throughput and output factors. Societal variables constantly influence labour relations, and leads to varying outcomes. Some outcomes are undesirable, and therefore specific interventions should be made in the throughput process to ensure a desired outcome. The following systems model may be used to teach Labour Relations:

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It is important to identify the basic premises for understanding and managing the various components of the system and their respective relationships with other components and subsystems within the Labour relations system. These premises needs to be addressed in any Labour Relations course that is conducted in terms of the systems approach. Course presenters should furthermore take meticulous care in explaining the influence of each premise on other components in the subsystem and the overall system to ensure proper understanding and integration of knowledge. The authors identified the most important premises, in their view, for each subsystem and listed them in the discussion of the various subsystems. Input Factors No labour relationship is possible without the participation of employees, employers and the state, hence they are regarded as the primary input factors. The state provides a legal framework that guides and regulates the actions of the participants in the labour relations system. The participant's behaviour are constantly influenced by their own perceptions of reality, which are based on conditions in the labour market, historical and international influences on labour relations. Basic premises for understanding and managing input factors: •

Labour peace depends on the identification and attainment of common objectives and mutual understanding between parties. Eg. Incorrect understanding and management of cultural differences may lead to grievances, causing disputes and even industrial action.

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Know the nature and objectives of the various participants to labour relations (Eg Trade Unions, Trade Union federations, Employer organisation, The State as employer, The state as legislator and other groupings with a vested interest in labour relations)

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Identify and analyse the input factors that may influence the labour relationship, to understand the different needs and perceptions of the participants.

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Identify all applicable legal requirements, and ensure that the labour relationship is conducted within the legal framework.

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Ensure that new trends in labour relations, Government policy, Union preferences, Business practice and legislation are constantly reviewed and acted upon wherever organisational performance and -goal achievement could be influenced.

Throughput factors Throughput factors can be divided into two focus areas: Creating and maintaining labour peace This set of activities are primarily focussed on creating a solid foundation for interaction between employers and employees at enterprise level. To achieve this objective the parties have to define the rights and responsibilities of each party to the labour relationship. Rights and responsibilities are normally defined in explicit service contracts and tacit expectations formed by the parties during initial interaction, also known as the psychological contract. A formal labour relations policy will contain broad guidelines for the maintenance of a balanced relationship. It is important to ensure nondiscrimination and fairness in general human resource management practices, such as communication, recruiting and job evaluation. This will prevent grievances and disputes that may harm the relationship. 68


A representation system, such as a workplace forum serves to improve communication and understanding between parties, and serves as a subsystem for ensuring labour peace. Enterprise level procedures, such as Grievance, Disciplinary and Retrenchment procedures serve as self-correcting mechanisms to defuse flashpoints in the relationship and maintain labour peace. Basic premises for understanding and managing throughput factors related to the creation and maintenance of labour peace: •

All members of an organisation are responsible for maintaining labour peace. The Labour Relations Practitioner, however, is responsible for emphasising purpose and providing direction to members involved in the process.

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Define the service relationship in a service contract and discuss mutual expectations, to ensure proper understanding of rights and responsibilities. Eg. An employee must be aware of his job duties and hours of work to perform his job according to the required standards. If the employee does not know these rules he might perform poorly and eventually be disciplined.

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Set a labour relations policy in accordance with the needs of all stakeholders in the organisation, legal requirements and societal influences.

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Review the general Human Resource management practices of employers to eradicate discrimination, unfair labour practices and other areas of negative conflict.

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Introduce and maintain a structured worker representation system in accordance with legal requirements, and/or the needs of members and the organisation.

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Establish clear and fair procedures at enterprise level for effective and structured resolution of employee grievances, disciplinary measures and retrenchment.

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Ensure that all participants in labour relations are trained to a level where they can meaningfully contribute to the maintenance of labour peace, resolving conflict and rulemaking.

Collective bargaining The collective bargaining process deals primarily with the interaction between trade unions and employers. The negotiation and implementation of collective agreements is the preferred method for resolving conflict in the relationship. A specific dispute resolution procedure is adopted in case of the parties failing to agree through negotiation. Should all attempts at resolving the conflict fail, the parties may institute industrial action in the form of strikes or lockouts. Basic premises for understanding and managing throughput factors related to collective bargaining: •

A trade union is part of the collective bargaining process and should participate as the mouthpiece of the employees whom it represents. Adversarial strategies often lead to escalating conflict in a labour relationship.

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Consider the specific requirements of participants, environmental influences and legal requirements before deciding a collective bargaining structure. The system should be linked to the system for creating and maintaining labour peace, to allow for continuity during dispute resolution and definition of agreements.

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Aim to define pro-active (negotiating procedure) and reactive (dispute procedure) measures and procedures in collective agreements, for purposes of resolving conflict.

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Be prepared to negotiate with other parties in the case of disagreements and/or conflict in the relationship. 69


•

Ensure the timeous and correct implementation of agreements between parties and evaluate the effect of any new agreements.

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Follow a predefined dispute resolution procedure in the event of deadlocks during negotiation.

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Industrial action is an absolute final attempt at restoring balance in a labour relationship and should not be embarked on without very careful consideration.

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Prepare a thorough plan for participation in and/or management of industrial action.

Output factor The desired output of any labour relations system is labour peace. This is the ideal outcome following interaction of the parties in all the throughput processes. The level of labour peace influences the future prosperity of society, and impacts on the input factors referred to in the model. Basic premises for understanding and managing output factors: •

Labour peace is needed for the effective production of goods, services and activities. Labour unrest is counterproductive and should be avoided where possible. All the aforementioned input and throughput factors should therefor be analysed and managed to obtain maximum labour peace.

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Parties to a labour relationship can satisfy most of their needs by reaching organisational objectives under conditions of labour peace.

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Since all organisations depend on labour, it should be kept in mind that an organisation's survival, and therefore members' job security, and goal achievement depends on the degree of labour peace in the organisation.

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Good faith participation in labour relations is a prerequisite for labour peace, and entails sincere efforts to resolve differences through participative structures.

Applying the systems approach in teaching labour relations 1. Identifying training needs Before embarking on training the needs of the target group needs to be assessed. The following format provides a method for determining what level of competency will be required in the application of skills and knowledge regarding each component/premise. It can be adapted by adding standardised skill and knowledge level indicators, and by using groups of assessors for determining the specific needs. An assessment list should comprise all components/premises that impacts on the specific labour relationship. In the example four probable labour relations training needs of a supervisory job is assessed. Component/premise

Supervisor Knowledge

Skills

1. Labour laws

Overview

None

2. Disciplinary procedure

Thorough

Able to chair enquiry

3. Formal dispute resolution

Awareness

Keeping of related records

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Teaching material

Time

Introductory notes Notes Video Case Introductory notes Case

30 min 4 hours

60 min


4. Strike management

Know steps in strike action plan

Follow strike action drill

Strike plan Drill booklet Video

90 min

2. Developing an integrated training intervention The above described assessment should be applied whenever a training programme for labour relations is developed, to ensure that the correct emphasis are placed on more important aspects of labour relations in accordance with the needs of participants. Furthermore it will ensure that all training activities are focussed on creating insight and understanding within the framework of the systems approach to managing labour relations. It will also be important to abide by general rules of instructional development. The authors propose the following sequence of training activities during the opening phases of a training intervention based on the systems approach to labour relations: 1.

Explain why organisations exist in society, and how organisational output influences society.

2.

Explain how labour relations influence organisational output.

3.

Explain how the cornerstone principles relate to labour relations interaction in the system.

4.

Explain the labour relations system.

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5.

Explain the nature, function and components of each subsystem, Eg: Collective Bargaining Collective bargaining structures Collective agreements Case study / Application.

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It is important to provide an overview of the system, and a brief discussion of the influence exerted by the component as well as the immediate influences on the component, before a new component is discussed during the intervention. Presenters/facilitators should select case studies in such a way to ensure continuity in the application of newly acquired skills or knowledge.

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During all discussions and practical sessions, reference should be made to the cornerstone principles, and how they relate to - and support each aspect of labour relations.

3. Evaluating acquired competencies After completing a training course based on the systems approach to teaching Labour Relations, a Labour Relations Practitioner should be able to display predefined competencies: Participants should be tested on their competency to display: i)

Understanding of the influence that each of the system components has on the Labour Relations system.

ii)

An ability to identify the influence of the five cornerstone principles to all processes and levels of interaction in the Labour Relations system.

iii) Understanding what system ramifications will take place if proper attention to - and/or management of the specific component is neglected. iv) An ability to apply newly acquired knowledge and skills for managing each specific component of the new Labour Relations system, in his/her unique environment of practice. v)

An ability to visualise the effect of changes to a specific component or subsystem, on the labour relations system, and plan activities with due consideration of system ramifications.

Conclusion Labour Relations is a multi-disciplinary and dynamic field of study. To teach students to gain insights into the multiple variables impacting on Labour Relations, an integrated systems approach should be considered. Bibliography Bendix, S. (1996) Industrial Relations in the new South Africa: Juta,Kenwyn Brassey M. (1994) Labour Relations under the new Constitution (seminar handout) Butterworths, Johannesburg Cheadle, H., Le Roux, P.A.K., Thompson, C., Van Niekerk, A. (1995) Current Labour Law Kenwyn: Juta. Ehlers L.I. (1992) the Attitudes of Employers Toward Wage Negotiation with Trade Unions. Unpublished M Com dissertation. University of Pretoria. Pretoria Ehlers, L.I. (1994) The Changing Role of the Industrial Psychologist in Labour Relations Presentation at the Industrial Psychology Association, Pretoria Fox A. (1966). Industrial Psychology and Industrial relations. Research paper 3, Royal Commission on Trade Unions and Employers associations. London HMSO Finnemore M. (1997) Introduction to Labour Relations in South Africa.: Lexicon, Johannesburg Gerber P.D., Nel, P.S., Van Dyk, P.S. (1995) Human resources management.: Southern Books, Johannesburg Kornhauser, A. (1961) Implications of Psycholoy in Labour/Management Relations (a symposium) Observations on the Psychological Study of Labour Management Issues Personnel Psychology 14, 241-249 Levy A. (1997) Annual report on labour relations in South Africa 1996-1997 72

Buys, Ehlers and Schaap Andrew Levy & John Piron & Associates, Johannesburg Lipton, M. (1989) Capitalism & apartheid - South Africa 1910-1986 David Philip, Cape Town Nel P.S. and others. (1997) Industrial Relations in South Africa: Theory and Practice J.L. van Schaik, Pretoria Slabbert, J.A., Prinsloo, J.J., Backer, W. (1990) Managing Industrial Relations in South Africa Digma, Pretoria. South African Constitution (1997) Government Printer, Pretoria South Africa. Department of Labour. (1996) Minimum Standards Directorate. Policy proposals for a New Employment Standards Statute: Greenpaper Government Printer, Pretoria

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