Motebang, Siyabonga, Calvin Ntokoane

Bachelor of Commerce Honours Research

Topic: Exploring the role of trade unions in Project.

the representation of worker interests.

Student Number: 21809821
Literature Review.
Contact Numbers:

Cell: 071 8111 801

Work: 031 250 2623

Region: Durban, KwaZulu-Natal

E-mail: Motebang.ntokoane@gmail.com

Date submitted :10/04/2019

Motebang, Siyabonga, Calvin Ntokoane

1.1 Introduction.

This literature review, entails the exploration of the various roles that trade unions play
in the representation of worker interests, using both international and South African
contexts to explore the topic. A discussion on how trade unions originated as
representatives of workers interests will initiate the review.

Since their inception, there has been a growing popularity for and variety of trade unions
especially in the South African context. The significance of this literature review comes
to play, as it explores in depth the various roles trade unions play in representing worker
interests. Roles such as, vehicle of worker collaboration, worker educator, worker
ambassador, collective bargaining negotiator and political affiliate.

The literature review, further extends its’ significance, as it explores workers interests in
depth and reviews how effective actions used by trade unions are in representing
worker interests.

A conclusory summary, discussing the significance of the literature reviews’ exploration

of the roles trade unions play in representing worker interests is given along with
recommendations.

Aim of the review.

The aim of review, is to identify the various roles that trade unions play and how these
roles impact worker interests internationally and in South Africa.

Objectives of the review.

• To identify the roles of trade unions in South Africa.

• To explore worker interests.
• To explore the effectiveness of trade unions in representing workers interest.
• To make recommendations on the role of trade unions in their representation
of worker interests.

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1.2 Historical Summary of trade unions.

According to Duignan (2017), trade unionism originated in the 19th century in

Great Britain and continental Europe. Small associations of workers started appearing
in Britain in the 18th century, but they remained sporadic and short-lived through most
of the 19th century, in part because of the hostility they encountered from employers
and government groups that resented this new form of political and economic activism.
At that time unions and unionists were regularly prosecuted under various restraint-of-
trade and conspiracy statutes in both Britain and the United States (Duignan, 2017).

In the South African context, Manamela (2015: ii) states, trade unions started as friendly
societies aimed at assisting their members with various matters, including offering
financial help for education purposes and in cases of illnesses. In South Africa, trade
unions for many years not only fought for worker’s rights within the workplace but also
beyond the workplace (Manamela, 2015: ii).

1.3 The role of trade unions.

Shrestha (2012:16) states, a trade union, through its leadership bargains with the
employer or the management on behalf of the union members and negotiates labor
contracts (Shrestha,2012:16).

Taking Shrestha’s points further, Manamela (2015: ii), states the main purpose of trade
unions is to regulate relations between employees and their employers
(Manamela,2015: ii).

Van Rensburg, McConnell and Brue (2015) state, the role of a trade union is to ensure
that workers’ interests are articulated and to ensure that agreements with employers are
implemented (Van Rensburg et al.,2015).

1.3.1 The role of trade unions as a vehicle for worker collaboration.

Graham (2013:9) states, trade unions are economic pressure groups protecting the
interests of wage-earning or salaried workers in a trade or industry (Graham, 2013:9).

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Shrestha (2012:16) states, a trade union (or labor union) is an organization of workers
or employees who have combined to achieve common goals, in areas such as working
conditions and protecting and promoting their mutual interests through collective action
(Shrestha,2012:16).

From the definitions given by Shrestha (2012:16) and Graham (2013:9), one can say
that a trade union, is a grouping of workers, who form an organisation collaboratively,
that does the actions of general member recruitment, member education, member
representation in labour disputes, member representation in collective bargaining and,
application of pressure and the utilization of strike action to influence the employer and
government to act in ways that uplift the interest of workers. The organisation or trade
union, is utilized by workers, as a vehicle to collaboratively represent their collective
interests.

1.3.2 The role of trade unions as worker educator.

Trade Unions as worker educator, in the South African context, Vally, Bofelo and Treat
(2013:470) state, worker education played a crucial role in the development of the trade
union movement in South Africa and in the broader struggle for social transformation
(Vally et al., 2013:470).

Trade unions educate workers of their rights, in South Africa, The Congress of South
African Trade Unions (COSATU), educates workers about their rights so their members
can be empowered and aware of any employer acts of abuse. COSATU (2009) states,
“workers’ education is about how organized workers can influence, shape and transform
society”. A similar sentiment is shared by Valley et al. (2013:472) they state, worker
education played a vital role in the genesis and rise of the trade union movement in
South Africa — and thus in the eventual overthrow of the explicit policy of apartheid.

The work done by trade unions, in the education of workers was important, as it led to
the overthrowing of the Apartheid regime. The policies of Apartheid were contradictory
to worker interests, particularly black workers who were the majority in South Africa.

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1.3.3 The of role trade unions as worker ambassador.

Trade unions in their role as worker ambassador, use a variety of platforms and
institutions to represent and protect worker interests. In the mediation of labour related
disputes between worker interests and employer interests, South African trade unions
utilize an independent body, known as the Commission for Conciliation, Mediation and
Arbitration (CCMA), in defining itself the CCMA (2016) states, the Commission for
Conciliation, Mediation and Arbitration, is a dispute resolution body established in terms
of the Labour Relations Act, 66 of 1995 (LRA).

In challenging acts legally, that contravene workers interests, perpetrated by employers,

trade unions approach the labour court, Justice.gov.za, (2019) states, the labour court,
has the status of a high court and adjudicates matters related to labour disputes.

The Federation of Unions of South Africa (FEDUSA), as an ambassador of workers, has

been lobbying, via the labour court and subsequently the constitutional court, for the
ending of labour brokering, FEDUSA, consider labour brokering as form of unfair labour
practice, in a media release by FEDUSA, George and Nxumalo, (2016) stated, “The
Federation of Unions of South Africa (FEDUSA) has hailed a ruling by the Constitutional
Court compelling companies to give a permanent contract to employees who had been
recruited through labour brokers”.

CCMA (2016) states, unfair labour practice is unfair treatment by an employer of an

employee or job applicant. Section 185 of the LRA states that every employee has the
right not to be subjected to an unfair labour practice (CCMA,2016).

Unfair labour practice can be a mix of abuses, like non - compensation for work done,
provision of unsafe working environments, discrimination based on race or gender. As
worker ambassador, trade unions represent worker interests, by assisting workers in
work related disputes like disciplinary hearings, and representation in mediation or
arbitration situations at the CCMA. Trade unions also use the labour court as a platform
to voice and defend worker interests.

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1.3.4 The role of trade unions as collective bargaining negotiator.

In their role as collective bargaining negotiator, trade unions drive worker collaboration;
a united workforce provides gravitas to the trade unions’ cause. Worker unity is
imperative to gain bargaining power during negotiations or when there is a need to
show force.

Rheeder (2018) states, collective power is a fundamental concept of a trade union. An

employee achieves very little when he or she is a “one man show”. A single employee
can, for instance, not embark on a protected strike. Employees therefore organize
themselves in trade unions to maximize their collective power in what we call “power
play” against the employer (Rheeder,2018).

Trade unions use institutions like the bargaining council, to negotiate collective
agreements between workers and employer bodies. Matete (2014:5) states bargaining
councils consist of representatives from the major unions and employer groups within
each sector. The main purpose of bargaining councils is to reach consensus on terms
and conditions in specific industries (Matete,2014:5).

1.3.5 The role of trade unions as political affiliate.

In their role as political affiliate, trade unions helped shape the South African political
landscape, while representing worker interests.

COSATU via its members, membership in the Tripartite Alliance, of the African National
Congress (ANC), South African Communist Party (SACP) and itself.

Budeli (2012:474) states, by its inclusion in the Tripartite alliance, COSATU used its
members to enter crucial leadership positions in the ANC and ANC led Government.
COSATU also participated actively in the National Economic Development and Labour
Council (NEDLAC), where consensus was reached between government, business,
labour and community interests on economic and social policy in parliament where
COSATU was already represented through the ANC (Budeli,2012:474).

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The Labour Relations Act 66 of 1995 (LRA), the first piece of post-apartheid legislation
to promote workers’ rights and interests through a new version of work and industrial
relations in South Africa, was a product of the close relationship between trade
unionism and party politics. Followed by the Basic Conditions of Employment Act 75 of
1997, the LRA was far more favourable to workers than any labour legislation that had
preceded it (Budeli,2012:474).

1.4 The influence of trade unions on labour supply.

Parkin, Kohler, Lakay, Rhodes, Saayman, Schoer, Scholtz and Thompson (2017:391)
state, one way of raising the wage rate is to decrease the supply of labour in some
labour markets, a union can restrict supply by controlling entry into apprenticeship
programmes or by influencing job qualification standards. Markets for skilled workers,
doctors, dentists and lawyers are the easiest to control in this way (Parkin et al.,
2017:391).

This where we observe, the role of trade unions having an ambiguous effect on worker
interest.

Unionized workers benefit from an increase in their wages and salary due to restrictive
conditions imposed by trade unions.

Non-union workers, who could have been employed if restrictions were not there, are
then driven out that trade and their interests as workers are not represented by trade
unions.

1.4.1 The influence of trade unions on labour demand.

Trade unions try to increase the demand for labour of its members in four main ways:

1. Increasing the value of marginal product of its members by organising and

sponsoring training schemes and apprenticeship programmes, and by
professional certification (Parkin Et al., 2017:391).

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 2. Lobbying for import restrictions and encouraging people to buy goods made by
unionized workers (Parkin Et al., 2017:391).

3. Supporting minimum wage laws, which increase the cost of employing low skilled
labour and lead firms to substitute high-skilled non-union labour for low-skilled
union labour (Parkin Et al., 2017:391).

4. Lobbying for restrictive immigration laws to decrease the supply of foreign

workers (Parkin Et al., 2017:391).

1.5 Exploring worker interests.

In the South African context, work done by Vettori in the African Journal of Hospitality,
Tourism and Leisure, is used, in the identification of acts of law that govern worker
interests.

The Acts of law reviewed by Vettori were; The Labour Relations Act 66 of 1995, The
Basic Conditions of Employment Act 75 of 1997, The Employment Equity Act 55 of
1998, The Skills Development Act 97 of 1998, The Occupational Health & Safety Act 85
of 1993, The Compensation for Occupational Injuries and Diseases Act 130 of 1993,
The Unemployment Insurance Fund Act 30 of 1996. These acts of law give rights and
protection to worker interests and form part of the employment contract between
employers and workers in South Africa. As Budeli, stated prior these acts came to be
as, “a product of the close relationship between trade unionism and party politics.”

To unpack these acts of law and show what worker interests, they each represent,
Vettori, (2015:3) states:

1. The centrepiece of South African legislation concerning labour relations is the

Labour Relations Act 66 of 1995 (the “LRA”). This Act encourages collective
bargaining inter-alia by creating fora for collective bargaining, by creating means
of achieving organisational rights (unionizing) and providing for the right to strike.

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 It also protects employees against unfair labour practices and unfair dismissal
(Vettori,2015:3).

2. The Basic Conditions of Employment Act 75 of 1997 (BCEA), provides for

minimum standards such as work hours and leave. The BCEA sets out minimum
standards for most employers, excluding minimum wage requirements. The
BCEA also provides for state legislated Sectoral Determinations which regulate
wages, hours and basic conditions for vulnerable or special sectors
(Vettori,2015:3).

3. The Employment Equity act 55 of 1998, prohibits discrimination in the workplace

and places an obligation on employers who employ more than 50 employees to
implement and action measures to redress the in-equities of the past and
achieve equity in the workplace (Vettori,2015:3).

4. The Skills Development Act 97 of 1998, seeks to improve the skills of South
African workers by imposing a training levy on employers (Vettori,2015:3).

5. The Occupational Health & Safety Act 85 of 1993, sets minimum health and
safety standards in most workplaces (Vettori,2015:3).

6. The Compensation for Occupational Injuries and Diseases Act 130 of 1993,
establishes a compensation fund to which all employers are obliged to contribute
and from which loss of wages and medical expenses of employees injured at
work and who are suffering from an occupational disease are paid out
(Vettori,2015:3).

7. The Unemployment Insurance Fund Act 30 of 1996, establishes an

unemployment insurance fund to which both employers and employees
contribute to provide benefits to unemployed employees who contributed to the
fund for a limited period (Vettori,2015:3).

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With regards to worker interests, one can summise the following;

1. Workers are interested in, having the right to freely associate and unionize, this
interest is protected by the Labour Relations Act 66 of 1995.

2. Workers are interested in, being compensated for the time they work and getting
adequate leave days and health benefits, these interests are protected by The
Basic Conditions of Employment Act 75 of 1997.

3. Workers are interested in, being treated as equals and to not be discriminated
against in the work environment, this interest is protected by the Employment
Equity act 55 of 1998.

4. Workers are interested in, having their skills developed, this interest is protected
by the, Skills Development Act 97 of 1998.

5. Workers are interested in, working in a safe environment, this interest is

protected by the, The Occupational Health & Safety Act 85 of 1993

6. Workers are interested in, the certainty of knowing that, if they are injured at
work, their physical and financial interests are protected. These interests are
protected by the Compensation for Occupational Injuries and Diseases Act 130
of 1993

7. Workers are interested in, ensuring that their financial wellbeing is taken care of,
if or when they are unemployed due to injury at work or retrenchment. These
interests are protected by the Unemployment Insurance Fund Act 30 of 1996

1.6 Effectiveness of trade unions in representing worker interests.

Trade unions rely on various strategies to be effective in representing worker interest.

During negotiations unions use actions of power, Sandler (2017) states, trade unions
use action that include striking, parading, boycott and collective bargaining (Sandler,
2017).

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In examining the effectiveness of trade unions in representing worker interests, in the
South African context, COSATU has been lobbying for a national minimum wage, for
workers generally and has been successful at championing this for all workers, both
unionized and non-unionized workers. This is an example of trade unions being
effective at representing worker interests. In a media release COSATU (2016) stated
“The COSATU CEC has noted and welcomes the release of the National Minimum
Wage report by the Advisory panel of experts and its recommendation for the adoption
of a legislated universal National Minimum Wage” (COSATU, 2016).

Internationally, trade unions, seem to no longer be effective as before at representing

worker interests in the labour market.

Baccaro (2018:7) states, under increased competitive pressure, negotiations become

consultations, bargaining becomes concession bargaining and voice becomes mere
expression, workers may be justified in wondering what trade unions are still for. The
weakening of trade unions’ roles in wage setting and their inability to redistribute
companies’ gains from globalization to workers have contributed to rising inequality
(Baccaro,2018:7).

In his book “What unions no longer do” Jake Rosenfeld gives an American context to
the lack of effectiveness by trade unions in representing worker interests, Rosenfeld
(2014) states, unions are no longer instrumental in combating inequality in our economy
and our politics, and the result is a sharp decline in the prospects of American workers
and their families (Rosenfeld, 2014).

1.7 Conclusion.

In exploring the role of trade unions in the representation of worker interests, an aim
was set, which was to identify the various roles that unions play and how they impact on
worker interests in South Africa and internationally. This led to the creation of four (4)
objectives, which guided the literature review in answering the topic.

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The study explored the basic historical summary of trade unions and how they have
been representing worker interests since the early 1800’s.

The study then endeavored to identify the roles of trade unions in South Africa and
internationally. The roles discussed in this literature review were:

• Trade unions role as a vehicle through which workers can collaborate.

• Trade unions role as worker educator, where the impact of trade unions as
educator, on worker and societal rights bought about the emancipation from
Apartheid policy.

• Trade unions role as worker ambassador, where it was discussed that trade
unions act as ambassadors for worker by assisting workers in work related
disputes like hearings, legal disputes in labour court and arbitrations and
mediations at the CCMA.

• Trade unions role as a collective bargaining negotiator, where the study

discussed how trade unions work on behalf of workers at bargaining councils.

• Trade unions role as a political affiliate, where it was observed how trade unions
in South Africa leveraged their political relationships, to influence government to
create legislation that benefits workers.

The literature review, discussed the influence of trade unions on the labour market, and
highlighted the positive and negative effects of trade union action on the demand and
supply of labour. The study identified how trade union action, in the labour market
widens the inequality gap between unionized and non-union workers. Meaning that
while meeting some workers interests, there are other workers whose interests are
negatively affected by the role played by trade unions in the labour market.

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A deep dive, to examine worker interests was taken, the work by Vettori, in her study of
the Constitution of South Africa, was explored and seven (7) labour focused acts of law
were identified.

These acts of legislation were influenced by trade union participation in political

activities in South Africa. The discussion of these acts of legislation, showed how each
act represented worker interests, from which seven (7) worker interests were identified.

The study then moved to explore the effectiveness of trade unions at representing
workers interests, this is where it was highlighted that two (2) views, around the
effectiveness of trade unions exist, the international context, shows unions as
ineffective, whereas the South African context, showed that the role trade unions play is
still effective at representing worker interests.

1.8 Recommendations.

The last objective of the literature review is to make recommendations to improve trade
union representation of worker interests.

It is recommended that trade union leaders, as high-level custodians of worker interest,

should act with high ethical esteem and responsibility.

Having worker interests at the top of mind when engaging with other trade unions, their
own union members, business role players, government role players or any other
parties. Trade union leaders must avoid being side tracked or having conflicts of
interests between their interests as individuals and that of workers who are members of
their trade union collective.

It is recommended that, democratic methods of election and operation of trade unions

be kept, in this way, office bearing members can be controlled by workers as trade
union members, using democratic mechanisms embedded within the constitutions of
their trade unions, to align union leaders to worker interests. These democratic
mechanisms must give workers the legal right to remove leaders who do not represent
their interests.

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1.9 Bibliography

Baccaro, L., Benassi, C. and Meardi, G. (2018). Theoretical and Empirical Links
Between Trade Unions and Democracy. Economic and Industrial Democracy, [online]
40(1), pp.3-19. Available at:
https://journals.sagepub.com/doi/pdf/10.1177/0143831X18781714 [Accessed 19 Feb.
2019].

Budeli, M. (2012). Trade Unionism and Politics in Africa: The South African
Experience. The Comparative and International Law Journal of Southern Africa, [online]
45(3), pp.472-475. Available at: https://www.jstor.org/stable/23644683?read-
now=1&seq=2#page_scan_tab_contents [Accessed 17 Mar. 2019].

CCMA. (2016). Resource Downloads. [online] Available at:

http://www.ccma.org.za/Services/Resources/Token/ViewInfo/ItemId/8 [Accessed 22
Feb. 2019].

COSATU. (2009). COSATU Resolutions. [online] Available at:

http://www.cosatu.org.za/docs/resolutions/2009/part3.pdf [Accessed 22 Feb. 2019].

COSATU (2016). COSATU Statement on the National Minimum Wage. [online]

Available at: http://www.cosatu.org.za/show.php?ID=12215 [Accessed 22 Feb. 2019].

Duignan, B. (2017). Trade union Labour Organization. [online] Britannica Encyclopedia.

Available at: https://www.britannica.com/topic/trade-union [Accessed 15 Feb. 2019].

FEDUSA. (2016). FEDUSA Constitution. [online] Available at:

https://www.fedusa.org.za/constitution/ [Accessed 22 Feb. 2019].

George, D. and Nxumalo, F. (2016). FEDUSA Welcomes Landmark Constitutional

Court Ruling on Labour Brokers. [online] FEDUSA. Available at:
https://www.fedusa.org.za/2018/07/27/fedusa-welcomes-landmark-constitutional-court-
ruling-on-labour-brokers/ [Accessed 22 Feb. 2019].

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Graham, C. (2013). The Role of National Trade Union Organisations in South Africa’s
Foreign Policy Processes: 1999-2012. Masters. Stellenbosch University.

Justice.gov.za. (2019). SA Labour Courts Home. [online] Available at:

http://www.justice.gov.za/labourcourt/ [Accessed 9 Apr. 2019].

Manamela, M. (2015). The Social Responsibility of South African Trade Unions: A

Labour Law Perspective. Ph.D. University of South Africa.

Matete, P. (2014). The Role of Bargaining Councils in A Collective Bargaining

Framework in The Garment Industry: A Lesson for Lesotho. Masters. North-West
University.

Parkin, M., Kohler, M., Lakay, L., Rhodes, B., Saayman, A., Schoer.V., Scholtz, F. and
Thompson, K. (2017). Economics: Global and Southern African Perspectives. Cape
Town: Pearson Education South Africa.

Rheeder, J. (2018). Trade Unions - How To Deal With Power Play and Position
Bargaining? [online] Johanette Rheeder Incorporated. Available at:
https://www.jrattorneys.co.za/south-african-labour-law-articles/collective-rights-and-
strikes/trade-unions-how-to-deal-with-power-play-and-position-bargaining.html
[Accessed 22 Feb. 2019].

Rosenfeld, J. (2014). What Unions No Longer Do. 1st ed. Cambridge: Harvard
University Press.

Sandler, K. (2017). Tactics Used by Labor Unions: Striking & Collective Bargaining.
[online] Biz fluent. Available at: https://bizfluent.com/list-6787735-tactics-unions--
striking-collective-bargaining.html [Accessed 22 Feb. 2019].

Shrestha, B. (2012). The Effects of Trade Unionism on workers. A Case Study on PAM.
Ph.D. Vaasan Ammattikorkeakoulu University of Applied Sciences.

Vally, S., Bofelo, M., Treat, J. Worker Education in South Africa: Lessons and
Contradictions. McGill Journal of Education / Revue des sciences de l'éducation de

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McGill, [S.l.], v. 48, n. 3, dec. 2013. ISSN 1916-0666. Available at:
<http://mje.mcgill.ca/article/view/9077/6896>. Date accessed: 19 feb. 2019.

Van Rensburg, J., McConnell, C. and Brue, S. (2015). Economics. 2nd ed. London:
McGraw-Hill.

Vettori, S. (2015). The Regulation of Terms and Conditions of Employment for Workers
in the South African Hospitality Industry. African Journal of Hospitality, Tourism and
Leisure, [online] 4(2), p.3. Available at:
http://www.ajhtl.com/uploads/7/1/6/3/7163688/article8vol4(2)july-nov_2015.pdf
[Accessed 6 Apr. 2019].

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