Conflict Handling

Chapter 7

Tustin and Geldenhuys TREY

research
1
Learning Outcomes
After studying this chapter, you should be able to:
• Identify the internal and external structures for
handling conflict
• Identify the internal and external processes for
handling conflict
• Describe the composition and function of bargaining
and statutory councils
• Distinguish between the various bargaining
structures
• Explain the role of the Commission for Conciliation,
Mediation and Arbitration
• Determine the role of the Labour Court and Labour
Appeal Court
• Describe the purpose of workplace forums
• Distinguish between mediation and arbitration
• Explain agreements as a method of handling conflict

Tustin and Geldenhuys TREY

research
2
7. 1 Introduction

• The term “conflict handling” is used in preference to the term “conflict resolution”
because the former does not imply that conflict will necessarily be resolved.
• For unions, conflict handling remains one of the most important areas in the
achievement of their objectives.
• It is during this stage of the process that the all-important conditions under which
work is done are determined.
• In the work environment, management needs to ensure that conflict is handled
properly and be recognized as legitimate.
• As it is a potential agent for improving the welfare of employer and employee.

Tustin and Geldenhuys TREY

research
3
7. 1 Introduction

• The term “labour dispute” is also often used when referring to labour conflict.
• A labour dispute can be defined as a continued disagreement between employers and
employees regarding any work-related matter affecting the relationship between the
parties, or any processes and structures established to maintain the relationship.
• A common distinction is that between a dispute of right and a dispute of interest.

Right? Interest?

Tustin and Geldenhuys TREY

research
4
Exercise

• Join a randomly assigned breakout group of 3-4 members.

• Research the following EXTERNAL STRUCTURES: (define, purpose and/or functions)
➢ Bargaining councils
➢ CCMA
➢ Labour Court
➢ Labour Appeal Court
• Research the following INTERNAL STRUCTURES: (define, purpose and/or functions)
➢ Workplace Forums
➢ Shop steward committees
• Choose a facilitator to present your findings to the group.

Tustin and Geldenhuys TREY

research
5
Diagram -Structures, Processes and Agreements:

Structures Processes Agreements

External: External: Recognition
Bargaining Councils Mediation Procedural
CCMA Arbitration Substantive
Labour Court
Labour Appeal Court
Internal: Internal:
Workplace Forums Negotiation
Shop Steward Committees Strikes and Lockouts
Communication
Training
Counselling
Interactive Skills
Group Facilitation and Consultation Skills

Tustin and Geldenhuys TREY

research
6
7.2 Structures - External

Bargaining and Statutory Councils:

• A permanent body of registered trade unions and employer organisations established
in a particular sector or area.
• The purpose is to conclude and enforce collective agreements, and to prevent and
resolve labour disputes.
• It is based on the concept of a bargaining structure which refers to levels of
bargaining (decentralized or centralized) and the bargaining units (who is
represented and covered by the agreement).
• Where no bargaining council exists, the LRA makes provision for the establishment of
a statutory council.
• It needs less representation for its formation and has limited power.

Tustin and Geldenhuys TREY

research
7
7.2 Structures - External

The Commission for Conciliation, Mediation and Arbitration (CCMA):

• It is a state funded body that functions independently of all other parties in the labour
relationship with jurisdiction in all the provinces of SA.
• It uses a panel of commissioners which provides comprehensive dispute resolution
services in the form of conciliation and arbitration.
• It also provides assistance in the establishment of workplace forums and the
compilation and publishing of statistics about its activities.
• It may also provide advice, assistance and training to parties.

Tustin and Geldenhuys TREY

research
8
7.2 Structures - External

The Labour Court:

• It is a superior court with equivalent status to that of a provincial division of the
Supreme Court and has jurisdiction in all provinces.
• It consists of judge president, a deputy judge president and as many judges as
necessary.
• The court has various functions but in order to prevent all cases being referred to the
court, it may refuse to determine any dispute if it is not satisfied that an attempt has
been made to resolve the dispute through conciliation.

Tustin and Geldenhuys TREY

research
9
7.2 Structures - External
The Labour Appeal Court:
• The function is to hear and determine all
appeals from the Labour Court and to
decide on any questions arising from
the proceedings of the Labour Court.
• This is the final court of appeal
regarding all labour disputes.

Tustin and Geldenhuys TREY

research
10
7.2 Structures - Internal

Workplace Forums:
• Consists of a number of representatives of employees in a particular workplace.
• Its purpose is to consult and negotiate with management about various matters of
concern.
• The employer is compelled to meet on a regular basis with an established workplace
forum and to supply certain relevant information that the forum may require in order
to engage effectively in consultation and joint decision-making.
• Overall purpose is to encourage worker participation in traditionally managerial
decision-making structures.

Tustin and Geldenhuys TREY

research
11
7.2 Structures - Internal

Shop Steward Committees:

• Or employee representatives may form committees to co-ordinate their activities in a
particular organisation and to negotiate and communicate with management on
worker-related issues.

Tustin and Geldenhuys TREY

research
12
7.3 Processes - External

Mediation:
• A process of settling disputes in which negotiating parties request a neutral third
party to assist them in resolving their conflict and reaching an agreement.
• When reaching agreements, the mediator’s proposals have no binding power – the
parties are free to settle as they see fit.
• The mediator advises both sides, acting as an intermediary and suggest possible
solutions.
• The effective mediator is a stabilizing influence, helps the parties achieve their goals
with minimum friction and helps them avoid a breakdown of discussions which may
result in a strike.

Tustin and Geldenhuys TREY

research
13
7.3 Processes - External

Arbitration:
• Also involves a neutral third party however, the parties involved in the dispute confer
the right on the arbitrator to make a binding decision.

Tustin and Geldenhuys TREY

research
14
7.3 Processes - Internal

Negotiation:
• Is seen as an interactive process between two parties aimed at securing fair,
reasonable and mutually acceptable results.
• It involves detailed preparation, careful choice of negotiating teams, and a variety of
strategies and tactics.

Tustin and Geldenhuys TREY

research
15
7.3 Processes - Internal

Strikes and Lockouts:

• A strike is a temporary cessation of work by workers in an attempt to settle a
grievance or enforce a request.
• A lock-out is an exclusion of employees from the workplace by the employer, with the
purpose of compelling them to agree to demands or accept a change in terms or
conditions of employment.
• The right to strike and to lock-out is an essential part of the labour relations system as
it enforces a balance of power between the parties.

Tustin and Geldenhuys TREY

research
16
7.3 Processes - Internal

Communication:
• To be able to make informed decisions and to shape realistic and legitimate
expectations, perceptions and motives, workers require ongoing regular information
about aspects as diverse as the organisations performance, success and problems,
environmental factors, policies, procedures and programmes and other personnel-
related matters.
• Effective and efficient methods of ensuring proper communication should be devised
or adapted to organisational and employee needs which should be properly
administered.

Tustin and Geldenhuys TREY

research
17
7.3 Processes - Internal

Training:
• Is it extremely important to trade unions and other organisations that training at all
levels occur.
• The content and methods used during training will naturally be adapted according to
the nature of the audience or trainees.

Counselling:
• Counselling of and consulting with management, workers and unions regarding a
variety of issues related to the employer-employee relationship and its effects can be
of value in promoting emotional health and assisting the parties to come to terms
with and optimally handle or cope with the conflict they experience.

Tustin and Geldenhuys TREY

research
18
7.3 Processes - Internal

Interactive Skills:
• The ability to motivate, direct and influence people in desired ways is the greatest
asset or skill a manager could posses.
• Interactive skills are required to influence employees to have favourable attitudes and
to integrate them so that they feel part of the team and become willing to participate
and contribute.

Group Facilitation and Consultation Skills:

• Facilitation is the creation of a safe, respectful, trusting and understanding climate to
facilitate group growth.
• Consultation involves studying the conscious and unconscious dynamics of the group
from an interpretative perspective.
Tustin and Geldenhuys TREY
research
19
7.4 Agreements:

• Are treated as ways of handling conflict because ultimately, the aim of labour
relations is not merely to conclude legally binding agreements on certain issues but to
ensure viable, long-term and healthy relationships between the parties concerned.
• Agreements serve to facilitate this outcome but do not, on their own, represent the
relationship.
• Three types of labour relations agreements exist –
1. Recognition
2. Procedural
3. Substantive

Tustin and Geldenhuys TREY

research
20
7.4 Agreements:

1. Recognition Agreements:
• An agreement between a trade union and employer, in terms of which the union is
recognized as the representative of all or some the employees of the employer –
those who are members of the union.
• Issues such as preamble, definitions, terms of recognition, the use of notice boards,
union access to organisation premises, check-off facilities for union members, shop
steward constituencies, and the position of shop stewards are commonly included in
these agreements.
• The recognition agreement is dependent on sound administration, training,
communication and good faith.

Tustin and Geldenhuys TREY

research
21
7.4 Agreements:

2. Procedural Agreements:
• This is a more extensive form of a recognition agreement.
• It includes detailed procedures relating to the handling of issues such as discipline,
grievances, negotiations, disputes, retrenchments, and health and safety.

3. Substantive Agreements:
• Governs issues that normally have economic implications, such as salaries, wages and
conditions of service.
• This type of agreement has important influences on both individual and organisational
outcomes.

Tustin and Geldenhuys TREY

research
22