Industrial Relations Notes 26g25

Note to students: this is still work in progress. Its intention is just to guide you in your studies. It is required that you engage in wide research in the subject in order to be able to fully comprehend the many basic elements covered.

MODULE OUTLINE The Module: •

Explores on the nature of the employment relationship,

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Examines the different perspectives in analyzing Industrial Relations,

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Examines the different perspectives in analyzing the worker problem,

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Examines the roles of various parties in Industrial Relations,

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Explores on Industrial Relations dynamics in the 21st Century and key issues driving change in Industrial Relations.

AREAS OF STUDY Background to the study of Industrial Relations •

2

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Academic Study of I.R -

I.R defined

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The growth of I.R as a discipline.

The Employment Relationship -

Nature of the Employment Relationship,

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The Employment Contract (origins, types, elements etc.)

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The Concepts of Power, Conflict and Job Regulation.

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Implications on the study of Industrial Relations

Industrial Relations Perspectives -

Unitarism

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Pluralism

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Marxism

ACTORS IN INDUSTRIAL RELATIONS 4

Management -

Management defined

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Historical features of labour management

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The Managerial Prerogative

5

6

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Management Styles in Employment R/ships

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Management Control Strategies

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Contemporary issues in Management

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Management and Employers Organisations

Trade Unions -

Trade Unions defined

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Types of unions

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The rise and fall of trade unions

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Trade union Structure and democracy

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Contemporary Issues on Trade Unions

The State in Industrial Relations -

Forms of State Interventions

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The changing and future role of the State in Industrial Relations

INDUSTRIAL RELATIONS PROCESSES 7

8.

9.

10.

Negotiations •

Purpose of Negotiation

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Types of Negotiation

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Negotiation Strategies Collective Bargaining -

Definition

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Types of Bargaining

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Functions of Bargaining

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Management and Trade Union roles in bargaining

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Contemporary issues in Collective Bargaining

Industrial Action -

Functions

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Forms of Industrial Relations

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The Legal Framework of Industrial Action in Zimbabwe

I. R dynamics in Zimbabwe -

A historical of Industrial Relations in Zimbabwe

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Organisation of workers

FACTORS SHAPING I.R IN ZIMBABWE TODAY •

Globalisation

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Technology

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Flexibility

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The new H.R Agenda

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Social Dialogue

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The future of Industrial Relations and the study of HRM in Zimbabwe

Defining Industrial Relations •

Difficulties in defining the subject with precision

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Just like any other discipline, Industrial relations founded in the history of other disciplines including economics, sociology, psychology, history, engineering, law, religion, etc.

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Attempts made to define Industrial Relations included the works of Flanders (1968) on Job Regulation, Dunlop (1963) with systems approach, Bains and Clegg, Salamon 91998,2000), Hyman (1975), Bendix (2003) etc.

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Today Industrial Relations can be identified as Work Relations, Employee Relations, Employment Relations, and Labour Relations among others.

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Some of the definitions include the following: •

“…the study of industrial relations is the study of institutions of job regulation…” Flanders (1968)

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“…industrial relations refer to the study of processes of control over work relations…” Hyman (1975)

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“…Employee relations are the contemporary term for the field of study which analyses how the employment relationship between employers and employees is organized and practiced…’ Farnham (2002)

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“…Employee Relations are a set of human resource practices that seek to secure commitment and compliance with organisational goals and standards through the involvement of employees in decision making and by managerial disciplinary action…” Bratton and Gold (2003)

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“…the collective aspects of relationships between the workforce and management...” Blyton & Turnbull (1994)

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“…The study of rules governing employment together with the ways in which rules are changed interpreted and istered…” Clegg (1979)

The Employment Relationship •

This is an exchange relationship in the sense that the parties exchange or trade specific tangible and intangible elements.

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With regards to the tangibles, the employee offers his/her labour (from a hard point of view) which includes his/her skills, knowledge, abilities and experience among other things in return for a salary/ wage and the associated benefits.

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At the level of the intangibles, the employee offers their commitment, loyalty, subordination (from a soft point of view) with the expectation that the employer will offer job security (or in its absence, employability security), recognition, job satisfaction, opportunities for career advancement etc.

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This relationship may also be understood as the bedrock of conflicts because the divergence of interests between the parties to it.

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It is generally argued that the employer is much concerned with issues of controlling the relationship, whilst the employee is concerned with care, which, at a psychological level become the hub of industrial conflicts.

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Employer-worker relations are organised principally around the contract of employment

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This forms the background of the study of industrial relations

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A contract of employment begins when one party (the employee) offers to render their services of a defined nature in return for a fixed, or ascertainable form of remuneration, and the other party (employer) offers to remunerate for services rendered.

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Contract may or may not be written

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Breach of contract can lead to unfair labour practice or unfair dismissal

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Express agreement – are which are spelled out

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Implied will result from what is understood to have been the intention of the parties. This could be from the fact that its so obvious that it need not be stated

implied in every contract (Pitt, 2000) •

To pay wages if an employee is available for work

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To provide work in certain specified circumstances

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To co operate with employee in that employee will not be treated in a manner that will destroy mutual trust and confidence

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To take reasonable care for the reasonable care for the health and safety of the employee

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To be faithful to the employer and not engage in actions that cause conflict of interest

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To take reasonable care in the performance of his or he duties

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In the absence of express , “custom and practice” may help to define what constitutes the employment contracts. Custom and practice has to be reasonable – reasonable by fitting the “norms” of the industry in question

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Custom and practice should not be interpreted in a substantially different ways by different people

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Should be well known by all those whom it relates

Express of a Contract •

These are enunciated in Section 12 of the Labour Act (Duration, Particulars and Termination of Employment Contracts)

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Here it is provided that: “…Every person who is employed by or working for any other person and receiving or entitled to receive any remuneration in respect of such employment or work shall be deemed to be under a contract of employment with that other person, whether such contract is reduced to writing or not…” (refer to the Labour Act)

Sources of Contract •

Minimum Statutory Standards

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Express statements of the parties to the contracts

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Collective agreements

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Organizational rules

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Custom and practice

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Common law and duties of employers

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Common law and duties of employees

Psychological Contract •

It refers to the expectations of the employer and the employee that operate in addition to the formal contract of employment

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It has been defined by Rousseau (1994) cited by Hiltrop (1995:287) as “the understanding people have regarding the commitments made between themselves and their organisation.”

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It therefore, is concerned with each party’s perception of what the other party to the employment relationship owes them over and above that which may be specified in the contract of employment.

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The contract is not clear as to the content and because it is based on perceptions, it is not written down

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Mullins (1996) points out that there is a continuous process of balancing and explicit and implicit bargaining over the contract content and more over that the individual and the organisation may not be aware consciously of the contract “”. However, these affect their behavior and relationship.

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One of the aspects of the psychological contract that has gained prominence over the years is the traditional employee perception that the organisation promises a “job for life” (examples) in return for employee loyalty and commitment. This is still practiced if we take the case of local government, civil service and parastatals.

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Some jobs are fast changing in of nature and content hence driving a twist of the psychological contract for example, the changes in the banking sector. The coming in of IT to replace people has shifted people’s expectations and hence the psychological contract.

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Organisations now need managers that are less experienced, more commercially aware, more energetic, and they could be easily obtained, and retained, more cheaply than their predecessors.

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Research reviewed by Sparrow (2000) highlights the changing nature of the organisation of work and its implications on the psychological contract, e.g., experiences of redundancy, for example, are often viewed by the older workers as a violation of the

psychological contract, and are significantly related to their adoption of personal responsibility for their career development (Sparrow 2000) also issues of termination or grows of incapacitation, etc. •

Herriot and Pemberton (1995) argued that the psychological contract has moved from one that is relational- based on mutual trust and commitment- to one that is transactionalbased upon mutual instrumentality of the work- effort- reward bargain.

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It demonstrates a shift from focus on job security on the part of employees towards employability security.

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According to Hiltrop (1995:289) in the new type of psychological contract “there is no job security. The employee will be employed as long as s (he) adds value to the organisation and is personally responsible for finding new ways to add value. In return the employee has the right to demand interesting and important work has the freedom and resources to perform it well, receives extra pay that reflect his/her contribution and gets the experience and training needed to be employable here or elsewhere.” Characteristics of the ‘old’ and new psychological contract Characteristic

Old

New

Focus of the E/R

Security and long term Employability to cope with careers in the company

changes with this and future employment

Format

Structured and predictable

Flexible and unpredictable

Duration

Permanent

Variable

Underlying principle

Influenced by tradition

Drive by market forces

Intended output

Loyalty and commitment

Value added

Employer’s

key Fair pay for a fair day’s High pay for job performance

responsibility Employee’s

work key Good

performance

in Making a difference to the

responsibility

present job

organisation

Employer’s key input

Stable income and career

Opportunities

for

development Employee’s key input

Time and effort

Knowledge and skills Source- Hiltrop (1995:290)

self

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So the contract is based on the theory of reciprocation/ exchange theory by Cox and Parkinson (1999), where individuals make an investment with expectations that an appropriate reward will be forthcoming.

1.

Discuss the implications for the conduct of the employment relationship when the

psychological contract is broken. 2.

How may you as a Human Resource Manager contribute towards the management of a psychological contract in a company which is in the FMCG industry

Industrial Relations Perspectives (Fox, 1973) •

Unitarism •

It assumes that an organisation is or should be, an integrated group of people with a single authority/loyalty structure, and a set of common values, interests and objectives shared by all of the organisation.

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The management prerogative (that is, the right for management to manage and make decisions) is regarded as legitimate and rational and accepted and any opposition to it (whether formal or informal, internal or external) is seen as irrational.

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The underlying assumption therefore is that, the organizational system is in basic harmony and conflict is unnecessary and exceptional.

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Conflict, when it does arise, is believed to be primarily frictional rather than structural in nature and caused by such factors as clashes of personalities within the organisation, poor communication by management of its plans and decisions, lack of understanding on the part of the employees that management decisions and actions are made for the good of all in the organisation.

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The use of coercion (including law) is legitimate in the use of managerial power. In other words, management does not peceive a need given the legitimacy of its prerogative, to obtain consent of employees to decisions or changes.

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At the same time, management concentrate on a Human Relations Approach improving interpersonal relations and communications within the organisation) or make appeals to the loyalty of employees.

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Trade unions are seen to be an historical anachronism, and with the coming of HRM, are no longer necessary to protect employees interests.

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Even though management are forced to accept the existence of trade unions in the determination of and conditions of employment (market leaders), they are certainly reluctant to concede any role for trade unions in the exercise of authority and decision making and decision making within the organisation (managerial relations).

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They (trade unions) are most likely to be seen as little more than a political power vehicle used by militant minority in order to subvert the existing and legitimate political, social and economic structure of society Conclusion

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The Unitarist system has one source of authority and one focus of loyalty, which is why it suggests the team analogy

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What pattern of behaviour do we expect from of a successful and healthily functioning team?

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We expect then to strive tly towards a common objective, each pulling his weight to the best of their ability (tits out).

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Each accepts his place and function gladly, following the leadership of one so appointed.

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There are no opposition groups/functions, and therefore no rival leaders within the team.

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Nor are they any outside it, the team stands alone, its owing allegiance to their own leaders but not o others.

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If the have an obligation of loyalty towards the leaders, the obligation is reciprocated, for it is the duty of the leader to act in such ways as to inspire the loyalty he demands.

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Morale and success are closely connected and rest heavily upon personal relationships.

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Most of us will agree that the unitary perspective represents a vision of what industry ought to be like which is widespread among employers, top managers and substantial sections of outside public opinionThe vision is closest to a professional football team, for her, combined with the team structure and its associated loyalties; one finds a substantial measure of managerial prerogative at the top in the persons of the manager, trainer or board .

• •

Team spirit and undivided management authority co-exist for the benefit of all.

Pluralism •

The perspective views society as being post-capitalist in nature, a relatively wide distribution of authority and power within the society, a separation of ownership from management, a separation, acceptance and institutionalization of political and industrial conflict.

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Organisations are viewed as coalition of individuals with contrasting interests, objectives and leadership. According to Fox (1973), the organisation is multistructured and competitive in of groupings, leadership, authority and loyalty and this gives rise to a complex of tensions and competing claims which have to be managed in the interests of maintaining a viable collaborative structure.

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Conflict is perceived to be both rational and inevitable. It results from individual and organizational factors (structurally determined) and different roles of managerial and employee groups. (Management objectives include efficiency, productivity and profitability whilst for employees working conditions, better pay, job and employability securities are crucial).

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Because of such divergence of interests, the issue of power and authority to control the production process become fundamental. The resolution of conflict is characterized by the need to establish acceptable procedures and institutions which achieve collaboration through comprehensive, codified systems and negotiated regulation.

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There has to be an acceptance of the need for shared decision making, the legitimacy of management’s role is not automatic but must be sought by and maintained by management itself ‘management by consent” rather than “management by right”.

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Trade unions are seen to provide a countervailing power of management and therefore are seen as legitimate.

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Such legitimacy, according to Fox (ibid) is founded not just on industrial power or management acceptance, but on social values which recognize the right of interest groups to combine and have an effective voice in their own destiny.

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Marxism •

Concentrates on the nature of the capitalist society surrounding organisations, where Hyman (1975) argues, “the production system is privately owned…., profit is the key influence on Company policy…., and control over production is enforced downwards by the owner’s managerial agents…”

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Marxist general theory argues that: (1) class/group conflict is the source of societal change, without it, the society will stagnate (2) class conflict arises primarily from the disparity in the distribution of, and access to, economic power within society – the principal disparity being between those who own capital and those who supply their labour (3) the nature of the society’s social and political institutions is derived from this economic disparity and reinforces the position of the dominant establishment group, for example, through differential access to education, the media, employment in government and other establishment bodies.

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Social and political conflict in whatever form is merely an expression of the underlying economic conflict within the society.

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It is seen as a reflection of not just organizational demands and tensions, but the economic and social divisions within society between those whose who own and manage means of production and those who have their labour for sale.

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Therefore it is continuous, unavoidable and synonymous with political and social conflict.

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Employers do not need to exercise their full industrial power by choosing plants and withdrawing their capital, the implicit threat that they have such power is sufficient to balance any direct collective power exercised by trade unions.

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The social and political institutions within society s the intrinsic position of management, employees thought eh influence of education and the mass media, become socialized into accepting the existing system and role of management.

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An attack on the institutions of job regulation provides only a limited temporary accommodation of the inherent and fundamental divisions within capitalist based work and social structure.

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Trade union growth becomes inevitable as a response to a system of capitalism.

Management •

Harbison and Myers (1959) give a general definition of management (i)

Management as a technical resource - which refers to management as those

having the functional expertise in the enterprise. (ii)

Management as a system of government, of authority - by which policy is

translated into effective action. (iii)

Management as an elite group - exercising power in society via family,

educational, political or professional links. • •

The planning, organizing, leading and controlling of resources to achieve organizational goals effectively and efficiently

Origins of Management • •

Employer’s rights are today generally exercised by managers Pollard attributed that the industrial revolution provides evidence of the origins of

management. •

Writers such as Braverman argue that initial managers were recruited from the family of business people

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This is necessary to keep control of business, but in the growing size of businesses nepotism was quickly replaced by merit

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This provides an insight into modern ownership and control and becomes the real

underlying factor in of management into the ranks of owners •

The managerial prerogative, which are the managements rights and functions are

asserted to derive property rights

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Managerial rights are the right to decide what to be done, when, where, and by

whom. •

Managers act as legal trustees to the owners of property

Managerial Prerogative

Management Control Strategies •

Is the process through which plans are implemented and objectives achieved by setting standards of measuring performance, comparing the actual performance against the target and then putting up corrective actions

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Strategies adopted by management are based on ways of thinking about the employment relationship

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They include a pluralist view which asserts that a potential conflict defines the employment relationship due to differences in the interests of the stakeholders

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Blighton and Turnbull (1998) forwarded that the employment relationship is founded on the principles of structured antagonism

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most of them enter the employment relationship not because they want but for economic reasons hence management control becomes important

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management devise ways of making people do what they want to do

Friedman (1977) •

talks of two types of strategies which managers use to exercise authority over labour power namely responsible autonomy and direct control

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Responsible Autonomy mobilizes labour power by giving employees an opportunity to have control over the work situation (being responsible citizens) in a manner that is beneficial to the whole organisation

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It includes such elements such as employee involvement and participation, delegation of authority and empowerment.

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Direct Control on the other hand involves close supervision of employees, a harsher regime of discipline characterized by threats of pay reduction or dismissal

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This approach owes much to Taylorism and Scientific Management which has some of the elements as reflected by Morgen (1986)

Helrigel and Slocum (1978) •

Identify 3 common strategies used by managers, that is •

Control through Organizational Structure

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Control through Recruitment and Training

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Control through Rewards and Punishment

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Control through Policies and Rules

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Control through budgets

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Control through machinery

Managerial Styles in an Employment Relationship Style

Characteristics

Traditional

Fire fighting approach, ER not important until there is trouble, Low pay, hostile unions, authoritarian, typical of small owner managed businesses

Paternalistic

Unions regarded as unnecessary because of employer’s enlightenment. Concentrating on getting employees to identify with business objectives

Consultative

Union participation encouraged through recognition. Problem solving informal approach to employee relations. Emphasis on two way communication

Constitutional

Emphasis is on formal agreements to regulate relationship between two powerful protagonists

Opportunist

Large Companies devolving ER to subsidiaries, no common approach emphasis on unit profitability

Trade Unions

Students should at the end of the lecture be able to: •

Define a trade union,

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Distinguish the types of trade unions citing examples,

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List and explain the functions of trade unions,

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Trace the genealogy of trade unions in Zimbabwe and Britain among other cases,

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for the factors that have led to the rise and fall of trade unions in Zimbabwe since the pre-independence period to date,

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Clearly demonstrate their understanding of the structure and organization of trade unions, citing local examples,

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Demonstrate understanding of trade union democracy and shortcomings thereof,

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Assess the contemporary issues on trade unions including the factors that are likely to influence the future of trade unions locally and abroad.

Definition of Trade Unions •

The Webbs (1920:11) define a trade union as, “a continuous association of wage earners for the purposes of maintaining or improving conditions of their working lives”

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Salamon (1998) define it as “any organisation whose hip consists of employees which seeks to organize and represent their interests both in the workplace and society and in particular, seeks to regulate the direct process of Collective Bargaining with management”

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The legal definition of trade unions (according to The Act) “any association or organization formed to represent or advance the interests of any employees or class thereof in respect of their employment…”

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According to the towers, trade unions are more than engines for converting bargaining power into improved pay and conditions for their , …they are an integral part of the system on checks and balances which is composed of capitalist liberal democracies, as according to Salamon (1998)

The goal of the Labour Movement (Flanders, 1970) •

Allan Flanders in his book Management and Unions (1970) has attempted to provide perspectives on the reasons for existence of labour movements and this summary explains it;

"This question "What are trade unions for?" might be called the George Woodcock question. He has raised it repeatedly in recent years, but the answer is slow in coming and still remains more of a. hope than a happening. There is in fact great confusion today about the purpose of trade unions. This affects attitudes to their future and what should be their legal and social rights and obligations in present-day society, as well as their own decisions on policy and organisation. No less an authority than Professor Galbraith has stated that unions in the future will "have a drastically reduced function in the industrial system" and "will retreat more or less permanently into the shadows". And his is not a lone voice. Trade unions are increasingly made the target of many criticisms. Much of this may be unfair, but the unions themselves rarely bother to state their own case in persuasive . "I would like first to reject two views of union purpose which merely mislead. They are poles apart but they have this in common. Those who hold them believe they know more about what trade unions are for than the unions and their know themselves. "The first is the Marxist view. ittedly it has many different shapes and variations and, since all its advocates claim to be offering the one true interpretation of the one true gospel, they are often violently at odds with each other. Most of them, however, would subscribe to an exposition by the editor of the New Left Review "As institutions, trade unions do not challenge the existence of society based on a division of classes, they merely express it. Thus trade unions can never be viable vehicles of advance towards socialism in themselves; by their nature they are tied to capitalism. They can bargain within society but not transform it. "From this it follows that the inevitable limits of trade union action must be overcame with the help of a revolutionary movement or party which -• to continue quoting from the same essay - "must include intellectuals and petit bourgeois who alone can provide the essential theory of socialism", Why? Because - "Culture in a capitalist society is ...... a prerogative of privileged strata; only if some of these strata go over to the cause of working class can a revolutionary movement be born".

"Ignoring for a moment the conceit in this statement, I would not dispute the point that trade unions are not a substitute for political parties, be they revolutionary or reformist, workers do not unions because they think alike and share the same political outlook. They do so for the sake of gaining immediate improvements in their lot which only come from collective action. Their unity, that completeness of the organisation of trade unions which is the foundation of their strength, must always be imperilled when they import political faction fights. Unions may decide by a majority to a particular political party - as many in this country have decided to with the Labour Party - but this is another matter. It reflects no more than recognition that they must engage in politics as well as the best strategy because it produces the best results. "What I find so objectionable as well as invalid in the Marxist view is its implicit contempt for "pure and simple" trade unionism. "Trade unions, by doggedly sticking to their immediate ends and refusing to be captured and exploited by any-political party, have gradually transformed society. Only not according from the sacred texts or the dialectical laws! That they may be right in preferring reform to revolution and unity to discord never crosses the mind of those whose theory tells them all the answers. "I do not deny that socialism, as someone once said, has been "the conscience of labour movements". But this is socialism as a set of ideals, as a moral dynamic, not as a particular blueprint for an economic or political system.

In this sense it has

undoubtedly provided restraints against the emergence of the cruder forms of business unionism that can be found in the United States. "If the first mistaken view of the purpose of trade unions comes from the Left, then the second comes from the Right. The operative word for its expression is responsible trade unionism.

Michael Shanks amusingly characterized and only slightly

caricatured this view "There has grown up in recent years a widespread superstition that the trade union leader is a sort of ex officio civil servant, responsible to the community at large. The

trade union leader’s main responsibility, to judge from the sort of comment one reads in the press and hears from middle-class lips, is to "keep his chaps in line" or "knock some sense into them...", in practical , the main function of a union leader according to this view is to deter his from putting in ambitious wage claims, stop them from going on strike and behaving in other anti-social ways and encourage them to work harder and increase their productivity... Having done all that, he can gracefully retire with a peerage. He may even be introduced to the Queen and taken to dine in a west End club from time to time. "The essence of this view is that trade unions are there to act as a kind of social police force - to keep the chaps in order and the wheels of industry turning. To this there is only one answer. The first and overriding responsibility of all trade unions is to the welfare of their own . That is their primary commitment; not to a firm, not to an industry, not to the nation.

A union collects its member’s

contributions and demands their loyalty specifically for the purpose of protecting their interests as they see them, not their alleged "true" or "best" interests as defined by others. "Leadership is important of course. Trade union leaders should be ahead of their in thinking about their problems. It is their responsibility to point out the further and more far-reaching consequences of decisions which could be regretted later despite their strong immediate appeal. When union leaders seek only to court popularity and defend this on the grounds that they are "the servants" of their , they betray the responsibilities of their office, when the argument is over, however, their principal task must be one of representation. If they fail in this the trade union no longer serves its purpose. No other organisation is there to do this job. "Obviously trade unions cannot reasonably behave as

if they were not part of a

larger Society or ignore the effects of their policies on the national economy and the general public. No voluntary organisation can do that with impunity.

If they do, they turn society against them and society can retaliate. In any case, of trade unions are citizens and consumers as well as producers. Even so, trade unions exist to promote sectional interests - the interests of the section of the population they happen to organise - as do professional associations and many other bodies! "There is nothing selfish or slightly disreputable about this; it is an essential part of the democratic process. Indeed, once trade unions appear to be acting as servants of employers or servants of the government, they are bound to be written off by their own who will turn, as they sometimes do already, to unofficial leaders to take up their demands. "Both of the views I have been attacking belittle the democratic function of trade unions; their function of representation. That is why each in its different way claims to know better than the trade unions themselves where the interests of their lie. My starting point in defining union purpose is the opposite premise; that the best way of finding the right answer is to look at the behaviour of trade unions; to infer what they are from what they do. "Here one thing is at once certain and it applies to all trade unions and has applied throughout the greater part of their history. The activity, to which they devote most of their resources and appear to rate most highly, is collective bargaining. So the question we have to ask is, what purpose do unions pursue in collective bargaining? The conventional answer is that they defend and, if possible, improve their ' and conditions of employment. They are out to raise wages, to shorten hours and to make working conditions safer, healthier and better in many other aspects. "The answer is right as far as it goes, but it does not go far enough. Collective bargaining may be what the words imply - that depends on how we define bargaining - but it is also a rule-making process. The rules it makes can be seen in the contents of collective agreements. In other words, one of the principal purposes of trade unions in collective bargaining is regulation or control. They are interested in

regulating wages as well as in raising them and, of course, in regulating a wide range of other issues appertaining to their ' jobs and working life. "Why do they have this interest in regulating employment relationships and what social purpose does such regulation serve? It is certainly not a bureaucratic interest in rules for their own sake. Unions and their are interested in the effect of rules made by collective bargaining, which is to limit the power and authority of employers and to lessen the dependence of employees on market fluctuations and the arbitrary will of management. Stated in the simplest possible these rules provide protection, a shield, for their . And they protect not only their material standards of living, but equally, their security, status and self-respect; in short, their dignity as human beings. One can put the same point in another way. The effect of rules is to establish rights, with their corresponding obligations. "The rules in collective agreements secure for employees the right to a certain rate of wages; the right not to have to work longer than a certain number of hours; the right not to be dismissed without consultation or compensation and so on. This surely is the most enduring social achievement of trade unionism; its creation of a social order in industry embodied in a code of industrial rights. This too, is the constant service that unions offer their : daily protection of their industrial rights. "Such rights could be and to some extent are, established by law. But collective bargaining serves yet another great social purpose. Apart from providing protection, it also permits participation. A worker through his union has more direct influence on what rules are made and how they are applied than he can ever exercise by his vote over the laws made by parliament. We hear a lot these days about participation, including workers' participation in management. I have yet to be convinced that there is a better method than collective bargaining for making industry more democratic, providing its subjects and procedures are suitably extended. Putting a few workers or union officials on boards of directors only divorces them from the

rank-and-file. In collective bargaining, trade unions must continually respond to and service their ' interests. "The constant underlying social purpose of trade unionism is then participation in job regulation. But participation is not an end in itself, it is the means of enabling workers to gain more control over their working lives. Nothing has happened over the post-war years to change that basic purpose or to lessen its importance." Why Employees Unions •

To increase their bargaining power

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Minimize favoritism and discrimination

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Representation in labour disputes

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Closed shop arrangements

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Social factors, i.e., peer pressure, feeling of belongingness etc.,

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Cultural factors – legacy/history.

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According to Swanepoel et al (2004), the following are the factors that lead employees into ing trade unions: -

•

•

Perceived lack of job security,

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Management’s lack of respect for employees

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Anger at the employer,

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The belief that union representation would be effective

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Favorable attitudes towards unions in general

Ultimately, they conclude, the decision to trade unions “may involve a combination of pre-dispositional attitudes, situational conditions, intense emotional effect, as well as a calculative cost/benefit analysis of the pros and cons of union representation”

•

Employees will trade unions if such hip wields utility. The utility that they find usually emanate from the cost-benefit analysis, premised on the assumption of trade unions bargaining for batter wages and working conditions,

•

Job security is increasingly becoming an all important factor, in an era where there are changing trends on the nature of work and the new psychological contract and this is exacerbated by the unfavorable labour market conditions locally with very high unemployment levels, leading employees to prioritizing security as exoneration

•

Job insecurity is defined by Bender and Sloane (1999) as “a situation where employees experience a sense of powerlessness to maintain desired continuity in a threatened job situation. Now because of the power element associated with trade unions, this insecurity, it is argued, is sufficient to influence the propensity of employees to unionize hence it is argued by some scholars that “the overall impact of trade unions is to reduce the proportion of workers who are insecure of their jobs.

•

Apart from the legal rights to freedom of association and assembly and of trade unions organizing to get recognition in the workplace as representatives of employees

Legal Provisions surrounding Trade Unions in Zimbabwe •

Section 27 of LRA a group of employees may form a trade union

•

Within 6 months of formation shall provide a written constitution and submit to Minister showing:

•

-

Qualification for hip

-

Rights of person’s within the hip

-

The number of officials and office bearers

-

The holding of annual general meetings

-

Re appointment of office bearers

-

Calling and conducting meetings

-

Issues of discrimination

-

Amendment of constitution

-

Winding up of trade unions

-

Can raise subscriptions from its

No uned Trade Union shall •

Make representation to the Labour Court

•

Be assisted by an agent or labour officer

•

Form or be represented at the employment council

•

Recommend collective job action

•

Have the right to access employee records

•

Levy collect or recover union dues

•

A ed trade union may act as the agent union of employees in an

undertaking or industry

• •

An uned union may ask the ed union to act as its agent

Such applications shall be forwarded to the Minister who will -

ascertain the extent to which the ed trade union appreciates needs of

employee in that industry -

Ability of the union to act as agent

-

No ed trade union shall act as an agent for more than 3 years without renewal or after a union is ed in that industry

•

Any interested person may apply to the registrar for variation suspension or rescission of registration if

•

The trade union no longer represents the interest areas of which it was ed

•

It has failed to perform any of its functions in of the act

•

Minister may regulate the collection of union dues in of maximum amount, ing procedures and the auditing

•

A NOTE ON TRADE UNION DEMOCRACY: Michael P. Jackson

The Future of Trade Unions •

Blyton & Turnbull (1994) argue that the future of trade unions depends on two goals i.

Workers who are willing to and once ed to remain union

ii

Employers who are willing to recognise them as bargaining agents for the workforce

•

Batstone (1988) suggests power sources of unions lie in scarcity in the labour market, disruptive capacity in the production process and political influence

•

Union hip therefore becomes an indicator of trade union power

•

In the UK unions work with shop stewards. In Zimbabwe they work with workers committees.

•

“All trade unions are involved in political activity, by virtue of necessity” Crouch (1982)

•

Union’s political activities take into broad social issues such as housing, transport, education and health care.

•

In the UK there was a gradual move towards “market share unionism” merger activities

•

These mergers are because unions want to avert serious financial problems caused by hip decline.

•

Unions may decide to pool their resources for mutual advantage

The State in Industrial Relations •

Limited to protecting the bargaining process.

•

At face value, the state and government are one and the same thing because it legislates and promote economic and government policy and also regulates both individual and collective employment relationships

•

The government of the day will influence the direction the country will take and therefore a country’s strategy for economic development will determine its future industrial relations system…

•

If government favours the free market system, then it legislates in of market forceswill allow labour and management to dictate the employment relationship

•

Ministry of Labour in Zimbabwe would play a pivotal role in the employment relationship.

Legal Function •

Professor Kahn-Freud has identified three legal functions which the State performs in industrial relations (Otto Kahn Freud’s Labour and the Law 1972). First, the "regulatory function" in which it provides rules that govern the and conditions of employment of individual employees, whether or not they are union .

•

Second, the "restrictive function" in which it provides rules that governs the conduct of industrial conflict, ie restricting the lawful ambit of industrial action.

•

Third, the "auxiliary function" in which it provides rules that govern the encouragement and extension of collective bargaining institutions. In reality there is a great overlap between these functions, but as tools of analysis they are quite useful.

Regulatory Functions •

The conceptual corner-stone of labour law both historically and currently is the individual contract of employment as a legally enforceable relationship.

In legal theory the

employer and the employee are equal bargaining partners with freedom to decide on its . There is, however, a wide difference between legal theory and what happens in practice as far as the contract of employment is concerned. Kahn-Freud sums up this contradiction between legal theory and what happens in practice ".... the relation between an employer and an isolated employee or worker is typically a relation between a bearer of power and one who is not a bearer of power.

In operation it is a condition of subordination, however much the

submission and the subordination may be concealed by the indispensable figment of the legal mind known as the contract of employment". (Labour and the Law, p.8) •

In order to provide protection on behalf of the powerless individual employee, the State provides a floor of rights on such issues as fundamental rights of employees (see labour act), duration, particulars and termination of employment (s12)

Restrictive Function •

In general the State acts as a referee in the dynamic relations between employers and employees. This analogy of a referee symbolizes the restrictive function of the State in so far as it limits and prescribes the freedom of action of the participants. The starting point when analyzing this function is to consider whether the State is encouraging or destroying collective bargaining between employers and employees.

Is the State

encouraging the growth and strength of both employees' and employers' organisations, or is the restrictive function used to supersede collective bargaining? The following are some of the practices which generally characterize the restrictive function of the State •

Strike Action

•

Registration of trade unions

•

Compulsory Arbitration

•

Unfair Dismissal

Auxiliary Function •

The auxiliary function of the State in industrial relations is primarily to promote industrial peace by encouraging and promoting collective bargaining between trade unions and employer organisations. The State, through legislation or otherwise, defines the bargaining units, the procedures and institutions for resolving disputes and reserves the power to legally enforce agreements and place unions under statutory duty to give equal protection, ie representation to all the workers in the designated industry or occupation irrespective of hip, race, creed or anything else. For more, students should refer to part X of the labour Act, (S74-82b) on Collective Bargaining

•

The process of conciliation, mediation, arbitration, investigation and inquiry constitutes the auxiliary function of the State. Conciliation

•

Simply means "that some third party" - a civil servant, a person without office but with personal prestige, or statutory or agreed commission or board - tries to get the parties together. If conciliation succeeds, the result is an agreement. Mediation is usually synonymous with conciliation. Arbitration

•

Is listening to the parties and the evidence and then formulating an award. "if the arbitration is voluntary as to its outcome, this is a mere recommendation; if it is compulsory, the award binds the parties". Investigation and/or Inquiry

•

Is "a procedure in which some third party (usually a commission or court) is charged with finding the facts of a dispute and sometimes also with the making of recommendations for its settlement".

The State in the General Management of the Economy •

No analysis of the State's involvement in industrial relations will be complete without an examination of the State versus the general management of the economy. The extent to which the State gets involved in the general management of the economy depends on the political economic philosophy of the Statue.

•

The crucial questions that one needs to ask in examining this role of the State are – •

Is the involvement of the State promoting the interests of the employers or the employees, i.e. interests of capital or of labour?

•

Is the involvement of the State guided by the principle of an overriding national interest which goes beyond the rich-poor conflict and the employee- employer conflict?

•

When playing such a central and visible role can the State really be neutral? A detailed analysis of the neutrality or otherwise of the State is beyond the scope of this module. What is not debatable is the fact that the role of the State in industrial relations was developed in line with the general transformation in its economic functions. The State is usually involved in manpower policies, incomes and prices policies, investments and subsidies policies all of which have direct or indirect impact on the industrial relations trends in any given national economy. These will be examined in this section, giving emphasis to the resultant influence on industrial relations. Manpower Policies, these include policies on such issues as;

•

Skills generation.

•

Employment generation.

•

General conditions of service.

•

Labour Mobility

•

Income and Price Policy

Collective Bargaining

Definitions •

“...all negotiations which takes place between an employer, a group of employers or one or more employers organisations, on the one hand, and one or more workers organisations on the other, for: -

•

Determining working conditions and of employment, and /or

•

Regulating relations between employers and workers, and /or

•

Regulating relations between employers or their organisations and a workers’ organization…” (ILO Convention 154)

•

“A voluntary process for reconciling the conflicting interests and aspirations of management and labour through the t regulation of and conditions of employment” Gwisai (2006)

•

It is a process of negotiation between management and union representatives for the purpose of arriving at mutually acceptable wages and working conditions for employees. (Boone and Kurtz, 1999 p 424 – 425)

•

Rycroft and Jordaan define Collective Bargaining as a voluntary process for reconciling the conflicting interests and aspirations of management and labour though the t regulation of and conditions of employment.

•

John Grogan defines it as the process in of which employers and employees collectively seek to reconcile their conflicting goals through a process of mutual accommodation.

Purpose of Collective Bargaining •

Establishes industrial justice

•

Allows workers to participate in decisions that affect them.

•

Ensures that no arbitrary behaviour is imposed and no unrealistic demands are made on them

•

According to Grogan (2006), it assumes a willingness on each side not only to listen to the representations of the other but to abandon fixed positions where possible in order to find common ground.

Factors necessary for effective Collective Bargaining to take place (Gwisai 2006)

•

Recognition of divergent interests of employers and employees.

•

Recognition of the need for equilibrium of power between the two parties

•

Recognition of the philosophy of mutual survival

•

Elimination of direct and indirect obstacles to effective CB

•

Representation, democratic process whereby elected representatives negotiate on behalf of large groups

•

Power which lies in the ability of parties to influence each other towards mutually acceptable agreements.

•

Common ground – the desire

Types of Collective Bargaining •

The two basic methods of bargaining are traditional bargaining and partnership bargaining.

•

The traditional style of bargaining has been used since collective bargaining began between management and the early labour unions (Encyclopedia of Business and Finance, 2000)

•

It is an adversarial style of negotiating, putting one side against the other with little or no understanding of, or knowledge about the other on the part of either party.

•

Each side places its demands and proposals on the table and the other side responds to them with counter proposals.

•

The process is negative and involves a struggle of give and take on most issues.

•

The partnership style of bargaining is a more modern concept.

•

It strives for mutual understanding and common education on the part of both labour and management, and it focuses on goals and concerns common to both parties.

•

It emphasizes on each side’s being aware of its issues concerning the other side, it is called interest based bargaining.

•

In this process labour and management each list and explain their needs and ensuring discussion revolves around ways to meet those needs that will not only be acceptable but also beneficial to both parties.

•

This style of bargaining is very positive and imports a much more congenial atmosphere to the negotiating process.

•

Sometimes there is a blending of the traditional and partnership styles in labour and management negotiations.

Key issues in Collective Bargaining •

Scope Issues discussed (both substantive and procedural issues, including; Rates of remuneration, Benefits, Deductions from employee wages, Methods of calculating or adjusting rate of pay, Overtime, piecework, vacation leave, Demarcation of categories of jobs, Apprentices conditions of service, Hours of work, Occupational safety, Access of parties to records, Procedures to deal with disputes, Housing and transport facilities, Measures to combat workplace violence,

•

Level, Collective bargaining takes place at 3 levels, the micro/enterprise level, and the macrolevels which include the industry and national levels.

•

Coverage This includes the specific groups/ constituencies that are covered by collective

agreements at various levels. Historical Background to Collective Bargaining in Zimbabwe •

The Industrial Conciliations Act establishes the foundation for Collective Bargaining in Zimbabwe.

•

According to Schiphorst (2001), The 1959 ICA was a major hallmark in Industrial relations, as the first genuine piece of legislation not only to allow the formation of black unions, but, to provide a wage setting machinery by setting the parameters for collective bargaining as well as the development of Industrial Boards and Industrial Councils.

•

Amongst the weaknesses it had however, Sachikonye (1986:52) in Schiphorst (2001) has summarised thus “…the institutionalization of wage setting machinery has meant breaking in part of the employer monopoly on wage determination even though the process is far from complete…the exercise of labour power has established the basis for intervention in the system and resulted in the development of additional threats to employers’ interests…the institutionalization of unionism has permitted the entrenchment of a protective instrument of working-class welfare, this being not an insignificant achievement in the prevailing climate…”.

•

The 1973 Act twisted the system of collective bargaining with the empowering of the minister to vary CBAs, thus reducing the freedom to bargain (Collective Bargaining Autonomy).

•

Not so much change occurred post-independence, as had been forecasted, but just the flow within the direction of the 1959 Industrial Conciliation Act. Within the first five years of independence, wages continued to be determined through bargaining at an industry level, albeit after the removal of racial overtones.

•

This period also marked the time to debate on whether to introduce workers committees and works councils in the new system, or instead to strengthen the machinery already present.

•

To trade unions, this had obvious implications in of their strengths, at a time when they believed that the development of a trade union movement was more an important achievement of worker expectations than worker participation, while to business; it meant an alteration to the existing power structures and an opening of new forms of worker control.

•

That witnessed the formation of enterprise councils and the strengthening of the oneindustry-one-union policy. Collective bargaining became largely centralized at the industry level.

•

The coming in of the 1985 Act witnessed the institutionalization of collective bargaining at industrial level with the possibility of enterprise flexibility through flexibility through workers committees (Schiphorst 2001).

•

Concepts such as the unfair labour practice concept were introduced, including good faith bargaining, bringing Employment Councils and Employment Boards (in their structures and forms) in the hierarchy to replace industrial councils and boards, that had been introduced in the 1959 Act as well as empowerment of enterprise level bargaining through works councils, the empowerment of the state to promulgate regulations which would have overriding effects on bargaining agreements, state’s determination of maximum and minimum wages, severe curtailment of the right to strike and the intensive state regulation of trade unions as well as the continuation of the one union one industry concept among other things.

•

This resulted in collective bargaining playing a more secondary and subordinate role to state regulation.

•

The neo-liberal policies adopted in the 90’s witnessed, but a radical shift towards voluntarism and labour autonomy, when collective bargaining became a decisive platform for the determination of wages and dismissals.

•

Benefits accrued to labour in of full recognition of trade unions as a legitimate partner to the process, though major shortcomings including the severe curtailment of the right to strike as well as shop floor competition that came in the form of works councils.

•

The 2002 Amendment Act strengthened the facilitative role of the state, which expressly states in the purpose of the Act the provision of a legal framework within which employers and employees can bargain collectively for the improvement of working conditions.

•

This position has been maintained by the 2006 Labour Act, as provided for on Part 1X (Sections 74 to 82B) of the Act. Some of the critical elements that lie at the core of collective bargaining in the Act include, among other things; issues on the scope of agreements (s74), good faith negotiation (s75), disclosure once inability to pay is alleged (s76), issues of agency representation (s77), registration of agreements (s79) as well as internal and external regulation or variation of agreements (including the powers of the minister to vary the agreements so made-s81).

•

Collective bargaining law in Zimbabwe has tremendously contributed to the whole industrial relations framework both economically and socially.

•

The major economic benefit so derived by parties to the employment relationship has been the establishment of a framework upon which individual and collective workplace relations are managed and where industrial conflict is institutionalized for the pursuit of a harmonious employee relations climate.

•

Gwisai (2006) also acknowledges how law has aided employee relations socially (in of justice and democracy) by the strength of S2A of the Act (Purpose of the Act). Collective Bargaining Autonomy, though some argue is limited, remains, but a significant factor that has been enjoyed by parties to Employee Relations.

•

The legally binding nature of Collective Bargaining has been significant. It falls at the hub of such works like Otto Kahn Freund who argue that law comes as a force to

“…regulate, , and restrain the powers of management and organized labour…” In other words, there is a clear recognition of the power differences between individual employees against management or organized labour against management respectively, the inadequacies of the former (organized labour) to provide a power base that can be equated to that of the later (management) at the bargaining table, which then justifies the need for a machinery to govern their relationship (in of setting the framework upon which and conditions of employment are regulated). •

Furthermore, the law has improved on trade union effectiveness, as measured by the meeting of primary needs of workers such as better pay and conditions, increased influence on what they regard as increased influence on what they regard as workplace decisions, and protection against arbitrary management action (Freeman 1996). This is regardless of whether unions are instrumentally or ideologically motivated to do so.

•

In as much as the law on collective bargaining has posed improvements on employeremployee relations, it has also had its own weaknesses, or limitations. A critical analysis of one element key to the process, the recognition of a need to balance the powers of the parties to the employee relations, has not been addressed carefully.

•

The rhetoric of the argument provides a seemingly clear manner in which the government has tried to create a balance of power between parties to employee relations, but the reality is very different.

•

The state has made it very difficult for labour to enjoy the freedom to bargain by instituting a well calculated and sophisticated bargaining framework involving a combination of bargaining centralization through employment councils as well as bargaining decentralization in the workplace (Schiphorst 2001).

•

While this may have been simple, if we look at s23 (1) (b), it has become very difficult for unions to gain 50 % hip at an enterprise level so that they could control the workers committees as shop stewards in the workplace with the prevailing economic environment.

•

This was also made in light of Part VII of the Act on the right to organize, giving rise to a recognition of multiple unions at the negotiation table (usually in opposition with regards to political opinions) for example AMWZ and NUMQISWZ in the mining industry, and most importantly, the continued curtailment of the right to strike, or rather, the exercise

of the freedom through a set of verbose procedures and unfounded restrictions (Part XIII of the Act). •

Research has clearly proved that the essence of bargaining power lies in one’s ability to withhold something of value to another and that a strike action is an essential and integral part of collective bargaining (Gwisai, 2006).

•

Without this, “…the power of management to shut down the plant will not be matched by a corresponding power on the side of labour…”. Apparently, such factors have tended to negatively affect trade unions in of their powers to negotiate effective collective bargaining.

•

Most of the regulations were largely driven by political factors rather that economic ones, thus resulting in a disintegrated, frustrated, competing (levels) and conflicting labour movement hence diverting their attention from representing their constituencies to scampering for hip. Meanwhile, this has given more security to employers who already have so much power in employee relations.

•

A combination of the two tier system of managing collective bargaining, one for the Public Sector and another for the Private Sector, plus the istration of a combination of bargaining centralization (industry-wide) and decentralization (company-wide) simultaneously has also come with it some interesting results.

•

This has also been against the fact that there are more than 20 sectors/industries negotiating their agreements with employees in the country.

•

As a result, there has not only been a lack of collective voice on the part of employees in general, but the private sector has had a tendency to wait for the public sector to negotiate CBAs first, and then use the result as a benchmark. Such has been a rather fire-fighting and retrogressive ploy considering how poorly the public sector has addressed issues of working conditions.

•

The lack of coordination amongst bargaining centres has also resulted in a lack of a collective voice and an organized strategy with respect to the capacity of industry to produce and pay.

•

The other weakness was that the declining degrees of bargaining centralization to industry level has tended to result in bargainers ing negative pay externalities (i.e. the cost of pay rises in of inflation, unemployment and loss of competitiveness) onto

third parties (e.g customers, other employee groups and also the state). Now this has equally resulted in the stagnation of the country’s economic performance. •

The area of scope of bargaining has not been fully addressed by law to take consideration, explicitly issues of productivity, which should be a critical factor in the consideration of pay increases.

•

This has resulted in a nadir relationship being built in employee relations where union strength would at times supersede the capacities of companies to pay (for example in the energy industry and local authorities).

•

The resultant effect has been the channelling of company funds towards employee salaries at the expense of the real objects of Companies. It has been the general public that has felt the grip especially considering how water and electricity charges have increased for example, pressure for payments mounting against a rather dismal performance of these, in of service delivery. These companies have managed to comprise market leaders in of pay and benefits despite the fact that there is a sharp contrast between productivity and pay, a flaw of the law. At one time the minister even had to interfere in order to get allowances cut for some employees in the energy industry.

•

Within this context, a great deal of questions has been raised over the effectiveness of Arbitrators in collective dispute management, especially amid reports from business that they were not factoring in these issues of productivity in wage determination.

•

This has been exacerbated by the continued inclination of the labour movement on measuring minimum wages basing on the basic needs as explained in calculating the Poverty Datum Line thus building on stagnation of the economy by way of creating a dependency syndrome where they focus on milking business of productive funds instead of realizing the relationship between productivity, performance, revenues and pay increases.

•

A more similar argument has been raised in that the binding effect of collective bargaining agreements on everyone in a specific industry has largely affected many companies in of their capacities to pay since they are affected differently by the business environmental factors. The moment we have Companies failing to meet wage payment among other collective bargaining obligations, stagnation, rightsizing elements or even Company closure becomes imminent.

•

Whilst taking note of the failures of the law to take into consideration the factors that affected collective bargaining after the 2006 Act (esp. 2008) thus shaping the scope of bargaining, where a great deal of both substantive and procedural rules was varied, the frequency of bargaining increased, the levels of bargaining decentralized to the workplace, and coverage of agreements also varied, equally, challenges have been noted in trying to get parties to employee relations re-oriented to a new dollarized Zimbabwe, which is a bit certain and more likely predictable.

•

The same applies to its failure to take cognizance of the increasingly growing informal sector.

•

The weaknesses of law on collective bargaining in adapting to the prevailing economic situation has also paved way for the istration of sophisticated HRM practices and an intimate relationship between labour and business that has witnessed new trends on Collective bargaining (to include productivity bargaining elements, e.g, at Wankie Colliery) as well as other agreements that fall outside the legal framework of Collective bargaining in Zimbabwe being binding on parties, for example in 2008. Recommendations

•

Productivity bargaining should be factored in on the scope of bargaining explicitly, since it lies at the hub of collective bargaining. This should be complemented by an effort to apprise the labour movement of the need to view negotiations within the context of organizational and industry performance.

•

Trade unions will always remain ineffective for as long as they cannot exercise their right to resort to collective job action as part of bargaining. This is but the most important area that builds on trade union strength and hence forces employers to negotiate effectively.

•

The law should also put up a clause governing the frequency of bargaining and circumstances upon which agreements can be reviewed in a clear and precise manner.

•

There is need to reduce the number of bargaining councils so as to try create a platform for the formulation of more homogeneous agreements that allow for internalization of negative pay externalities whilst at the same time allowing for coordination amongst bargaining centers and the mapping of a whole industry-wide bargaining strategy.

•

There is need for the creation of a legal framework guiding and binding parties to the social contract and then cascading to the workplace through a machinery of collective

bargaining. This is largely because the social contract has significant impacts on collective bargaining.

Globalisation Introductory food for thought Question: What is the truest definition of Globalization? Answer: Princess Diana's death. Question: How come? Answer: An English princess with an Egyptian boyfriend crashes in a French tunnel, driving a German car with a Dutch engine, driven by a Belgian who was drunk on Scottish whisky: followed closely by Italian Paparazzi in Japanese motorcycles; treated by an American doctor, using Brazilian medicines. And moreover this is sent to you by a Zimbo, using American (Bill Gate’s) technology and you're probably reading this on your computer that uses Taiwanese chips, and a Korean monitor, assembled by Bangladeshi workers in a Singapore plant, transported by PAKISTANI lorry-drivers, hijacked by Indonesians, unloaded by Sicilian longshoremen, and trucked to you illegally by Mexican. That’s Globalization" my friend. Thank You

What is? Is the process by which development of a “global ideology” has begun to transcend national boundaries with far reaching consequences for both the conduct of business transactions and the theory and practice of management ( Vernon – Wortzel et al 1990) • The growing economic dependence among countries as reflected in increasing cross boarder flows of goods and services, capital and know-how” (Govindarajan and Gupta 1998a in Leopold et al 1999:99) • Scholte (2000) viewed globalization as involving ‘the growth of supra-territorial relations among people’ fostered by the development of high technology and increasing complex international supply links are developed” •

Can be defined as a process of increasing global connectivity, integration and interdependence in the economic, social, technological, cultural, political and institutional spheres.

•

It can be found to represent, for example, the process that reduces barriers between countries and involve greater integration in world markets, thus, increasing the pressure

for assimilation towards international standards (Macdonald, 1997, Frenkel and Peetz, 1998, Ali, 2005). •

Economic aspects of globalisation are the most visible and important ones. These include, but are not limited to: - economic competition amongst nations, rapidly expanding international trade and financial flows and foreign direct investments (FDIs) by multinational corporations (MNCs), disseminating advanced management practices and newer forms of work organisation and in some cases sharing of internationally recognised labour standards.

•

Globalisation enhances competitiveness, both at a company level and at a national level, which leads to company managements and governments to adopt strategies designed to increase labour effectiveness in of productivity, quality and or innovation.

•

In summary, globalisation involves economies that are opening up to international competition and that do not discriminate against international capital. It therefore is accompanied by liberalisation of markets and the privatisation of productive assets.

•

At the same time, this phenomenon has obviously resulted in high unemployment, increasing casual employment and weakening

labour movements according to Ali

(2005) Dimensions of Globalisation 1. Economic Globalisation - is the convergence of prices, products, wages, interest rates and profits towards the standard of developed countries. The extent to which an economy will globalise depends on the importance of certain processes at play, such as labour migration, international trade, movement of capital and integration of financial markets. 2. Political Globalisation - this relates to the increasing number and power of international organisations which influence or govern the relationships among nations and which safeguards the rights of countries arising from social and economic globalisation. 3. Information Globalisation - refers to the rapid development of ICT worldwide, such as global telecommunications infrastructure allowing for greater cross-border data flow. 4. Cultural Globalisation - this refers to the greater international culture exchange and growth of cross cultural s between nations and people. It also involves the expansion of multiculturalism and improved individual access to cultural diversity, as

well as the growth of international travel and tourism, while at the same time developing and establishing a set of universal values. Forces for Globalisation •

Lowering and removal of trade barriers

•

Revolution in international transport and communication

•

Emergence of a new wave of competitors

•

New global markets segments

Globalization Solidifying Forces •

Trends towards regionalism e.g NAFTA (North American Free Trade Area) and EU. These argue that open trade has more advantages than disadvantages and opt for the creation of world with few or no trade restrictions.

•

Abatement of ideological conflicts and the end of cold war. With the collapse of Berlin Wall in 1989 and socialism in much of the world global co-operations expanded virtually throughout the world. Governments became more inclined than ever to solve international problems through constructive engagement and dialogue, e.g. Geneva Convention for equal rights. Governments not only restructure economies through liberalization and privatization but also invest in productive sectors and therefore the adoption of free trade systems.

•

The rising influence of NGOs in addressing and regulating a wide range of international problems and issues eg Amnesty International and Green Peace contribute to the world economic, social and technological integration. NGOs such as ISO set widely observed standards in the global market place. This has affected even organizations such as Turnall where it is under pressure from health and safety groups on its failure to meet standards on OHS.

•

Mobility of capital across the globe so as to seize better financial opportunities and expansion of markets by investors. Over $US1 trillion is traded in the global foreign exchange market and therefore solidifying the creation of a global market.

•

Ease of foreign direct investments (FDIs) and labour flow across the globe. Liberalization and restructuring of world economies enhance MNC’s investment activities. Such organizations will be targeting cheap labour so that they achieve higher

returns from their investments. Programmes that include ESAP ensured the solidification of globalization where there was trade liberalization in Zimbabwe in 1991/2 years and was driven by World Bank and IMF super powers. •

Revolution in international transport and ICT (International Communications Technology). This has eased communication, knowledge transfer and transportation and therefore geographical space and time have lost their utility as a serious barrier for people and business interactions. Internet has increased connectivity and worldwide information can be easily accessed and decisions made in a short span of time.

Economic impacts of Globalisation The most economic effects of economic globalisation include the following: •

Increasing integration of global economic activities (this leads to intensifying competition among producers and a greater and more varied offer of diverse sources and destinations of FDI. Capital movements are very high in an open international environment that labour force, MNCs have played a key role in this regard, through relocating their business activities while also subcontracting and substituting technology for human labour. Many companies have been seen to be rationalising their operations in order to strengthen their competitiveness, by reducing both wage and non-wage labour costs. Evidence has proved that MNCs generally pay higher wages and employment benefits than local companies, which significantly affects the industrial relations systems of the host country.

•

In addition, their relationships with trade unions are influenced by both the management and workforce relations in the Company’s country of origin and the situation in host country, which makes it effectively difficult to remove the rigidities of their policies. In most instances, they do not recognise trade unions in bargaining on and conditions of employment, except for when they are complying with the labour relations regulations of that particular host country. (Macdonald, 1997, Ali, 2005)

•

Rising Competitiveness – increased competition in global markets creates demand for more specialised and better quality products, leading to a higher volatility in product markets and shorter product life cycles, which ultimately requires companies to respond quicker to changes in market demands (HR implications- the need to manage people in a quality way, to build on audible readiness, to develop globats, the need for HR to

transcend the stewardship of taking care of conditions of employment to look at factors that

bring

shareholder

value

and

organisational

competitiveness.

Production

implications-the need to introduce new technologies and increase the scope of flexibility in the production processes and resolve any information and coordination difficulties which previously limited the production capacities of enterprises in different locations around the world. The main focus in on individualising and decollectivising work through new work organisation in the form of niches, SBUs, while on the other end, a great deal of effort is placed on reducing the input cost to the production process by replacing people with technologies and then emphasising on building higher value capacities and skills on workers to perform a variety of jobs (multi-skilling). This has blurred the functional and hierarchical distinctions between different types of jobs and between labour and management in general, Organisation of work – efforts to improve products through innovation, quality, availability and pricing have led companies to set up cross-functional development TEAMS, thus transcending the traditional boundaries between engineering, manufacturing, and marketing. All these developments have been accompanied by standardised, segmented, stable production process which had facilitated collective industrial relations (Macdonalds, 1997) and a continual shift of employment from manufacturing to service oriented industries, i.e., jobs shift from traditional manual occupations to various forms of white collar occupations, though these have been different amongst countries, largely because of differences in stages of development. The developments in technologies, for example, are affected by the willingness of countries with technologies to provide other countries with them (situations of sanctions), and also the extent to which economically developed countries are seeking access to the emerging markets to sell their products. On the other hand, developing countries face many barriers to entry into the developed world’s markets, hence affecting their rate of growth; hence the impact and pace of growth vary from one country to another. •

Relocation of economic activities

•

Structural changes in the economy

•

Rapid advancements and innovation.

Labour Markets Effects

The most influential effects here include: •

Labour market flexibility (influences on labour market performance)

•

Increasing labour migration

•

Rising atypical non-standard forms of employment

•

Changes in the content and working conditions

•

Skills mismatch, multi-skilling and the need for lifelong learning

•

Such factors vary from one country to another, but however are very fundamental in determining a country’s competitive advantage labour market developments. Due to growing competitiveness, many countries have become obliged to relax their employment protection mechanisms in order to increase their labour market flexibility (see s12-duration, particulars and termination of employment contracts), which has also raised a need to the need to create a balance between labour market flexibility and social protection (see Parts 11-Fundamental Rights of employees, 111-unfair labour practices as examples). As a result, the need for cost efficiency and value addition has necessitated reforms in the labour market thus bringing flexibility in order for companies to be able to deliver goods at the right time and be strategically positioned closer to their customers.

Flexibility defined: •

At a more global scale, we can identify flexibility as the capacity to which an economies and organisations can adapt to global pressures.

•

Flexibility – hours, part-time work, variable contracts, functional flexibility, pay (including PRP common in Zim.)

•

We can distinguish between various types of flexibility, that is, numerical flexibility, which is when employers use non-standard contracts of employment to match labour supply to product service demand and to parcel out work in a way that avoids exposure to the risk of overstaffing. Employers achieve numerical flexibility when employees work part time, fixed term and or short term contracts, zero hours, annual hours or work from home, also including the use of short term casualised labour, agency workers including contracting in and contracting out.

•

We can also talk about functional flexibility, which is the requirement or expectation that workers will perform tasks beyond those strictly specified in their main role or function.

This might entail cross working (performing other people’s jobs at the workplace), expanding the number of tasks performed or working in Teams. •

We can also talk of geographical flexibility which results in managing across cultures as another type of flexibility. Organisational flexibility is yet another strategic form of flexibility, now this is a bigger form and beyond the deployment of flexible labour. It relates to workplace change more generally (e.g Business process reengineering, continuous process improvement, restructuring, mergers and acquisitions, takeovers etc) as well as introduction of new forms of work organisation, job design and redesign etc.

•

Complexities in flexibility in organisations have come in the form of new forms of contracts, e.g., part time work, fixed term contracts, zero hour contracts, the increased participation of women in the labour market, outsourcing of labour, actualisation and subcontracting, all of which have reshaped the issue of security of employment, from job security to employability security. However, in most African societies, or the developing world in general, these have had a tendency of creating permanent unemployment hence underemployment.

•

Pillay (2006) argues that outsourcing and subcontracting have been seen by COSATU as backdoor attempts to introduce labour market flexibility in the country- in other words, lowering employment standards. This is in contrast with the developed world, which sees a shortage in labour and skills threatening their competitiveness, productivity performance and sustainability of their economic growth, hence resulting in them steering labour migration to cover the void from the developing world in the form of temporary employment. This introduces flexibility into the labour market while increasing competition between foreign and domestic labour with varying implications for the countries sending and receiving workers. (They put restrictions of migrant labour into their markets in order to limit competition for work between domestic and foreign workers.

•

The other issue we can talk about is the issue of reorganisation of work, which result in: • •

Greater emphasis on team working Flattening of management hierarchies and the transfer of greater operational responsibility and authority to lower level managers, supervisors and work teams. All these are channelled at increasing workers’ commitment to the organisation and its

goals, as well as in establishing closer relationships between managers and workers based on consultation and cooperation (Macdonald, 1997). In addition to that, there is an argument that, while globalisation and rapid changes in economies demand that workers become proactive, adaptable, multi-skilled, responsible and competent, these demands put additional pressure on workers, thus exacerbating their difficulties at a time when working conditions are deteriorating and wages are compressed. The results of this change will be on an unbearable price, with ill health associated with a decrease in quality of life and unfair costs for individuals and society. •

However, to become aware of the benefits arising from global integration, countries will need effective education and training systems in order to supply the higher skills levels, which underpin strong and flexible labour markets, economic growth and high unemployment, address inequalities and ensure social cohesion (HM Treasury, 2005). In countries where competition is based on quality and innovation, governments emphasize the need for adequate skills training to improve workers’ competencies, esp. for those countries where shortages of qualified labour exist, hence we have LIFELONG LEARNING-which is based on continuous learning, as well as updating and upgrading of skills as a viable alternative to lifelong employment (Senge-learning organisations, Blanchard-today’s organisations share a commitment to constant improvement.......)

Globalisation and Industrial Relations •

If industrial relations systems do not adjust to globalisation, the danger arises that companies will relocate their production to countries with fewer restrictions on business activities, such as countries with less regulated labour markets and lower labour costs.

ELEMENTS •

IMPACTS

Internationalisation of Increasing markets

•

integration of global

Increase

•

Free capital

movement and

of

•

ACTORS

labour

across borders due to

•

-Trade Unions, Employers

Rising competitivene

RELATIONS

SYSTEM

in economic activities

competition •

INDUSTRIAL

Organisations, Government •

ACTIONS/PROCESSES

ss

Collective

Relocation of

Workers

Bargaining, Participation,

less

stringent

regulations. result,

As

markets

a are

•

internationalising, competition increasing, markets

is global

•

economic

Industrial Actions, Conflict

activities

Resolution •

Structural

CONTEXT

changes in the

-Political, Economic, Legal,

economy

Socio-Cultural,

Rapid

Technological Environments •

are

technological

integrating and ICT

advancements

-Scope

promote networking.

and innovation

employment,

Knowledge

working

through rapid development

society,

conditions etc

of ICT

networking,

Informational globalisation

•

• •

•

regulation

employment

flexibility

industrial

Increasing

democracy

of

atypical non

and

standard

employment forms Changes

in

working conditions and work content Job-skills mismatches, skilling,

multi-

need

lifelong learning

for

of

wages, working

IMPACTS

Labour market

Rise

i.e.,

time,

-Productivity,

migration

•

of

social capital

labour •

OUTCOMES

job

and

security, peace

and

Some of the impacts of Globalisation •

Increasing international economic interdependence has affected traditional IR arrangements viz:

Structurally changed & expanded marketplace, making possible information flows through tech. Tearing down traditional boundaries of the organisation. •

Foreign Direct Investment (FDI) allows MNCs to influence country, regional bodies trade policies and labour laws as they control assets in more than one country.

• •

MNCs have created complex international production processes. Locally based businesses are now focusing on technology based focus in their business creating as they do, growing individualism and decollectivism of work.

•

Globalisation has shaken the status quo that hitherto existed between Capital and Labour – while Labour is relatively immobile, capital moves at the same speed irrespective of location.

Capital can employ labour in cheaper areas with ease thereby prejudicing countries of origination – Daimler Chrysler •

Contradictory impact on IR •

Accelerates the interdependence of states which has the capacity of creating uniform IR arrangements beyond borders.

•

There is resistance towards convergence based on the particular circumstances of different countries and regions.

Impacts on Business •

Internationalization of companies •

The development of new strategies to manage organisations, influenced by the ideas of individuals like Michael Porter on Competitive strategies in the 80’s

•

The growth of MNCs Mergers

and

Alliances-GlaxoSmithKline,

PricewaterhouseCoopers,

DaimlerChrysler: •

Markets – driven by customer orientation not products (the need for organisations to respond to customer-driven demand for products) •

Asian Tigers – world’s fastest growing economy.

•

Dubai, Chinese, Japanese products in Zimbabwe (issues of culture, mass production, management practices etc)

•

Whole production departments are moved to areas of cheaper labour Asia and recently Africa – Mercedez Benz, VW, Parmalat, Toyota, Nokia etc

•

Movements also facilitate sensitivities to local and regional markets in a customer oriented environment.

•

New management practices such as Downsizing/rightsizing, Contracting and outsourcing to allow concentration on core business, Increase in need for casual of labour, BPR with a view to increasing organisational effectiveness, lower costs leading to increasing technology etc.

•

Businesses relying on outsourcing to: •

Reduce time-to-market, time-to-volume

•

Lower operating costs, investment, etc.

•

Improve inventory management

•

Access leading technology, etc.

•

Produce on a global scale using parallel production facilities

•

Focus on core competencies

•

Organise supply chain

•

Enhance purchasing power

•

Pushing for more deregulated and flexible labour markets.

•

Increased Competition defined by knowledge/innovation, skills and productivity compelling business to develop new models of managing resources, including human resources hence the coming in of the HRM Agenda, which is concerned with the attraction, development and retention of skilled employees that are willing, and able to work towards the organisation at all levels. (influence of the Michigan School of thought, The Harvard School and Guest 1987) “The success global companies is to a large extent dependant on their ability to organize (sic) (within and between organisations) across national boundaries information, money, people and other resources)”

•

Employers seen encouraging more employee involvement in job design and execution of work – multi-skilling; they cover up for absenteeism and make jobs redundant reducing the need to employ certain replacements.

•

Reducing the scope of C.B to issues that cannot be employer specific – removing work re-organisation, flexible working hours (Mining in Zim), and contractual arrangements (PRP).

•

•

US – enterprise level CB

•

UK and EU – movement is towards the enterprise level

Increased training expenditure and pressure to up educational qualification – increasing need for self dvpt.

•

Knowledge is driving employment, investment & productivity.

Managing a Global Workforce: Emerging Issues •

Armstrong defines the 7 characteristics of people management being adopted viz: •

Cosmopolitan,

Culture,

Compensation,

Communication,

Consultancy,

Competence and Coordination •

Centralisation strategy – extent of parent country control of employment policies •

Helps plan for Mgt. Succession

•

Secure high quality staff

•

Managing existing operations effectively

•

More commitment because of assurance of a global outlook

•

Merging employment practice and culture (the convergence thesis)

•

Managing diverse cultures, social systems and legal requirements

•

Managing people spread across the globe even with the most sophisticated global system is not the same e.g. video conferencing – the absentee boss.

•

Chia (1995) says of management: “the earlier generation’s recipe for success hinged on hard work, smart moves, the right business and political connections, monopolies, protectionist barriers… and a docile labour force. …the new …manager has to exercise greater levels of leadership …balance this with being an entrepreneur… To this has to be added coaching, team building and motivating the company , the ability to visualize, plan strategically, market and reengineer products and services and the belief in a customer driven culture.”

Globalization and the role of the State •

Traditional role of the state in a tripartite IR system is being threatened by enterprise level C.B

•

Role of international bodies external governments •

Laws in some countries in Europe forbid investment for poor labour practice records

• •

International pressure groups on Corp. Responsibility e.g. on Shell

Integration based legal changes have made it difficult to institute legal measures that are not practice in the group – critical in EU, ASEAN, COMESA and SADC

•

•

Creation of common market, free movement of goods

•

Unity of Currency or parity

•

Removal of Tariffs

•

Free flow of capital, people (dropping visas)

IR policy is managed through compliance with ILO conventions •

No 87 – Freedom of association & protection of the right to organize

Globalization and Labour •

The permanent job is disappearing •

•

Casualisation of labour

Organized labour is threatened by enterprise level bargaining under the auspices of the democratization of the workplace

•

IT – As businesses seek ways to improve the product (through innovation, quality, availability & pricing) cross functional teams, cutting across traditional segments & stable processes that facilitated collective IR

•

Reduction as well of the numbers that is available to the organisation into Trade Unions.

•

The rise of the knowledge worker

•

The impact of MNCs on C.B in host countries

•

Globalization and labour market performance

•

Eric Foner has written: "Today's Chinatown sweatshops and Third World child labour factories are the functional equivalent of colonial slavery in that the demands of the consumer and the profit drive of the entrepreneur overwhelm the rights of those whose labour actually produces the saleable commodity." 9 Working people have always resisted

such demands. At the end of the 20th century resistance will be stronger to the extent to which we do not allow the scarecrow of "globalization" to disempower us. The system is the same, its logic is the same, and the need for workers of the world to unite has never been greater. It is time for greater clarity in our critique of the basic workings of what are called "free markets" but are in reality class power. We need to counterpoise the need to control capital and to have the economy serve human needs rather than accept the continuous sacrifice of working people to such ideological constructions as competitiveness, free markets, and the alleged requirements of globalization. •

Twist of trade union power from hip to information

•

The impacts of the growing informal sector

Social Dialogue Definition of Social Dialogue •

Social Dialogue is defined to include all types of negotiations or simply the exchange of information between, or among representatives of governments, employers and workers, on issues of common interest relating to economic and social policy. It is perceived as an instrument of democracy, which promotes consensus building for the national good.

Prerequisite for Social Dialogue •

The following are key conditions for Social Dialogue: •

Establishment of a Social Dialogue culture;

•

cultivation of a Social Dialogue mindset;

•

establishment of effective institutions for Social Dialogue;

•

political tolerance and social cohesion for the sake of national development.

Social Dialogue approaches in Zimbabwe •

The approach to Social Dialogue is two-pronged. The National Economic Consultative Forum (NECF) under the banner of smart partnership is pursuing the broader initiatives. Secondly, resolving of national socio-economic problems through negotiations is pursued within the auspices of the Tripartite Negotiating Forum (TNF).

Smart partnership and NECF •

The Commonwealth Partnership for Technology Management Ltd. (TM), created by Commonwealth Heads of Government in 1995 promotes networking between governments, business and labour organisations.

•

It involves partnership among government, business and labour at the national, regional and international levels, helping Commonwealth countries to make the most of opportunities offered by the new global market. Smart Partnership is based on a deliberate policy of co-operation among the government, the private sector and labour aimed at transforming a country into a winning nation.

•

The primary responsibility of government in a Smart Partnership is to set a clear vision, which is shared by all stakeholders and clearly articulated national strategic plan, which captures that vision. All parties must see themselves as stakeholders in a common endeavour, with the prospect of a “win-win” outcome for all. Smart Partnership is, therefore, about creating limitless opportunities for the generation of wealth. It is also a process that unites people in contributing towards prosperity for all. One such example of International Dialogues co-ordinated by TM was the 2nd Southern African International Dialogue (SAID 99) held in Victoria Falls in October 1999, which focused on economic empowerment and wealth creation in the region. Both labour and business participated.

•

The NECF, set up in 1997, is the national hub for Smart Partnership in Zimbabwe. The objectives of the NECF are: •

to create a Smart Partnership amongst key economic players - government, private sector, labour and other stakeholders in order to enhance the economic development process of the nation;

•

to provide a broad participatory framework in the formation of national economic policy through an interchange of ideas and experiences amongst the stakeholders;

•

to facilitate the co-ordination, monitoring and evaluation of national economic policy implementation.

The NECF operates through the following task forces:

•

Macro-economic Task Force

•

Land Reform Task Force

•

Industrial Policy Task Force

•

Incomes and Pricing Task Force

•

Human Resources Development Task Force

•

Health and Environment Task Force

•

Taxation and Expenditure Task Force, and

•

Anti-corruption Task Force

Smart Partnership for what? •

In the Zimbabwean context, Smart Partnership is for: •

strengthening co-operative networks and enhancing working relationships among Governments, Labour and the Private Sector;

•

building a Zimbabwean co-operative team and a common vision;

•

identifying “win-win” situations so as to promote the development of Zimbabwe;

•

projecting Zimbabwe to the international business community as a destiny for investments.

•

The Smart Partnership approach is a means of creating a uniquely Zimbabwean pathway to global competitiveness by building on the systems of co-operation, which are inherent in the Zimbabwean culture. After all, the Zimbabwean culture stresses the important role of co-operative action within the family and community. Competitiveness in the global market is achievable within a co-operative framework.

In the context of globalisation, government should: •

create an enabling environment;

•

Pursue policies essential to successes in the global economy.

Labour should:

•

be driven by a clear understanding that only through productivity enhancing measures and commitment to excellence in the provision of goods and services, can they guarantee workers good salaries, wages, employment and job security;

•

adopt less conflictual labour relations;

•

assist in building the capacity of workers.

Private sector should: •

encourage managers to employ progressive business practices;

•

assist in the building the capacity of workers in line with the new concept of social capital;

•

place productivity and quality through Smart Partnership at the apex of organisational endeavour;

•

maintain core standards at the work place in line with the Declaration on Fundamental Principles and Rights at Work.

Shortcomings of the NECF Some of the shortcomings are: •

It is not a negotiating chamber though some of its positions are factored into the government decision-making machinery.

•

Public Service Associations are not players of this forum despite the fact that there are critical components of labour in Zimbabwe.

The Tripartite Negotiating Forum Background information Since independence in 1980, tripartite consultations among government, labour and business have been taking place following the ratification by government of the ILO Convention No. 144 (Tripartite Consultations, 1976). The tripartite consultations have been, to a greater extent, restricted to meetings among the Ministry responsible for Labour istration, the Zimbabwe Congress of Trade Unions (ZCTU) and the Employers Confederation of Zimbabwe (EMCOZ). Up to 1998, the consultations had remained narrow in scope

It is against this background that in 1998, at the zenith of the labour movement’s protests, demonstrations and job stay-aways against macro-economic problems, that the idea to transform the tripartite consultation arrangements by broadening the scope in line with paragraph 3(b) of ILO Recommendation No. 152 was mooted. With Social Dialogue in mind and as the way forward to deal with issues of national outlook, the Government, Labour and Business formalised in October 1998 their meetings into the Tripartite Negotiating Forum (TNF).

The agreed of reference of the TNF are: •

to identify and deal with all macro- economic issues that affect the well- being of the economy and social development;

•

to deal with issues debated in the NECF and render themselves for negotiations. (A practical example is the issue of a Social Contract, which was debated in the NECF in September 1999 and was referred to the TNF since it is a negotiable matter);

•

to negotiate and recommend positions to the respective constituent bodies;

•

to monitor the implementation of the agreed positions once ratified by constituent bodies.

Composition for the TNF Government •

Public Service, Labour and Social Welfare (Chairperson)

•

Finance and Economic Development

•

Industry and International Trade

•

Mines and Energy

•

Lands and Agriculture

•

Environment and Tourism

•

Information and Publicity

•

Other Ministers are invited depending on the issues under consideration.

Business •

Employers Confederation of Zimbabwe (EMCOZ) (business co-ordinator and co-

chairperson) •

Confederation of Zimbabwe Industries (CZI)

•

Zimbabwe National Chamber of Commerce (ZNCC)

•

Bankers Association of Zimbabwe (BAZ)

•

Chamber of Mines

•

Commercial Farmers Union (CFU)

•

Zimbabwe Farmers Union (ZFU)

Labour •

The Zimbabwe Congress of Trade Union’s (ZCTU) (labour co-ordinator and cochairperson)

•

Public Service Association (PSA)

•

Zimbabwe Teachers Association (ZIMTA)

•

Zimbabwe Nurses Association (ZNA)

•

5 of the Executive Office of the ZCTU attend the TNF

Issues finalised by Social Partners in the TNF The following issues were discussed and agreed upon within the auspices of the TNF in October 1999: •

the scrapping of the Development Levy;

•

the scrapping of the 2½ sales tax which the Government had effected in November 1997;

•

the deferment of taxation on Pension Funds to allow for a comprehensive study.

Current discussions on Social Contract At the beginning of September 2000, the social partners started negotiations aimed at the conclusion of a Social Contract. The social partners agreed to start with a Declaration of

Intent towards a Social Contract. This is a prelude to the conclusion of a Social Contract and its main objectives are: •

to create a conducive and tolerant environment for the discussion and conclusion of a Social Contract;

•

to overcome constituents differences and work towards a common goal being guided by a common vision regarding the future of the economy;

•

to remove the fears and mistrust among Social Partners;

•

to commit social partners to sustainable Social Dialogue.

Advantages of the TNF approach •

It is a negotiating chamber

•

It is result-oriented

•

Representation in the TNF is by institutional arrangement

•

It is a forum, which affords social partners to meaningfully engage in decision-making processes on issues, which have a national outlook.

Concluding Remarks •

Social dialogue is the only way forward for this country to survive in depressed political and economic environments.

•

Economic problems have to be tackled by all social partners – government, labour, capital, and society in general. Not one single party can resolve some of the teething problems being faced by the country.

PAST EXAM QUESTIONS FOR REVISION

•

Discuss Robert Mitchell’s “Iron Law of Oligarchy” and its relevance to trade union democracy.

•

A contract of employment is a way of controlling the labour process. Discuss with reference to Zimbabwe’s statutory and common law provisions on the employment contract.

•

“An unceasing power struggle is therefore the central feature of industrial relations…..”Hyman (1975). Discuss

•

Discuss the contention that “there is nothing so unequal as the equal treatment of unequals” with respect to the State’s intervention in industrial relations.

•

Does the definition of Industrial relations as job regulation represent a narrow framework for the study of the subject? Discuss

•

Conflict is always inherent in Industrial Relations. Discuss this argument with reference to the three Industrial Relations perspectives.

•

The issues of power and control are central to the study of industrial relations. Discuss

•

Discuss the various elements that are fundamental in developing a legally binding employment contract as discussed in class.

•

Analyse the factors that have led to the growth and decline of trade unions in Zimbabwe since 1900 to date.

•

Discuss the role of the State in industrial Relations.

•

Analyse the critical elements that should be considered by negotiators for effective negotiations to take place. Discuss the extent to which the State has contributed towards the rise and fall of trade unions in the pre and post-independent Zimbabwe.

•

Discuss the impact of globalization on Industrial Relations in Zimbabwe. In your answer, take note of how flexibility issues have shaped the employment contract.

•

a) “…the issues of power and control are central to the study of industrial relations…”.Outline the various types and sources of managerial power in Industrial Relations. b) Discuss the strategies employed by management in order to gain full control of the labour process.

•

a) Discuss the contention that conflict is always inherent in Industrial Relations.

b) Analyse the nature and causes of industrial conflict and the various ways that are used to

contain it.

15. a) b) Discuss the factors that are likely to affect the nature and scope of collective bargaining in Zimbabwe today. 16. a) Discuss the reasons why employees trade unions as well as the factors that discourage others to obtain hip in such organizations. b) Critically analyse trade union democracy and the factors that are likely to impinge on trade union democracy in the contemporary business world. 17. Discuss the role played by Social Dialogue in addressing issues of Social and Economic Policy in Zimbabwe since 1998. To what extent has it added value to all parties to the Social Contract? 18. Analyse the impacts of the new H.R Agenda on the management of Employment Relations today. REFERENCES Grogan J, (2000), Workplace Law, 5th ED Gwisai M,(2006), Labour and Employment Law in Zimbabwe, Zimbabwe Labour Centre, Harare Labour Act, (2006), Government Printers, Harare Mugumisi S,(18 Nov 2009), Collective Bargaining: lessons form from 2009 focusing at 2010 and Regional Trends, Paper presented at the IPMZ Labour Briefing in Harare. Schiphorst F.B,(2001),Strength & Weakness: the rise of ZCTU and the development of Labour relations (1980-1995) Swanepoel et al,(2007), South African Employment Relations, Van Schaik Publishers, Pretoria Taxler.F,(2009), The Economic Effects of Collective Bargaining Coverage: A cross national analysis, ILO, Geneva