Luyolo Geza
Managing Director August 18, 2016

Human Resource’s Role
in Maintaining Effective Working Relationships
with Trade Unions

Overview
 The South African Labour Relations is very
dynamic and aggressive in nature
 Although that’s the case, it is amongst the best
labour relations legislations in the world
 Why is that?
 The Labour Relations Act 66 of 1995 (as
amended) seeks to strike a balance between
the employer & employee interests
 There is law governing [1] the relationship between
employers and individual employees (employment law),
and
 Legal rules governing relationship between employers
and employee collectivities, or between management
and organised labour (collective labour law).

Highlights of SA Historical Background
 Between 1911 and 1918 a succession of laws was
promulgated in South Africa with various sectors and labour
in general
 After large scale industrial unrest on the Witwatersrand in
1992 was a comprehensive attempt made to regulate
relations between management and organised labour, i.e.:
 Industrial Conciliation Act of 1924
 Wage Act, 1925
 Industrial Conciliation Act in 1937
 Botha Commission of Inquiry led to legislation that had a far-
reaching effect the labour structure
 The Commission recommended that black trade unions
should be dealt with in separate legislation
 In 1953, The Black Labour Relations Regulations Act
 This resulted in “dualistic system of labour relations”:
 Blacks LR
 Whites, Indians, Coloureds until beginning of the 1980’s
 Following recommendations from the Wiehahn Commission,
the country's labour laws were deracialised, significant
amendments were made to the Industrial Conciliation Act →
renamed to Labour Relations act 28 of 1956

Highlights of SA Historical Background (cont.)
The current LRA, Act 66 of 1995 brought another turning point
 Its broad agenda focused on:
o Co-operative
o Encourages union-management cooperation
o Transformed bargaining styles.
 The aims of the current LRA are wider and more ambitious than
those of its predecessor, which aimed mainly at avoiding
industrial unrest
 Whilst the 1956 LRA left it to the labour courts to encourage
collective bargaining as preferred method of resolving
workplace disputes, the current LRA expressly commits
employers and employee to workplace democracy
 Which entails active promotion of participative management
and join-decision making

What Is HR’s Role
in Maintaining Effective Working Relationships
with Trade Unions?

Negotiating Labour Agreements
 Labour unions protects workers rights and negotiate for better
employment terms and conditions through collective bargaining
 A healthy working relationship between management and
union officials is vital to prevent and resolve workplace disputes
 The HR department supports, guides and trains managers to
help the maintain effective working relations with unions
 For example:
 Building Trust in the Workplace
 Managing Unionised Environments
 Labour Relations Foundations
 Strategic Grievance Handling
 Strategies for Workplace Conflict
 Why this kind of training is important?
 Given our historic background
 It defined the culture of bargaining
 Shaped the future approach
 Created gaps and trust issues
 Given leadership competences
 Given organisational culture etc.

Negotiating Labour Agreements (cont.)
 When a workforce becomes unionised, the company negotiates
a labour agreement with local union officials
 The labour agreement governs the relationship between the
company and the union
 It lists items that are subject to collective bargaining, such as:
 Wages
 Benefits
 Discipline, and but not limited to
 Training.
 It also reserves certain items to the sole authority of
management, such as which product to produce and the
location of production
 HR helps managers prepare for negotiations by gathering
relevant data and helping plan the bargaining strategy
 The union officials do the same

Resolving Grievances
 While the labour agreement is the foundation for the
relationship, most of the day-to-day interaction between the
union and management involves the practicalities of
implementation, as no agreement can account for every
eventuality
 When disputes arises, the union raises a grievance on behalf of
its members or group members
 HR supports supervisors to resolve grievances in a positive and
constructive manner by providing:
 Training on the content of the labour agreement
 Skills required to deal with grievances rationally and objectively and or,
 Standards, guidelines, policies and procedures
 HR can also conduct training on the following:
 Building Trust in the Workplace
 Managing Unionised Environments
 Labour Relations Foundations
 Strategic Grievance Handling
 Strategies for Workplace Conflict

Implementing Non-Adversarial Negotiations
 Traditionally, our labour relations history tells us that the
relationship between management and the union has been
adversarial
 With both parties engaged in position-based bargaining
 But our current LRA, encourages collective bargaining and
employee participation
 As such, companies are implementing non-adversarial
negotiations, such as “interest-based” bargaining
 Interest-based bargaining requires parties to invest time and
effort to understand each others interests and helps them
develop a more constructive relationship over time
 What is the role of HR then?
 HR can assist managers to move toward interest-based
bargaining by providing training and coaching
 HR professionals can also support managers by sourcing best-
practice examples of interest-based bargaining from their HR
networks

Facilitating Communication between Management &
Union Officials
 Unions have a significant effect on management decision-
making
 They challenge supervisory authority and prevent a company
from formulating HR policy unilaterally
 Such restrictions can create tension between management and
the union
 However, managers benefit from meeting regularly with unions
to build their relationship and discuss forthcoming changes in
the workplace that will impact employees’ terms and conditions
 How can HR be off assistance?
 HR Can facilitate communication between management and
union officials by organising meetings, providing guidance and
sharing expertise

Facilitating Communication between Management &
Union Officials - Example
How can HR be off assistance?
 HR Can facilitate communication between management and
union officials by organising meetings, providing guidance and
sharing expertise
Area / Line
Meetings
Union /
Management
Meetings
Business
Committee
Meetings
Negotiating
Committee
Central
Bargaining
Line manager, HR, shop steward
and employees.
BU manager, HR, FT &
PT shop stewards
Senior Management, HR,
BU manager, FT &
PT shop stewards
Executives, Mgt, HR,
BU manager,
Union Officials,
FT shop stewards

Facilitating Communication between Management &
Union Officials - Example
What are the long term benefits?
Area / Line
Meetings
Union /
Management
Meetings
Business
Committee
Meetings
Negotiating
Committee
Central
Bargaining
Line manager, HR, shop steward
and employees.
BU manager, HR, FT &
PT shop stewards
Senior Management, HR,
BU manager, FT &
PT shop stewards
Executives, Mgt, HR,
BU manager,
Union Officials,
FT shop stewards
meeting regularly with unions to build their relationship and
discuss forthcoming changes etc.
Big picture view /
alignment
Worker
participation
Healthy relations
On-going key
communication
1
2
3
4

Any Questions & Comments?

Luyolo Geza
Managing Director Mobile 076 972 5744