INDUSTA/203/0/2009

STREPIESKODE
BAR CODES
UNISA P248(A)

DEPARTMENT OF HUMAN
RESOURCE MANAGEMENT

BCOM (HONS) GROUP 5 – PAPER 5.4

LABOUR RELATIONS MANAGEMENT

(INDUSTA)

TUTORIAL LETTER 203/0/2009

 2

CONTENTS Page
1 INTRODUCTION 2
2 FEEDBACK ON ASSIGNMENT 03 2
3 STUDY SCHOOL 21
4 EXAMINATION 21
5 TUTORIAL LETTERS 23
6 CONCLUDING REMARKS 24

APPENDIX A: REFERENCES AND ADDITIONAL READING 25

Dear Student

1 INTRODUCTION
This tutorial letter contains feedback on your answers to Assignment 03, which was due on 1 September 2009,
as well as guidelines on your preparation for the examination.

2 FEEDBACK ON ASSIGNMENT 03
When completing an assignment, you should take note of the learning outcomes that you are expected to
achieve, as these are incorporated into our assessment criteria. The learning outcomes that you were expected
to achieve by completing this assignment were (1) to apply the legal framework governing labour relations
management, and (2) to manage the operational aspects of labour relations management in line with the labour
relations policy.

In completing this assignment, you could have consulted study units 10 and 11 of the study guide as a point of
departure. However, these study units should not be seen in isolation. In many instances throughout this tutorial
letter we will also make reference to information in other study units, so please remember that you are expected
to integrate the information contained in various study units and view the content of this Labour Relations
Management paper holistically.

The assignment questions read as follows:

Question 1

A World Bank report released prior to the promulgation of the 1995 Labour Relations Act warned
against compulsory centralised bargaining. The report widely supported the desirability of market
economies in an increasingly integrated world. As such though, it noted both the economic pros
and cons of unions, and supported the rights of association and collective bargaining. For instance,
it is not against minimum wage, but it notes minimum wage legislation does not have much effect
in developing countries. The report noted the positive industrial relations achieved in Europe
through centralised bargaining, but did suggest that this had begun to fall out of favour as
Europeans grappled with rising unemployment and inflexible labour markets. More importantly,
centralised bargaining requires most workers in a country to be unionised. According to Arup
Banjeri, a principal author of the report, “If they are not, as is the case in most countries, national
agreements will benefit the unionised sector at the expense of the unorganised and poorer
groups”. In South Africa, registered trade unions only represented about 23% of the workforce in
1993 while unemployment was pegged by the Reserve Bank at about 42%.
rd
Source: Venter, R (Ed), Levy, A (Ed), Holtzhausen, M & Conradie, M. 2009. Labour relations in South Africa. 3 edition.
Cape Town: Oxford University Press Southern Africa, p 378.

1.1 The report on which the insert is based was written over 10 years ago prior to the promulgation of
the Labour Relations Act 66 of 1995. Do you think that the conditions have changed such that
centralised bargaining might be seen as more desirable in South Africa? Substantiate your answer
by, inter alia, providing current figures relating to union representation and unemployment.

1.2 Compare centralised and decentralised collective bargaining by outlining the advantages and
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disadvantages of each.

It is suggested that you use a table such as the following to answer question 1.2:

Centralised collective Advantages: Disadvantages:

bargaining  
 
 
 
 
Decentralised collective Advantages: Disadvantages:
bargaining  
 
 
 
 

The above table is one example of how you may structure your answer, but we do not intend to be
prescriptive: you may choose a different format (such as an essay). However, please remember that it is a
comparison of the advantages and disadvantages of centralised and decentralised collective bargaining
that is required, and not simply a discussion of these two forms of collective bargaining.

Question 2

The limits of grievance procedures – an alternative view

In reality, for various reasons, grievance procedures as found in South Africa, are by and large,
little used, and lack credibility. Reasons for this vary, but include a general low level of confidence
in management, a view that if the grievance procedure doesn’t deliver the desired outcome, no
matter how improbable or impossible this might be, then it is a failure as well as the fact that many
referrals are simply inappropriate for grievance procedures. Typical referrals include the procedure
being used for personal grudges, and the outcome desired being the dismissal of the other party,
vague referrals that lack detail and substance – usually accusing a manager or supervisor of being
racist, but little more, grievances being automatically against the initiator of disciplinary action on
the basis of victimisation and such. The cynical view says that a grievance procedure can only fail
and be discredited if it cannot deliver demands which are often unachievable in any case. If that is
so, why bother with a procedure in the first place, if it is doomed to fail?
rd
Source: Venter, R (Ed), Levy, A (Ed), Holtzhausen, M & Conradie, M. 2009. Labour relations in South Africa. 3 edition.
Cape Town: Oxford University Press Southern Africa, p 315.

Do you agree or disagree with the above statement? Critically evaluate the statement by, inter alia,
referring to

 the definition of a grievance

 the difference between a complaint, a grievance and a dispute
 the objectives of a grievance procedure
 the grievance procedure in practice
 the relationship (if any) between grievance and disciplinary procedures

Question 3

As an honours student in labour relations management, you are expected to read widely, consulting a
variety of sources (newspapers, journals, textbooks and the internet). You also need to relate “real life”
examples to the relevant theory.

One of the labour relations issues that you will regularly encounter is the dismissal of employees and
ensuring the fairness thereof. One of the ways in which you can test your understanding of this aspect is to
read case summaries compiled by commissioners of the CCMA and judges of the Labour Court and
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Labour Appeal Court.

To demonstrate your ability to do independent research, you are required to obtain examples of case
summaries relating to

3.1 dismissal for misconduct

3.2 dismissal for incapacity

Summarise the content of each of these cases, clearly outlining the principles of fairness applied in
each event. In your summaries you should demonstrate a clear understanding of the requirements of the
Labour Relations Act 66 of 1995.

Your summary of each article should not exceed two pages.

Tip: Information on cases is available on a number of websites. You may, for instance, consult the South
African Industrial Relations Directory, the IR Network or the Case Law website (see section 7.4 for details).
Keep in mind that in order to access information from some websites you will need to be a subscriber.

Ensure that the cases are recent and obtained from reliable sources, and provide full details by using the
Harvard referencing method (see appendix B). Ensure that you clearly indicate the specific cases as well
as your source of information.

2.1 Introduction

When completing an assignment like this, you should always start with an introduction. The aim of the
introduction is to give the reader an indication of what to expect in the rest of the document. You could provide
some background information in the introduction, but do not provide a lot of theoretical information at this point:
keep your introduction brief and to the point.

In your introduction you could have provided brief information on collective bargaining, grievance handling and
dismissals in the South African workplace. You should also have outlined the approach you intended to take to
the assignment, including an indication of the topics to be dealt with in the rest of the document. You should
have covered the following:
 centralised vs decentralised bargaining in South Africa
 the advantages and disadvantages of centralised and decentralised collective bargaining
 the effectiveness of grievance handling in South African organisations
 the principles of fairness in cases of dismissal for misconduct and incapacity

2.2 Centralised bargaining in South Africa

2.2.1 The concept of collective bargaining

You may have found it useful to begin with an explanation of the concept of collective bargaining. Nel et al
(2008:184) define collective bargaining as "a process in which representatives of labour and representatives of
the employer (management) negotiate and otherwise interact in an attempt to reach agreements and to uphold
these agreements regarding matters that relate to or may impact on the employment relationship".

Finnemore (2006:175) identifies the most common forms of collective bargaining as follows:
 centralised bargaining in a national forum involving peak national employer federations and trade union
federations whose membership extends across different sectors of the economy (Nedlac)
 centralised bargaining in a sectoral bargaining forum at a national or regional level involving employer
organisations and trade unions operating in specific industries or services in the economy (bargaining
councils)
 decentralised bargaining at company or enterprise level where trade union(s) negotiate with an employer
whose ownership may extend to a single workplace or multiple workplaces situated at different sites
regionally or nationally

2.2.2 International trends in collective bargaining

According to Nel et al (2008:185), the right to collective bargaining has been acknowledged internationally. The
International Labour Organization (ILO) recognises this right, stating that methods would be undertaken to
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encourage and promote the full development and utilisation of machinery for voluntary negotiation between
employers or employers’ organisations and trade unions, with a view to regulating terms and conditions of
employment by means of collective agreements. South Africa (a member country of the ILO) has given effect to
this convention by protecting this right in the South African Constitution (section 23[5]), as well as by providing
extensively for collective bargaining through labour legislation (Steenkamp, Stelzner & Badenhorst 2004:943–
944).

Nel et al (2008:208) then go on to outline some worldwide collective bargaining trends following from a study by
Wild (2004:91–99) conducted on behalf of the ILO for the South African mining industry, which states that some
important trans-national and trans-sector changes in the way in which collective bargaining is conducted and the
strength of the role-players are becoming evident. These can be summarised as follows:
 Globally, trade union membership, as well as the power of trade unions, is on the decline. This is also the
case in South Africa (see section 2.2.3 below).
 The same challenges are evident with regard to employers’ organisations, which are working to reduce
their dependence on services associated with collective bargaining, and specifically, centralised collective
bargaining.
 Collective bargaining as a mechanism to determine wages and conditions of service is on the decline, with
a steady move towards the individual contract.
 The coverage of collective agreements through extensions is reducing.
 Where collective bargaining does take place, it is being conducted at increasingly lower levels –
bargaining formerly conducted at national level now seems to be shifting to industry level, and bargaining
formerly conducted at industry level seems to be shifting to plant level.
 The degree of detail contained in the agreements at national and industry level is decreasing. Agreements
at the highest level are increasingly reflecting minimum standards and policy frameworks or objectives,
with more operational flexibility possible at implementation level.
 In most countries in which collective bargaining takes place, it seems to be taking place at more than one
level.

2.2.3 Collective bargaining in South Africa

According to Nel et al (2008:208–209), collective bargaining is, by its very nature, a product as well as an
integral part of the South African labour environment. The heart of employment relations is the collective
bargaining process, and the institutions involved have been changed drastically by the Labour Relations Act
(LRA) of 1995. Dispute resolution processes and institutions include the Commission for Conciliation, Mediation
and Arbitration (CCMA), workplace forums, bargaining councils and statutory councils. At the organisation level,
employers are faced with the introduction of workplace forums and new rights for trade union representatives,
and recognition agreements need to be reconsidered.

The collective bargaining model as introduced by the LRA of 1995 endeavours to reduce adversarialism, which
was a prominent characteristic of bargaining during the 1980s and early1990s. Collective bargaining is seen to
be the preferred method of securing labour peace, social justice and economic development (sections 1(c) and
(d) of the LRA of 1995). The LRA encourages bargaining by placing a high value on agreements reached
between parties – to the extent that parties to an agreement can contract out of the LRA. Trade union
recognition is the bargaining point of collective bargaining. In terms of the LRA of 1995, trade union rights can be
obtained only if they are representative. The important features are that, except in limited circumstances,
bargaining is not compulsory by law, and is left to the exercise of power; the LRA protects the right to strike as
an important part of collective bargaining; trade unions are granted organisational rights; and joint
decisionmaking and consultation by means of workplace forums have been introduced. The LRA in essence
favours voluntary and private regulation of collective bargaining.

According to Barker (2007:92–93) there were about 3 million trade union members in South Africa in 2005. This
comprised just less than 40% of those in formal employment, excluding the agricultural sector, domestic workers
and self-employed persons. Union membership increased by nearly 6% per year up to 2002, but there has been
a clear downward trend in union membership since then. Over the long term, one can expect trade union
membership in most organised sectors of the economy to stagnate or even to start to decline. Finnemore
(2006:107) supports this by stating that only 31,6% of employees in South Africa are members of trade unions,
and that this creates a significant problem of representivity in centralised policy-making structures such as the
National Economic Development and Labour Council (Nedlac). She indicates that trade unions may be
perceived as labour elite, making agreements that serve only the interests of a small part of the workforce. The
four largest trade union federations in South Africa are the Confederation of South African Workers Unions
(CONSAWU), the Congress of South African Trade Unions (COSATU), the Federation of Unions of South Africa
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(FEDUSA) and the National Council of Trade Unions (NACTU). It is very difficult to obtain exact trade union
membership numbers for South Africa, as trade unions are not compelled to report membership numbers to the
Department of Labour.

One of the major contributors to the decline in trade union membership is the rising unemployment rate.
According to the most recent quarterly labour force survey (Statistics South Africa 2009:v), the current
unemployment rate is 23,6%. The number of persons in the labour force decreased by 325 000 from 17,8 million
in the first quarter of 2009 to 17,5 million in the second quarter (a decrease of 2% in employment). A total of
267 000 jobs were lost between the two quarters, with most job losses recorded in private households (105 000),
followed by the formal sector (93 000). While employment fell by a substantial 267 000 from the first quarter of
2009, this decline did not translate into an increase in the number of unemployed persons, but rather into an
increase in the number of persons not economically active (419 000), the majority being discouraged
workseekers (302 000); the number of unemployed persons decreased by 59 000. As a result, there was
virtually no change in the unemployment rate between the two quarters. Compared with the last quarter of 2008,
there was an annual decrease of 2,6% (360 000) in employment; an increase of 11 000 in the number of
unemployed persons and a massive increase of 724 000 in the number of persons not economically active,
438 000 being discouraged workseekers.

This decline in employment and subsequent decline in trade union membership means that trade unions,
although still a force to be reckoned with, will have a diminishing impact in the workplace. The ILO (2008:83)
reports a rise in income inequality and a downward trend in unionisation, while collective bargaining structures
have remained broadly stable – or, in some countries, have become somewhat more decentralised or less
coordinated. According to the ILO (2008:832), the structure of collective bargaining is associated with income
inequality: the more collective bargaining takes place at levels above the enterprise, the less unequal the
distribution of income. Conversely, the countries in which collective bargaining is on average more highly
centralised or coordinated are those in which inequality tends to be lower.

According to Venter et al (2009:376–377), bargaining occurs either at plant level between individual employers
and trade unions (ie decentralised bargaining) or at industry and national level between employers' organisations
and several trade unions or trade union federations (ie centralised bargaining). The LRA promotes (but does not
prescribe) the use of centralised bargaining structures by means of bargaining councils. The idea behind
centralised bargaining is that employers throughout the industry will pay the same wages and grant the same
conditions of service. The expectation therefore is that employers throughout the industry are expected to stand
together. Centralised bargaining tends to favour larger organisations and bigger, better organised trade unions,
since in both instances the larger players are better able to establish and drive agendas. An example of
centralised bargaining in South Africa is provided below.

Centralised bargaining in the mining industry

The origins of the Chamber’s collective bargaining system go back as far as 1915, when for the first time
the Chamber was assigned the role of negotiating for its members with employee organisations. It
operates by virtue of agreements between the participants and established practice (it is not a statutory
bargaining council system), and its most striking feature has always been said to be its flexibility.

The Chamber’s IRS conducts these centralised negotiations on wages and conditions of service on behalf
of its member companies in the gold and coal sectors. The “wage negotiations” take place every other
year, with the most recent round having taken place from June to September 2007. Again, two-year
agreements were concluded for both gold and coal, so the next wage review will be conducted in 2009.
The agreements cover all recognition units (Category 3 – 8 employees, miners and artisans and officials)
and the three unions in the mining industry (the NUM, Solidarity and UASA) are party to the agreements.

Whereas in previous years there had been separate bargaining forums covering each of the three
recognition units, in 2005 bargaining in respect of all of the members of the recognised unions took place
for the first time in a unified forum. This was as a result of an agreement reached before the
commencement of the 2005 negotiations on revised bargaining arrangements.

A further development was that the de facto separation of the gold and coal negotiation processes, which
had been becoming more pronounced in recent years, was formalised in the establishment of two distinct
forums.

The agreements that are reached centrally frequently reflect different provisions for different companies,
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particularly in respect of wage rates (actual basic wage rates are negotiated on a company by company
basis). When it comes to non-wage issues, however, there is usually much uniformity in outcomes.

A feature of the Chamber process is that not all issues are dealt with at centralised level. In 1996 two-tier
agreements were concluded which stipulated that bargaining on basic wages and conditions of
employment would take place at Chamber level, while bargaining on organisational, operational and
workplace issues would be at mine or company level. It frequently happens that framework agreements
are formulated at the centre, leading to further negotiations on the issue concerned that take place at
company or mine level.

The agreements concluded between the Chamber and the unions are far broader than wages and terms of
employment and the period since the late 1980s has seen the parties addressing an array of socio-
economic and transformational issues. These include:

1989 Agreement to establish a provident fund for NUM members

1990 Joint action by the Chamber and all recognised unions to curtail interracial violence being
experienced on mines
1993/1994 Chamber and all unions conclude AIDS agreements, followed in 2001 by a more
comprehensive agreement with the NUM and, in 2003, the holding of an AIDS Summit
1993/1994 Negotiation of Adult Basic Education and Training Agreements
1997 Agreement on industry principles regulating health care
1997 Agreement on principles and a process for the review of job grading systems
1998 Gold Mining Summit, resulting in a six weeks’ moratorium on retrenchments and the formation
of the Gold Crisis Committee and other initiatives
1999 Chamber and NUM agree to conduct joint lobbying and protest action about the effects of the
sale of gold by the IMF and central banks
1999 Agreement on a medical incapacity benefit for category 3 to 8 employees, which was
increased in 2001
2001 Comprehensive agreement on affirmative action in appointments, training and development,
retention of skills and employment of women
2003 Framework agreement on women in mining
2003 Framework agreement of principles relating to attainment of the accommodation objectives in
the Mining Charter
2003 Agreements relating to development of health care arrangements for dependants
2005 Agreement on freedom of choice of retirement fund.

The majority of the large platinum producers are members of the Chamber, namely, Anglo American
Platinum Corporation, Impala Platinum and Lonmin Platinum. However, the Chamber has never conducted
collective bargaining on behalf of its platinum members, but company-specific arrangements are widely in
place and collective bargaining coverage in the sector is extensive.

In the diamond sector, De Beers Consolidated Mines, the Trans Hex Group and the Namakwa Diamond
Company are Chamber members. As in the case of its platinum members, the Chamber has never
conducted collective bargaining on behalf of its diamond members, but company-specific arrangements
are in place. The South African Diamond Producers’ Organisation exists as a lobby organisation for the
alluvial diamond mining sub-sector and is itself also a member of the Chamber.

In 2003, the NUM demanded that a bargaining council be established for the mining industry which would
inter alia result in centralised wage negotiations also for the platinum and diamond members of the
Chamber. The Chamber and the NUM, UASA and Solidarity have been engaged in negotiations about the
principles that would underpin the creation of a council for the industry since that time.

Source: http://www.bullion.org.za (accessed 28 August 2009)

The Chamber of Mines seems to have dealt with the most prominent concerns about centralised bargaining by
providing for differences between companies, particularly in respect of wage rates. Non-wage issues are,
however, more uniform in nature for the sector.

A decentralised or plant-level bargaining system is a system whereby a union gains recognition at a particular
plant or undertaking and then bargains on behalf of employees at that plant or undertaking or in a specific
bargaining unit (Bendix 2001:277).
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Considering information such as the above, you were required to determine whether centralised collective
bargaining would be more desirable in South Africa now than ten years ago. You could have obtained statistics
on the number of bargaining councils, statutory councils and workplace forums to substantiate your argument.
You might also have explained the views of both trade unions and employers in this regard. According to Bendix
(2001:284–287), trade union federations that are strong at industry level, such as COSATU, and larger trade
unions are generally in favour of centralised collective bargaining and would support legislation enforcing it.
Smaller trade unions and federations such as NACTU and FEDUSA, which are not as strong at industry level,
may however rather support decentralised bargaining, feeling that centralised bargaining may overcomplicate
issues. Some employers feel that their interests and those of their employees are better served at plant level,
while others are more willing to move towards centralised bargaining. They are, however, adamant that
centralised bargaining should not be enforced by legislation but be subject to agreement between the parties.
Small businesses are understandably opposed to centralised bargaining, as they are generally unable to pay the
wage rates set by bargaining councils. Finally, you could also have considered the advantages and
disadvantages of centralised and decentralised collective bargaining as required in question 1.2 to support your
argument.

You would most probably have found that although the LRA 66 of 1995 moved towards a more centralised
system of collective bargaining and bargaining councils are widely used (the Department of Labour reported 42
registered bargaining councils, 6 local government and government bargaining councils and 3 statutory councils
in July 2009), it has not eliminated plant-level or decentralised collective bargaining. Plant-level collective
bargaining still takes place in many organisations through the use of various forums and structures. Workplace
forums, as envisaged by the LRA, have not been successful, however, and have not succeeded in strengthening
the case for decentralised bargaining on non-wage related matters (Wood & Mahabir 2001:240). Plant-level
bargaining allows for individual organisations and their representative unions to negotiate those issues that are
directly relevant to their specific workplaces. Plant-level bargaining may become a necessity when the issue is
not or cannot be negotiated at industry level, but, in the main, will generally suit smaller organisations that often
cannot afford to pay the concessions negotiated by large business and larger unions at central level. It is
therefore clear that, although South Africa has come a long way toward acceptance of centralised bargaining
structures, the two bargaining structures are likely to continue to coexist for a long time.

2.2.4 Centralised vs decentralised collective bargaining

Various authors, such as Venter et al (2009:377), Bendix (2001:250) and Nel et al (2008:192–193), have
identified distinct advantages and disadvantages associated with each level of bargaining. These are
summarised in table 1 below.

Table 1: Advantages and disadvantages of the different levels of bargaining

Centralised Advantages: Disadvantages:

collective  Improved, cost-efficient benefits due to
bargaining a more wide-scale application
 Training more cost effective because it
is broad based
 Dilution of individual employer's power
 Limits power of workplace organisation
(management and employees)
 Uniform application of employment
standards
 Wages out of competition (pro for
unions and employers)
 Larger scale training programmes
 Fewer strike actions
 Bargainers usually more professional
 Long-term objectives
Decentralised Advantages:
collective  Wages tend to accommodate the
bargaining economic realities of individual
organisations
 Benefits are adapted to the particular
 Less flexible
 Wages established at a minimum level
(con for union)
 Smaller organisations may be
marginalised
 Interests of select groups tend to be
underrepresented
 Industrial action on a wider scale
 Does not diffuse workplace tensions
 Possibility of democratic decisionmaking
in unions and employers' organisations
decreases
 Diverse interests represented
 Greater intra-organisational conflict
 More inflexible
 May smother smaller employer or union
Disadvantages:
 More costly to implement training
interventions on a smaller, more limited
scale
 Less uniform application of employment
 9 INDUSTA/203/0/2009
needs of individual organisations
 Training programmes tailor made for
specific needs
 Increases power of workplace
organisation
 More flexible
 Unions and employers are encouraged
to more actively engage in dialogue and
redress issues affecting particular
workplaces
 Greater opportunity for democratic
decisionmaking
 Caters for specific needs
 Intra-organisational conflict minimised
 Allows employers and unions to pursue
their particular interests
Sources: Venter et al (2009:377), Bendix (2001:250), Nel et al (2008:192–193)
Finnemore (2006:181–182) focuses specifically on bargaining councils as a forum for centralised collective
bargaining and outlines some of the perceived advantages and disadvantages of the centralised bargaining
council system in South Africa (see table 2).
Table 2: Advantages and disadvantages of the centralised bargaining council system
Advantages
 Bargaining councils can provide protection for
non-unionised employees who would otherwise
be exploited, especially in small companies.
 The enforcement of uniform wages in the sector
prevents the shift of production from the
unionised sector to the lower-wage, non-union
sector, thus preventing exploitation.
 Large employers favour the extension of
agreements because uniform wages prevent the
undercutting of wages by smaller competitors,
who offer lower wages and poorer working
conditions and benefits. The extension of
agreements means that employers thus must
compete on the basis of management skill and
not through lowering wages.
 Common conditions are set for a specific sector
and acceptable minimum wages and fair
procedures are established. Employees who can
change jobs within an industry can thus expect
consistent conditions of employment.
 Because of their large size and economies of
scale, benefit schemes such as medical aid and
provident funds organised on a sectoral basis
are able to provide better benefits for members.
 Negotiations are conducted by skilled
negotiators in the bargaining council. Trade
unions can train experts to conduct high-level
negotiations. They would be hard pressed to find
the range of expertise and time to negotiate
individuality with every single employer. Smaller
companies that do not have skilled personnel in
labour relations are represented by the skilled
negotiating team members of their employer
standards
 Focus may become too narrow and
limited – broader economic objectives
are not accounted for
 Employers afraid to become
uncompetitive (con for unions)
 Fewer benefits provided
 Less likelihood of large-scale training
programmes
 Workplace representatives may become
too independent of union
 Bargainers may not be sufficiently
experienced
 Objectives may be short term
 May lead to employer playoffs and wage
inflation
Disadvantages
 Council agreements restrict the operation of
market forces. A few large employers in a
particular sector may, with a trade union or
group of unions, set up a council in a sector and
then through the extension of the agreement
cover all employees and employers in the
demarcated area. The minimum wage and
conditions then become binding on them,
whether they are members or not. This is seen
as contrary to the promotion of the free market
system, and it is argued that it hinders
employers from competing internationally with
lower wages of other countries. It is argued that
the extension of agreements to non-parties
nullifies the principle of voluntary membership of
such councils and the goal of economic growth.
 Centralised bargaining council agreements may
inhibit small business. It is suggested that
numerous small businesses have been
liquidated due to failure to comply with
agreements and payments of bargaining council
levies, even in spite of provisions to apply for
exemption from agreements.
 Bargaining council agreements limit flexibility in
employment practices including pay systems.
 10

Advantages Disadvantages
organisation.
 Comprehensive training programmes and
facilities may be developed cost effectively.
 The dispute settling procedures established by
bargaining councils offer an opportunity for an
unbiased hearing of alleged unfair dismissals or
unfair labour practices.
 The number of strikes is unlikely to decline due
to the serious nature of such strikes, and thus
greater effort is usually undertaken to avoid
them. Negotiating agreements for longer time
periods, three years, provides for greater
stability.
 As negotiations take place at a higher level,
there is less interpersonal tension at the
workplace.

2.3 Grievance handling

In answering this question, it would not have been sufficient to merely provide theoretical information on
grievances and their handling. You had to discuss the value of a grievance procedure for an organisation and
substantiate your answer with relevant information from reliable sources. You could have started by defining a
grievance and clearly differentiating between a grievance, a complaint and a dispute.

2.3.1 The concepts "grievance", "complaint" and "dispute"

Slabbert et al (2006:10-37–10-38) stress the importance of distinguishing between a complaint, a grievance and
a dispute and highlight the possible relationship between the concepts. They go on to draw a distinction between
a complaint and a grievance, stating that a complaint entails the expression of dissatisfaction without activating
the formal procedure, whereas in the case of a grievance, the formal procedure is triggered (Torrington &
Chapman 1983:253 in Slabbert et al 2006:10–37). Employees may have complaints about a wide range of
issues varying from general dissatisfaction with wages and conditions of service, dissatisfaction regarding
promotion or training and complaints about lack of facilities or inadequate equipment to unhappiness on the part
of an employee regarding unfair treatment, unreasonable orders, unrealistic expectations and blatant
discrimination. Not all complaints will, however, be regarded as grievances. A complaint that is not work related
or formalised by means of the grievance procedure does not constitute a grievance.

Beach (1980:443) in Slabbert et al (2006:10-37) defines a grievance as "any dissatisfaction or feeling of

injustice in connection with one’s employment situation that is brought to the attention of management”. Venter
et al (2009:327) define grievances as "those complaints initiated by employees or groups of employees, which
relate to the work environment". According to Finnemore (2006:212) a grievance may be defined as "any
dissatisfaction or feeling of injustice that has been experienced by a worker or group of workers and has been
brought to the attention of the employer". Nel et al (2008:265) define a grievance as "an occurrence, situation or
condition, either real or perceived, that justifies an employee to formally lodge the matter as warranting action to
address it". Another definition of a grievance is given by Bendix (2001:331): “a complaint, other than demands
formulated by a collective body, which is related to the employee’s treatment or position within his/her daily
working routine and which, because it may result in a dispute, warrants the formal attention of management”.

From this definition it is clear that in much the same way that a formal grievance may arise if a complaint is not
resolved, a dispute may arise if a formal grievance is not properly dealt with by management. Therefore it is
important to note the definition of a dispute. Salamon (1987:480–481) in Slabbert et al (2006:10-38) defines a
dispute as “a formal expression of collective employee dissatisfaction at the organisational level resulting from
either a prior failure to resolve a grievance or a failure to agree on a matter of interest within the negotiating
process”. Bendix (2001:552) defines a dispute as "continued disagreement between employers and employees
or their unions as regards any matter of common interest, any work-related factor affecting their relationship or
any processes and structures established to maintain such a relationship". Disputes may therefore arise from
failure to agree to the establishment of a relationship, disagreement regarding procedures to be adopted, failure
to agree on terms and conditions of employment, failure to abide by the terms of an agreement, negotiation of
the rights of either side, poor treatment of one party by the other, or any other action or occurrence which would
 11 INDUSTA/203/0/2009

negatively influence the relationship. Bendix (2001:552) makes a clear distinction between a grievance and a
dispute by emphasising the word "continued" in the above definition. She states that "the mere raising of a
demand or a grievance, which also entails disagreement, does not signify the existence of a labour dispute. A
dispute will arise only if there is no final agreement on a demand or if a grievance is not settled in a manner
satisfactory to both parties".

The LRA contains no definition of a dispute, but, from the definition of the unfair labour practice, it could be
concluded that a labour dispute would include any dispute between the employer or its representative and
employees or their representatives, and would centre on any issue that directly or indirectly affected the
relationship between employer and employee.

In practice, a dissatisfied employee will express his/her dissatisfaction with a certain matter by means of an
informal complaint. If the outcome of management’s solution to the problem is not satisfactory, the employee will
probably activate the formal procedure, in which case the informal complaint will now become a formal
grievance. If the grievance is not resolved, a formal dispute will be declared, after which the matter becomes an
external employment relations issue (see figure 1).

Figure 1: A typological representation of employee expression of dissatisfaction

Source: Slabbert et al (2006:10-38)

2.3.2 The objectives of a grievance procedure

According to Slabbert et al (2006:10-37), the purpose of a formal grievance procedure is to enable employees
who are experiencing dissatisfaction of some kind or injustice relating to their work situation and employment
relationship to have their grievances heard and resolved by management in a fair manner without fear of
intimidation or victimisation. The implementation of a formal grievance procedure is not enforced by legislation,
but normally forms part of the formal recognition agreement with a representative union or employee works
council.
 12

According to Venter (2009:330) the purpose of the grievance procedure is to enable the employee to have a
grievance resolved as quickly and as close to the point of origin as possible and to provide access to senior
management for the resolution of any grievance and to ensure that, where possible, a grievance is resolved
constructively, on terms that are acceptable to both the employee and the company.

An effective grievance procedure has a number of benefits, such as the following (Venter et al 2009:331):
 The upward movement associated with communicating grievances means that they are accorded proper
attention at each level.
 The procedure allows for the grievances to be raised and settled without fear of victimisation of workers.
 The procedure facilitates the development of positive worker morale.
 It obliges supervisors to put real effort into solving grievances: supervisors can no longer hand down off-
the-cuff solutions and expect workers to accept them whether or not they are satisfied with the solutions.

According to Bendix (2001:331–332), a grievance procedure fulfils the following functions:

 It creates the opportunity for upward communication from employees.
 It ensures that complaints are effectively dealt with by management.
 It creates awareness of employee problems or of problem areas which could be subjected to further
investigation.
 It prevents disputes from arising.
 It renders the disciplinary procedure more acceptable, since employees also have a means of objecting to
management performance.
 It emphasises management's concern for the wellbeing of employees.

These objectives will be achieved only if the grievance procedure functions effectively and is properly utilised.

Finnemore (2006:212–213) indicates that, from the union's perspective, grievance handling is an important factor
in its relationship with its members. Union members are likely to assess the union's effectiveness by to its ability
to assist members in the filing and resolution of grievances. Workers are also likely to gain confidence in raising
grievances because of the support of the shop steward. From management's perspective, the grievance
procedure is a channel providing for an opportunity for communication that effectively identifies problem areas in
the organisation. A procedure that operates effectively and timeously may serve as an important outlet for
employee frustration.

Finnemore (2006:213) goes on to explain that grievances suppressed because of fear of victimisation are likely
to create labour relations problems, and that a low grievance rate may therefore not necessarily be an indication
of organisational health. Grievance procedures that function well possess advantages that are shared by both
parties. Problem-solving approaches to grievances may be beneficial to improving company climate, and the fact
that employees' grievances are considered, no matter how trivial they may appear to management, is likely to
improve morale. Grievance procedures must include specified time frames that should be adhered to if the
procedure is to be credible and capable of resolving tensions in the workplace. Dysfunctional behaviour such as
go-slows and sabotage, which lead to lost production and disciplinary action, may be eliminated by providing an
orderly outlet for means of redress.

Nel et al (2008:266) explain that the existence of a clearly defined and freely accessible channel for workers to
air their grievances and to have these grievances settled is probably the most important part of any business’s
employment relations structure. It is one of management’s most important assets, for the following reasons:
 It is a safety valve that will release the tension and dissipate the latent aggression inherent in all
businesses.
 It allows the raising and settlement of worker grievances without fear of retribution or victimisation.
 Because of the two points above, it makes for a more open and honest relationship between manager and
worker.
 It allows managers to identify and remove legitimate causes of dissatisfaction or conflict.
 It allows the removal of conflict sources that make small problems escalate into major unrest.
 It facilitates the development of positive worker morale.
 It assists in promoting goal achievement by a business.

According to Venter et al (2009:327–328), some organisational theorists state that if there is no sound grievance
procedure in place in an organisation, the employer may not be aware of grievances in the organisation until
they accumulate and lead to some form of industrial action, such as a strike or a stayaway. The absence of a
grievance procedure may also lead to accusations of unfair labour practices. For example, if an employee has a
complaint about having been subjected to harsh action by a supervisor, and there is no set grievance procedure,
 13 INDUSTA/203/0/2009

the employee could at a later stage leave the organisation and claim constructive dismissal. In reality, however,
many employees have a very low level of confidence in both their employer and the grievance procedure, and
accordingly would view the latter as rather limited in scope and validity, as well as in its capacity to create such
industrial harmony. Grievance procedures may, however, facilitate two-way communication between employees
and employers, act as a feedback mechanism, and make it possible to deal with matters that are often not on
collective bargaining agendas. They may also sometimes prevent the occurrence of disputes. The mere
existence of a grievance procedure is, however, no guarantee that all the above will follow. If employers want a
procedure to work for them, they need to reflect their commitment to it. Even this, however, may not be proof
against employees who generically have no faith in their employer's bona fides. Sadly, the mere existence of an
employment relationship is no guarantee that the parties will be understanding and flexible in their approach, or
that they will deal with each other in good faith.

2.3.3 The grievance procedure in practice

As the grievance procedure is not legislated, there are no prescriptive rules that have to be adhered to. The
procedure is arrived at through a process of negotiation or joint consultation and must generally adhere to the
following requirements (Slabbert et al 2006:10-39; Nel et al 2008:267; Venter et al 2009:328; Bendix 2001:332):
 Both managers and workers must view the system as fair and just. If at all possible, the commitment of
both parties must have been ensured by having both involved in the formulation of the procedure.
 The procedure must be derived from and supportive of a formal, written, just and rational set of human
resource policies. By itself, a grievance procedure tends to be weak – it needs the support of a firm policy
and a fair disciplinary procedure.
 The grievance procedure forms part of the company’s terms and conditions of employment and must
therefore be incorporated with the other existing terms and condition of employment and made available
to all employees.
 It must be negotiated with a representative union.
 It should preferably be formulated and introduced in a period of normality (labour peace, high morale and
good climate). A system born in a period of conflict and unrest will always tend to retain the “odour of
conflict” and be viewed with mistrust by both management and workers.
 It must have the full support, commitment and involvement of all levels of management, but especially top
management. All managers must be willing and able to take the necessary action, but must also be
subject to the sanction of the business’s rules for non-compliance.
 It ought to be company policy that any worker should have the right to submit a grievance via the
prescribed channels without any prejudice whatsoever with regard to his/her status, job security or
promotional opportunities. Similarly, he/she should be guaranteed protection by the business against
victimisation or threat in any form whatsoever by an individual or group within the jurisdiction of the
business.
 The procedure must be simple and easy to use by all workers concerned.
 The grievance should be reported in writing.
 The aggrieved employee should be compelled to lodge his/her grievance within a specified time to ensure
that it is resolved as soon as practically possible.
 The grievance procedure must provide immediate and effective action, without any undue delays.
 Management, at the various levels, should give careful consideration to the grievance and make genuine
attempts to resolve it.
 Time limits should be established for each stage of the procedure.
 Grievances should, wherever possible, be handled by line management, but other staff (from the HR
department, for instance) may act in an advisory capacity.
 The procedure should allow the aggrieved employee to be represented in the investigation of the
grievance.
 The procedure should make provision for the employee to state the remedy required to rectify the
situation. This will ensure that the employee is committed to the resolution if the grievance is resolved.
 The grievance will not be resolved before the employee declares his/her satisfaction.
 The procedure should provide for a right to appeal to a higher authority.
 The procedure should allow the employee to declare a dispute if the grievance remains unresolved.

Nel et al (2008:268) provide practical guidelines on some dos and don’ts during a grievance investigation. The
following are guidelines for “do” activities when a grievance investigation is in progress:
 Investigate each complaint as though it could end up in the Labour Court, as you will then exercise the
necessary caution and thoroughness when investigating the complaint.
 Give the aggrieved persons enough time to talk.
 14

 Follow the procedures laid down.

 Use uniform standards for all workers.
 In the case of each grievance, check the relevant worker’s file.
 Visit the aggrieved person’s workplace and gather all the facts.
 Ensure that a comprehensive hearing takes place.
 If a union is involved, treat its representative with the necessary respect.
 Inform the aggrieved worker of the outcome immediately.
 Control emotions and behaviour.
 Inform other members of management of the result.
 Make use of remedial training procedures.
 Place all results of the investigation on record.
 Be informed about workers’ attitudes and behaviour in the business.
 Always be just and accessible to all workers.

The following are guidelines for “don’t” activities when a grievance investigation is in progress:
 Do not discuss the matter alone with the trade union representative.
 Do not argue with the trade union representative in front of workers.
 Do not jump to conclusions.
 Do not remain silent about relevant facts.
 Do not ask favours of the trade union – someday these will have to be returned.
 Do not write unnecessarily long statements.
 Do not take action that is not covered by the grievance procedure or the collective agreement.
 Do not be over-anxious to settle a grievance.
 Do not stop any business activities in order to settle a grievance “immediately” because the trade union
insists on it.
 If management has been at fault, do not be afraid to admit it.
 Never be dishonest or partial.

These guidelines apply regardless of the stage of a grievance in an organisation.

Potential ways to check for the quality of an organisation’s grievance procedure may include finding answers to
questions such as the following (Nel et al 2008:271):
 Are the steps in the grievance procedure well defined and the obligations of each party well delineated?
 Do these steps follow each other progressively?
 How much time is allowed for each step to be carried out?
 Are the time limits between steps specified?
 Is the grievance considered to have been settled if there has been no appeal to the authority above this
level in the specified time?
 Is the action of each party spelt out?
 Must the grievance be recorded and must the proceedings be minuted? If so, at what stage?
 May representatives be involved? If so, at what stage?
 May representatives investigate grievances in company time (working hours)?
 Do all workers know their rights and obligations in terms of the grievance system? Have these been
recorded in writing, made available and carefully explained to each employee?
 Has the role of the union been spelt out clearly in the grievance procedure? More specifically, can
management’s attitudes and its use of the system be tested?
 Have the grievances of the past year been analysed and studied to identify possible areas of discontent?
 Do the grievances indicate a contravention of the collective agreement or poor manager behaviour or
organisation climate?
 At what level are most grievances resolved?
 Have the grievances been analysed by a department or section or by an individual supervisor?
 Has the cost of grievances been determined? Has time lost been factored in?

2.3.4 The relationship between grievance and disciplinary procedures

While the grievance procedure is a form of bottom-up communication (from employees to management),
discipline is a form of top-down (management to employees) communication. In some cases an employee may
identify the desired remedy for his/her grievance as disciplinary action against another employee. Other than
this, there is no formal relationship between grievance and disciplinary procedures. There is sometimes a
 15 INDUSTA/203/0/2009

misconception that an employee who is dissatisfied with the outcome of the disciplinary procedure may utilise
the grievance procedure to resolve it. This is not true. A disciplinary procedure usually contains an internal
appeal process that should be followed. Once the internal process is exhausted, the matter may be referred to
the CCMA. According to Finnemore (2006:212) "a grievance may be seen as the opposite of a disciplinary
action. In the latter, management is dissatisfied with an action of the employee, whereas by lodging a grievance,
the employee is expressing dissatisfaction with some aspect of the job situation or a perceived violation of
rights".

According to Slabbert et al (2006:10-39), disciplinary matters have been excluded from the definition of a
grievance for a particular reason. The disciplinary procedure and grievance procedure fulfil different functions.
Disciplinary procedures are initiated by management for actions against the interest of the company. Grievance
procedures, on the other hand, are initiated by employees for actions against the interest of an employee or
group of employees. Some companies have negotiated a disciplinary procedure which provides that, should an
employee be dissatisfied with an ultimate disciplinary decision, he/she can raise the issue again as a grievance
through the grievance procedure. It is submitted that such an arrangement is unsound and logically inconsistent.

2.3.5 The value of an effective grievance procedure

In conclusion you may have argued, like Venter et al (2009:331), that the grievance procedure is one of the most
important tools available to the human resource manager in any organisation. However, as in any procedurally
driven system, a process of effective communication has to take place. This must occur at all levels of the
organisation. Employees must be made to understand that the grievance procedure is available whatever the
grievance, and that all grievances will be fully investigated without their facing the threat of intimidation or
harassment. However, as with any other procedure, the grievance procedure is also open to abuse by
employees, as illustrated below.

Abusing the Grievance Procedure

Written by Andrew Levy

Although they may look good on paper, in reality, grievance procedures are not really of huge practical
value. Originally intended to limit or prevent wildcat strike action by providing a procedural avenue for a
complaint, they really do not achieve this, and are more frequently abused by employees, who really have
little faith or belief in their management to solve their grievances, but rather use the process for their own
purposes.

Number one abuse is the immediate filing of a grievance against a manager or a supervisor as soon as the
Company initiates disciplinary action. This is roughly akin to the notion of counter-suing in civil law – if you
attack me, I'll attack you. The grievance is then used as an argument in the disciplinary process and as a
defence, or the basis for building a victimisation claim.

Another problem is that employees see the grievance procedure as a channel for making demands that
disciplinary action be taken against another employee, or something similar – it becomes a tool in a
vendetta of one employee against another. One of the reasons that this arises is that most pre-printed
grievance forms (a mistake in itself) have a box entitled 'outcome desired' or some such. Thus, the
employee fills in words to the effect that she requires an apology from her manager – and feels therefore
that she is justifiably entitled to it.

One of the standard disclaimers that should be found in a formal grievance procedure, is that it may not be
used to query disciplinary action or collective or individual demands. There are other channels for this, and
the LRA itself provides a remedy.

Do you really need a grievance procedure? Perhaps if you are a huge organisation, but certainly not if you
are a small employer - even though it has become part of the standard package that companies are sold
by their consultants or legal advisers. As in so many things, informal is often better – have an open door
policy, and rely on the LRA to do the rest

Source: http://www.andrewlevygroup.com/articles/50-andrews-comment/95-abusing-the-grievance-procedure (accessed 26

August 2009)
 16

2.4 Dismissal for misconduct and incapacity

In answering question 3 of the assignment, you were required to obtain copies of two CCMA, Labour Court or
Labour Appeal Court cases, one relating to dismissal for misconduct and the other to dismissal for incapacity.
The incapacity case could have related either to incapacity due to poor work performance or to incapacity due to
ill health or injury. It would not, however, have been sufficient to merely copy the cases; you were required to
summarise the content of each case (in not more than two pages in each instance), clearly outlining the
principles of fairness applied in each event. In your summaries you should have demonstrated a clear
understanding of the concepts "misconduct" and "incapacity" as well as the requirements of the LRA 66 of 1995
as summarised below.

Table 3: Considerations in determining the fairness of a dismissal for misconduct

Substantive fairness Procedural fairness

Ask the following questions:
 Did the employee break a workplace rule?
 Was the rule reasonable and valid?
 Was the employee aware (or could he or she
reasonably have been expected to be aware) of
the rule?
 Did the employer apply the rule consistently?
 Is dismissal an appropriate punishment for the
transgression?
Consider the following:
 the seriousness of the misconduct
 the nature of the misconduct
 the employee’s state of mind, both at the time of
the misconduct and during the subsequent
investigation
 the employee’s previous disciplinary record
 the guidelines of the applicable disciplinary code
 the nature of the post and of the workplace
 the employee's personal circumstances
 the employer's circumstances
 the consistency of the penalty in comparison
with similar past cases
 Conduct an investigation to determine whether
there are grounds for dismissal.
 Notify the employee of the allegations using a
form and language that the employee can
reasonably understand.
 Allow the employee an opportunity to state
his/her case in response to the allegations.
 Provide the employee with reasonable time to
prepare the response.
 Ensure that the employee knows that he/she is
entitled to assistance of a trade union
representative or a fellow employee.
 Communicate the decision taken to the
employee after the enquiry – preferably in
writing.
 If the employee is dismissed, provide him/her
with a reason for the dismissal.
 Remind the employee that he/she may refer the
matter to a council with jurisdiction or the CCMA
or to any dispute resolution procedures
established in terms of a collective agreement.

Source: LRA, Schedule 8 – Code of Good Practice: Dismissal, items 3, 4 and 7.

Table 4: Considerations in determining the fairness of dismissals for incapacity due to poor work
performance

Substantive fairness Procedural fairness

 Determine whether or not the employee failed to
meet a performance standard.
 If the employee did not meet a required
performance standard, determine whether or not
 the employee was aware, or could
reasonably be expected to have been aware,
of the required performance standard;
 the employee was given a fair opportunity to
meet the required performance standard; and
 dismissal was an appropriate sanction for not
meeting the required performance standard.
 The probationer must be given sufficient
instruction or counselling.
 If the probationer fails to meet the requirements,
he/she must have an opportunity to state his/her
case. He/she may be assisted by a trade union
representative or fellow employee.
 After probation, an employee may not be
dismissed for unsatisfactory performance unless
the employer has
 given the employee appropriate evaluation,
instruction, training, guidance or counselling;
 given the employee a reasonable time to
improve his/her performance;
 conducted an investigation to establish
reasons;
 17 INDUSTA/203/0/2009

Substantive fairness Procedural fairness

 considered other ways, short of dismissal to
remedy the poor performance;
 allowed the employee the right to be heard;
 allowed a trade union or fellow employee to
assist.

Source: LRA, Code of Good Practice: Dismissal, item 9

Table 5: Considerations to determine the fairness of a dismissal for incapacity due to ill health or
injury

Substantive fairness Procedural fairness

 Determine whether or not the employee is
capable of performing the work.
 If the employee is not capable, determine:
 the extent to which the employee is able to
perform the work;
 the extent to which the employee's work
circumstances might be adapted to
accommodate the disability, or, where this is
not possible, the extent to which the
employee's duties might be adapted;
 the availability of any suitable alternative
work.
 Conduct an investigation to establish the extent
of the incapacity or the injury.
 Investigate alternatives to dismissal if the
employee is unable to perform or will be absent
for an unreasonably long period.
 The employee has the right to be heard and
represented.
 Consider the degree of incapacity and the cause
of incapacity.
 If the employee is temporarily unable to work,
consider the following relevant factors:
 the nature of the job;
 the period of absence;
 the seriousness of the illness or injury;
 the possibility of securing a temporary
replacement.
 If the incapacity is permanent, ascertain the
possibility of securing alternative employment, or
adapting the duties or work circumstances of the
employee to accommodate his/her disability.

Source: LRA, Code of Good Practice: Dismissal, items 10 and 11

2.5 Conclusion

In your conclusion, you should have briefly summarised the most important information contained in your
assignment. Remember that you should never introduce new theoretical information in the conclusion.

2.6 Evaluation criteria and most common errors

The following criteria were used to evaluate your answers to Assignment 03. Please note, however, that
because there cannot be only one correct answer to this assignment, each answer was evaluated on its own
merits.

INDUSTA
ASSIGNMENT 03
Question Poor Average Good Excellent Mark
performance performance performance performance
(0 – 39%) (40 – 59%) (60 – 74%) (75 – 100%)
No discussion of Limited discussion of Detailed discussion of In-depth discussion of
centralised centralised centralised centralised
bargaining. bargaining. bargaining. bargaining.
1.1 No opinion provided. Opinion provided but Opinion provided and Opinion provided and
No current figures not substantiated. substantiated by substantiated by
provided. No current figures current figures. current figures and
provided. further arguments.
 18

INDUSTA
ASSIGNMENT 03
Question Poor Average Good Excellent Mark
performance performance performance performance
(0 – 39%) (40 – 59%) (60 – 74%) (75 – 100%)
Took little or no notice Took limited notice of Took notice of report. Arguments made in
of report. report. line with the report.
No sources Consulted study Consulted one or two Consulted a variety of
acknowledged or guide or a single of the recommended sources.
some sources used source only. or other sources.
not acknowledged.
0–5 6–8 9 – 11 12 – 15 /15
No/Limited Some understanding Good understanding In-depth
understanding of the of the concepts of the concepts understanding of the
concepts “centralised” “centralised” and “centralised” and concepts “centralised”
and “decentralised” “decentralised” “decentralised” and “decentralised”
collective bargaining. collective bargaining. collective bargaining. collective bargaining.
Advantages and Advantages and Limited advantages Detailed comparison
disadvantages of disadvantages of and disadvantages of of the advantages
centralised and centralised and centralised and and disadvantages of
decentralised decentralised decentralised centralised and
collective bargaining collective bargaining collective bargaining decentralised
1.2 not outlined. outlined. outlined and collective bargaining.
No clear comparison. comparison made.
Took little or no notice Took limited notice of Took notice of report. Arguments made in
of report. report. line with the report.
No sources Consulted study Consulted one or two Consulted a variety of
acknowledged or guide or a single of the recommended sources.
some sources used source only. or other sources.
not acknowledged.
0–7 8 – 11 12 – 14 15 – 20 /20
No/Limited Some understanding Good understanding In-depth
understanding of the of the concept of the concept understanding of the
concept “grievance” “grievance” and “grievance” and concept “grievance”
and grievance grievance handling. grievance handling. and grievance
handling. handling.
No/Limited Some understanding Good understanding In-depth
understanding of the of the objectives of a of the objectives of a understanding of the
objectives of a grievance procedure. grievance procedure. objectives of a
grievance procedure. grievance procedure.
No/Limited Some understanding Good understanding In-depth
understanding of how of how the grievance of how the grievance understanding of how
the grievance procedure should be procedure should be the grievance
procedure should be applied in practice. applied in practice. procedure should be
2 applied in practice. applied in practice.
No/Limited Some understanding Good understanding In-depth
understanding of the of the relationship of the relationship understanding of the
relationship between between grievance between grievance relationship between
grievance and and disciplinary and disciplinary grievance and
disciplinary procedures. procedures. disciplinary
procedures. procedures.
Took little or no notice Took limited notice of Took notice of Arguments made
of statement. statement. Mostly statement. constitute a critical
Theoretical theoretical evaluation of the
discussion only. discussion. statement.
No sources Consulted study Consulted one or two Consulted a variety of
acknowledged or guide or a single of the recommended sources.
some sources used source only. or other sources.
 19 INDUSTA/203/0/2009

INDUSTA
ASSIGNMENT 03
Question Poor Average Good Excellent Mark
performance performance performance performance
(0 – 39%) (40 – 59%) (60 – 74%) (75 – 100%)
not acknowledged.
0 – 10 11 – 14 15 – 18 19 – 25 /25
No case summary Case summary Case summary Case summary
provided or case not vaguely relevant to relevant to dismissal relevant to dismissal
relevant to dismissal dismissal for for misconduct but for misconduct and
for misconduct. misconduct and limited information sufficient information
limited information provided. provided.
provided.

Limited discussion of Limited discussion Sufficient discussion Detailed discussion

3.1 content. Poor and understanding of and good and in-depth
understanding. content. understanding of understanding of
content. content.
No sources Consulted study Consulted one or two Consulted a variety of
acknowledged or guide or a single of the recommended sources.
some sources used source only. or other sources.
not acknowledged.
0–5 6–8 9 – 11 12 – 15 /15
No case summary Case summary Case summary Case summary
provided or case not vaguely relevant to relevant to dismissal relevant to dismissal
relevant to dismissal dismissal for for incapacity, but for incapacity and
for incapacity. incapacity and limited limited information sufficient information
information provided. provided. provided.
Limited discussion of Limited discussion Sufficient discussion Detailed discussion
content. Poor and understanding of and good and in-depth
3.2 understanding. content. understanding of understanding of
content. content.
No sources Consulted study Consulted one or two Consulted a variety of
acknowledged or guide or a single of the recommended sources.
some sources used source only. or other sources.
not acknowledged.
0–5 6–8 9 – 11 12 – 15 /15

Headings and subheadings used 1 No headings or subheadings 0

Descriptive table of contents 1 No table of contents 0
Technical presentation

Introduction included 1 No/Inadequate introduction 0

Sources acknowledged 2 Sources not acknowledged 0
and layout

Correct referencing technique used 2 No/Incorrect referencing technique 0

Conclusion included 1 No/Inadequate conclusion 0
Bibliography included 2 No/Limited bibliography 0
Exceeds page limit -3% -

/10
TOTAL MARK FOR ASSIGNMENT 03 %

The marks obtained for this assignment were generally good and there was a noticeable improvement on the
second assignment. At the time we were finalising this tutorial letter, the average mark awarded for Assignment
03 was 50%. However, some students put in a lot of effort and obtained high marks. An example of an
assignment for which we awarded high marks has been uploaded on myUnisa for you to read: we encourage
you to do so to see what we expect of you in your assignments.
 20

After assessing your assignments, we prepared the following summary of the most common errors made:

 In answering questions 1 and 2, many of you provided theoretical information only. This was not sufficient.
At honours level you are expected to demonstrate that you are able to apply and analyse the theoretical
information. You had to critically evaluate the relevant report and statement by applying your theoretical
knowledge to the report and statement given in the assignment questions.

 In answering question 1.1, many of you simply provided statistics (unemployment and trade union
membership) without making any attempt to answer the question asked. The figures should have been
used to substantiate your argument and would not have served much purpose in isolation.

 In answering question 1.2, some of you merely copied the table in Bendix (2001:250). Although this
information was correct and relevant, merely copying it demonstrated no understanding of the topic. You
had to consult a variety of sources and also give your own input.

 In answering question 2 some of you discussed the steps in the grievance procedure. This served no
purpose in terms of the question asked. The answers to this question were also mostly superficial lacking
the critical evaluation required.

 Many of you experienced problems in answering question 3. You were required to obtain examples of two
cases, the first relating to dismissal for misconduct and the second to dismissal for incapacity (due to
either poor work performance or ill health or injury). You then had to summarise these cases and analyse
them in terms of the relevant legal requirements that had to be met in each instance. In marking the
assignments, we noticed the following common errors:
 The cases were merely copied from the sources and not summarised.
 The relevant principles of fairness were not explained.
 The cases were not analysed in terms of the above principles.
 Some of the cases chosen as examples did not lend itself to a discussion of the principles of
fairness as the information provided was too limited.
 The cases were followed by a theoretical discussion of the requirements of the LRA. No attempt
was made to determine whether the particular cases met these requirements.
 Cases that occurred prior to 1996 (when the LRA was promulgated) were provided as examples.
These were not acceptable, as they would have related to legislation that is no longer in use.
 In some instances, students merely provided a theoretical discussion of dismissal for misconduct
and incapacity without including examples of cases. In such instances no marks were awarded.

 Some of you did not answer all the questions. Ensure that you answer all the questions asked. If you
answered only some of the questions, we were able to award only limited marks.

 Reliance on a single source is not acceptable. You should consult a variety of sources, integrate the
information obtained and apply it to the question in a logical fashion.

 Ensure that all sources are acknowledged throughout the document and that full details of these sources
are given in the bibliography. If you are still uncertain about how to do this, refer to the guidelines supplied
in appendix B of Tutorial letter INDUSTA/101/2009.

 When you obtain information from the internet, cite as much information as possible about that source in
the bibliography. It is essential to provide the web address and indicate the date on which you accessed
the information, as websites change over time.

 Ensure that your sources are recent. The use of older sources is permissible at times, but it is important to
substantiate your statements by also incorporating information from more recent ones. Using outdated
sources could mean that you are providing outdated information, which may even be incorrect.

 The sources in your bibliography should be arranged in alphabetical order.

 Some of you cited sources in the text that were not listed in your bibliography. Upon further reading it
became evident that you did not actually consult the work cited, but that you copied a citation from another
source. In such an instance, you should cite the source as follows:
 21 INDUSTA/203/0/2009

In the text:
Finnemore and Van Rensburg (2002:410) as cited in Kirsten (2007:55) state that…

In the bibliography:
Finnemore, M & Van Rensburg, R. 2002. Contemporary labour relations. 2nd edition. Durban: LexisNexis
Butterworths as cited in Kirsten, M. 2007. Labour relations management: Only Study Guide for INDUSTA.
Pretoria: University of South Africa.

In the above example, it is clear that you consulted the study guide (Kirsten 2007) and not Finnemore and
Van Rensburg (2002), although the information was originally published in the latter publication.

 Please ensure that the right-hand margin of your document is wide enough so that we can write our
comments and feedback in this margin.

 Number all the pages in your document.

 Some of the assignments submitted consisted simply of a number of paragraphs copied from sources
without any attempt to contextualise or integrate the information. Please ensure that your assignment is
structured around a central argument: each paragraph should follow the next in a logical and structured
way.

 Repeating the same information, even if you restate it in different words, will not earn you any additional
marks.

 Clear guidelines, including a suggested table of contents for the assignment, were provided in Tutorial
letter INDUSTA/101/0/2009. Please ensure that you follow these guidelines. Your assignment should
always contain a table of contents, an introduction, a body, a conclusion and a bibliography. Some of you
wrote an introduction and a conclusion for every question. This was not necessary. There should be one
introduction in the beginning of your assignment, briefly outlining your approach to the assignment, and a
conclusion at the end, briefly summarising the most important information you presented.

 Guidelines on the length of assignments (approximately 12 pages) are provided in Tutorial letter
INDUSTA/101/2009. Please apply these guidelines. Submitting a 30-page assignment merely
demonstrates that you are unable to contextualise and summarise the information in order to answer the
question.

3 STUDY SCHOOL
The aim of the study school for this paper, which took place on Monday, 5 October 2009, was to provide you
with a brief overview of the content that you are expected to master. Because of time constraints, the content
could not be covered in detail. The focus of the session was therefore rather on an interactive discussion of the
various topics.

No “tips” for the examination were provided during the study school. Guidelines for the examination have already
been supplied in Tutorial letter INDUSTA/101/0/2009, and further guidelines appear in section 4 below. We did
not highlight “important parts of the study material” at the study school, as our expectations have already been
clearly communicated in the study guide.

If you were unable to attend the study school but would like copies of the slides used during the session, you are
welcome to contact me and I would be happy to send them to you. They are also available on myUnisa
(my.unisa.ac.za) if you would like to download them. I must, however, stress that the slides alone – without the
discussion – will probably be of little value. The slides and topics covered during the study school are by no
means an indication of what should be deemed important for examination purposes.

4 EXAMINATION
4.1 Examination date

The preliminary examination date for this paper is 17 February 2010 (14:00–17:00). Please refer to the
examination timetable that you will receive from the Examinations Department to confirm this date.
 22

4.2 Admission to the examination

You will qualify for admission to the examination if you submitted any one of the three assignments for this paper
on or before 30 September 2009, irrespective of the mark obtained. If you failed to submit any assignments, you
will not be admitted to the examination. Please do not contact us to request admission to the examination if you
did not submit any assignments.

4.3 Format of the examination paper

The examination paper will consist of six essay questions (worth 25 marks each), of which you will be expected
to answer four. These questions may be subdivided into paragraph questions. We may also include case
studies in the examination to evaluate your understanding of the material. Like the study material for this paper,
the examination paper will be available in English only.

The duration of the examination is 3 hours. Because of the time limitation of three hours for the examination, you
should not spend more than 45 minutes per question. This also means that in your answer you should
concentrate on the most important parts of each question. Do not fall into the trap of spending so much time on
one question that you do not have enough time for the other questions.

Appendix D of Tutorial letter INDUSTA/101/0/2009 contains the January 2008 examination paper, which we
have included to give you an idea of the expected format of your examination. No further previous examination
papers will be supplied, and we are not able to give you a memorandum for the 2008 paper.

4.4 Guidelines on preparing for the examination

Please use the study guide as your point of departure when preparing for the examination. The study guide
indicates the learning outcomes you are expected to master.

The examination questions are derived from three main sources. The first of these is the assignments. In the
assignments you have the opportunity to work through the relevant tutorial matter and formulate answers using
the recommended study material. In subsequent tutorial letters you are also given guidelines on what your
answers to the assignment questions should have included. It would be to your advantage to make an effort to
master this aspect of the work so that you will be able to answer any examination question that may be taken
from this source.

The self-assessment questions in the study guide constitute the second source of questions for the
examination. These questions guide you towards attaining the learning outcomes, they provide the opportunity
for you to apply newly acquired knowledge, and they develop your insight into and understanding of the study
material. We recommend that you also work on these questions and assess yourself against the requirements
spelt out in the study guide.

Lastly, you should focus on learning outcomes in the study guide. These outcomes indicate what we expect
you to have mastered on completion of the paper. Reformulate the outcomes as questions and ensure that you
are able to answer them.

Remember that at honours level in-depth knowledge and understanding of the tutorial matter, as well as of the
relationship between the various parts of the work, are essential. A superficial knowledge is inadequate, and it
will therefore not be good enough to provide just a theoretical discussion when answering examination
questions. Your answers should show your ability to approach a problem in a structured, analytical way. Apply
the theories and concepts of labour relations coherently to the examination questions.

4.5 General guidelines

Try to follow the guidelines below when preparing for the examination:

 Compile a roster for your revision and arrange study leave in good time.
 Reformulate the learning outcomes as questions.
 Revise all the assignments and the guidelines to the assignments in the tutorial letters.
 Revise all the self-assessment questions at the end of each study unit in your study guide.
 Make notes of important concepts, principles and processes and test your understanding and knowledge
of them.
 23 INDUSTA/203/0/2009

 Plan to allow time for more than one revision.

 Learn actively. Do not merely read through the study material; practise what you will need to do in the
exam. For instance, if you expect to have to answer an essay-type question, you need to practise that. Do
one complete question to check how much you can write in, say, 45 minutes so that you will know how to
plan your time in the exam.
 Plan and practise the framework of possible questions. Spend five minutes sketching a quick mind map of
how you would answer a 45-minute question.

4.6 Important points to remember

Throughout the year we have noticed that students tend to answer their assignment questions incorrectly, or to
answer only part of a question. As this also applies to the answering of examination questions, we offer you the
following guidelines to help you avoid this problem. When writing the examination it is important to remember the
following:

 Read through the question more than once.

 Focus on the verbs that are used in the question. Do we ask you to "list", "discuss", "critically discuss",
"analyse"? Make sure that you do what is asked.
 Underline/Highlight all the keywords in the question. Make sure that your answer covers all of the
issues/aspects raised.
 Make use of headings and subheadings, and write legibly.
 You are not expected to provide a table of contents, introduction, conclusion and bibliography during the
examination, and no source referencing is required. Just answer the question asked.
 Read the questions carefully, and answer the whole question. Sometimes a question may consist of more
than one part. For instance, you may be asked to "discuss the amendments to the Labour Relations Act"
as well as to "indicate how these amendments will affect labour relations in the workplace": ensure that
you have done everything that has been asked.
 Work out a timetable for yourself at the start of the examination, based on the number of questions you
have to do. Depending on how many marks they are worth, allocate time slots to each question, and note
the starting times for each.
 Keep your head. Do not panic. If you cannot do it all, you can do enough to pass, and even to pass well.
 Do something of everything rather than all of some questions and none of others. Keep to your timetable.
 Prioritise. For each question that you answer, ask yourself what the crux is or what the lecturers will
expect, if nothing else. Do the most important parts that are relevant to the question.
 Make sure that you fill in your personal details on the cover page of the examination paper.

5 TUTORIAL LETTERS
By now you should have received the following tutorial letters for INDUSTA:

Tutorial letter Content of tutorial letter

INDUSTA/101/0/2009 A word of welcome, names and contact details of lecturers, approach to the
paper, tutorial material, assignments, admission to the examination, format of
the examination paper and recommended books
INDUSTA/201/0/2009 Feedback on Assignment 01, guidelines on completing Assignment 02 and
corporate citizenship
INDUSTA/202/0/2009 Feedback on Assignment 02 and guidelines on completing Assignment 03

INDUSTA/203/0/2009 Feedback on Assignment 03, study school information and examination

(this tutorial letter) guidelines

If you have not received the first tutorial letter, please call the Contact Centre on 0861 670 411 (local) or +27 11
670 9000 (international) immediately. The study material for this module (study guide and tutorial letters) is also
available on the internet (myUnisa). We strongly recommend, therefore, that you register for and utilise this
system if you have not yet done so. Information about the system can be obtained from the booklet entitled
Unisa: services and procedures which you received when you registered.
 24

Unfortunately lecturers do not have the facilities to send students duplicate copies of study material that has
been lost in the post. This is the responsibility of Despatch.

Remember that tutorial letters are the university’s principal means of communication and teaching, and this is
why you need to make sure that you have received all the tutorial letters for your course. Please read through
and study tutorial letters carefully and keep them in a safe place!

6 CONCLUDING REMARKS
Please do not be lulled into a false sense of security because of good marks obtained in your assignments. You
have various sources of information available to you when completing your assignments, but during the
examination you will only be able to rely on your own memory, knowledge and insight into the field. On the other
hand, remember that your assignments were very comprehensive. Although you will still be required to
demonstrate insight and in-depth understanding in the examination, the questions will not be as comprehensive
due to time constraints.

All the best with your preparation for the examination. A well-prepared student has nothing to worry about and
can approach the examination with confidence. Make sure that you are one of those students!

We wish you success in your studies!

MRS M KIRSTEN
DEPARTMENT OF HUMAN RESOURCE MANAGEMENT
UNISA
 25 INDUSTA/203/0/2009

APPENDIX A

REFERENCES AND ADDITIONAL READING

Some of the following articles are available in electronic format from the Unisa library. You may access
them either by clicking on or entering the web address in your browser, or by following these steps on the
Unisa website:

 Go to the Unisa website at www.unisa.ac.za.

 Click on "library" in the right-hand corner.
 Click on "search for information resources".
 Click on "Unisa Library e-Journal Finder".
 Type in the name of the journal.
 Follow the relevant links to go to the correct issue of the journal and obtain the article.

To access the articles, you will be required to verify that you are a Unisa student by entering your PIN.
Information on how to create your own PIN is available on the library website at
http://oasis.unisa.ac.za/screens/pinhlp.html.

In instances where the journals are not available electronically but only in hard copy form, we have
indicated this. You are welcome to request copies of these articles from the library if you are interested.

Anstey, M. 2006. Managing change, negotiating conflict. 3rd edition. Cape Town: Juta.

Barker, F. 2007. The South African labour market, theory and practice. 5th edition. Pretoria: Van Schaik.

Bendix, S. 2001. Industrial relations in South Africa. 4th edition. Cape Town: Juta.

Finnemore, M. 2006. Introduction to labour relations in South Africa. 9th edition. Durban: LexisNexis
Butterworths.

Finnemore, M & Van Rensburg, R. 2002. Contemporary labour relations. 2nd edition. Durban: LexisNexis
Butterworths.

Godfrey, S, Theron, J & Visser, M. 2007. The state of collective bargaining in South Africa. An empirical and
conceptual study of collective bargaining. DPRU working paper 07/130. Cape Town: University of Cape Town,
Development Policy Research Unit.

International Labour Organization. 2008. World of work report 2008: income inequalities in the age of financial
globalization. Geneva: International Labour Organization (International Institute for Labour Studies). Available at:
http://www.ilo.org/public/english/bureau/inst/download/world08.pdf (accessed on 3 September 2009).

Labour Relations Act 66 of 1995. Government Gazette, vol 366, no 16861. Pretoria: Government Printer.

Nel, PS, Kirsten, M, Swanepoel, BJ, Erasmus, BJ & Poisat, P. 2008. South African employment relations, theory
and practice. 6th edition. Pretoria: Van Schaik.

Slabbert, JA, Prinsloo, JJ, Swanepoel, BJ & Backer, W. 2006. Managing employment relations in South Africa.
Service Issue 9. Durban: LexisNexis Butterworths.

Statistics South Africa. 2009. Quarterly Labour Force Survey, Quarter 2, 2009. Statistical release P0211.
Available at: http://www.statssa.gov.za/publications/statsdownload.asp?ppn=P0211&SCH=4440 (accessed on 3
September 2009).

Steenkamp, A, Stelzner, S, & Badenhorst, N. 2004. The right to bargain collectively. Industrial Law Journal 25.
Special edition, May (hard copy only).

Venter, R (Ed), Levy, A (Ed), Holtzhausen, M & Conradie, M. 2009. Labour relations in South Africa. 3rd edition.
Cape Town: Oxford University Press Southern Africa
 26

Wild, A. 2004. Current international trends in collective bargaining. In an unpublished report, Joint investigation
by the Chamber of Mines and the National Union of Mineworkers into various bargaining options, compiled by
the Chamber of Mines and the National Union of Mineworkers.

Wood, G & Mahabir, P. 2001. South Africa's workplace forum system: a stillborn experiment in the
democratisation of work? Industrial Relations Journal, 32(2):230–243. Available at: http://0-
www3.interscience.wiley.com.oasis.unisa.ac.za/cgi-bin/fulltext/118972841/PDFSTART (accessed on 3
September 2009).

Websites:

Business Unity South Africa: http://www.busa.org.za (accessed on 28 August 2009)

Chamber of Mines of South Africa: http://www.bullion.org.za (accessed on 28 August 2009)

Confederation of South African Workers Unions: http://www.consawu.co.za (accessed on 28 August 2009)

Congress of South African Trade Unions: http://www.cosatu.org.za (accessed on 28 August 2009)

Department of Labour (South Africa): http://www.labour.gov.za (accessed on 28 August 2009)

Federation of Unions of South Africa: http://www.fedusa.org.za (accessed 28 August 2009)

International Labour Organization: http://www.ilo.org (accessed on 28 August 2009)

National Council of Trade Unions: http://www.nactu.org.za (accessed on 28 August 2009)

Statistics South Africa: http://www.statssa.gov.za (accessed on 28 August 2009)