LESSON 06

THE UNION-MANAGEMENT RELATIONSHIP, EMPLOYEE DISCIPLINE

AND DISMISSAL

The outline
• Labour relations in the workplace

Have a look at the following mind map to see where you are in the process
of working through the study material.

Career management Labour relations Diversity management

Chapter 08 Chapter 13 Chapter 03

Performance Competency-based
management Health and safety HRM
Chapter 09 Chapter 12 E-reserve

Training and Compensation and HRM in virtual

development fringe benefits organisations
Chapter 10 Chapter 11 Chapter 15

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6.1 LEARNING OUTCOMES

Read through the outcomes before you continue. This will give you an
overall picture of what we will discuss in this Lesson. This Lesson introduces you to labour
relations management and you will learn in more detail about it in the LRM2601 module.

After studying this Lesson, you should be able to

• describe what a union is and explain why employees join unions

• identify the basic elements of the Labour Relations Act 66 of 1995
• discuss the role and objectives of the National Economic Development and Labour
Council (NEDLAC)
• describe the typical collective bargaining process
• identify the various sources of poor performance through the illustration and
discussion of an unsatisfactory performance model
• explain good and poor ways to discipline employees
• illustrate a model of positive discipline and describe the procedures for ensuring
that discipline achieves its goals
• identify the procedures for carrying out the dismissal decision humanely, tactfully
and according to law

6.2 KEY CONCEPTS

Several key concepts are listed at the end of chapter 13 in the prescribed book
and you should be able to define the following terms:

Trade union Dismissal

Conciliation Strike
Mediation Procedural fairness
Collective agreement Substantive fairness
Workplace forums Disciplinary action

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6.3 INTRODUCTION

Trade unions exist for the benefit of the employees to give a collective “voice” to their
grievances and demands. How exactly does this affect organisations and the HR
function?

To understand the concept and purpose of the trade union-management relationship,

employee discipline and dismissal in the workplace, you need to understand where these
concepts fit into the basic HR value chain and what impact it can have on employee and
employer relations. Figure 6.1 illustrates the basic HR value chain.

HR planning

Diversity Recruitment
management and selection

Labour Career
relations management
HR
value
chain

Health and
Performance
safety
management
wellness

Compensation Training and

and benefits development

Figure 6.1: Basic human resource value chain

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 Read chapter 13 in the prescribed book.

Activity 6.1

Read the following scenario and then answer the questions that follow.

INDUSTRIAL CLEANING COMPANY

The Industrial Cleaning Company (widely known as ICC) renders cleaning services for
factories, warehouses, manufacturing plants and other large buildings. It is based in
Centurion and, although most of its work is done in the greater Johannesburg and
Pretoria areas, it has accepted cleaning contracts as far away as Rustenburg in the
North West and Emalahleni in Mpumalanga. It is slowly entering the hospitality sector,
hoping that this will provide further opportunities to expand the business. The
company’s motto has always been that nothing is too much to ask and it gladly accepts
all work that comes its way. This has become essential in the poor economic climate in
which more and more of its competitors have been forced to close their doors, leaving
their employees destitute.

As a result, what started out as a small business administered by the founder, James
Muller, from his home with a single cleaning team has expanded significantly. ICC now
operates from a modern office building and employs 126 people. James Muller is still
the executive director and oversees all operations, but he has also employed an
executive team consisting of an operations manager, Sam Reddy, a financial manager,
Pieter Smit, and a human resource manager, Nelisiwe Mkhize. The remaining
workforce consists of a core team of employees who are situated at the Centurion office
and render support services (procurement, stock control, client liaison, marketing,
salaries and general human resource administration) and eight cleaning teams. Each
cleaning team includes seven members and a supervisor who also serves as the driver
for the team.

Working conditions for the cleaning teams are not ideal. They spend long hours on the
road to reach the different sites. They are also often required to do cleaning over
weekends or after normal working hours as clients do not want them to disrupt their

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normal operations. The work is therefore not only physically draining, but greatly
impacts on ICC employees’ family lives.

Although relationships at ICC have always been amicable, things are slowly changing.
Opposing groups seem to be forming. The first group consists of the support staff
situated in the Centurion office. Most of these employees are skilled (holding various
tertiary qualifications) and they are generally well paid. The second group consists of
the cleaners, who feel increasingly exploited, unsupported and insecure in their jobs.

The members of one of the cleaning teams are especially negative, constantly
complaining about the contracts to which they are assigned and how they are treated
by their team supervisor. Their complaints have not been taken seriously, however, and
have simply been regarded as a drawback of the type of work that they do. Recently,
one of the members of this team, Duduzile Mkhwanazi, stormed into human resource
manager Nelisiwe Mkhize’s office. She immediately started screaming and demanding
that their team supervisor, Themba Msimang, be fired. She called him a “disgusting
chauvinist pig” and said that the team refused to work with him any longer.

Nelisiwe Mkhize knew that she had to calm Duduzile down if she had any hope of
getting to the heart of what was going on. She therefore invited her to sit down and
offered her a cup of tea. She encouraged her to explain exactly what had happened to
upset her. Duduzile struggled to contain her anger but, seeing that Nelisiwe was willing
to listen to her, calmed down sufficiently to explain what was going on. She claimed
that Themba was dishonest and involved in inappropriate dealings with the operations
manager, Sam Reddy. She told Nelisiwe that Sam, who was responsible for
determining the work schedules for the cleaning teams, had an agreement with Themba
to award all the out-of-town jobs – especially those at hotels or resorts – to their team.
She did not know what Sam got in return but felt sure that it was no coincidence that
Themba’s girlfriend showed up every time they were assigned to a cleaning job in a
pleasant setting. The last straw was, however, when Themba’s girlfriend openly joined
them in the company bus on their trip to a resort in North West, from which they just
returned. She claimed that Themba did not work during these trips but lounged about
at the hotel with his girlfriend as if they were guests, while the rest of the team had to
ensure that the job got done. Themba threatened them that they would be fired if they
ever said anything about what was going on as he had an agreement with Sam.

Duduzile said that she was no longer willing to keep silent about what was going on –
especially as Themba’s rendezvous with his girlfriend meant that she and the rest of
her team were taken away from their own families more and more. She also informed
Nelisiwe that she and the team had recently joined the Cleaning Workers’ Union (CWU)

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 as they felt that they needed protection and advice. They were also recruiting members
among the other cleaners.

Nelisiwe is completely shocked. She has always prided herself in the open and honest
relationship she thought she had with the employees – especially the unskilled
employees at the lower levels whom she regarded as vulnerable. However, now she
realises that she has been unaware of what has been going on right under her nose.
She realises that, to prevent things from getting completely out of control, she will not
only have to appease Nelisiwe, but will also have to deal swiftly with both Themba and
Sam. Dealing with Sam would be especially difficult for her as she always considered
him to be a respected colleague and friend.

Three months later

The conflict has escalated at ICC. Although both Themba and Sam have been
suspended pending a disciplinary investigation, they have not been dismissed. The
cleaners are becoming increasingly dissatisfied with their working conditions. Of the 56
cleaners, 40, including four supervisors, have already joined CWU and the numbers
are growing every month. Nelisiwe is concerned because she has heard rumours that
CWU is trying to convince its members to slow down their work. The trade union argued
that, by doing this, they would force management to listen to their demands for better
working conditions, but they would still be safe from disciplinary action as they would
not engage in a full-blown strike.

Things are getting worse

ICC is feeling the impact of the poor economic conditions in the country. Not only is the
company obtaining fewer contracts, but profitability is low because of the poor
exchange rates impacting on the cost of equipment and products. Pieter Smit, the
financial manager, argues that they need to cut their expenses drastically to survive.
He suggests that the only way to do this is by decreasing the workforce. He argues that
they cannot afford to keep the same number of teams if they do not have enough work
to keep all of them busy all the time. Nelisiwe is concerned. She realises that the
company is their livelihood and argues that some of them have been with ICC for many
years. She feels that there must be alternatives and that retrenching is an expensive
exercise as employees need to be compensated (Wärnich et al 2015).

1. The Cleaning Workers’ Union (CWU) is gaining increasing support among the
cleaners at ICC. Identify at least three reasons why the cleaners are likely to join the
trade union.
2. Although the trade union is gaining support at ICC, a formal relationship between the
organisation and the union has not yet been established. As part of formalising this

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 relationship, the union must apply for recognition and organisational rights. Explain
what organisational rights entail and which rights CWU may apply for in terms of the
provisions of the LRA.
3. CWU is trying to convince its members to slow down their work to force employees to
concede to their demands for better working conditions. Is this permitted? Explain your
answer by referring to the relevant provisions of the LRA.
4. Duduzile made serious allegations against both Sam and Themba. Comment on the
way Nelisiwe handled the situation and advise her on the way forward.
5. The company is considering retrenching employees to survive. Determine whether a
valid reason for such retrenchments exists and explain the procedure that should be
followed to ensure that the dismissals will be regarded as fair if ICC resorts to
retrenchment.

Feedback

In answering question 1, use section 13.1.3 as point of departure. It will, however, not
be enough to simply list the general reasons why employees join trade unions. They
should identify reasons that relate to the case study. For instance, it is indicated in the
case study that the employees are concerned about their job security, their working
conditions and a perceived lack of support. These are all aspects that may be improved
by means of collective representation by a trade union.

In answering question 2, use section 13.1.6 as point of departure. Start by explaining

what the different levels of representativeness entail and which organisational rights apply
to each category. Indicate that CWU will not be regarded as a majority representative
trade union but may very well be a sufficiently representative trade union. Identify the
rights applicable to sufficiently representative trade unions. Although there is no majority
representative trade union in the organisation, CWU represents most of the employees
in the workplace and may therefore be entitled to additional organisational rights.

Section 13.7 is relevant when answering question 3. Indicate that a slowdown is a valid
form of industrial action and that it falls within the ambit of the definition of a strike (i.e.,
the retardation of work). Explain that, although such action is permitted, there are certain
procedural requirements that should be met before a strike will be protected. The first
step in the procedure is that a dispute must be declared and referred to the CCMA or
relevant council. In this case, however, the trade union has not yet made any attempt to
address the workers’ concerns with management which means that any form of industrial
action initiated by the trade union will be unprotected. At this stage it is essential for the
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union to first formalise its relationship with the organisation and then to enter discussions
with the organisation about matters that concern their members. Suggesting any
collective action at this stage is immature.

Question 4: Here you should focus on two relevant aspects. The first relates to Duduzile’s
complaint about Sam and Themba and how it impacts on her own working conditions and
that of her team (i.e., the grievance procedure, section 13.8). The second relates to the
allegations made against Sam and Themba and how these allegations should be dealt
with (i.e., discipline, section 13.9). Therefore, commence by indicating that Duduzile has
expressed a serious work-related concern. It is essential for management to address this
concern in the appropriate manner before it escalates. Nelisiwe did the right thing by
calming her down and providing her with an opportunity to talk. However, this will be
insufficient if no further action is taken. Due to the serious nature of the allegations made,
Nelisiwe will have no alternative but to commence with a disciplinary investigation
regarding the matter. She should therefore explain to Duduzile that Sam and Themba
cannot merely be dismissed but that formal disciplinary steps will be taken. If Nelisiwe is
satisfied, there is no need for her to institute a formal grievance. If, however, she finds a
few months down the line that no action was taken, she may very well institute a grievance
following the steps as outlined in the formal grievance procedure. Although she cannot
demand that they be dismissed, she can insist that appropriate action in terms of the
company’s disciplinary procedure be taken. Furthermore, you could advise Duduzile on
how to deal with the allegations made against Sam and Themba. It is indicated in the
case study that both Sam and Themba were suspended pending a disciplinary
investigation. One would use the guidelines relating to positive discipline, the hot-stove
rule and the provisions of the LRA in terms of substantive and procedural fairness in the
event of misconduct to advise Duduzile on how to deal with the matter.

Question 5: Refer to the provisions of the LRA relating to dismissal for operational
requirements as contained in section 13.10. You should indicate that dismissing
employees for operational requirements to ensure the continued survival of the company
will be regarded as a valid economic reason for dismissal. Such dismissals will therefore
be regarded as substantively fair. You should then proceed to explain the relevant steps
that need to be taken to ensure procedural fairness (Wärnich et al 2018).

6.3 LABOUR RELATIONS IN THE WORKPLACE

Labour relations play an important role in organisations and the HR function. Figure 6.2
illustrates what labour relations entail.

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 Labour relations

Employers
(primary)
Employees
(primary)
The state
(secondary)
Performance Disciplinary Grievance Collective Labour
Dismissals
problems actions procedures bargaining legislation

Figure 6.2: Labour relations in the workplace

The HR function involves the strategic HR processes and policies which ensure
compliance with the labour legislation. Labour relations in organisations encompass a
tripartite relationship, that is the employer-employee relationship, employee-trade union
relationship as well as between the employer/employee and the state (Wärnich et al
2018). A partnership between the HR function and line management is key to maintaining
good employee relations, protection of employees and promoting fair labour practices in
the workplace.

Sound labour relations (and thus good relationships between people) are essential if
South Africa is to be globally competitive. Employers and employees (or their
representative organisations) are the major players in this relationship, but it is governed
by the legislative environment created by the state. Poor relations between employers
and employees will lead to loss of productivity and costly organisational conflict, for
instance industrial action. Therefore, the HR function should strive to develop and
implement practices and procedures that will lead to sound labour relations (Wärnich et
al 2018).

6.4 SELF-ASSESSMENT

Now that you have completed this Lesson, you need to determine whether
you have achieved the relevant learning outcomes stated at the beginning of the Lesson.

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Therefore, read through the outcomes again before attempting to answer the self-
assessment questions.

Question 1

The owner of the clothing factory is unsure about the legislative framework that governs
employment relations in his organisation. Clarify this for him in detail.

Question 2

You are the HR officer in a small clothing factory that is not unionised. The employees
have organised a meeting to discuss the fact that, in their opinion, their rights according
to labour law are being disregarded by the owner of the factory. They have asked you to
come and explain to them what their options are regarding trade unions and industrial
action.

Write a report outlining the relevance of trade unions and industrial action, as well as the
related procedures and agreements that are required.

Question 3

You must convince the owner of the clothing factory that it is necessary to draw up a
formal grievance procedure. Write a report outlining what a grievance procedure entails.

Question 4

The clothing factory has no formal disciplinary procedure. Line managers apply rules and
regulations as they see fit and this has led to many complaints and grievances. You know
that implementing a formal disciplinary policy and procedure would solve most of the
problems, because many of the complaints and grievances are about unfair treatment by
line managers. The owner is positive about the disciplinary procedure as he believes that
he can legally get rid of all the negative employees and then appoints people who would
be thankful for having a job instead of complaining about every little thing.

Explain to the owner the purpose of discipline and the steps in the progressive approach
to discipline.

Question 5

Explain to the owner of the clothing factory when and how employees may be legally

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dismissed.

Feedback

Question 1

You can find the answer to this question in sections 13.4 and 13.5 in the textbook.
Here you would discuss the aims of the LRA, and who is covered by the LRA. Then give
details on what the LRA means for workers and – especially in this case – for employers.
Also note that certain amendments were made to the LRA in the Labour Relations
Amendment Act 12 of 2002. Then provide information on the building blocks of the LRA,
specifically referring to the promotion of collective bargaining and worker participation,
collective agreements, bargaining councils, statutory councils and workplace forums.

Question 2

You can find the answer to this question in section 13.1 in the textbook.

Start your answer by providing information on what a trade union is, the type of union that
the employees can form or join (trade union), the benefits that membership of a trade
union will provide for employees and the types of agreements (closed shop and agency
shop agreements) that can be concluded between a representative trade union and an
employer or employers’ organisation regarding union membership and fees in the
organisation. You can also provide information on the registration of trade unions and
their obligations and their rights in the workplace. Lastly, include detail about the structure
of a trade union and the functions of a trade union representative (shop steward).

Question 3

Start this answer by defining the concept of grievance and differentiating between a
grievance and a gripe. Explain that employment contracts govern employment relations,
but that disputes may arise. An agreed-upon grievance procedure supplies employees
with a formal method of airing disputes and problems with management. The steps in
grievance procedures may differ from one organisation to another, but they usually
contain four steps (see section 13.8 in the textbook).

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Question 4

You can find the answer to this question in section 13.9 in the textbook.

The primary objective of discipline is to motivate employees to comply with the company’s
performance standards, rules and regulations. It also serves as a vehicle to create and
maintain trust between employees and managers. Discipline that is improperly
administered can influence employee morale and behaviour. Progressive discipline
follows two rules: the sanction or penalty must fit the offence (you do not fire an employee
for taking a pencil) and when an employee persists in behaviour that requires discipline,
a series of increasingly serious penalties are used (e.g., a verbal warning, then a written
warning, then a final written warning). The main aim of discipline is to solve an employee’s
problems, not to punish him/her. Therefore, corrective counselling forms part of the
disciplinary procedure.

The steps in the disciplinary procedure may differ from one organisation to another, but
usually include the following, depending on the nature of the misconduct:

• verbal warning
• written warning
• suspension
• dismissal

Question 5

The answer to this question can be found in section 13.10 in the textbook.

Explain why disciplinary dismissals normally occur, the concept of automatically unfair
dismissals and other unfair dismissals. A dismissal is only fair (and thus legal) if it is
substantively and procedurally fair. Explain these concepts. The only fair reasons for
dismissal are misconduct, incapacity and operational reasons. Explain these three
reasons for dismissal and describe the steps employers should follow in each instance to
ensure procedural fairness (Wärnich et al 2018).

Now that you have successfully completed Lesson 06 and all the activities, you can
go on to Lesson 07.

This means that you have completed the only Lesson in topic 3.

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SUMMARY OF TOPIC 3

Labour relations or employee relations are important for organisational competitiveness.

Regardless of whether you are self-employed, an employee, a private or public
organisation, good relationships between people in the workplace are critical to sound
labour relations. Unions are associations of workers and have a major impact on
organisations’ management. The relationship between management and labour must be
managed to prevent costly and stressful organisational conflict. Therefore, labour
legislation provides several ground rules regarding the relationship between organised
labour and management.

BIBLIOGRAPHY

Wärnich, S, Carrell, MR, Elbert, NF & Hatfield, RD. 2015. Human resource management
in South Africa. 5th edition. London: Cengage Learning.

Wärnich, S, Carrell, MR, Elbert, NF & Hatfield, RD. 2018. Human resource management
in South Africa. 6th edition. Boston: Cengage.

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