INDUSTRIAL RELATIONS MODULE

MODULE OUTLINE

The Module: -

Explores on the nature of the employment relationship,Examines the different perspectives in analyzing Industrial Relations,Examines the different perspectives in analyzing the worker problem,Examines the roles of various parties in Industrial Relations,Explores on Industrial Relations dynamics in the 21st Century and key issues driving change in Industrial Relations.

AREAS OF STUDY

BACKGROUND TO THE STUDY OF INDUSTRIAL RELATIONS

1 Academic Study of I.R- I.R defined- The growth of I.R as a discipline.

2 The Employment Relationship- Nature of the Employment Relationship,- The Employment Contract (origins, types, elements etc.)- The Concepts of Power, Conflict and Job Regulation.- Implications on the study of Industrial Relations

3 Industrial Relations Perspectives- Unitarism- Pluralism- Marxism

ACTORS IN INDUSTRIAL RELATIONS

4 Management- Management defined- Historical features of labour management- The Managerial Prerogative- Management Styles in Employment R/ships- Management Control Strategies- Contemporary issues in Management- Management and Employers Organisations

5 Trade Unions- Trade Unions defined- Types of unions- The rise and fall of trade unions- Trade union Structure and democracy- Contemporary Issues on Trade Unions

6 The State in Industrial Relations- Forms of State Interventions

- The changing and future role of the State in Industrial Relations

INDUSTRIAL RELATIONS PROCESSES

7 Negotiations

Purpose of Negotiation

- Types of Negotiation

- Negotiation Strategies

8. Collective Bargaining

- Definition

- Types of Bargaining

- Functions of Bargaining

- Management and Trade Union roles in bargaining

- Contemporary issues in Collective Bargaining

9. Industrial Action

- Functions

- Forms of Industrial Relations

- The Legal Framework of Industrial Action in Zimbabwe

10. I. R dynamics in Zimbabwe

- A historical account of Industrial Relations in Zimbabwe

- Organisation of workers

FACTORS SHAPING I.R IN ZIMBABWE TODAY

Globalisation Technology Flexibility The new H.R Agenda Social Dialogue The future of Industrial Relations and the study of HRM in Zimbabwe

Importance of Industrial Relations:

Industrial Relations Home » Importance Of Industrial Relations The healthy industrial relations are key to the progress and success. Their significance may be discussed as under –

UNINTERRUPTED PRODUCTION – The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. REDUCTION IN INDUSTRIAL DISPUTES – Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production. HIGH MORALE – Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. MENTAL REVOLUTION – The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer’s authority. It will naturally have impact on production because they recognize the interest of each other. REDUCED WASTAGE – Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New

and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

Contract of employment

Definition

Elements of the contract

Forms\ types

Sources of contract terms

Minimum statutory standards

Express statements of the parties to the contracts

Collective agreements

Organizational rules

Custom and practice

Common law and duties of employers

Common law and duties of employees

Psychological Contract

- It refers to the expectations of the employer and the employee that operate in addition to the formal contract of employment

- It has been defined by Rousseau (1994) cited by Hiltrop (1995:287) as “the understanding people have regarding the commitments made between themselves and their organisation.”

- It therefore, is concerned with each party’s perception of what the other party to the employment relationship owes them over and above that which may be specified in the contract of employment.

- The contract is not clear as to the content and because it is based on perceptions, it is not written down

- Mullins (1996) points out that there is a continuous process of balancing and explicit and implicit bargaining over the contract content and more over that the individual and the organisation may not be aware consciously of the contract “terms”. However, these terms affect their behavior and relationship.

- One of the aspects of the psychological contract that has gained prominence over the years is the traditional employee perception that the organisation promises a “job for life” (examples) in return for employee loyalty and commitment. This is still practiced if we take the case of local government, civil service and parastatals.

- Some jobs are fast changing in terms of nature and content hence driving a twist of the psychological contract for example, the changes in the banking sector. The coming in of IT to replace people has shifted people’s expectations and hence the psychological contract.

- Organisations now need managers that are less experienced, more commercially aware, more energetic, and they could be easily obtained, and retained, more cheaply than their predecessors.

- Research reviewed by Sparrow (2000) highlights the changing nature of the organisation of work and its implications on the psychological contract, e.g., experiences of redundancy, for example, are often viewed by the older workers as a violation of the psychological contract, and are significantly related to their adoption of personal responsibility for their career development (Sparrow 2000) also issues of termination or grows of incapacitation, etc.

- Herriot and Pemberton (1995) argued that the psychological contract has moved from one that is relational- based on mutual trust and commitment- to one that is transactional- based upon mutual instrumentality of the work- effort- reward bargain.

- It demonstrates a shift from focus on job security on the part of employees towards employability security.

- According to Hiltrop (1995:289) in the new type of psychological contract “there is no job security. The employee will be employed as long as s (he) adds value to the organisation and is personally responsible for finding new ways to add value. In return the employee has the right to demand interesting and important work has the freedom and resources to perform it well, receives extra pay that reflect his/her contribution and gets the experience and training needed to be employable here or elsewhere.”

Characteristics of the ‘old’ and new psychological contract

Characteristic Old NewFocus of the E/R Security and long term

careers in the companyEmployability to cope with changes with this and future employment

Format Structured and predictable Flexible and unpredictableDuration Permanent VariableUnderlying principle Influenced by tradition Drive by market forcesIntended output Loyalty and commitment Value added Employer’s key responsibility

Fair pay for a fair day’s work High pay for job performance

Employee’s key responsibility

Good performance in present job

Making a difference to the organisation

Employer’s key input Stable income and career Opportunities for self development

Employee’s key input Time and effort Knowledge and skills Source- Hiltrop (1995:290)

So the contract is based on the theory of reciprocation/ exchange theory by Cox and Parkinson (1999), where individuals make an investment with expectations that an appropriate reward will be forthcoming.

Discuss the implications for the conduct of the employment relationship when the psychological contract is broken.

How may you as a Human Resource Manager contribute towards the management of a psychological contract in a company which is in the FMCG industry

Comm

Fairness of treatment

Job security

Attractiveness of benefits

Training

INDUSTRIAL RELATIONS PERSPECTIVES

1. UNITARISM - It assumes that an organisation is or should be, an integrated group of people with a

single authority/loyalty structure, and a set of common values, interests and objectives shared by all members of the organisation.

- The management prerogative (that is, the right for management to manage and make decisions) is regarded as legitimate and rational and accepted and any opposition to it (whether formal or informal, internal or external) is seen as irrational.

- The underlying assumption therefore is that, the organizational system is in basic harmony and conflict is unnecessary and exceptional.

- Conflict, when it does arise, is believed to be primarily frictional rather than structural in nature and caused by such factors as clashes of personalities within the organisation, poor communication by management of its plans and decisions, lack of understanding on the part of the employees that management decisions and actions are made for the good of all in the organisation.

- The use of coercion (including law) is legitimate in the use of managerial power. In other words, management does not receive a need given the legitimacy of its prerogative, to obtain consent of employees to decisions or changes.

- At the same time, management concentrate on a Human Relations Approach improving interpersonal relations and communications within the organisation) or make appeals to the loyalty of employees.

- Trade unions are seen to be an historical anachronism, and with the coming of HRM, are no longer necessary to protect employees interests.

- Even though management are forced to accept the existence of trade unions in the determination of terms and conditions of employment (market leaders), they are certainly reluctant to concede any role for trade unions in the exercise of authority and decision making and decision making within the organisation (managerial relations).

- They (trade unions) are most likely to be seen as little more than a political power vehicle used by militant minority in order to subvert the existing and legitimate political, social and economic structure of societyCONCLUSION

- The Unitarist system has one source of authority and one focus of loyalty, which is why it suggests the team analogy

- What pattern of behavior do we expect from members of a successful and healthily functioning team?

- We expect then to strive jointly towards a common objective, each pulling his weight to the best of their ability (tits out).

- Each accepts his place and function gladly, following the leadership of one so appointed.

- There are no opposition groups/functions, and therefore no rival leaders within the team.

- Nor are they any outside it, the team stands alone, its members owing allegiance to their own leaders but not o others.

- If the members have an obligation of loyalty towards the leaders, the obligation is reciprocated, for it is the duty of the leader to act in such ways as to inspire the loyalty he demands.

- Morale and success are closely connected and rest heavily upon personal relationships.

- Most of us will agree that the unitary perspective represents a vision of what industry ought to be like which is widespread among employers, top managers and substantial sections of outside public opinion.

- The vision is closest to a professional football team, for her, combined with the team structure and its associated loyalties; one finds a substantial measure of managerial prerogative at the top in the persons of the manager, trainer or board members.

- Team spirit and undivided management authority co-exist for the benefit of all.

2. PLURALISM

- The perspective views society as being post-capitalist in nature, a relatively wide distribution of authority and power within the society, a separation of ownership from management, a separation, acceptance and institutionalization of political and industrial conflict.

- Organisations are viewed as coalition of individuals with contrasting interests, objectives and leadership. According to Fox (1973), the organisation is multi-structured and competitive in terms of groupings, leadership, authority and loyalty and this gives rise to a complex of tensions and competing claims which have to be managed in the interests of maintaining a viable collaborative structure.

- Conflict is perceived to be both rational and inevitable. It results from individual and organizational factors (structurally determined) and different roles of managerial and employee groups. (Management objectives include efficiency, productivity and profitability whilst for employees working conditions, better pay, job and employability securities are crucial).

- Because of such divergence of interests, the issue of power and authority to control the production process become fundamental. The resolution of conflict is characterized by the need to establish acceptable procedures and institutions which achieve collaboration through comprehensive, codified systems and negotiated regulation.

- There has to be an acceptance of the need for shared decision making, the legitimacy of management’s role is not automatic but must be sought by and maintained by management itself ‘management by consent” rather than “management by right”.

- Trade unions are seen to provide a countervailing power of management and therefore are seen as legitimate.

- Such legitimacy, according to Fox (ibid) is founded not just on industrial power or management acceptance, but on social values which recognize the right of interest groups to combine and have an effective voice in their own destiny.

3. MARXISM

- Concentrates on the nature of the capitalist society surrounding organisations, where Hyman (1975) argues, “the production system is privately owned…., profit is the key influence on Company policy…., and control over production is enforced downwards by the owner’s managerial agents…”

- Marxist general theory argues that: (1) class/group conflict is the source of societal change, without it, the society will stagnate (2) class conflict arises primarily from the disparity in the distribution of, and access to, economic power within society – the principal disparity being between those who own capital and those who supply their labour (3) the nature of the society’s social and political institutions is derived from this economic disparity and reinforces the position of the dominant establishment group, for example, through differential access to education, the media, employment in government and other establishment bodies.

- Social and political conflict in whatever form is merely an expression of the underlying economic conflict within the society.

- It is seen as a reflection of not just organizational demands and tensions, but the economic and social divisions within society between those whose who own and manage means of production and those who have their labour for sale.

- Therefore it is continuous, unavoidable and synonymous with political and social conflict.

- Employers do not need to exercise their full industrial power by choosing plants and withdrawing their capital, the implicit threat that they have such power is insufficient to balance any direct collective power exercised by trade unions.

- The social and political institutions within society supports the intrinsic position of management, employees thought eh influence of education and the mass media, become socialized into accepting the existing system and role of management.

- An attack on the institutions of job regulation provides only a limited temporary accommodation of the inherent and fundamental divisions within capitalist based work and social structure.

- Trade union growth becomes inevitable as a response to a system of capitalism.

MANAGEMENT

- The planning, organizing, leading and controlling of resources to achieve organizational goals effectively and efficiently

ORIGINS OF MANAGEMENT

- Employer’s rights are today generally exercised by managers

- Pollard attributed that the industrial revolution provides evidence of the origins of management.

- Writers such as Braverman argue that initial managers were recruited from the family of business people

- This is necessary to keep control of business, but in the growing size of businesses nepotism was quickly replaced by merit

- This provides an insight into modern ownership and control and becomes the real underlying factor in terms of management into the ranks of owners

- The managerial prerogative, which are the managements rights and functions are asserted to derive property rights

- Managerial rights are the right to decide what to be done, when, where, and by whom.- Managers act as legal trustees to the owners of property

MANAGERIAL PREROGATIVE

MANAGEMENT CONTROL STRATEGIES

- Is the process through which plans are implemented and objectives achieved by setting standards of measuring performance, comparing the actual performance against the target and then putting up corrective actions

- Strategies adopted by management are based on ways of thinking about the employment relationship

- They include a pluralist view which asserts that a potential conflict defines the employment relationship due to differences in the interests of the stakeholders

- Blighton and Turnbull (1998) forwarded that the employment relationship is founded on the principles of structured antagonism

- most of them enter the employment relationship not because they want but for economic reasons hence management control becomes important

- management devise ways of making people do what they want to do

Friedman 1977- talks of two types of strategies which managers use to exercise authority over labour

power namely responsible autonomy and direct control- Responsible Autonomy mobilizes labour power by giving employees an opportunity to

have control over the work situation (being responsible citizens) in a manner that is beneficial to the whole organisation

- It includes such elements such as employee involvement and participation, delegation of authority and empowerment.

- Direct Control on the other hand involves close supervision of employees, a harsher regime of discipline characterized by threats of pay reduction or dismissal

- This approach owes much to Taylorism and Scientific Management which has some of the elements as reflected by Morgen (1986)

Morgen (1986)

Helrigel and Slocum (1978)

- Identify 3 common strategies used by managers, that isi. Control through Organizational Structureii. Control through Recruitment and Trainingiii. Control through Rewards and Punishmentiv. Control through Policies and Rulesv. Control through budgetsvi. Control through machinery

TRADE UNIONS

TOPIC OBJECTIVES

Students should at the end of the lecture be able to: -

Define a trade union, Distinguish the types of trade unions citing examples, List and explain the functions of trade unions, Trace the genealogy of trade unions in Zimbabwe and Britain among other cases, Account for the factors that have led to the rise and fall of trade unions in Zimbabwe

since the pre-independence period to date, Clearly demonstrate their understanding of the structure and organization of trade

unions, citing local examples, Demonstrate understanding of trade union democracy and shortcomings thereof, Assess the contemporary issues on trade unions including the factors that are likely to

influence the future of trade unions locally and abroad.Definition of trade unions

- The Webb (1920:11) define a trade union as, “a continuous association of wage earners for the purposes of maintaining or improving conditions of their working lives”

- Salamon (1998) define it as “any organisation whose membership consists of employees which seeks to organize and represent their interests both in the workplace and society and in particular, seeks to regulate the direct process of Collective Bargaining with management”

- The legal definition of trade unions (according to The Act) “any association or organization formed to represent or advance the interests of any employees or class thereof in respect of their employment…”

- According to the towers, trade unions are more than engines for converting bargaining power into improved pay and conditions for their members, …they are an

integral part of the system on checks and balances which is composed of capitalist liberal democracies, as according to Salamon

-

Why employees join unions To increase their bargaining power Minimize favoritism and discrimination Representation in labour disputes Closed shop arrangements Social factors, i.e., peer pressure, feeling of belongingness etc., Cultural factors – legacy/history.

- According to Swanepoel et al (2004), the following are the factors that lead employees into joining trade unions: - 1. Perceived lack of job security,2. Management’s lack of respect for employees3. Anger at the employer,4. The belief that union representation would be effective5. Favorable attitudes towards unions in general

- Ultimately, they conclude, the decision to join trade unions “may involve a combination of pre-dispositional attitudes, situational conditions, intense emotional effect, as well as a calculative cost/benefit analysis of the pros and cons of union representation”

- Employees will join trade unions if such membership wields utility. The utility that they find usually emanate from the cost-benefit analysis, premised on the assumption of trade unions bargaining for batter wages and working conditions,

- Job security is increasingly becoming an all important factor, in an era where there are changing trends on the nature of work and the new psychological contract and this is exacerbated by the unfavorable labour market conditions locally with very high unemployment levels, leading employees to prioritizing security as exoneration

- Job insecurity is defined by Bender and Sloane (1999) as “a situation where employees experience a sense of powerlessness to maintain desired continuity in a threatened job situation. Now because of the power element associated with trade unions, this insecurity, it is argued, is sufficient to influence the propensity of employees to unionize hence it is argued by some scholars that “the overall impact of trade unions is to reduce the proportion of workers who are insecure of their jobs.

- Apart from the legal rights to freedom of association and assembly and of trade unions organizing to get recognition in the workplace as representatives of employees

THE FUTURE OF TRADE UNIONS

- Blyton&Turnball (1994) argue that the future of trade unions depends on two goalsi. Workers who are willing to join and once joined to remain union membersii Employers who are willing to recognise them as bargaining agents for the

workforce

- Batstone (1988) suggests power sources of unions lie in scarcity in the labour market, disruptive capacity in the production process and political influence

- Union membership therefore becomes an indicator of trade union power- In the UK unions work with shop stewards. In Zimbabwe they work with workers

committees.- “All trade unions are involved in political activity, by virtue of necessity” Crouch (1982)- Union’s political activities take into account broad social issues such as housing,

transport, education and health care. - In the UK there was a gradual move towards “market share unionism” merger activities- These mergers are because unions want to avert serious financial problems caused by

membership decline.- Unions may decide to pool their resources for mutual advantage- Section 27 of LRA a group of employees may form a trade union- Within 6 months of formation shall provide a written constitution and submit to Minister

showing:- Qualification for membership- Rights of person’s within the membership- The number of officials and office bearers- The holding of annual general meetings- Re appointment of office bearers- Calling and conducting meetings- Issues of discrimination- Amendment of constitution- winding up of trade unions- Can raise subscriptions from its members

- According to the Act, No unregistered Trade Union shall;- Make representation to the Labour Court- Be assisted by an agent or labour officer- Form or be represented at the employment council- Recommend collective job action- Have the right to access employee records- Levy collects or recovers union dues

COLLECTIVE BARGAINING IN ZIMBABWE

Collective Bargaining – “...all negotiations which takes place between an employer, a group of employers or one or more employers organisations, on the one hand, and one or more workers organisations on the other, for: -

a) Determining working conditions and terms of employment, and /orb) Regulating relations between employers and workers, and /or

c) Regulating relations between employers or their organisations and a workers’ organization…” (ILO Convention 154)

- The Industrial Concilliations Act establishes the foundation for Collective Bargaining in Zimbabwe.

- According to Schiphorst (2001), The 1959 ICA was a major hallmark in Industrial relations, as the first genuine piece of legislation not only to allow the formation of black unions, but, to provide a wage setting machinery by setting the parameters for collective bargaining as well as the development of Industrial Boards and Industrial Councils.

- Amongst the weaknesses it had however, Sachikonye (1986:52) in Schiphorst (2001) has summarised thus “…the institutionalization of wage setting machinery has meant breaking in part of the employer monopoly on wage determination even though the process is far from complete…the exercise of labour power has established the basis for intervention in the system and resulted in the development of additional threats to employers’ interests…the institutionalization of unionism has permitted the entrenchment of a protective instrument of working-class welfare, this being not an insignificant achievement in the prevailing climate…”.

- The 1973 Act twisted the system of collective bargaining with the empowering of the minister to vary CBAs, thus reducing the freedom to bargain (Collective Bargaining Autonomy).

- Not so much change occurred post-independence, as had been forecasted, but just the flow within the direction of the 1959 Industrial Conciliation Act. Within the first five years of independence, wages continued to be determined through bargaining at an industry level, albeit after the removal of racial overtones.

- This period also marked the time to debate on whether to introduce workers committees and works councils in the new system, or instead to strengthen the machinery already present.

- To trade unions, this had obvious implications in terms of their strengths, at a time when they believed that the development of a trade union movement was more an important achievement of worker expectations than worker participation, while to business; it meant an alteration to the existing power structures and an opening of new forms of worker control.

- That witnessed the formation of enterprise councils and the strengthening of the one-industry-one-union policy. Collective bargaining became largely centralized at the industry level.

- The coming in of the 1985 Act witnessed the institutionalization of collective bargaining at industrial level with the possibility of enterprise flexibility through flexibility through workers committees (Schiphorst 2001).

- Concepts such as the unfair labor practice concept were introduced, including good faith bargaining, bringing Employment Councils and Employment Boards (in their structures and forms) in the hierarchy to replace industrial councils and boards, that had been introduced in the 1959 Act as well as empowerment of enterprise level bargaining through works councils, the empowerment of the state to promulgate regulations which would have overriding effects on bargaining agreements, state’s determination of maximum and minimum wages, severe curtailment of the right to strike and the intensive

state regulation of trade unions as well as the continuation of the one union one industry concept among other things.

- This resulted in collective bargaining playing a more secondary and subordinate role to state regulation.

- The neo-liberal policies adopted in the 90’s witnessed, but a radical shift towards voluntarism and labour autonomy, when collective bargaining became a decisive platform for the determination of wages and dismissals.

- Benefits accrued to labour in terms of full recognition of trade unions as a legitimate partner to the process, though major shortcomings including the severe curtailment of the right to strike as well as shop floor competition that came in the form of works councils.

- The 2002 Amendment Act strengthened the facilitative role of the state, which expressly states in the purpose of the Act the provision of a legal framework within which employers and employees can bargain collectively for the improvement of working conditions.

- This position has been maintained by the 2006 Labour Act, as provided for on Part 1X (Sections 74 to 82B) of the Act. Some of the critical elements that lie at the core of collective bargaining in the Act include, among other things; issues on the scope of agreements (s74), good faith negotiation (s75), disclosure once inability to pay is alleged (s76), issues of agency representation (s77), registration of agreements (s79) as well as internal and external regulation or variation of agreements (including the powers of the minister to vary the agreements so made-s81).

- Collective bargaining law in Zimbabwe has tremendously contributed to the whole industrial relations framework both economically and socially.

- The major economic benefit so derived by parties to the employment relationship has been the establishment of a framework upon which individual and collective workplace relations are managed and where industrial conflict is institutionalized for the pursuit of a harmonious employee relations climate.

- Gwisai (2006) also acknowledges how law has aided employee relations socially (in terms of justice and democracy) by the strength of S2A of the Act (Purpose of the Act). Collective Bargaining Autonomy, though some argue is limited, remains, but a significant factor that has been enjoyed by parties to Employee Relations.

- The legally binding nature of Collective Bargaining has been significant. It falls at the hub of such works like Otto Kahn Freund who argue that law comes as a force to “…regulate, support, and restrain the powers of management and organized labour…” In other words, there is a clear recognition of the power differences between individual employees against management or organized labour against management respectively, the inadequacies of the former (organized labour) to provide a power base that can be equated to that of the later (management) at the bargaining table, which then justifies the need for a machinery to govern their relationship (in terms of setting the framework upon which terms and conditions of employment are regulated).

- Furthermore, the law has improved on trade union effectiveness, as measured by the meeting of primary needs of workers such as better pay and conditions, increased influence on what they regard as increased influence on what they regard as workplace

decisions, and protection against arbitrary management action (Freeman 1996). This is regardless of whether unions are instrumentally or ideologically motivated to do so.

- In as much as the law on collective bargaining has posed improvements on employer-employee relations, it has also had its own weaknesses, or limitations. A critical analysis of one element key to the process, the recognition of a need to balance the powers of the parties to the employee relations, has not been addressed carefully.

- The rhetoric of the argument provides a seemingly clear manner in which the government has tried to create a balance of power between parties to employee relations, but the reality is very different.

- The state has made it very difficult for labor to enjoy the freedom to bargain by instituting a well calculated and sophisticated bargaining framework involving a combination of bargaining centralization through employment councils as well as bargaining decentralization in the workplace (Schiphorst 2001).

- While this may have been simple, if we look at s23 (1) (b), it has become very difficult for unions to gain 50 % membership at an enterprise level so that they could control the workers committees as shop stewards in the workplace with the prevailing economic environment.

- This was also made in light of Part VII of the Act on the right to organize, giving rise to a recognition of multiple unions at the negotiation table (usually in opposition with regards to political opinions) for example AMWZ and NUMQISWZ in the mining industry, and most importantly, the continued curtailment of the right to strike, or rather, the exercise of the freedom through a set of verbose procedures and unfounded restrictions (Part XIII of the Act).

- Research has clearly proved that the essence of bargaining power lies in one’s ability to withhold something of value to another and that a strike action is an essential and integral part of collective bargaining (Gwisai, 2006).

- Without this, “…the power of management to shut down the plant will not be matched by a corresponding power on the side of labour…”. Apparently, such factors have tended to negatively affect trade unions in terms of their powers to negotiate effective collective bargaining.

- Most of the regulations were largely driven by political factors rather that economic ones, thus resulting in a disintegrated, frustrated, competing (levels) and conflicting labour movement hence diverting their attention from representing their constituencies to scampering for membership. Meanwhile, this has given more security to employers who already have so much power in employee relations.

- A combination of the two tier system of managing collective bargaining, one for the Public Sector and another for the Private Sector, plus the administration of a combination of bargaining centralization (industry-wide) and decentralization (company-wide) simultaneously has also come with it some interesting results.

- This has also been against the fact that there are more than 20 sectors/industries negotiating their agreements with employees in the country.

- As a result, there has not only been a lack of collective voice on the part of employees in general, but the private sector has had a tendency to wait for the public sector to negotiate CBAs first, and then use the result as a benchmark. Such has been a rather

firefighting and retrogressive ploy considering how poorly the public sector has addressed issues of working conditions.

- The lack of coordination amongst bargaining centers has also resulted in a lack of a collective voice and an organized strategy with respect to the capacity of industry to produce and pay.

- The other weakness was that the declining degrees of bargaining centralization to industry level has tended to result in bargainers passing negative pay externalities (i.e. the cost of pay rises in terms of inflation, unemployment and loss of competitiveness) onto third parties (e.g customers, other employee groups and also the state). Now this has equally resulted in the stagnation of the country’s economic performance.

- The area of scope of bargaining has not been fully addressed by law to take consideration, explicitly issues of productivity, which should be a critical factor in the consideration of pay increases.

- This has resulted in a nadir relationship being built in employee relations where union strength would at times supersede the capacities of companies to pay (for example in the energy industry and local authorities).

- The resultant effect has been the channeling of company funds towards employee salaries at the expense of the real objects of Companies. It has been the general public that has felt the grip especially considering how water and electricity charges have increased for example, pressure for payments mounting against a rather dismal performance of these, in terms of service delivery. These companies have managed to comprise market leaders in terms of pay and benefits despite the fact that there is a sharp contrast between productivity and pay, a flaw of the law. At one time the minister even had to interfere in order to get allowances cut for some employees in the energy industry.

- Within this context, a great deal of questions has been raised over the effectiveness of Arbitrators in collective dispute management, especially amid reports from business that they were not factoring in these issues of productivity in wage determination.

- This has been exacerbated by the continued inclination of the labour movement on measuring minimum wages basing on the basic needs as explained in calculating the Poverty Datum Line thus building on stagnation of the economy by way of creating a dependency syndrome where they focus on milking business of productive funds instead of realizing the relationship between productivity, performance, revenues and pay increases.

- A more similar argument has been raised in that the binding effect of collective bargaining agreements on everyone in a specific industry has largely affected many companies in terms of their capacities to pay since they are affected differently by the business environmental factors. The moment we have Companies failing to meet wage payment among other collective bargaining obligations, stagnation, rightsizing elements or even Company closure becomes imminent.

- Whilst taking note of the failures of the law to take into consideration the factors that affected collective bargaining after the 2006 Act (esp. 2008) thus shaping the scope of bargaining, where a great deal of both substantive and procedural rules was varied, the frequency of bargaining increased, the levels of bargaining decentralized to the

workplace, and coverage of agreements also varied, equally, challenges have been noted in trying to get parties to employee relations re-oriented to a new dollarized Zimbabwe, which is a bit certain and more likely predictable.

- The same applies to its failure to take cognizance of the increasingly growing informal sector.

- The weaknesses of law on collective bargaining in adapting to the prevailing economic situation has also paved way for the administration of sophisticated HRM practices and an intimate relationship between labour and business that has witnessed new trends on Collective bargaining (to include productivity bargaining elements, e.g, at Wankie Colliery) as well as other agreements that fall outside the legal framework of Collective bargaining in Zimbabwe being binding on parties, for example in 2008.

RECOMMENDATIONS

- Productivity bargaining should be factored in on the scope of bargaining explicitly, since it lies at the hub of collective bargaining. This should be complemented by an effort to apprise the labour movement of the need to view negotiations within the context of organizational and industry performance.

- Trade unions will always remain ineffective for as long as they cannot exercise their right to resort to collective job action as part of bargaining. This is but the most important area that builds on trade union strength and hence forces employers to negotiate effectively.

- The law should also put up a clause governing the frequency of bargaining and circumstances upon which agreements can be reviewed in a clear and precise manner.

- There is need to reduce the number of bargaining councils so as to try create a platform for the formulation of more homogeneous agreements that allow for internalization of negative pay externalities whilst at the same time allowing for coordination amongst bargaining centers and the mapping of a whole industry-wide bargaining strategy.

- There is need for the creation of a legal framework guiding and binding parties to the social contract and then cascading to the workplace through a machinery of collective bargaining. This is largely because the social contract has significant impacts on collective bargaining.

REFERENCES

Gwisai M,(2006), Labour and Employment Law in Zimbabwe, Zimbabwe Labour Centre, Harare

Labour Act, (2006), Government Printers, Harare

Mugumisi S,(18 Nov 2009), Collective Bargaining: lessons form from 2009 focusing at 2010 and Regional Trends, Paper presented at the IPMZ Labour Briefing in Harare.

Schiphorst F.B,(2001),Strength & Weakness: the rise of ZCTU and the development of Labour relations (1980-1995)

Swanepoel et al,(2007), South African Employment Relations, Van Schaik Publishers, Pretoria

Taxler.F,(2009), The Economic Effects of Collective Bargaining Coverage: A cross national analysis, ILO, Geneva

GLOBALISATION

- can be defined as a process of increasing global connectivity, integration and interdependence in the economic, social, technological, cultural, political and institutional spheres.

- It can be found to represent, for example, the process that reduces barriers between countries and involve greater integration in world markets, thus, increasing the pressure for assimilation towards international standards (Macdonald, 1997, Frenkel and Peetz, 1998, Ali, 2005).

- Economic aspects of globalisation are the most visible and important ones. These include, but are not limited to: - economic competition amongst nations, rapidly expanding international trade and financial flows and foreign direct investments (FDIs) by multinational corporations (MNCs), disseminating advanced management practices and newer forms of work organisation and in some cases sharing of internationally recognised labour standards.

- globalisation enhances competitiveness, both at a company level and at a national level, which leads to company managements and governments to adopt strategies designed to increase labour effectiveness in terms of productivity, quality and or innovation.

- In summary, globalisation involves economies that are opening up to international competition and that do not discriminate against international capital. It therefore is accompanies by liberalisation of markets and the privatisation of productive assets.

- At the same time, this phenomenon has obviously resulted in high unemployment, increasing casual employment and weakening labour movements according to Ali (2005)

DIMENSIONS OF GLOBALISATION AND THEIR IMPACTS TO THE WORLD

1. Economic Globalisation - is the convergence of prices, products, wages, interest rates and profits towards the standard of developed countries. The extent to which an economy will globalise depends on the importance of certain processes at play, such as labour migration, international trade, movement of capital and integration of financial markets.

2. Political Globalisation - this relates to the increasing number and power of international organisations which influence or govern the relationships among nations and which safeguards the rights of countries arising from social and economic globalisation.

3. Information Globalisation - refers to the rapid development of ICT worldwide, such as global telecommunications infrastructure allowing for greater cross-boarder data flow.

4. Cultural Globalisation - this refers to the greater international culture exchange and growth of cross cultural contacts between nations and people. It also involves the expansion of multiculturalism and improved individual access to cultural diversity, as well as the growth of international travel and tourism, while at the same time developing and establishing a set of universal values.

ECONOMIC IMPACTS OF GLOBALISATION

- The most economic effects of economic globalisation include the following:

Increasing integration of global economic activities (this leads to intensifying competition among producers and a greater and more varied offer of diverse sources and destinations of FDI. Capital movements are very high in an open international environment that labour force, MNCs have played a key role in this regard, through relocating their business activities while also subcontracting and substituting technology for human labour. Many companies have been seen to be rationalising their operations in order to strengthen their competitiveness, by reducing both wage and non-wage labour costs. Evidence has proved that MNCs generally pay higher wages and employment benefits than local companies, which significantly affects the industrial relations systems of the host country. In addition, their relationships with trade unions are influenced by both the management and workforce relations in the Company’s country of origin and the situation in host country, which makes it effectively difficult to remove the rigidities of their policies. In most instances, they do not recognise trade unions in bargaining on terms and conditions of employment, except for when they are complying with the labour relations regulations of that particular host country. (Macdonald, 1997, Ali, 2005)

Rising Competitiveness – increased competition in global markets creates demand for more specialised and better quality products, leading to a higher volatility in product markets and shorter product life cycles, which ultimately requires companies to respond quicker to changes in market demands (HR implications- the need to manage people in a quality way, to build on audible readiness, to develop globats, the need for HR to transcend the stewardship of taking care of conditions of employment to look at factors that bring shareholder value and organisational competitiveness. Production implications-the need to introduce new technologies and increase the scope of flexibility in the production processes and resolve any information and coordination difficulties which previously limited the production capacities of enterprises in different locations around the world. The main focus in on individualising and decollectivising work through new work organisation in the form of niches, SBUs, while on the other end, a great deal of effort is placed on reducing the input cost to the production process by replacing people with technologies and then emphasising on building higher value capacities and skills on workers to perform a variety of jobs (multi-skilling). This has blurred the functional and hierarchical distinctions between different types of jobs and between labour and management in general, Organisation of work – efforts to improve products through innovation, quality, availability and pricing have led companies to set up cross-

functional development TEAMS, thus transcending the traditional boundaries between engineering, manufacturing, and marketing. All these developments have been accompanied by standardised, segmented, stable production process which had facilitated collective industrial relations (Macdonalds, 1997) and a continual shift of employment from manufacturing to service oriented industries, i.e., jobs shift from traditional manual occupations to various forms of white collar occupations, though these have been different amongst countries, largely because of differences in stages of development. The developments in technologies, for example, are affected by the willingness of countries with technologies to provide other countries with them (situations of sanctions), and also the extent to which economically developed countries are seeking access to the emerging markets to sell their products. On the other hand, developing countries face many barriers to entry into the developed world’s markets, hence affecting their rate of growth; hence the impact and pace of growth vary from one country to another.

Relocation of economic activities Structural changes in the economy Rapid advancements and innovation.

LABOUR MARKETS EFFECTS

- The most influential effects here include: -

Labour market flexibility Increasing labour migration Rising atypical non-standard forms of employment Changes in the content and working conditions Skills mismatch, multi-skilling and the need for lifelong learning

Such factors vary from one country to another, but however are very fundamental in determining a country’s competitive advantage labour market developments. Due to growing competitiveness, many countries have become obliged to relax their employment protection mechanisms in order to increase their labour market flexibility (see s12-duration, particulars and termination of employment contracts), which has also raised a need to the need to create a balance between labour market flexibility and social protection (see Parts 11-Fundamental Rights of employees, 111-unfair labour practices as examples). As a result, the need for cost efficiency and value addition has necessitated reforms in the labour market thus bringing flexibility in order for companies to be able to deliver goods at the right time and be strategically positioned closer to their customers.

Flexibility defined: - the capacity to which an organisation can adapt to global pressures. We can distinguish between two types of flexibility, that is, numerical flexibility, which is when employers use non-standard contracts of employment to match labour supply to product service demand and to parcel out work in a way that avoids exposure to the risk of overstaffing. Employers achieve numerical flexibility when employees work part time, fixed term and or short term contracts, zero hours, annual hours or work from home, also including the use of short term casualised labour, agency workers including contracting in and contracting out. We can also talk

about functional flexibility, which is the requirement or expectation that workers will perform tasks beyond those strictly specified in their main role or function. This might entail cross working (performing other people’s jobs at the workplace), expanding the number of tasks performed or working in Teams. We can also talk of geographical flexibility which results in managing across cultures as another type of flexibility. Organisational flexibility is yet another strategic form of flexibility, now this is a bigger form and beyond the deployment of flexible labour. It relates to workplace change more generally (e.g Business process reengineering, continuous process improvement, restructuring, mergers and acquisitions, takeovers etc) as well as introduction of new forms of work organisation, job design and redesign etc.

Complexities in flexibility in organisations have come in the form of new forms of contracts, e.g., part time work, fixed term contracts, zero hour contracts, the increased participation of women in the labour market, outsourcing of labour, actualisation and subcontracting, all of which have reshaped the issue of security of employment, from job security to employability security. However, in most African societies, or the developing world in general, these have had a tendency of creating permanent unemployment hence underemployment. Pillay (2006) argues that outsourcing and subcontracting have been seen by COSATU as backdoor attempts to introduce labour market flexibility in the country- in other words, lowering employment standards. This is in contrast with the developed world, which sees a shortage in labour and skills threatening their competitiveness, productivity performance and sustainability of their economic growth, hence resulting in them steering labour migration to cover the void from the developing world in the form of temporary employment. This introduces flexibility into the labour market while increasing competition between foreign and domestic labour with varying implications for the countries sending and receiving workers. (They put restrictions of migrant labour into their markets in order to limit competition for work between domestic and foreign workers.

The other issue we can talk about is the issue of reorganisation of work, which result in: -

- Greater emphasis on team working

- flattening of management hierarchies and the transfer of greater operational responsibility and authority to lower level managers, supervisors and work teams. All these are channelled at increasing workers’ commitment to the organisation and its goals, as well as in establishing closer relationships between managers and workers based on consultation and cooperation (Macdonald, 1997). In addition to that, there is an argument that, while globalisation and rapid changes in economies demand that workers become proactive, adaptable, multi-skilled, responsible and competent, these demands put additional pressure on workers, thus exacerbating their difficulties at a time when working conditions are deteriorating and wages are compressed. The results of this change will be on an unbearable price, with ill health associated with a decrease in quality of life and unfair costs for individuals and society.

However, to become aware of the benefits arising from global integration, countries will need effective education and training systems in order to supply the higher skills levels, which underpin strong and flexible labour markets, economic growth and high unemployment, address inequalities and ensure social cohesion (HM Treasury, 2005). In countries where competition is

based on quality and innovation, governments emphasize the need for adequate skills training to improve workers’ competencies, esp. for those countries where shortages of qualified labour exist, hence we have LIFELONG LEARNING-which is based on continuous learning, as well as updating and upgrading of skills as a viable alternative to lifelong employment (Senge-learning organisations, Blanchard-today’s organisations share a commitment to constant improvement.......)

EFFECTS OF GLOBALISATION ON INDUSTRIAL RELATIONS

- In any event direct labour costs are not a big part of the price of many products and low wages alone are rarely decisive for most producers (although they are important in particular industries, for examples for garment producers and electronics assembly.) The major factor in the loss of manufacturing jobs is technological change. Domestic U.S. manufacturing output today is five times what it was in 1950 even as fewer workers are needed by the manufacturing sector. This is overwhelmingly the result of labour displacing technology, not of runaway shops. The lack of unionization in the fast growing high tech industries weakens all workers. The importance of such growth has

- Robert Blackburn in his new book, The Making of New World Slavery, informs us that by 1770 profits derived from slavery furnished a third of British capital formation. In what might be called a new international division of labour, slaves produced rice, coffee, sugar and other products central to the living standard and personal fortunes of many Europeans. What is interesting is not how much globalization changes things but the continuities in capitalist mentality and practices. As Eric Foner has written: "Today's Chinatown sweatshops and Third World child labour factories are the functional equivalent of colonial slavery in that the demands of the consumer and the profit drive of the entrepreneur overwhelm the rights of those whose labour actually produces the saleable commodity."9 Working people have always resisted such demands. At the end of the 20th century resistance will be stronger to the extent to which we do not allow the scarecrow of "globalization" to disempower us. The system is the same, its logic is the same, and the need for workers of the world to unite has never been greater. It is time for greater clarity in our critique of the basic workings of what are called "free markets" but are in reality class power. We need to counterpoise the need to control capital and to have the economy serve human needs rather than accept the continuous sacrifice of working people to such ideological constructions as competitiveness, free markets, and the alleged requirements of globalization.

- THE HUMAN RESOURCES MANAGEMENT AGENDADEFINITION OF GLOBALISATION

- is a driving force in global economic development today

- concerns all actors in the economy, ranging from individuals and households to governments

- globalisation has greatly affected social partners, as traditional labour relations would have to deal with entirely new and very dynamic situations, which include, but are not limited to; -

- Migration, relocation, changes in human capital and technology. Also included are changes in labour force composition, where there is an increase in white collar jobs from blue collar jobs, particularly in the developed world, coupled by an increase in self employment and the growth of the informal sector of the economy in developing countries. All these have put a significant pressure on trade unions to maintain and expand their membership levels and coverage rates.

- if industrial relations systems do not adjust to globalisation, the danger arises that companies will relocate their production to countries with fewer restrictions on business activities, such as countries with less regulated labour markets and lower labour costs.

Characteristics of globalisation

- internationalisation of markets, increasing competition, free movement of capital and labour, information globalisation through rapid development of information and communication technologies (ict), the rising importance of markets- all influence working lives of employees and represent serious challenges to the national industrial relations systems.

GLOBALISATION IMPACTS OF GOBALISATION

INDUSTRIAL RELATIONS SYSTEM

Internationalisation of markets

Increase in competition

Free movement of capital and labour across borders due to less stringent regulations. As a result, markets are internationalising, competition is increasing, global markets are integrating and ICT promote networking.

Informational globalisation through rapid development of

Increasing integration of global economic activities

Rising competitiveness

Relocation of economic activities

Structural changes in the economy

Rapid technological advancements and innovation

Knowledge

ACTORS-Trade Unions, Employers Organisations, Government

ACTIONS/PROCESSESCollective Bargaining, Workers Participation, Industrial Actions, Conflict Resolution

CONTEXT-Political, Economic, Legal, Socio-Cultural, Technological Environments

OUTCOMES-Scope of regulation of employment, i.e., wages, working time, working conditions etc

IMPACTS-Productivity, job and

ICT society, networking, social capital

Labour market flexibility

Increasing labour migration

Rise of atypical and non standard employment forms

Changes in working conditions and work content

Job-skills mismatches, multi-skilling, need for lifelong learning

employment security, industrial peace and democracy

PAST EXAM QUESTIONS FOR REVISION

1. Discuss Robert Mitchell’s “Iron Law of Oligarchy” and its relevance to trade union democracy.

2. A contract of employment is a way of controlling the labour process. Discuss with reference to Zimbabwe’s statutory and common law provisions on the employment contract.

3. “An unceasing power struggle is therefore the central feature of industrial relations…..”Hyman (1975). Discuss

4. Discuss the contention that “there is nothing so unequal as the equal treatment of unequals” with respect to the State’s intervention in industrial relations.

5. Does the definition of Industrial relations as job regulation represent a narrow framework for the study of the subject? Discuss

6. Conflict is always inherent in Industrial Relations. Discuss this argument with reference to the three Industrial Relations perspectives.

7. The issues of power and control are central to the study of industrial relations. Discuss

8. Discuss the various elements that are fundamental in developing a legally binding employment contract as discussed in class.

9. Analyse the factors that have led to the growth and decline of trade unions in Zimbabwe since 1900 to date.

10. Discuss the role of the State in industrial Relations.11. Analyse the critical elements that should be considered by negotiators for effective

negotiations to take place. Discuss the extent to which the State has contributed towards the rise and fall of trade unions in the pre and post-independent Zimbabwe.

12. Discuss the impact of globalization on Industrial Relations in Zimbabwe. In your answer, take note of how flexibility issues have shaped the employment contract.

13. a) “…the issues of power and control are central to the study of industrial relations…”.Outline the various types and sources of managerial power in Industrial Relations.b) Discuss the strategies employed by management in order to gain full control of the labour process.

14. a) Discuss the contention that conflict is always inherent in Industrial Relations.b) Analyse the nature and causes of industrial conflict and the various ways that are used to contain it.

15. a) b) Discuss the factors that are likely to affect the nature and scope of collective bargaining in Zimbabwe today.

16. a) Discuss the reasons why employees join trade unions as well as the factors that discourage others to obtain membership in such organizations.b) Critically analyse trade union democracy and the factors that are likely to impinge on trade union democracy in the contemporary business world.

17. Discuss the role played by Social Dialogue in addressing issues of Social and Economic Policy in Zimbabwe since 1998. To what extent has it added value to all parties to the Social Contract?

18. Analyse the impacts of the new H.R Agenda on the management of Employment Relations today.

ASSIGNMENT QUESTIONS

ASSIGNMENT 1:

ASSIGNMENT 2:

N.B: All assignments to be submitted before or on the due date. There will be a severe penalty for late submission. Plagiarism amounts to an automatic zero and the student will not be allowed to sit for their exams. Collusion will be treated in the same manner.