Industrial Relations Notes 1
Industrial Relations Notes 1
There is no unanimity on the meaning and scope of industrial relations since different terms such
as labour-management relations, employer-employee relations, union management relations,
personnel relations, human relations, are in use and are used synonymously. The concept of
Industrial relations has been defined using various terminologies, but in the strictest sense, it is
essentially the relationship between management and labor. Industrial relations has its roots in
industrial revolution which created the modern employment relationship by spawning free labor
markets and large scale industrial organizations with thousands of wage workers.
Def: In the broad sense, industrial relations cover all such relationships that a business
enterprise maintains with various sections of the society such as workers, state, customers and
public who come into its contact.
In the narrow sense, it refers to all types of relationships between employer and employees,
trade union and management, works and union and between workers and workers. It also
includes all sorts of relationships at both formal and informal levels in the organization.
-. J.T. Dunlop defines industrial relations as “the complex interrelations among managers,
workers and agencies of the governments”. According to Dale Yoder “industrial relations is the
process of management dealing with one or more unions with a view to negotiate and
subsequently administer collective bargaining agreement or labour contract”.
-Industrial relations means the relationship between employers and employees in course of
employment in industrial organizations.
The ‘study of all aspects of job regulation – the making and administering of rules which
regulate employment relationships – regardless of whether these are seen as being formal or
informal, structured or unstructured’(Bain & Clegg 1974 in Dundon & Rollinson, 2011)
The study of the regulation of the employment relationship between employer and employee,
both collectively and individually, and the determination of both substantive and procedural
issues at industrial, organizational and workplace levels.(Rose, 2008)
Employee Relations
‘Employee relations’ is a concept that is being preferred over the older industrial relations
because of the realization that there is much more at the workplace than industrial relations
could look or cover. In general, employee relations can be considered to be a study of
relations between employees as well as employer and employees so as to find ways of
resolving conflicts and to help in improving productivity of the organization by increasing
motivation and morale of the workers. The field is concerned with providing information to
employees regarding the goals of the organization so that they have a better understanding
of the aims and policies of the management. Employees are also informed about their poor
performances and ways and means to correct performance. Employee relations also take
care of grievances and the problems of the employees and let them know all about their
rights and what to do in case of discrimination.
• Though it was industrial relations that came into existence earlier, it is employee relations
that is increasingly being used to refer to workplace relations these days.
• Falling union memberships around the world have made people realize that relations
between employers and employees are more important than the focus given to these
relations by industrial relations.
• It is human beings called employees that form the backbone of all operations in an
organization and the study of relations between employees and employees and employers
are more important than the laws and institutions that govern relations at the workplace.
HISTORICAL BACKGROUND
- Low wages, long working hours, monotonous and dangerous work, and Abusive
supervisory practices led to high employee turnover, violent strikes, and the threat of
social instability. Industrial relations was formed with a strong problem-solving
orientation that rejected both the classical economists’’ laissez faire solutions to labor
problems and the Marxist solution of class revolution. It is this approach that underlies
the various labour legislation. Institutionally, industrial relations was founded by John R.
Commons when he created the first academic industrial relations program at the
University of Wisconsin in 1920.Early financial support for the field came from John
D. Rockefeller, Jr. who supported progressive labor-management relations in the
aftermath of the bloody strike at a Rockefeller-owned coal mine in Colorado. In Britain,
another progressive industrialist, Montague Burton, endowed chairs in industrial relations
at Leeds, Cardiff and Cambridge in 1930, and the discipline was formalized in the 1950s
with the formation of the Oxford School by Allan Flanders and Hugh Clegg.
GROWTH OF IR IN ZIMBABWE
The chief legislation of this period was the 1901 Master and Servant Ordinance Act. This
laid the basis of a primitive labour law system designed to fast track the establishment of a
racist capitalist system based on cheap and forced black labour. There was exploitation of
man by man. The period was characterized by weak black trade unions and 2 incidences of
strikes which were not widespread and did not have much effect as they were brutally
crushed. Strikes and CB were not allowed. The Public Service Act was passed in 1929 and
Africans were not allowed to join public service. Collective job action was not allowed.
It was characterized by a dual labour relations regime. The Industrial Conciliation Act
(ICA) of 1934 and ICA of 1959 were enacted and they dealt with white working class
coexisting side by side with a unitary law applicable to the majority of the black working
class. Certain sections of the black employees had the right to Trade Unionism and CB.
ZANU PF government continued with ICA of 1959 and state corporatism continued.
Massive strikes forced the government to pass the Employment Act No 13 of 1980 and the
Minimum wages Act No 4 0f 1980. Discrimination on the basis of race, sex or age was
prohibited. Women were granted full legal capacity in employment and employers were
prohibited from dismissing employees on notice or retrenching workers without state
approval. State was instrumental in the formation of ZCTU in 1981. In 1985 the Labour
Relations Act replaced ICA
Market liberalization policies were embraced. Labour Relations Amendment No12 of 1992
and Export Processing Zones Act Cap 14:07 were passed to deregulate the labour market
and employer controlled codes of conduct were introduced. Contract or casual jobs paying
lower wages were introduced. The Labour Relations Amendment Act No 17 of 2002 was
passed and was replaced by the Labour Amendment Act No 7 0f 2005
1. Protect management and labor interests by securing mutual relations between the two groups.
2. Avoid disputes between management and labor, and create a harmonizing relationship
between the groups so productivity can be increased.
3. Ensure full employment and reduce absenteeism, hence, increasing productivity and profits.
4. Emphasize labor employer partnership to establish and maintain industrial democracy. This is
done to ensure the sharing of profit gains, and personal developmental of all employees.
6. To bring about government control over plants where losses are running high, or where
products are produced in the public interest.
7. To bridge a gap between various public factions and reshape the complex social relationships
emerging out of technological advances by controlling and disciplining members, and adjusting
their conflicts of interests.
13 To safeguard the interests of the labour as well as management by securing the highest
level of mutual understanding and goodwill between all sections in an industry.
IMPACT OF PESTEL ON IR
Political
Economic
Social
Technological
Ecological
Legal
IR Perspectives
IR can be approached in various ways such as Unitary, Pluralist, Marxist, Systems, HRM
approach etc.
-Each approach offers a particular perception of workplace relations and will therefore
interpret such events as workplace conflict, the role of trade unions and job regulation very
differently.
Unitary Perspectives
-Workplace conflict is seen as a temporary aberration, resulting from poor management,
employees who do not fit with the organisation’s culture or trade union activity. Conflict is
viewed as irrational and the sacking of striking workers is preferred to consultation or
negotiation. Conflict is regarded as pathological or evil or bad. Trade unionism is outlawed and
suppressed as it is viewed as an illegitimate intrusion or encroachment on management’s right to
manage.
-Trade unions are regarded as competitors for the employee’s commitment and cooperation.
-The underlying assumption is that it is to the benefit of all to focus on common interests and
promote harmony. Conflict in the form of strikes, therefore, is regarded as not only
unnecessary, but destructive.
-Advocates of the unitary approach seek a radical overhaul of the industrial relations system.
Emphasis is on direct negotiations with employees.
Assumptions
-Capitalist society
-Single authority
-Managers have right to manage and have prerogative to make decisions. Those who
challenge are not rational
-It has the support of industry and government as they want to reduce incidence of
‘disruptive and disorderly behavior|’
-It emphasizes the importance of social relations in the industry and conflict is seen as a
result of poor social relations.
Assumptions
-Post-Capitalist society, where a relatively widespread distribution of power and authority
within the society, a separation of ownership from management, a separation, acceptance
and institutionalization of political and industrial conflict
Role of TUs
-Employees: more of personal terms ( better pay, good working conditions and good job
security)
-Because of a number of different and divergent interests there is need to put in place laws
and rules to manage the organization effectively and efficiently. Rules help to foster
acceptance of authority and deal with conflict accordingly.
-However, where pluralists see conflict inherent in all organisations, Marxists see it as a
product of a capitalist society.
-Adversarial relations in the workplace are simply one aspect of class conflict.
-The Marxist approach thus focuses on the type of society in which an organisation exists.
Focus
Employee response
-Marxists assertion is that conflict can never cease unless the employers accept labour has a
right to an equal share on power. Hyman suggest that it would be more appropriate to define
IR as the study of processes of control over work relations. He asserts that IR is about who
owns what, how and why. Militant unions are frequently supported.
SYSTEMS APPROACH
Was propounded by Dunlop. The concept of system derives from the structural/functionalist
perspectives of social system (society). This also connotes the macro-sociological, order or social
system view of society. The model sees IR as a subsystem of society distinct from but
overlapping, the economic and political subsystem. There are 4 interrelated elements:
1) Actors
The actors that make up the industrial relations system are
- A hierarchy of managers and their representatives in supervision
- A hierarchy of workers (non-managerial) and their spokesmen
- Specialised governmental agencies and specialised private agencies created by the first two
actors, concerned with workers, enterprises and their relationships.
2) Context
This refers to the setting which these actors operate, that is the larger environment which shapes
the conduct of, and the rules established by workers, employers and the state.
Dunlop highlights three aspects of the environment.
- Technological characteristics of the work place and work community: These influence the
form of management and employee organisation and the problems posed for supervisors. Thus,
the adopted technology will greatly determine the size and skills of work force as well as
availability of labour. It also affects the health and safety at the workplace. The adopted
technology has far-reaching consequences in determining IRs rule making.
-Market/budgetary constraints: The products market or budget is a decisive factor in shaping
the rules established by an industrial relations system. More so, the market or budgetary
constraints also indirectly influences the technology and other characteristics of the work place,
including the scale and size of operations. In all, an industrial relations system created and
administered by its actors is adaptive to its market and budgetary constraints Moreso, the
profitability of the enterprise depends on its product market.
-The locus and distribution of power in the larger society: The relative distribution of power
among the actors in the larger society tends to a degree to be reflected within the industrial
relations system. Thus, the distribution of power within the industrial relations system is affected
by the distribution of power in the wider society. Dunlop is not concerned about the distribution
of power within the industrial relations system, nor with the relative bargaining powers among
the actors, nor their controls over the processes of interaction or rule setting, rather the reference
to the distribution of power outside the industrial relations system. Thus, the wider society is
seen as providing certain external influences and constraints but not as completely dominating
industrial relations system.
3) Rules
The actors in given contexts establish rules for the workplace and work community. Actors
establish rules that govern their own interactions. Dunlop referred to this as the “web of rules”
that governs the parties. There is no assumption by Dunlop that these rules are jointly made by
the actors. These rules he referred to as the substantive and procedural rules. Thus, the creation
of rules is seen to be the central aim of the industrial relations system. The substantive rules
pertain to issues involving wages/salaries, hours of work and other terms and conditions of
employment. On the other hand, the procedural rules relate to the rules governing discipline,
redundancy, settlement of disputes, periodicity of meetings, renewal of collective agreements
and the like. The rules of the industrial relations systems may be expressed in a variety of forms
such as the regulations and policies of the management hierarchy, the laws of any worker
hierarchy, the regulations, decrees, decisions, awards or orders of governmental agencies,
collective bargaining agreements and the customs and traditions of the work place and work
community. The rules may be written, an oral tradition or customary practice. Thus, the
establishment and administration of these rules is the major concern or output of the industrial
relations sub-system of industrial society.
4) Ideology
Ideology connotes a set of ideas and beliefs commonly held by the actors that helps to bind or
integrate the system together as an entity each of the actors in an industrial relations system may
be said to have its own ideology. Dunlop insists rather strongly that all these ideologies must be
sufficiently compatible or consistent to permit a common set of ideas which recognise an
acceptable role for each actor. Dunlop assumes that the ideology of IRs system must be one or
the same among the actors. As could be deduced from the above model, there are three sets of
independent variables in an industrial relations systems, the actors, the contexts and the ideology
of the system, while the rules represent the dependent variable or the output of the industrial
relations system.
Source: Farnham, D. & Pimlott, J. (1995). Understanding Industrial Relations. (5thed). London:
Cassell
Fig. 1. A Simple Model of an Industrial Relations System
-According to Dunlop Actors work within contexts (environment), developing a body of
rules, held together by an ideology.
Maintenance of harmonious industrials relations is on vital importance for the survival and
growth of the industrials enterprise. Good industrial relations result in increased efficiency and
hence prosperity, reduced turnover and other tangible benefits to the organization. The
significance of industrial relations can be summarized as below:
3. It improves morale of the work force: Good industrial relations, built-in mutual
cooperation and common agreed approach motivate one to contribute one’s best, result in
higher productivity and hence income, give more job satisfaction and help improve the
morale of the workers.
4. It ensures optimum use of scare resources: Good and harmonious industrial relations
create a sense of belongingness and group-cohesiveness among workers, and also a
congenial environment resulting in less industrial unrest, grievances and disputes. This
will ensure optimum use of resources, both human and materials, eliminating all types of
wastage.
5. It discourages unfair practices on the part of both management and unions: Industrial
relations involve setting up machinery to solve problems confronted by management and
employees through mutual agreement to which both these parties are bound. This results
in banning of the unfair practices being used by employers or trade unions.
Perhaps the main cause or source of poor industrial relations resulting in inefficiency and labour
unrest is mental laziness on the part of both management and labour. Management is not
sufficiently concerned to ascertain the causes of inefficiency and unrest following the laissez-
faire policy, until it is faced with strikes and more serious unrest. Even with regard to methods of
work, management does not bother to devise the best method but leaves it mainly to the
subordinates to work it out for themselves. Contempt on the part of the employers towards the
workers is another major cause. However, the following are briefly the causes of poor industrial
relations:
1. Mental inertia on the part of management and labour;
5. Indiscipline;
6. Lack of human relations skill on the part of supervisors and other managers;
7. Desire on the part of the workers for higher bonus or / and the corresponding desire of the
employers to give as little as possible;
13. Retrenchment, dismissals and lock-outs on the part of management and strikes on the part
of the workers;
15. General economic and political environment, such as rising prices, strikes by others, and
general indiscipline having their effect on the employees’ attitudes.
1. Economic causes: Often poor wages and poor working conditions are the main causes
for unhealthy relations between management and labour. Unauthorized deductions from
wages, lack of fringe benefits, absence of promotion opportunities, faulty incentive
schemes are other economic causes. Other causes for Industrial conflicts are inadequate
infrastructure, worn-out plant and machinery, poor layout, unsatisfactory maintenance
etc.
2. Organizational causes: Faulty communications system, unfair practices, non-
recognition of trade unions and labour laws are also some other causes of poor relations
in industry.
3. Social causes: Uninteresting nature of work is the main social cause of poor Industrial
relations. Dissatisfaction with job and personal life culminates into Industrial conflicts.
4. Psychological causes: Lack of job security, non-recognition of merit and performance,
poor interpersonal relations are the psychological reasons for unsatisfactory employer-
employee relations.
5. Political causes: Multiple unions, inter-union rivalry weaken the trade unions. Defective
trade unions system prevailing in the country has been one of the most responsible causes
for Industrial disputes in the country.
-IR is essentially pluralistic in outlook, in that it covers not only the relations between employer
and employee (the individual relations) but also the relations between employers and unions and
between them and the State (collective relations). IR theory, practice and institutions traditionally
focus more on the collective aspect of relations. This is evident from the central place occupied
by labour law, freedom of association, collective bargaining, the right to strike, employee
involvement practices which involve unions, trade unionism and so on.
- HRM deals with the management of human resources, rather than with the management of
collective relations. There is of course a certain measure of overlap. Individual grievance
handling falls within the ambit of both disciplines, but dispute settlement of collective issues
more properly falls within the scope of IR. Policies and practices relating to recruitment,
selection, appraisal, training and motivation form a part of HRM. Team-building,
communication and cooperation, though primarily HRM initiatives, have a collectivist aspect.
Thus joint consultative mechanisms are as much IR initiatives, which may (as in Japan)
supplement collective bargaining. But IR has not, in regard to team-building for instance,
developed any techniques or theories about how to achieve it; in fact, it is not a focus of attention
because it implies a potential loyalty to the enterprise through the team and is seen as conflicting
with loyalty to the union.
- IR has a large component of rules which govern the employment relationship. These rules may
be prescribed by the State through laws, by courts or tribunals, or through a bipartite process
such as collective bargaining.
-HRM differs in this respect from industrial relations in the sense that it does not deal with such
procedures and rules, but with the best way to use the human resource through, for example,
proper selection and recruitment, induction, appraisal ,training and development, motivation,
leadership and intrinsic and extrinsic rewards. Thus "at its most basic HRM represents a set of
managerial initiatives Four processes central to a HRM system - selection, appraisal, rewards and
development - leave only limited room for IR as a central element in the human resource system.
"Based on theoretical work in the field of organizational behaviour it is proposed that HRM
comprises a set of policies designed to maximise organizational integration, employee
commitment, flexibility and quality of work. Within this model, collective industrial relations
have, at best, only a minor role."
- A discernible trend in management is a greater individualisation of the employer-employee
relationship, implying less emphasis on collective, and more emphasis on individual relations.
This is reflected, for instance, in monetary and non-monetary reward systems. In IR the central
monetary reward is wages and salaries, one of its central themes (given effect to by collective
bargaining) being internal equity and distributive justice and, often, standardisation across
industry.
- HRM increasingly places emphasis on monetary rewards linked to performance and skills
through the development of performance and skills-based pay systems, some of which seek to
individualise monetary rewards (e.g. individual bonuses, stock options, etc.). HRM strategies to
secure individual commitment through communication, consultation and participatory schemes
underline the individualisation thrust, or at least effect, of HRM strategies. Though much of
HRM is directed at the individual,"at the same time there is a parallel emphasis on team work,
whether in the form of quality circles or functional flexibility, and above all, on the individual's
commitment to the organization, represented not just as the sum of the individuals in it, but
rather as an organic entity with an interest in survival. The potential conflict between
emphasizing the importance of the individual on the one hand, and the desirability of cooperative
team work and employee commitment to the organization, on the other, is glossed over through
the general assumption of unitarist values ..: HRM stresses the development of a strong corporate
culture -not only does it give direction to an organization, but it mediates the tension between
individualism and collectivism, as individuals socialised into a strong culture are subject to
unobtrusive collective controls on attitudes and behaviour."
- Some of the tensions between IR and HRM arise from the unitarist outlook of HRM (which
sees a commonality of interests between managements and employees) and the pluralist outlook
of IR (which assumes the potential for conflict in the employment relationship flowing from
different interests). "It is often said that HRM is the visual embodiment of the unitarist frame of
reference both in the sense of the legitimation of managerial authority and in the imagery of the
firm as a team with committed employees working with managers for the benefit of the firm."
How to balance these conflicting interests and to avoid or to minimize conflicts (e.g. through
promotion of negotiation systems such as collective bargaining, joint consultation, dispute
settlement mechanisms within the enterprise and at national level in the form of conciliation,
arbitration and labour courts) in order to achieve a harmonious IR system is one central task of
IR.
- The individualization of HRM, reflected in its techniques which focus on direct employer-
employee links rather than with employee representatives, constitutes one important difference
between IR and HRM. It has been observed that:"The empirical evidence also indicates that the
driving force behind the introduction of HRM appears to have little to do with industrial
relations; rather it is the pursuit of competitive advantage in the market place through provision
of high-quality goods and services, through competitive pricing linked to high productivity and
through the capacity swiftly to innovate and manage change in response to changes in the market
place or to breakthroughs in research and development ... Its underlying values, reflected in
HRM policies and practices would appear to be essentially unitarist and individualistic in
contrast to the more pluralist and collective values of traditional industrial relations."
How does HRM more specifically challenge IR and trade unions, though HRM is not per se
anti-union and its central themes are not necessarily inconsistent with unionism ? First,
HRM does not focus, as does IR, on collective bargaining, which is a central institution in IR.
However, collective bargaining should not be understood only in the narrow sense of negotiation
of terms and conditions of employment leading to a formal agreement. It should be viewed as a
process, and as including all mechanisms introduced to arrive at a consensus on matters affecting
the two social partners, even if they do not result in formalised agreements. If viewed in this
way, it reduces the conflict between HRM and IR within this area. A second area in which HRM
is said to pose a challenge to unions is on the issue of flexibility- critical in HRM but
traditionally absent as a factor in IR where a degree of standardisation for purposes of internal
equity has been an objective of unions and of IR. Here the scene is undergoing considerable
change. There is today a major thrust towards achieving flexibility in the labour market on
matters such as functions, working time, pay and types of contracts. Unions are being compelled
to 'participate' in these changes as an alternative to being marginalized. The trend towards greater
decentralization of collective bargaining has compelled viewing issues more from a workplace
perspective. It has provided an opportunity for unions in countries with a high rate of
unionization to be involved in issues other than wages and related ones, such as technology
introduction, new work processes and organization, It involves, on the one hand, the willingness
of employers to deal with unions on such matters (which they have to be willing to do in high
union-density enterprises), and on the other the willingness of unions to cooperate on legitimate
measures to achieve competitiveness -especially where the employees themselves are willing to
do so -and to adapt to the realities of the workplace. A third - and perhaps the principal challenge
- emanates from employee loyalty and commitment, which are central objectives of HRM. The
issue here is whether dual allegiance is possible i.e. commitment to the goals and values of the
organization, and to contribute to its success on the one hand, and commitment to the trade union
on the other. It is at this point that IR becomes a critical factor. In principle there should be no
antithesis, because trade unionism need not (and should not) be conflictual in approach and
attitude. Much of the empirical evidence drawn from the USA indicates that in a workplace with
a cooperative IR system dual loyalty is possible, but that it is not possible in one where a
cooperative climate is absent or minimal. In some of the larger unionised corporations in Japan,
this conflict of loyalty is less felt.
Traditional IR and trade unionism can be challenged in other ways - that is, other than through
anti-union activity. Downsizing the labour force as a HRM initiative to achieve competitiveness
and offering monetary incentives to employees to improve productivity could create IR tensions,
especially if the union has not been involved in the process. A similar result may occur when an
employer, without seeking to dismantle existing IR practices, establishes other mechanisms and
practices such as direct communication and consultation systems, small group activities,
employee share option schemes and so on without involving the union.
The unitarist approach of HRM and the pluralist tradition of IR, though regarded by some as
incompatible, are not regarded in the same light by others. There are three issues involved
here .The first is whether the pursuit of HRM policies such as employee involvement and
commitment, two-way communication and small group activities, and the integration of HRM
policies in corporate objectives and strategies pose a challenge to central IR institutions such as
collective bargaining and to unionism. The second is whether such HRM policies are pursued
consciously as a union avoidance strategy. The third is whether HRM and IR are necessarily
incompatible or whether there is scope for their co-existence. David E. Guest points out that
HRM, which is an American concept, "finds its fullest expression in a number of well-known
and successful American companies." He points out that research indicates that the established
model of HRM is often found in a non-union company. Referring to the research done by one
writer, he states:
"He notes that in almost all the companies he looked at the HRM policies came first, often
encouraged by the values of a powerful CEO, preceding any considered non-unionism. In many
cases, remaining non-union has subsequently become a policy goal. On the basis of the
companies he studied, this has a number of cost implications. Personnel policies must be
sufficiently good and sufficiently integrated and reinforced by line management practice to avoid
giving grounds for union organising. Foulkes found that most of the companies he studied paid
above average rates. They also provided mechanisms for individual expression of grievances and
were likely to monitor reactions to personnel policies through the communication system and the
use of attitude surveys. All of these practices are to be found in a company like IBM which
provides the best known model of HRM but which is also what Bassett refers to as the 'ultimate
non-union company'."This does not mean that HRM is anti-union or that unions have no role to
play in HRM, but rather that effective HRM policies and practices are sometimes either used as a
union avoidance strategy or else it can have that effect. Three very influential scholars have put
forward the view that there is a role for union involvement in HRM, and point to companies
(such as the General Motors Saturn plant) which have involved unions in the move towards
HRM, and by so doing unions have facilitated this move. Such an involvement, if it is to take
place, would require, in many countries, a substantial change of attitude on the part of both
management and unions. David E. Guest remarks however: "If a new set of practices can be
introduced, it is not clear what role is left for the union. The most likely one is that of policing
management practices and dealing with grievances which seem almost inevitable with repetitive
production line work and persisting pressures to increase productivity. By implication,
management is not practising effective HRM and the door is left open for the unions to play a
role." At the annual meeting of European employers' organizations, held in Bordeaux in 1993 the
compatibility of new trends in HRM with the traditional IR systems was considered. The
following summary is indicative of the growing attitude of employers in many industrialized
market economies:"The key to competitiveness is quality. And quality depends more on the
commitment of individuals than on their acquired technical skills; more on the way these
individuals behave and their team spirit than on the passive execution of orders received.
Regulations - be they internal to the enterprise or imposed by the legislator - plague innovation
and have a negative effect on motivation .Good human resource management lies in the
behaviour of each employee within an enterprise ... It applies to individual men and women ...
The classic approach to industrial relations is entirely different, with its peculiarity being
collective bargaining - which, by definition, does not consider the individual but the mass. The
status of a worker is defined by a few general criteria, such as his professional category and
possibly his seniority and his age. Remuneration, for example, is calculated on the basis of a few
simple elements, which do not take into consideration personal behaviour and individual
performance. Work provided is considered purely from the quantitative angle. The future of
collective bargaining, therefore, depends on the extent to which it can take into account the
demands for individualization which modern methods of human resources management imply.
This should not of course lead to arbitrariness....... Legislation and regulation imposed by the
State should also leave a sufficient margin of flexibility to allow for adaptation.
WORKERS COMMITTEE
In the interests of good order it is desirable that the Workers Committee should have its own
Constitution so that all members of the Workers Committee and the employees they represent
know exactly where they stand and what their parameters are.
-It is covered in the Labour Act Cap 28:01 part 6 sections 23-26
2 Objectives
The objectives of the Workers Committee should include –
a) To act as a direct link and means of communication between management and employees at
shop floor level;
b) To provide a means for the presentation of and discussion with management of employees
requirements and grievances;
c) To promote stability and good employee / management relationships and to encourage the
settlement of differences and disputes by conciliatory methods;
d) To promote productivity by generating a stable and good atmosphere within the company and
especially within the working environment;
e) To promote the interests of the employees whom they represent by maintaining regular contact
with them;
f) To ensure that if a fellow worker seeks their advice in respect of any grievance or disciplinary
matter that at least one member of the committee is available to render such advice and
assistance as may be required;
g) To cooperate with the established trade union in ensuring where applicable that the industrial
agreement or the industrial regulations for the industry are observed to the mutual benefit of all
employees and management
Employees shall be entitled to reasonable facilities to communicate with each other and
meet together during working hours at their place of work
The employer shall provide the relevant names and particulars of all employees employed
by her/him.
To recommend collective job action to workers and select some members to represent
employees in Works council
It may be necessary in cases of large establishments for each department to have its own
subcommittee, the chairman of which could be the department’s representative on the main
Workers Committee. How the members of each subcommittee are elected is a matter for the
members of the department itself to decide. It would be desirable however, to have the members
of the subcommittees elected democratically. The purpose of forming these subcommittees is
essentially to ensure that the views, opinions, likes and dislikes of all employees are known to
the Workers Committee. The subcommittee provides a means of the Workers Committee
reporting back to the employees in their constituencies on the results of their negotiations with
management.
Members of the Workers Committee and subcommittee shall not be favoured (with the exception
of the provision in paragraph 6) or prejudiced in any way in the pursuit of their responsibilities as
members of the committee.
4 Elections
Elections by secret ballot should be held once every twelve months at least two months before
the anniversary date of election of the current Workers Committee / subcommittee
Any employee who has twelve months or more service in the company should be eligible for
election.
Any member of the Workers Committee may resign if he so desires but whenever possible it is
suggested that he should give a month's notice. Any vacancy which may be created on the
Workers Committee by resignation, termination of service with the company, or any reason
whatsoever, should be filled as soon as possible by a by-election in the constituency / department
from which the vacancy has occurred
g) The avoidance of disputes and other acts which are not conducive to productivity or good
relationships
i) The explanation and clarification of work place rules and regulations to co-workers and, where
applicable to wives and families of employees
Members of the Workers Committee should have reasonable access to heads of department and
management. Should this necessitate leaving the job in hand or the normal work site, prior
permission should be obtained from the individual's immediate supervisor either directly in
charge of him or at the site.
It is possible that some if not all members of the Workers Committee and Workers
subcommittees may require some training and guidance in the conduct of meetings, taking of
minutes etc. Management should be prepared to assist if required to do so in providing training
and guidance.
Works council
Def: a council composed of employer and employees convened to discuss matters of common
interest concerning a factory, plant, business policy, etc., not covered by regular trade union
agreements.
-Are institutionalized bodies for representative communication between a single employer
("management") and the employees ("workforce ") of a single plant or enterprise ("workplace ").
There are 3 types of works council:
-Consultative councils are set up to improve communication between management and workers
through exchange of information and through consultation, in order to facilitate cooperation in
production and thereby enhance the competitive performance of the enterprise or plant. Unlike
paternalistic councils, the main function of which is "political," consultative councils are put in
place primarily for economic purposes—in the belief that there are a range of production-related
issues on which employers and workforces may cooperate to mutual benefit. While collective
representation of workers is assumed to facilitate such cooperation, representation in the form of
collective bargaining is seen as unable to raise the relevant issues, or as distorting them by
placing them in an "adversarial" context. As a second channel of industrial relations
supplementing collective bargaining, consultative councils respond to employer interests in
worker "involvement" and to worker interests in the competitiveness of the firm that employs
them and, perhaps, in an intrinsically rewarding utilization of their skills.
-Representative councils are typically established through collective agreement or legislation
giving the entire workforce of a plant or enterprise (again, unionized or not) some form of
institutionalized voice in relation to management. Representative councils enable workers to
assert distributional or general interests that the employer would not be willing to gratify for
paternalistic or economic reasons alone. As a second-channel institution existing alongside
unions and collective bargaining, they reflect a belief that workers have workplace-based
interests that fail to be sufficiently represented by unions and collective bargaining and that
require some form of worker "participation “in management in order to be realized. In this sense,
the rationale for their establishment is "industrial democracy." While consultative councils may
be seen as supplementing the functional organization of the firm, representative councils—like,
in a different way, paternalistic councils—are part of a firm's political system. Characteristically,
representative councils have or claim rights, not just to information and consultation, but also to
co-determination—or use other ways of intervening in the exercise of managerial prerogative, in
pursuing worker interests. Of course, ideal types rarely exist in pure form. All works councils
have at least some representational function. And all, except possibly the most radical
representative councils, serve some productivist consultative purposes. Indeed, the main problem
in understanding works councils is to disentangle, for different historical periods and national
contexts, their often densely interwoven paternalistic, consultative, and representative functions.
-Works councils represent the workforce of a specific plant or enterprise, not of an
industrial sector or a territorial area. Their counterpart is a single employer, not an employers'
association. Industry wide councils, like wage councils in the United Kingdom, are thus not
works councils in the sense of the definition used here.
-Works councils are not "company unions."
-Works councils may (the usual case) or may not have legal status. In the limiting case, they
may be set up unilaterally or voluntarily by the employer, with the employer retaining the option
of dissolving them if they do not perform to—paternalistic—expectation. Works councils may
also be created or regulated by industrial agreement between unions and employers' associations
at the sectoral or national level.
All works council laws give councils consultation rights over some decisions. For example,
management may be required to consider council suggestions about plant closing before
proceeding with any action, although final authority still resides with management. In Germany
councils have additional co-determination rights over some issues which require agreement by
both aides before any action can be taken.
It is covered in the Labour Act Cap 28:01 part 6 section 25A and is defined as a council of an
equal number of representatives of an employer and representatives drawn from workers
committee.
-quorum is 50% and decisions are passed by vote. Management should provide a suitable venue
for the meetings
-Chairperson of the council is appointed by the management while secretary is appointed from
the workers committee. There shall be an equal number of members representing the
organization and the workers committee.
-It is intended for internal communication to deal with matters specific to that company and it is
not a forum for sector wide issues and so TUs do not have a right to attend WC meetings.
Functions of a WC
-To focus the best interest of the establishment and employees on the best possible use of its
human, capital, equipment and other resource so that maximum productivity and optimum
employment standards may be maintained.
-To foster, encourage and maintain good relations between employers and employees at all levels
and to understand and seek solutions to their common problems.
-To promote the general and common interest including the healthy, safety and welfare of both
the establishment and its workers in general to promote and maintain the effective participation
of employees in the establishment and to secure the mutual cooperation and trust of employees,
employers and any registered TU in the interest of industrial harmony.
TRADE UNIONS
Labour Act Cap 28:01 defines it as any association or organization formed to represent or
advance the interests of any employee or class thereof in respect of their employment.
South African Labour Relations Act defines it as any number of workers in a particular
enterprise, industry, trade or profession who are united for the purpose either alone or with others
with the objective of organizing relations between them some of them and their employers or
some of their employers in that enterprise, industry, trade or profession.
-a combination, whether temporary or permanent, formed primarily for the purpose of regulating
the relations between workmen and employers or between workmen and workmen, or between
employers and employers, or for imposing restrictive condition on the conduct of any trade or
business, and includes any federation of two or more trade unions. This definition is very broad
as it includes associations of both the workers and employers and the federations of their
associations.
-TUs may be seen as a social response to the advent of industrialization and capitalism
Functions and roles of Trade Unions:
To improve working conditions and terms of employment.
When the unions fail to achieve these aims by the method of collective bargaining and
negotiations they adopt an approach and put up a fight with the management in the form of
strike, boycott, gherraos, etc. Hence, these functions of the trade unions are known as militant or
fighting functions. Thus, the militant functions of trade unions can be summed up as:
• To achieve higher wages and better working conditions
• To raise the status of workers as a part of industry
• To protect workers against victimization and injustice
Fraternal functions
• Another set of activities performed by trade unions aims
- help to its members in times of need, and improving their efficiency
- try to promote and encourage of cooperation and promote friendly industrial relations
- multiply education and culture activities among their members
- take up welfare measures for improving the morale of workers and generate self confidence
among them
- undertake many welfare measures for their members, e.g., school for the education of children,
library, reading-rooms, in-door and outdoor games, and other recreational facilities
- undertake publication of some magazine or journal
- depend on the availability of funds, which the unions raise by subscription from members and
donations from outsiders
- To take up welfare measures for improving the morale of workers
- To generate self confidence among workers
- To encourage sincerity and discipline among workers
- To provide opportunities for promotion and growth
-To protect women workers against unfairness
-arrange for legal assistance to its members, if Necessary
TYPES OF TUs
1) Craft Unions
2) Industrial Unions
3) General Unions
-It combines all groups of workers across a range of industries ie it embraces all workers
irrespective of their industry, craft or occupation.
1. Dunlop's Contribution
2. Webb’s Non-Revolutionary or Industrial Democracy Theory
3. Revolutionary or Classless Theory of Karl Marx
If we are to study unionism, we shall study not a narrow piece of reality, but society as a whole
from one particular view. Unionism affects not only production, but also the establishment rights
(employers’ right to run the business as he satisfy, workers’ right to work, where, when, for
whom and for what he entertain.), ethical standards, distribution of profits and wages, law and
order in the matter of social welfare
- Revolutionary Unionism
Believe in direct action and replacing of existing order, class aware rather than trade-aware
Collective Bargaining
Good relations between the employer and employees are essential for the success of industry. In
order to maintain good relations, it is necessary that industrial disputes are settled quickly and
amicably. One of the efficient methods of resolving industrial disputes and deciding the
employment conditions is Collective Bargaining. Industrial disputes essentially refer to
differences or conflicts between employers and employees. According to Makings (2002)
Collective bargaining is a process of negotiation and bargaining entered into by employees and
another body and it is covered in the Labour Act Cap 28:01 part 10
It is not equivalent to collective agreements because collective bargaining refers to the
process or means, and collective agreements to the possible result, of bargaining. There
may therefore be collective bargaining without a collective agreement.
It is a method used by trade unions to improve the terms and conditions of employment
of their members, often on the basis of equalizing them across industries.
It is a method which restores the unequal bargaining position as between employer and
employee.
Where it leads to an agreement it modifies, rather than replaces, the individual contract of
employment,, because it does not create the employer-employee relationship..
The process is bipartite, but in some developing countries the State plays a role in the
form of a conciliator where disagreements occur, or may intervene more directly (e.g..
by setting wage guidelines) where collective bargaining impinges on government
policy..
-Employers have in the past used collective bargaining to reduce competitive edge based on
labour costs..
-Support of the labour administration authorities.
-Both parties to bargain in good faith.
-Well Informed managers and workers
Parties to Collective Bargaining Process
trade unions
employers' organisations
management
Colossians 4 vs 1 says: “Masters (employers) give unto your servants (employees) that
which is just and equal, knowing that you also have a Master in heaven.”(Emphasis
added).
James 5 vs 4 says: “ Behold the hire of the labourers who have reaped down your
fields, which is of you kept back by fraud, crieth, and the cries of them which have reaped
are entered into the ears of the Lord of sabaoth.”
Amos 4 vs 1 says : “ Hear this word, you cows of Bashan, that are in the mountain of
Samaria, which oppress the poor, which crush the needy, which say to their masters,
Bring, and let us drink.”
According to Walton and McKersie the process of Collective Bargaining consists of four types
of activities:
1) Distributive Bargaining: It involves haggling over the distribution of surplus. Various
activities involved in this activity are wages, salaries, bonus and other financial issues. In this
activity, both the parties face a win/lose situation.
2) Integrative Bargaining: Also known as Interest-Based Bargaining, issues which are not
damaging to either party are discussed. It is a negotiation strategy in which both the parties
collaborate to find a win-win solution to their problems. This strategy focuses on developing
mutually beneficial agreements based on the interests of the disputants. Issues brought up may be
better job evaluation procedures, better performance appraisal methods or training programs etc.
3) Attitudinal structuring: Attitudinal structuring refers to efforts by negotiators to shape their
opponents' perceptions about the nature of the issues to be negotiated. By cultivating an
atmosphere of friendliness, mutual respect, trust, and cooperation, negotiators can encourage
their opponents to view issues largely in integrative terms and participate in joint problem
solving. This activity involves shaping and reshaping some perceptions like trust/distrust,
friendliness/hostility, co-operative/non-cooperative between the labour and management. When
there is a backlog of bitterness between both the parties, attitudinal structuring is required to
maintain smooth and harmonious industrial relations.
-basic wage
- wage differentials
-overtime rates
-minimum wages
-pension funds
-paid holiday
- Healthy insurance
-dismissal pay
3) Institutional Issues
-union security
-check off procedures
4) Administrative Issues
-Seniority
-technological changes
-job security
-training
Negotiation
Negotiated Agreement
Ratification of Agreement
Implementation of Agreement
1. Preparation for Negotiation: Preparation for negotiation in Collective Bargaining is as
important as the negotiation process itself. Up to 83% of the outcomes are influenced by pre-
negotiation process. Such preparation is required for both management as well as the union
representatives. From the management’s point of view, pre-negotiation preparation is required
as:
Draft for likely decisions should be prepared in advance so that the final agreement draft can
be prepared as soon as the negotiation process is over. From the employees’ side also,
preparation is required for the following reasons:
The union should collect the information related to the financial position of the company and
their ability to pay the employees.
The union must also be aware of the various practices followed by other companies in the
same region or industry.
The union must assess the attitudes and expectations of the employees over concerned issues
so that the outcome of negotiations does not face any resistance from them.
2. Identifying issues for Bargaining: The second step in bargaining process is the determination
of issues which will be taken up for negotiations. The different types of issues are:
Wage-related issues: Include wage or salary revision, allowance for meeting increased cost
of living like Dearness Allowance (D.A), financial perks, incentives etc.
Supplementary economic benefits: These include pension plans, gratuity plans, accident
compensation, health insurance plans, paid holidays etc.
Administrative issues: Include seniority, grievance procedures, employee health and safety
measures, job security and job changes.
The wage and benefits issues are the ones which receive the greatest amount of attention on the
bargaining table.
3. Negotiation: When the first two steps are completed, both parties engage in actual negotiation
process at a time and place fixed for the purpose. There a re two types of negotiations:
Boulwarism: In this method, the management themselves takes the initiative to find out
through comprehensive research and surveys the needs of the employees. Based on the
analysis of the findings, the company designs its own package based on the issues to be
bargained. Thereafter, a change is incorporated only when new facts are presented by the
employees or their unions.
Continuous Bargaining: Involves parties to explore particular bargaining problems in
joint meetings over a long period of time, some throughout the life of each agreement.
The basic logic behind this method is that all persistent issues can be addressed through
continuous negotiation over a period of time. The success of negotiations depends on the
skills and abilities of the negotiators.
4. Initial negotiated agreement: When two parties arrive at a mutually acceptable agreement
either in the initial stage or through overcoming negotiation breakdown, the agreement is
recorded with a provision that the agreement will be formalized after the ratification by the
respective organizations.
6. Implementation of agreement: Signing the agreement is not the end of collective bargaining,
rather it is the beginning of the process when the agreement is finalized, it becomes operational
from the date indicated in the agreement. The agreement must be implemented according to the
letter and spirit of the provisions made by the agreement agreed to by both parties. The HR
manager plays a crucial role in the day-to-day administration implementation of the agreement.
Rates of remuneration and minimum wages for different grades and types of occupations
Deductions which an employer may make from employees' wages, including deductions
for membership fees and union dues, and deductions which an employer may be required
or permitted by law or by order of any competent court to make
Methods of calculating, or factors for adjusting rates of pay, and the dates, times and
modes of payment
All issues pertaining to overtime, piece-work, periods of vacation and vacation pay and
constraints thereon
The demarcation of the appropriate categories and classes of employment and their
respective functions
The number of hours of work and the times of work with respect to all or some of the
employees
The maintenance of and access by the parties to, records of employment and pay.
However, collective bargaining is not the exclusive privilege of trade unions in the Labour Act.
Workers committees may also bargain at company level.
The law
The law supports the creation of workers committees in enterprises where less than 50% of
workers are unionized. These committees are supposed to work together with representatives of
management to discuss workplace issues in a Works Council, which have to be approved by the
Labour minister.
Their role is to negotiate instant concerns of the workers while trade unions are supposed to
concentrate on more long term issues, such as wages.
Though the Labour Act recognises the right to collective bargaining, the 2005 Labour
Amendment Act in sections 25, 79, 80 and 81 gives the Minister of Labour the power to approve
collective bargaining agreements, register and publish them.
The act also states that collective bargaining agreements should provide for measures to contest
violence at the workplace. However, this is seen by trade unions as a way to criminalize striking.
Rates of remuneration and minimum wages for different grades and types of occupations
Deductions which an employer may make from employees' wages, including deductions
for membership fees and union dues, and deductions which an employer may be required
or permitted by law or by order of any competent court to make
Methods of calculating, or factors for adjusting rates of pay, and the dates, times and
modes of payment
All issues pertaining to overtime, piece-work, periods of vacation and vacation pay and
constraints thereon
The demarcation of the appropriate categories and classes of employment and their
respective functions
The number of hours of work and the times of work with respect to all or some of the
employees
The requirements of occupational safety
The maintenance of and access by the parties to, records of employment and pay.
Collective bargaining has collapsed mainly due to the crisis period of 1997 – 2008, a
period characterized by:
State repression and restrictive laws like POSA
State interference in court of law procedures, since some disputes were
labeled political.
Delays in delivering judgments by courts of law
Reliance on the courts rather than CB means the system has collapsed
A weak and fragmented trade union movement has also led to collapse of CB as they fail
to confront the employers
Hyperinflation (pre 2008) and the impact of the financial crisis that affected
most quarters of the world economies
CB is also hard in a de industrializing economy where rate of unemployment is more
than 90%
CB in Zimbabwe seems to be mainly centred more on wage negotiation currently.
IR SEMINAR QUESTIONS
5. Discuss the role of the wider PEST environment in shaping the nature of
contemporary Industrial Relations.
8. Outline the key features of the Systems Approach and then evaluate the extent to
which it can help us understand Industrial Relations.
11. Examine the likely areas of conflict between Industrial Relations and Human
Resource Management.
12. ‘Workers Committee and Works Council pursue similar goals’ Discuss
13. Assess the utility of Works Council in solving industrial disputes in Zimbabwe.
14. Assess the main causes for the decline in Zimbabwe trade unions membership
since 2000.
15. To what extent is the long term decline of strike activity indicative of a broad
acceptance by employees of management agendas?
16. Explain why it may be misleading to equate low levels of strike activity with
industrial harmony
17. Examine the utility of Tannenbaum’s theory to the formation of Trade Unions in
Zimbabwe
18. Assess the relevance of Hoxie’s theory to the formation of Trade Unions.
20. Outline and evaluate the advantages and disadvantages that managers can
derive from Collective Bargaining.
21. ‘Collective Bargaining solves all the problems at the workplace’ Discuss
b. HIV/AIDS
c. Retrenchments
27. Examine the major challenges to collective bargaining in Zimbabwe since 2000