Principles of Business Test

Topic: Workplace Conflict

Form: 3rd
Date:………………………..
Name:………………………………….

Please read the CASE STUDY below and answer the questions that follow, if necessary, use binder
papers.

ead the case study below and answer the

questions that follow:
The Sholoza Shoe company has factories
at Isithebe and Pinetown. It has
recognised the Shoe and
Stew Workers Union as the collective
bargaining representative of all workers
at both factories for
the past 5 years, (i.e a majoritarianism
system) but the relationship between
management and the
union is very poor at the moment. Both
factories are currently experiencing
industrial action.
At the Isithebe factory a wage dispute
which was not resolved after
conciliation by the CCMA, led to
a strike. The union commences striking
without giving notice to the company.
60% of the workers
are on strike, including nurses employed
at the company=s clinic, who have been
declared an
essential service in terms of the Labour
Relations Act(1995).
Isithebe management have threatened
that if the strike does not end by
midnight tonight, they will
commence a lockout tomorrow and
bring in temporary replacement labour
to continue normal
production, and they have said that they
intend to evict striking workers from the
Company=s
hostel, which is situated on the premises.
At the Pinetown factory, the dismissal of
the chief shop-steward has led to a strike
and workers are
demanding his reinstatement. This
dispute was also referred to the CCMA
but was not resolved at
conciliation. The Pinetown management
have late today(5pm) informed the union
by telephone that
if the strike does not end by the start of
the next shift at 6.00pm all strikers will
be dismissed
The Sholoza Shoe Company has factories and hotels in Old Road and Freetown. It has recognised the Shoe and

Stew Workers Union as the collective bargaining representative of all workers at the factories and hotels for the

past 5 years but the relationship between management and the union is very poor at the moment. Both the
factory and hotel are currently experiencing industrial action. At the Old Road factory, a wage dispute which

was not resolved after discussion with management, led to a strike.

The union commenced striking without giving notice to the company, as such 60% of the workers are on strike,

including nurses employed at the company’s clinic, who have been declared an essential service in terms of the

Labour Relations Act(1995). The factory management in Freetown has threatened that if the strike does not end

by midnight tonight, they will commence a lockout tomorrow and bring in temporary replacement labour to

continue normal production, and they have said that they intend to evict striking workers from the Company’s

hotel, which is situated on the premises. At the Old Road factory, the dismissal of the chief shop-steward has

led to a strike and workers are demanding his reinstatement. This dispute was also referred to the management

of the company but was not resolved during discussion. The Freetown management have to date informed the

union by telephone that if the strike does not end by the start of the next shift at 6.00pm all strikers will be

dismissed.

1. Define the term workplace conflict. (2 marks)

………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

2. List TWO (2) factors which lead to the conflict between management of the factory and hotel and their
employees. (2 marks)

………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

3. Given that 60% of the employees were on strike including nurses who are seen as essential, explain how
this would affect the company’s productivity? (5 marks)

………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

4. The management threatened to commence an industrial strategy/action (lockout) against the employees,
what does this strategy mean? (2 marks)
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

5. Suggest TWO (2) other industrial strategies that management can take against the employees (2 marks)

………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

6. Do you think it was right/legal for the Union to not provide an advanced notice, to the employer of the
workers before agreeing to the industrial action? Justify your answer. (4 marks)

………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

7. Although the employees would taken the industrial action (strike) against the employer, suggest FOUR
(4) other industrial actions that can be taken and explain any TWO (2). (6 marks)

………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

8. Recommend TWO (2) ways in which there can be a good employee to employer relation in the
workplace. Ensure to justify your recommendation. (6 marks)