Unisa Study Notes



Unit 6 – Chap 12: Employment relationsHISTORICAL AND CONCEPTUAL PERSPECTIVESIndustrial relations includes the entire range of relationships between employees, their unions, management, shareholders and government – all human relations in industryLabour relations was seen from historical conflict and resistance between labour and employersThe adversarial relationship between labour and employers has its roots in factors such as poor working conditions, low levels of pay and labour was seen as a commodity in the production processLabour was exploited and led to a ‘them’ and ‘us’ or ‘haves’ and ‘have not’s’ mentality From “labour/industrial relations” to “employment relations”In the 1950’s the control paradigm and work regulations were the core of industrial relationsIn 1970’s/1980’s there was a shift to recognising that management and unions shared common ground and interestsThis perspective, plus the rapidly changing world of work, led to the name change from ‘industrial relations’ to ‘employment relations’The shift is towards seeing workers as employees and not as ‘manager vs worker’Different theoretical perspectives about conflicting and converging interests in employment relationsTo understand different feelings toward inherent nature that organisational members hold concerning employment relations, there is a need to understand the differences in values, attitudes and perceptions that they formThese influence the way they feel towards employment relationsThere are three basic ideological perspectives:Pluralist perspectiveLegitimate differences of interest between management and worker, but also interdependence which necessitates coexistenceUnitarist perspectiveNo conflict of interest, share common goalsRadical perspectiveConflict of interest exists, Marxist attitude by employeesThe corporatist perspective is a broader view that regards social dialogue between the three parties as the preferred way, leading to a social-democratic order where the state allows key interest groups to be full participants in the process of formulating relevant policy directions in respect of employment relationsKEY ROLE PLAYERS, ACTORS, AND OTHER STAKEHOLDERSStateRole is to create a framework within which labour and management can conduct their relationshipGeneral human resources policy goal is that the country’s workers, irrespective of race, colour or gender must be developed, utilised and maintained optimallyWithin the boundaries of this broad goal lie the stipulations and guidelines prescribed and laid down by the country’s labour lawsOrganisations and trade unions are required to adhere to these stipulationsEmployerRefers to the organisation that is a legal entity employing employeesManagement is given the authority to manage the organisation so owners receive ROISome of the resources to manage are human resources or labour to optimise delivery pf products and servicesManagers also have other stakeholders that must be considered, like, non-managerial employees and societyManagers need to ensure corporate sustainability and this must happen in a socially responsible wayEmployeesReferred to as workers may be managerial or non-managerial, but have the same interests at heartVery important role players are found in the trade unions, which are formed and joined by workersTrade unionsEmployees’ representativesPermanent organisation created by workers to protect themselves at their workplace, to improve conditions of their work through collective bargaining, seek better conditions, provide workers with a means of expressing their viewsTrade unions act on behalf of their membersCustomersWithout customer there would be no reason for the organisation to existCustomers indirectly influence the role of both the managers and the employeesCompetitorsOrganisations can run into trouble if competitors produce a product that the customer prefersThe competitive market will influence the role of both managers and employees (including trade unions)Exam question (May/June 2011 and Oct/Nov 2012Discuss the behavioural dynamics underlying the individual decision to join a trade union. Include among other things an explanation of the nature and relevance of organisational-citizenship behaviour, dual commitment and organisational-justice perceptions in this regard (25)WHY WORKERS JOIN TRADE UNIONSPeople differ and one individuals decision to join a trade union may be very different to another individuals decisionThe question is why would an employee want to or decide to join a trade union?Simple answer: because their needs are being fully satisfiedA better understanding is pointed out is: because of its practical policy implications for government, employees and unionsSome other reasons include:Employees’ needs are not satisfiedProtect members against employersIndividuals different motives and reasonsPerceived gap in pay/effort equationTo gain social dominance in the hierarchy (respect)Cost/benefit analysis (which determines the unions’ instrumentality or utility)Employees want to gain personal benefits from membership, such as the following:Better wage increases and improved working conditionsPaying below market rates for life and health insurance, credit cards and holiday accommodation privilegesJob security threatened by part-time, temporary work, subcontracting, flexi-place and flexi-time working – no continuityCollective voice increases power to address areas of malcontentSocial and self-fulfilment needsCITIZENSHIP BEHAVIOUR AND DUAL ALLEGIANCEI-O psychology goal is to improve the work force-workplace match and the employee-job matchThe aim is a situation where positive work-related attitudes and individual satisfaction will lead to improved work performance, to enhance organisational successEmployee commitment is described within the different theoretical perspectives of employment relationsOCB can be described as employee behaviour that adds value to organisational outcomes by going beyond and above the call of dutyIt is closely linked to job satisfaction and it influences the amount of value the employee is willing to add to the organisationAs already stated, employees are often members of trade unions alsoThis leads to the difficult position where some employees have to fulfil a dual role of being both organisational and union citizens – the latter being voluntaryTrade unions also demand the union member to go the extra mile for fellow workersConsequently there is a situation where the same employee has a dual allegiance or commitment to both employer and the unionDual allegiance or commitment is analysed in the context of three basic ideological perspectives that in turn influence how people will view and approach employment relationsThe three perspectives are:UnitaristNo conflict of interest exists – competing commitments will not be regarded as properLoyalty or commitment to a trade union and its activities if frowned upon by a managerRadicalConflict of interest exists – anti capital or Marxist attitude by employeesWorkers should owe their allegiance to those within the trade union movement and in the wider political system who seek to redress imbalancesPluralistLegitimate differences of interest between management and worker, but also an interdependence which necessitates coexistenceAcceptance that workers primary loyalty is to themselves and by extension the work-group and the unionIt is possible for workers to develop commitment to a company because of extrinsic rewards obtained through bargaining without identifying with the company’s goals and values – opens the door for dual commitmentFrom a pluralist angle it seems to be possible for an employee to be committed to both a trade union and the employing organisationThis is more likely to develop in situations where there is a sound and cooperative employment relations climate and workers are not confronted with having to choose between competing commitmentsThe theoretical viewpoint to cater for this is societal corporatismThis caters for greater employee satisfaction and general wellbeing and it can support trade union dynamics, while at the same time aiming to enhance the success of business organisationsORGANISATIONAL JUSTICE PERCEPTIONSFor employees to feel that they are getting a fair deal, they must feel that justice prevails in the organisationOrganisational justice is described as ways in which employees determine whether they have been fairly treated in their jobs and the way in which perceptions of justice impact on work-related variablesThe three types of justice are as follows:Distributive justiceRefers to the perceived fairness of outcomesIt is based on the input/reward ratio of the employee compared to that of relevant other employeesIf the employee perceives an imbalance in this ratio or perceives unfairness, this can lead to low performance, absenteeism, increased turnover or even strikesOne role of the trade unions is, therefore, to demand that distributive justice prevailsWorkers as union members can expect their unions to help ensure that fair personnel decisions are made – no unfair discrimination and equal pay for equal workProcedural justiceRefers to perceived fairness of the processes and procedures followed that lead to the decisions or outcomesProcedural justice is closely linked to distributive justiceIf the procedure is perceived as fair, then it increases the likelihood that the outcomes will be perceived as fair, even if the outcome is undesirableSix criteria are used to judge procedural justiceConsistencyBias suppressionAccuracyCorrectabilityRepresentationEthicalityRole of trade unions to endeavour continuously to promote processes and procedures in employment-related decisions that are fairInteractional justiceAbout how outcomes are communicated on an interpersonal levelRelates to perceived fairness of treatment that employees receive through the more intangible and symbolic outcomes of behaviour in the application and implementation of proceduresExamples:Fair enactment of procedures (including adequately considering the viewpoints of union members), being consistent in treatment of members, providing timely feedback to members and providing members with explanations for decisionsFairness in interpersonal interactions between shop stewards and union members (e.g. kindness, courtesy and honesty)Methods of improving perceptions of justice by using assertive techniques (enhancements and entitlements) and impression management and reputation-building strategiesTools such as the use of defensive explanations for decisions (e.g. justification, reframing and apologising)HOW TRADE UNIONS OPERATEAlthough trade unions are membership organisations and their aim is thus to serve their members and look after interests, they are legally bound by the South African legal context in the way they operateThe cornerstone of the legal context is the LRA, but also onus placed on them by the constitution and the ILOFreedom of associationBy trying to give effect to the constitution of South Africa, the LRA guarantees freedom of association or the fundamental right to form and join a trade union and take part in its activitiesAs a member of a trade union, any individual has the right to participate in its lawful activities including elections, to stand for elections and if elected to hold office and carry out its functionsAny individual exercising their right and taking part in such trade union activities is protected against victimisationNo employee seeking employment may be prevented from becoming or remaining a member of a trade unionThe formation and registration of trade unionsRelatively simple process for trade union registration requires that applications for registration:Have to be made on a prescribed formMust be accompanied by a copy of the trade union’s constitutionAny other information the registrar may requireThe aim of the registration process is basically:To promote the observance of democratic principles in the internal operation and governance of trade unionsTo ensure proper financial control of fundsTo protect its members against being legally liable for the obligations and liabilities incurred by the unionOrganisational rightsThe LRA confers on trade union members the following rights to coax reluctant employers to the negotiation table and counterbalance the traditional strength and power of the employerThese rights are the right to:Enter the organisation’s premises in order to:Recruit membersTalk to membersHold meetingsVoteDeduct membership feesFunction as shop stewards who:Represent members in grievance and disciplinary proceduresMonitor compliance with the LRA-report contraventionsEntitled to leave of absence during working hours to take part in union activitiesTrade unions as organisationsTrade unions are membership organisations, built on the principle of collectivism and formed by the members to serve their interests in the workplace and societyThere can be different types of trade unionsOccupational groups (related crafts) or employerSouth African Airways Flight Engineer Association (SAAFEA)Specific industry they serveNational Union of Mineworkers (NUM)National Union of Metal Workers (NUMSA)Organised on sector basis, covering various occupational categoriesPublic and Allied Workers Union of South Africa (PAWUSA)General trade unionsNational and General Workers Union (NAGEWU)Organised along language or raceSuid-Afrikaanse Onderwysersunie (SAOU) or Black Transnet Union (BTU)Structures, roles and participation processStructuresTrade unions developed and designed from the bottom up – they are grassroots organisationsPolicy decisions are made according to the following hierarchical steps:Members > Shop stewards > Committees > National Congress (Policy decisions)The democratic nature of trade unionsMembers manage the trade unionTrade union officials are not allowed to vote in committees or make executive decisions, because they can be seen as union workersIf ordinary membership does not actively participate in union affairs, in other words they simply just joined a union, it will mean that the officials will be running the trade unionUnion participation: roles and processesTrade union functioning is dependent on the participation and involvement of members (ordinary members or shop stewards)Union participation is the expenditure of time and energy on union affairs and is not the same as union commitment or loyalty, which relates to attitudes and valuesA person may join a union, but it does not mean that being a member automatically leads to further participation in union activitiesA differentiation can be made between the following:Normative commitment – totality of internalised normative pressures that act in a way to meet organisational goals and interestsInstrumental attachment – once trade union dues have been paid, the member automatically qualifies for the benefits, the trade union cannot ask for participationWillingness to do work for a union – important for commitment, but it is only a behavioural intention, it is not a prediction of actual participationActual union participation is seen in behaviour such as: attending meetings, gaining knowledge or becoming and office bearerThe shop steward’s roleThe shop steward has a dual role, that of employee and that of union memberThe shop steward must establish and maintain an equitable relationship between management and the workers within the framework of relevant rules, regulations, policies and legislationThe shop steward must have interpersonal skills and be fairExamples of roles:Handle grievancesHandle disciplinary hearingsRunning workplace forumsMember of branch management teamRecruit and enrol membersInform and help members with benefitsMotivate, mobilise and activate membersInform union management about the needs of ordinary members“Watchdog” that guards over members’ interestsExam question (May/June 2012)Describe the statutory structures and the processes and behavioural dynamics involved in bargaining and labour-related dispute resolution in South Africa (25)COLLECTIVE BARGAINING AND DISPUTE RESOLUTIONThe primary means through which trade unions engage and interact with the employer is collective bargainingCollective bargaining is the process whereby the representatives of the employer and the workers are mandated and negotiate to reach equitable agreements on matters relevant to the parties and their relationsNegotiation is an inherent part of collective bargaining and is the process of interaction between two or more parties in a situation in which the parties wish to reach an agreement that is acceptable to all parties concernedNegotiation involves individuals negotiating (manager and worker), but if trade union representatives negotiate with management, it is known as collective bargainingIt sometimes happens that parties fail to reach agreement (reach a deadlock), a dispute may be declared and alternative routes need to be followed to resolveThese processes are known as dispute resolutionThe LRA provides structures for the resolution of disputes. There is a distinction between:Dispute of rightDispute about an existing right – whether or not the right has been infringed by one of the parties (unfair dismissal or labour practice)Dispute of interestDispute over an issue where no right exists yet – a new right needs to be created (deadlock over wage increases)STATUTORY STRUCTURESBargaining councilsCentralised industry or sectoral-level negotiation and dispute resolution structuresOne or more registered trade unions and one or more employers or employees organisations may form a bargaining councilThe powers and functioning include:Concluding and enforcing collective agreementsPrevent and resolve labour disputesPromoting and establishing training and education schemesEstablishing and administering funds (pension, provident, medical aid, sick pay)Statutory councilsA representative trade union/s with members who constitute at least 30% of the employees in a sector, or one or more such employers’ organisations, may apply to the registrar to establish a statutory council in area where no bargaining council is registeredThe powers and functioning include:Establishing and administering schemes or funds related to matters such as pension, medical aid, sick pay, holiday and unemploymentPromote and establish training and education schemesResolve disputesCarry out any other function of a bargaining councilCCMAHas a director and commissioners execute its functionsIndependent of the state and any political party, trade union, employer, employers’ organisation and employees’ organisationUses public funds from the Minister of Labour and ParliamentThe CCMA has a statutory obligation to do the following:Conciliate relevant workplace disputesArbitrate relevant disputes that remain unresolved after conciliationFacilitate the establishment of workplace forums and statutory councilsCompile and publish information and statistics about its activitiesConsider applications for accreditation and subsidies from bargaining councils and private agenciesPrivate dispute resolutionAccredited agenciesMay apply to the CCMA for accreditation status and for relevant subsidyCan be appointed to perform any of the dispute resolution functions vested in a bargaining councilNon-accredited agenciesThe LRA acknowledges the right of parties to “contract out” of the LRA and to resolve their disputes in terms of private agreementLabour court and Labour Appeal CourtSuperior court that has authority, inherent powers and standing in relation to matters under its jurisdiction equal to a provisional division of the Supreme CourtActing on the advice of the National Economic Development and Labour Council and in consultation with the Minister of Justice and Judge President of the Labour CourtConstituted before a single judge and functions are stipulated by the LRAPROCESSES AND BEHAVIOURAL DYNAMICSNegotiationThe collective negotiation process entails three phases:Preparatory phaseBefore the actual interactive negotiation beginsDialogue phaseInteraction between the parties take place to reach an agreementThe contract administration phasePeriod that follows after agreement is reachedThe development of the collective negotiation process is a product of numerous variables – environmental or contextualAll variables play a part in the preferred negotiation approachesA distinction can be made between two broad approaches to negotiationDuring the preparatory phase, parties should decide which approach is most appropriateDistributive (competitive) negotiationIntegrative (cooperative) negotiationWin / LoseWin / WinMaximum gain at the expense of the other partyMutual gain outcomeGamesmanship, nerve and aggressivenessTrust each other, positive attitudes about each otherTacticsProblem solvingFour individual personality variables that are conceptually related to negotiation, specifically to integrative (problem solving) negotiation:Conciliatory predispositionTraining natureRisk propensityEquity sensitivityWhat? (personality traits)Constructive, Humanistic, DiplomaticNot suspiciousExpose themselves to very risky situationsPerceptions of what is fair and what is notWhy?Cooperate and communicate with their counterparts to avoid confrontationNon-competitive, share and exchange informationUse aggressive techniques and willing to take chancesBenevolent, share and exchange informationDuring the preparatory phase:Bargaining issues are identifiedDecisions taken as to who will make up the negotiation teamIssues are prioritised, objectives formulated and relevant information is gathered about other parties interests and powerDecision on where and when negotiations will take placeDuring the interactive phase:Behavioural dynamics become important – politeness, friendlinessOpening moves – usually done by the initiating partyAnnual negotiations – trade union presents its “demand list”Formalise list and establish formalities – time frame/housekeepingInitial impressions formed – parties “feel out” each other, stereotypeBulk of time in this phase allocated to dialogue and discussionAim to modify attitudes and perceptions and alter expectationsAssess interests, positions, analyse proposals, make counter-proposalsAll is aimed at ultimately “reaching agreement” or “making a deal”Behavioural variables in this phase: verbal and non-verbal communication; interpersonal interaction; power and persuasion; listening/questioning skills; paraphrasing; reflecting feelings“Closing the deal”Detail is put together – solutions, terms and conditionsEnsure common understanding of agreementFormal agreement is drafted and signedCollective agreementsThe LRA defines a collective agreement as:Any written agreement regarding terms and conditions of employment, or any other matter of mutual interest concluded by one of more registered trade union, one or more employersVarious types of collective agreements may be distinguished:Procedural collective agreementsSubstantive collective agreementsRegulates type of relationship between partiesRegulate “what” or content of relationshipHow they will conduct their collective relationshipTerms and conditions in reference to pay levels, working hours, overtime, annual, maternity, study and compassionate leaveCollective agreements may also be categorised in terms of the level at which they are negotiated – national, industrial/sectoral and organisational levelTypes of collective agreements also include:Recognition agreementsAgreement between trade union and employer that regulated and establishes the relationship between the two parties at organisational levelServes as a foundation of the recognition relationship which in turn depends on sound administration, training communication and good faithClosed shop agreementsCompels all employees to whom the agreement applies to be members of a certain unionAgency shop agreementsWill not compel employees to become membersRequires employers to deduct an “agency shop fee” from non-union membersTransformation agreementsUnique to South AfricaAim: jointly craft a new work environmentFacilitating transformation (become more equitable and competitive)Industrial actionSeen as “collective power in action”; exerts the highest degree of pressure on the “opposing” partyCan take on forms such as go-slows, work-to-rule, sympathy strikes and overtime bansThe two most well-known industrial actions are the strike and the lock-outsThe LRA defines these as follows:StrikePartial/complete refusal to workRetardation/obstruction of workEmployed by the same employer or by different employersFor the purpose of remedying a grievance/resolving a disputeLockoutThe exclusion of employees from their workplaceTo compel employees to accept a demandDispute resolutionIn the case of dispute resolution there is always third party involvement to help the parties come to some kind of agreementThe processes of dispute resolution can be summarised as follows:ConciliationThird-party interventionsHelping the parties involved to settle the dispute themselvesIncludes fact finding and mediationMediationActive third party interventionThird party has no decision making power – objective is to help parties settle their disputeMediators try to:Remove obstacles that hamper progressReduce tension between partiesSeek sufficient movement by parties for further negotiationBroaden search for potential solutionsTrain parties in negotiation skillsImprove communication and common understandingExert direct influence on the disputePrepare parties to accept consequence of actionsArbitrationAppoint impartial third partyUse quasi-judicial processesAct as decision maker in a disputeArbitration award is final and bindingEach party presents and challenges evidenceMore flexible, less time consuming, cheaper than adjudicationAdjudicationCourt of law decides on disputeLabour court and Labour Appeal Court is usedUNION-MANAGEMENT COOPERATIONModes of interaction between trade unions and employers/management can be negative (destructive) or positive (constructive)Positive modes are built on a pluralist perspective and negative modes are built on unitarist or radical perspectivesUnitarist / RadicalWarfareOpenly hostile climateParties are enemiesNo trustObjective is to defeatUnion strategies: Radical ideological stanceEmployer strategy: unitarist ideologyUnion bashing, de-recognition, strikes, lawsuits, sabotage, complete avoidanceAbsence of union/management interactionAdversarialUs and them / We and theyHighly competitive spiritTrue adversaries try to “capture territory”Distributive bargaining dominatesDeadlocks, disputes, confrontationManagement: unitarist thinking, tries to limit the presence of and regulate interaction with unionsUnions: try their best to win and maintain representational rights on behalf of the workers and protect their rightsReluctant acceptance of each otherStrictly limit influence the other may have on the employee/member constituencyTrust is very lowConstantly challenging, fighting, limiting and out-manoeuvring each otherPluralistIntegrative accommodationInnovative and constructive interactionBasic mode of union-management cooperationParties accept one anotherRegularly engage in distributive bargaining encountersDisputes still ariseJoint problem solving processes may be utilised from time to timeDesire to build trustAccept each other’s legitimate rolePrepared to start experimenting with structures and mechanisms whereby the union can influence issues of human resource management that go beyond the traditional “bread and butter” concerns and the “rights” of the workersIntegrative and interest-based interaction and negotiation more commonProgress towards joint problem solving on “production” related issuesPartnershipHigh levels of trust“We are different but together in this”Each have a distinct role to play, but roles overlapFunction as a teamDownplay legal/contractual sideBoth look after the wellbeing of employeesUnion participation in decision facilitated by parallel structuresDeal with issues ranging from work assignments on the shop floor to strategic organisational issues about product range and market penetration strategiesNo more managerial prerogativeOrganisation is jointly managedWorkplace forumsWorkplace forums were initiated with the aim of encouraging more cooperative relationships between parties at a time when South Africa was re-entering international marketsThe LRA provides for the establishment of statutory workplace forumsThese may be initiated only by a registered trade union that has the majority of those employees as its membersThe general functions were supposed to promote the interests of all employees and improve efficiencyThis was to be achieved by the processes of information sharing, consultation and joint decision makingWorkplace forums never really “took off”, because there was resistance on both sides; unions feared that their power base would be undermined and management was reluctant to lose “managerial prerogative”Exam question (May/June 2011; Oct/Nov 2011; May/June 2013)As the employment relations officer of a large organisation, you are tasked to develop a course for supervisors on the dynamics involved in handling employee grievances, maintaining disciplined workplace behaviour and terminating employment relationships. Give a detailed description of the aspects that you would include in your training material (25)HANDLING EMPLOYEE GRIEVANCESA grievance can be defined as a formally lodged complaint by an employee about a real or perceived breach of the implicit or explicit terms and conditions of the employment relationshipGrievance handling is the process whereby management formally deals with officially presented complaints of workers relating to the employment relationshipA grievance procedure is the mechanism used to formally deal with employee grievances in the workplaceObjective of a grievance procedure:Grievances are dealt with fairlyHelps to create the perception that procedural justice existsProcesses and procedures:Consist of clearly spelled out time-specified, sequential stepsStarts at the lowest possible level of interface between subordinate and immediate superior and ends at the level of top managementGrievances not resolved should become formal disputesShop stewards/union officials involvedMust be negotiated documentDEALING WITH DEVIANT EMPLOYEE BEHAVIOURDeviant employee behaviour is when management fell that an employee’s behaviour, conduct or work performance is not in line with what is required in the context of the employment relationshipDiscipline and dismissal for misconduct and poor performanceDiscipline is to help employees learn how to follow the appropriate behavioural patterns in the context of their employment relationshipEmployee deviance is a voluntary behaviour that violates significant organisational norms and threatens the well-being of the organisation and its membersMaintaining disciplined behaviour, conduct and acceptable work performance entail both informal and formal dimensionsDuring informal phase, deviating employees should have:Been informed timeouslyHad informal one-on-one, coaching discussionsHad the problem informally investigated and discussedBeen consulted on what to change and how to achieve thisBeen afforded reasonable time to change behaviourReceived a written “letter of clarification” that confirms what has transpiredHad the complaint placed on his personal fileThe formal disciplinary system is invoked when:Employee is officially reprimandedVerbal or written reprimands are put on recordThe organisation has a disciplinary code and procedureThe disciplinary code is a list of possible deviant behaviours and their consequences, ranging from first to final written warnings, demotion or suspension without payTo ensure procedural fairness:A charge must be formally laidTimely notification of the allegations and formal hearing to investigate the matterThe opportunity to state one’s case and defend oneselfThe right to be represented y an “in-house” representative such as a shop stewardA fair hearing procedure (call witnesses, testify, cross-examine)The right to be advised of the finding (guilty or not guilty) and the right to appealIn the case of poor work performance, questions to be asked should include the following:Was there a material breach of the required work standards?Whether the deviator was aware of the required standards?Whether he was given a fair opportunity to defend his performance?Whether it was his fault?Were appropriate evaluation/assessment, instruction, training, guidance and counselling given?Dismissal for incapacity normally occurs if an employee is unable to perform adequately owing to their incompetence. This option should only be used as a last resort after other alternatives have been consideredSubstantive fairness should prevail:The person should have been aware of this rule, work standard or normRules/Norms/standards must be reasonableSeriousness of the deviance should be taken into considerationAll circumstantial matters should also be taken into considerationDismissal based on “no fault” groundsThe most traumatic type of dismissal and most managers find it very sensitive and a difficult process to handleThere are two situations which can be distinguished:Dismissal on grounds of ill health or injuryLegally this is seen as “dismissal for incapacity”, but psychologically it falls under the “no-fault category”Management must consider all relevant factors and circumstances, such as: Seriousness of the situation, probability of recovery, nature of the job, period of incapacityIn the case of alcoholism or drug addiction – rehabilitation and counselling should be providedIf incapacity is due to a work-related illness, management should adapt the work circumstances or duties to the employee’s ability – this may involve transfer or helping the employee to find alternative employmentDismissal on grounds of “operational requirements”The current high unemployment levels means it is very difficult for an employee to find work once they have been retrenchedDismissals based on operational requirements occur because a company is unable to produce at a profitFactors that may lead to retrenchment are: economic downsizing, introduction of new technology, new competitors etc.As this type of dismissal is through no fault of the employee, the law places an onerous duty on employers when it comes to lay-offs and retrenchmentsThe LRA distinguishes between “minor” and “major” retrenchmentsShould retrenchment be considered, management must give written notice and invite relevant parties to engage in consultationThe employer must then:Consult with any person the employer is required to consult in terms of a collective agreement; orIf this is not required, with the workplace forum; orIf there is no workplace forum, with a representative trade union of which the affected employees are members; orIf there is no such trade union, with the employees or their representatives nominated for such consultationManagement must furthermore disclose in writing:The reasons for dismissalsThe alternatives considered and reasons for rejecting alternativesThe number of employees affected and their job categoriesThe number of employees dismissed in the previous 12 months on operational groundsThe method for selecting which employees to dismissThe time period of dismissalsThe severance pay proposedAny assistance offered to affected employeesThe possibility of future re-employmentThe employer must afford the other parties the opportunity to make representations and these should be seriously considered and responded to by managementThe parties must also attempt to reach consensus on appropriate measures to:Avoid dismissalsMinimise the number of dismissalsChange the timing of the dismissalsMitigate the adverse effects of dismissalsDecide on the method for selecting employees to be dismissedDecide on the severance pay for dismissed employeesBehavioural perspectives (on retrenchment)Factors leading to retrenchment can be as diverse as downswing of the economy, the implementation of new technology, new competitors and downsizingDownsizing has become the most prominent and the major concern is the break in the psychological contract between employer and employeeDownsizing has a stress inducing factor and influence of the work behaviour and attitudes of the remaining workforceIt also can be the primary cause of deteriorating psychological well-being and accounts for stress related illnesses such as heart disease and ulcersThe psychological process of reacting to a retrenchment begins with rumours of retrenchmentAs the rumours circulate and retrenchment begins, anxiety mountsThe immediate period after termination is generally a relaxed period with relief and optimism along with efforts to find a new jobWorkers still unemployed after 4 months go through panic, rage, self-doubt, depression etc.A model for the psycho-social management of retrenchment has been developed to assist people affected during the retrenchment exerciseThe model consists of four phases:Phase 1Management consultationAssisting management to understand the psychosocial impact of retrenchmentPhase 2Care of the Pressurised Employee (COPE)Hastening the acceptance of retrenchmentPhase 3Care After Retrenchment Exercise (CARE)Developing morale and attitudes of survivorsPhase 4CounsellingProviding services to managers, employees and their dependents ................
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