Download industrial relations module

Note to students: this is still work in progress. Its intention is just to guide you in your
studies. It is required that you engage in wide research in the subject in order to be able to
fully comprehend the many basic elements covered.
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
2
3
Academic Study of I.R
-
I.R defined
-
The growth of I.R as a discipline.
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
Industrial Relations Perspectives
-
Unitarism
-
Pluralism
-
Marxism
ACTORS IN INDUSTRIAL RELATIONS
4
Management
-
Management defined
-
Historical features of labour management
-
The Managerial Prerogative
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5
6
-
Management Styles in Employment R/ships
-
Management Control Strategies
-
Contemporary issues in Management
-
Management and Employers Organisations
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
The State in Industrial Relations
-
Forms of State Interventions
-
The changing and future role of the State in Industrial Relations
INDUSTRIAL RELATIONS PROCESSES
7
8.
9.
10.
Negotiations
-
Purpose of Negotiation
-
Types of Negotiation
-
Negotiation Strategies
Collective Bargaining
-
Definition
-
Types of Bargaining
-
Functions of Bargaining
-
Management and Trade Union roles in bargaining
-
Contemporary issues in Collective Bargaining
Industrial Action
-
Functions
-
Forms of Industrial Relations
-
The Legal Framework of Industrial Action in Zimbabwe
I. R dynamics in Zimbabwe
-
A historical account of Industrial Relations in Zimbabwe
-
Organisation of workers
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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
Defining Industrial Relations
 Difficulties in defining the subject with precision
 Just like any other discipline, Industrial relations founded in the history of other
disciplines including economics, sociology, psychology, history, engineering, law,
religion, etc.
 Attempts made to define Industrial Relations included the works of Flanders
(1968) on Job Regulation, Dunlop (1963) with systems approach, Bains and Clegg,
Salamon 91998,2000), Hyman (1975), Bendix (2003) etc.
 Today Industrial Relations can be identified as Work Relations, Employee
Relations, Employment Relations, and Labour Relations among others.
 Some of the definitions include the following:
-
“…the study of industrial relations is the study of institutions of job
regulation…” Flanders (1968)
-
“…industrial relations refer to the study of processes of control over work
relations…” Hyman (1975)
-
“…Employee relations are the contemporary term for the field of study which
analyses how the employment relationship between employers and employees
is organized and practiced…’ Farnham (2002)
-
“…Employee Relations are a set of human resource practices that seek to
secure commitment and compliance with organisational goals and standards
through the involvement of employees in decision making and by managerial
disciplinary action…” Bratton and Gold (2003)
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-
“…the collective aspects of relationships between the workforce and
management...” Blyton & Turnbull (1994)
-
“…The study of rules governing employment together with the ways in which
rules are changed interpreted and administered…” Clegg (1979)
The Employment Relationship
 This is an exchange relationship in the sense that the parties exchange or trade
specific tangible and intangible elements.
 With regards to the tangibles, the employee offers his/her labour (from a hard point
of view) which includes his/her skills, knowledge, abilities and experience among
other things in return for a salary/ wage and the associated benefits.
 At the level of the intangibles, the employee offers their commitment, loyalty,
subordination (from a soft point of view) with the expectation that the employer
will offer job security (or in its absence, employability security), recognition, job
satisfaction, opportunities for career advancement etc.
 This relationship may also be understood as the bedrock of conflicts because the
divergence of interests between the parties to it.
 It is generally argued that the employer is much concerned with issues of
controlling the relationship, whilst the employee is concerned with care, which, at
a psychological level become the hub of industrial conflicts.
 Employer-worker relations are organised principally around the contract of
employment
 This forms the background of the study of industrial relations
 A contract of employment begins when one party (the employee) offers to render
their services of a defined nature in return for a fixed, or ascertainable form of
remuneration, and the other party (employer) offers to remunerate for services
rendered.
 Contract may or may not be written
 Breach of contract can lead to unfair labour practice or unfair dismissal
 Express agreement – are terms which are spelled out
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 Implied will result from what is understood to have been the intention of the
parties. This could be from the fact that its so obvious that it need not be stated
Terms implied in every contract (Pitt, 2000)
 To pay wages if an employee is available for work
 To provide work in certain specified circumstances
 To co operate with employee in that employee will not be treated in a manner that
will destroy mutual trust and confidence
 To take reasonable care for the reasonable care for the health and safety of the
employee
 To be faithful to the employer and not engage in actions that cause conflict of
interest
 To take reasonable care in the performance of his or he duties
 In the absence of express terms, “custom and practice” may help to define what
constitutes the employment contracts. Custom and practice has to be reasonable –
reasonable by fitting the “norms” of the industry in question
 Custom and practice should not be interpreted in a substantially different ways by
different people
 Should be well known by all those whom it relates
Express Terms of a Contract
 These are enunciated in Section 12 of the Labour Act (Duration, Particulars and
Termination of Employment Contracts)
 Here it is provided that:
“…Every person who is employed by or working for any other person and
receiving or entitled to receive any remuneration in respect of such employment or
work shall be deemed to be under a contract of employment with that other person,
whether such contract is reduced to writing or not…” (refer to the Labour Act)
Sources of Contract Terms
 Minimum Statutory Standards
 Express statements of the parties to the contracts
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 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.
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 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
New
Focus of the E/R
Security and long term careers Employability to cope with changes
in the company
with this and future employment
Format
Structured and predictable
Flexible and unpredictable
Duration
Permanent
Variable
Underlying principle
Influenced by tradition
Drive by market forces
Intended output
Loyalty and commitment
Value added
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Employer’s
key Fair pay for a fair day’s work
High pay for job performance
responsibility
Employee’s
key Good performance in present Making
a
difference
to
the
responsibility
job
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.
1.
Discuss the implications for the conduct of the employment relationship when the
psychological contract is broken.
2.
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
Industrial Relations Perspectives (Fox, 1973)
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
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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 peceive 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 society
Conclusion
 The Unitarist system has one source of authority and one focus of loyalty,
which is why it suggests the team analogy
 What pattern of behaviour 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.
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 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 opinionThe 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 multistructured 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).
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 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.
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 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 sufficient 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
 Harbison and Myers (1959) give a general definition of management (i) Management as a technical resource - which refers to management as those
having the functional expertise in the enterprise.
(ii) Management as a system of government, of authority - by which policy is
translated into effective action.
(iii)
Management as an elite group - exercising power in society via family,
educational, political or professional links.

 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
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
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)
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 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)
Helrigel and Slocum (1978)
 Identify 3 common strategies used by managers, that is
i.
Control through Organizational Structure
ii.
Control through Recruitment and Training
iii. Control through Rewards and Punishment
iv. Control through Policies and Rules
v.
Control through budgets
vi. Control through machinery
Managerial Styles in an Employment Relationship
Style
Characteristics
Traditional
Fire fighting approach, ER not important until there is trouble, Low pay,
unions, authoritarian, typical of small owner managed businesses
Paternalistic
Unions
regarded
as
unnecessary
because
of
employer’s
enlight
Concentrating on getting employees to identify with business objectives
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Consultative
Union participation encouraged through recognition. Problem solving i
approach to employee relations. Emphasis on two way communication
Constitutional
Emphasis is on formal agreements to regulate relationship between two p
protagonists
Opportunist
Large Companies devolving ER to subsidiaries, no common approach emph
unit profitability
Trade Unions
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 Webbs (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”
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 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 (1998)
The goal of the Labour Movement (Flanders, 1970)
 Allan Flanders in his book Management and Unions (1970) has attempted to
provide perspectives on the reasons for existence of labour movements and this
summary explains it;
"This question "What are trade unions for?" might be called the George
Woodcock question. He has raised it repeatedly in recent years, but the answer
is slow in coming and still remains more of a. hope than a happening. There is
in fact great confusion today about the purpose of trade unions. This affects
attitudes to their future and what should be their legal and social rights and
obligations in present-day society, as well as their own decisions on policy and
organisation. No less an authority than Professor Galbraith has stated that
unions in the future will "have a drastically reduced function in the industrial
system" and "will retreat more or less permanently into the shadows". And his
is not a lone voice. Trade unions are increasingly made the target of many
criticisms. Much of this may be unfair, but the unions themselves rarely bother
to state their own case in persuasive terms.
"I would like first to reject two views of union purpose which merely mislead.
They are poles apart but they have this in common. Those who hold them
believe they know more about what trade unions are for than the unions and
their members know themselves.
"The first is the Marxist view. Admittedly it has many different shapes and
variations and, since all its advocates claim to be offering the one true interHRM 109 INDUSTRIAL RELATIONS
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pretation of the one true gospel, they are often violently at odds with each other.
Most of them, however, would subscribe to an exposition by the editor of the
New Left Review "As institutions, trade unions do not challenge the existence of society based on
a division of classes, they merely express it. Thus trade unions can never be
viable vehicles of advance towards socialism in themselves; by their nature they
are tied to capitalism. They can bargain within society but not transform it.
"From this it follows that the inevitable limits of trade union action must be
overcame with the help of a revolutionary movement or party which -• to
continue quoting from the same essay - "must include intellectuals and petit
bourgeois who alone can provide the essential theory of socialism", Why?
Because - "Culture in a capitalist society is ...... a prerogative of privileged
strata; only if some members of these strata go over to the cause of working
class can a revolutionary movement be born".
"Ignoring for a moment the conceit in this statement, I would not dispute the
point that trade unions are not a substitute for political parties, be they
revolutionary or reformist, workers do not join unions because they think alike
and share the same political outlook. They do so for the sake of gaining
immediate improvements in their lot which only come from collective action.
Their unity, that completeness of the organisation of trade unions which is the
foundation of their strength, must always be imperilled when they import
political faction fights. Unions may decide by a majority to support a particular
political party - as many in this country have decided to affiliate with the Labour
Party - but this is another matter. It reflects no more than recognition that they
must engage in politics as well as the best strategy because it produces the best
results.
"What I find so objectionable as well as invalid in the Marxist view is its implicit
contempt for "pure and simple" trade unionism.
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"Trade unions, by doggedly sticking to their immediate ends and refusing to be
captured and exploited by any-political party, have gradually transformed
society. Only not according from the sacred texts or the dialectical laws! That
they may be right in preferring reform to revolution and unity to discord never
crosses the mind of those whose theory tells them all the answers.
"I do not deny that socialism, as someone once said, has been "the conscience of
labour movements". But this is socialism as a set of ideals, as a moral dynamic,
not as a particular blueprint for an economic or political system. In this sense it
has undoubtedly provided restraints against the emergence of the cruder forms
of business unionism that can be found in the United States.
"If the first mistaken view of the purpose of trade unions comes from the Left,
then the second comes from the Right. The operative word for its expression is
responsible trade unionism. Michael Shanks amusingly characterized and only
slightly caricatured this view "There has grown up in recent years a widespread superstition that the trade
union leader is a sort of ex officio civil servant, responsible to the community at
large. The trade union leader’s main responsibility, to judge from the sort of
comment one reads in the press and hears from middle-class lips, is to "keep his
chaps in line" or "knock some sense into them...", in practical terms, the main
function of a union leader according to this view is to deter his members from
putting in ambitious wage claims, stop them from going on strike and behaving
in other anti-social ways and encourage them to work harder and increase their
productivity... Having done all that, he can gracefully retire with a peerage. He
may even be introduced to the Queen and taken to dine in a west End club from
time to time.
"The essence of this view is that trade unions are there to act as a kind of
social police force - to keep the chaps in order and the wheels of industry
turning.
To this there is only one answer.
The first and overriding
responsibility of all trade unions is to the welfare of their own members. That
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is their primary commitment; not to a firm, not to an industry, not to the
nation. A union collects its member’s contributions and demands their loyalty
specifically for the purpose of protecting their interests as they see them, not
their alleged "true" or "best" interests as defined by others.
"Leadership is important of course. Trade union leaders should be ahead of
their members in thinking about their problems. It is their responsibility to
point out the further and more far-reaching consequences of decisions which
could be regretted later despite their strong immediate appeal. When union
leaders seek only to court popularity and defend this on the grounds that they
are "the servants" of their members, they betray the responsibilities of their
office, when the argument is over, however, their principal task must be one of
representation. If they fail in this the trade union no longer serves its purpose.
No other organisation is there to do this job.
"Obviously trade unions cannot reasonably behave as if they were not part of
a larger Society or ignore the effects of their policies on the national economy
and the general public. No voluntary organisation can do that with impunity.
If they do, they turn society against them and society can retaliate. In any
case, members of trade unions are citizens and consumers as well as
producers. Even so, trade unions exist to promote sectional interests - the
interests of the section of the population they happen to organise - as do
professional associations and many other bodies!
"There is nothing selfish or slightly disreputable about this; it is an essential
part of the democratic process. Indeed, once trade unions appear to be acting
as servants of employers or servants of the government, they are bound to be
written off by their own members who will turn, as they sometimes do already,
to unofficial leaders to take up their demands.
"Both of the views I have been attacking belittle the democratic function of
trade unions; their function of representation. That is why each in its different
way claims to know better than the trade unions themselves where the interests
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of their members lie. My starting point in defining union purpose is the
opposite premise; that the best way of finding the right answer is to look at the
behaviour of trade unions; to infer what they are from what they do.
"Here one thing is at once certain and it applies to all trade unions and has
applied throughout the greater part of their history. The activity, to which they
devote most of their resources and appear to rate most highly, is collective
bargaining. So the question we have to ask is, what purpose do unions pursue
in collective bargaining? The conventional answer is that they defend and, if
possible, improve their members' terms and conditions of employment. They
are out to raise wages, to shorten hours and to make working conditions safer,
healthier and better in many other aspects.
"The answer is right as far as it goes, but it does not go far enough. Collective
bargaining may be what the words imply - that depends on how we define
bargaining - but it is also a rule-making process. The rules it makes can be
seen in the contents of collective agreements. In other words, one of the
principal purposes of trade unions in collective bargaining is regulation or
control. They are interested in regulating wages as well as in raising them
and, of course, in regulating a wide range of other issues appertaining to their
members' jobs and working life.
"Why do they have this interest in regulating employment relationships and
what social purpose does such regulation serve?
It is certainly not a
bureaucratic interest in rules for their own sake. Unions and their members
are interested in the effect of rules made by collective bargaining, which is to
limit the power and authority of employers and to lessen the dependence of
employees on market fluctuations and the arbitrary will of management.
Stated in the simplest possible terms these rules provide protection, a shield,
for their members. And they protect not only their material standards of living,
but equally, their security, status and self-respect; in short, their dignity as
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human beings. One can put the same point in another way. The effect of rules
is to establish rights, with their corresponding obligations.
"The rules in collective agreements secure for employees the right to a certain
rate of wages; the right not to have to work longer than a certain number of
hours; the right not to be dismissed without consultation or compensation and
so on. This surely is the most enduring social achievement of trade unionism;
its creation of a social order in industry embodied in a code of industrial
rights. This too, is the constant service that unions offer their members: daily
protection of their industrial rights.
"Such rights could be and to some extent are, established by law.
But
collective bargaining serves yet another great social purpose. Apart from
providing protection, it also permits participation. A worker through his union
has more direct influence on what rules are made and how they are applied
than he can ever exercise by his vote over the laws made by parliament. We
hear a lot these days about participation, including workers' participation in
management. I have yet to be convinced that there is a better method than
collective bargaining for making industry more democratic, providing its
subjects and procedures are suitably extended. Putting a few workers or union
officials on boards of directors only divorces them from the rank-and-file. In
collective bargaining, trade unions must continually respond to and service
their members' interests.
"The constant underlying social purpose of trade unionism is then
participation in job regulation. But participation is not an end in itself, it is
the means of enabling workers to gain more control over their working lives.
Nothing has happened over the post-war years to change that basic purpose or
to lessen its importance."
Why Employees Join Unions
 To increase their bargaining power
 Minimize favoritism and discrimination
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 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 employees
3. Anger at the employer,
4. The belief that union representation would be effective
5. 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.
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 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
Legal Provisions surrounding Trade Unions in Zimbabwe
 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
 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 collect or recover union dues
-
A registered trade union may act as the agent union of employees in an
undertaking or industry
-
An unregistered union may ask the registered union to act as its agent
 Such applications shall be forwarded to the Minister who will
-
ascertain the extent to which the registered trade union appreciates needs of
employee in that industry
-
Ability of the union to act as agent
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-
No registered trade union shall act as an agent for more than 3 years
without renewal or after a union is registered in that industry
 Any interested person may apply to the registrar for variation suspension or
rescission of registration if
 The trade union no longer represents the interest areas of which it was registered
 It has failed to perform any of its functions in terms of the act
 Minister may regulate the collection of union dues in terms of maximum amount,
accounting procedures and the auditing
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A NOTE
ON
TRADE
UNION
DEMOC
RACY:
Michael
P.
Jackson
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The Future of Trade Unions
 Blyton & Turnbull (1994) argue that the future of trade unions depends on two
goals
i.
Workers who are willing to join and once joined to remain union members
ii
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
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 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
The State in Industrial Relations
 Limited to protecting the bargaining process.
 At face value, the state and government are one and the same thing because it
legislates and promote economic and government policy and also regulates both
individual and collective employment relationships
 The government of the day will influence the direction the country will take and
therefore a country’s strategy for economic development will determine its future
industrial relations system…
 If government favours the free market system, then it legislates in terms of market
forces- will allow labour and management to dictate the employment relationship
 Ministry of Labour in Zimbabwe would play a pivotal role in the employment
relationship.
Legal Function
 Professor Kahn-Freud has identified three legal functions which the State performs
in industrial relations (Otto Kahn Freud’s Labour and the Law 1972). First, the
"regulatory function" in which it provides rules that govern the terms and
conditions of employment of individual employees, whether or not they are union
members.
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 Second, the "restrictive function" in which it provides rules that governs the
conduct of industrial conflict, ie restricting the lawful ambit of industrial action.
 Third, the "auxiliary function" in which it provides rules that govern the
encouragement and extension of collective bargaining institutions. In reality there
is a great overlap between these functions, but as tools of analysis they are quite
useful.
Regulatory Functions
 The conceptual corner-stone of labour law both historically and currently is the
individual contract of employment as a legally enforceable relationship. In legal
theory the employer and the employee are equal bargaining partners with freedom
to decide on its terms. There is, however, a wide difference between legal theory
and what happens in practice as far as the contract of employment is concerned.
Kahn-Freud sums up this contradiction between legal theory and what happens in
practice ".... the relation between an employer and an isolated employee or worker is
typically a relation between a bearer of power and one who is not a bearer of
power. In operation it is a condition of subordination, however much the
submission and the subordination may be concealed by the indispensable
figment of the legal mind known as the contract of employment". (Labour
and the Law, p.8)
 In order to provide protection on behalf of the powerless individual employee, the
State provides a floor of rights on such issues as fundamental rights of employees
(see labour act), duration, particulars and termination of employment (s12)
Restrictive Function
 In general terms the State acts as a referee in the dynamic relations between
employers and employees. This analogy of a referee symbolizes the restrictive
function of the State in so far as it limits and prescribes the freedom of action of
the participants. The starting point when analyzing this function is to consider
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whether the State is encouraging or destroying collective bargaining between
employers and employees. Is the State encouraging the growth and strength of
both employees' and employers' organisations, or is the restrictive function used to
supersede collective bargaining?
The following are some of the practices which generally characterize the restrictive
function of the State  Strike Action
 Registration of trade unions
 Compulsory Arbitration
 Unfair Dismissal
Auxiliary Function
 The auxiliary function of the State in industrial relations is primarily to promote
industrial peace by encouraging and promoting collective bargaining between trade
unions and employer organisations. The State, through legislation or otherwise,
defines the bargaining units, the procedures and institutions for resolving disputes
and reserves the power to legally enforce agreements and place unions under
statutory duty to give equal protection, ie representation to all the workers in the
designated industry or occupation irrespective of membership, race, creed or
anything else.
For more, students should refer to part X of the labour Act, (S74-82b) on
Collective Bargaining
 The process of conciliation, mediation, arbitration, investigation and inquiry
constitutes the auxiliary function of the State.
Conciliation
 Simply means "that some third party" - a civil servant, a person without office but
with personal prestige, or statutory or agreed commission or board - tries to get the
parties together. If conciliation succeeds, the result is an agreement. Mediation is
usually synonymous with conciliation.
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Arbitration
 Is listening to the parties and the evidence and then formulating an award. "if the
arbitration is voluntary as to its outcome, this is a mere recommendation; if it is
compulsory, the award binds the parties".
Investigation and/or Inquiry
 Is "a procedure in which some third party (usually a commission or court) is
charged with finding the facts of a dispute and sometimes also with the making of
recommendations for its settlement".
The State in the General Management of the Economy
 No analysis of the State's involvement in industrial relations will be complete
without an examination of the State versus the general management of the
economy. The extent to which the State gets involved in the general management
of the economy depends on the political economic philosophy of the Statue.
 The crucial questions that one needs to ask in examining this role of the State are –
-
Is the involvement of the State promoting the interests of the employers or
the employees, i.e. interests of capital or of labour?
-
Is the involvement of the State guided by the principle of an overriding
national interest which goes beyond the rich-poor conflict and the
employee- employer conflict?
-
When playing such a central and visible role can the State really be neutral?
A detailed analysis of the neutrality or otherwise of the State is beyond the scope of
this module. What is not debatable is the fact that the role of the State in industrial
relations was developed in line with the general transformation in its economic
functions. The State is usually involved in manpower policies, incomes and prices
policies, investments and subsidies policies all of which have direct or indirect
impact on the industrial relations trends in any given national economy. These will
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be examined in this section, giving emphasis to the resultant influence on industrial
relations.
Manpower Policies, these include policies on such issues as;
 Skills generation.
 Employment generation.
 General conditions of service.
 Labour Mobility
 Income and Price Policy
Collective Bargaining
Definitions
 “...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 /or
b) Regulating relations between employers and workers, and /or
c) Regulating relations between employers or their organisations and a workers’
organization…” (ILO Convention 154)
 “A voluntary process for reconciling the conflicting interests and aspirations of
management and labour through the joint regulation of terms and conditions of
employment” Gwisai (2006)
 It is a process of negotiation between management and union representatives for
the purpose of arriving at mutually acceptable wages and working conditions for
employees. (Boone and Kurtz, 1999 p 424 – 425)
 Rycroft and Jordaan define Collective Bargaining as a voluntary process for
reconciling the conflicting interests and aspirations of management and labour
though the joint regulation of terms and conditions of employment.
 John Grogan defines it as the process in terms of which employers and employees
collectively seek to reconcile their conflicting goals through a process of mutual
accommodation.
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Purpose of Collective Bargaining
 Establishes industrial justice
 Allows workers to participate in decisions that affect them.
 Ensures that no arbitrary behaviour is imposed and no unrealistic demands are
made on them
 According to Grogan (2006), it assumes a willingness on each side not only to
listen to the representations of the other but to abandon fixed positions where
possible in order to find common ground.
Factors necessary for effective Collective Bargaining to take place (Gwisai 2006)
 Recognition of divergent interests of employers and employees.
 Recognition of the need for equilibrium of power between the two parties
 Recognition of the philosophy of mutual survival
 Elimination of direct and indirect obstacles to effective CB
 Representation, democratic process whereby elected representatives negotiate on
behalf of large groups
 Power which lies in the ability of parties to influence each other towards mutually
acceptable agreements.
 Common ground – the desire
Types of Collective Bargaining
 The two basic methods of bargaining are traditional bargaining and partnership
bargaining.
 The traditional style of bargaining has been used since collective bargaining began
between management and the early labour unions (Encyclopedia of Business and
Finance, 2000)
 It is an adversarial style of negotiating, putting one side against the other with little
or no understanding of, or knowledge about the other on the part of either party.
 Each side places its demands and proposals on the table and the other side
responds to them with counter proposals.
 The process is negative and involves a struggle of give and take on most issues.
 The partnership style of bargaining is a more modern concept.
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 It strives for mutual understanding and common education on the part of both
labour and management, and it focuses on goals and concerns common to both
parties.
 It emphasizes on each side’s being aware of its issues concerning the other side, it
is called interest based bargaining.
 In this process labour and management each list and explain their needs and
ensuring discussion revolves around ways to meet those needs that will not only be
acceptable but also beneficial to both parties.
 This style of bargaining is very positive and imports a much more congenial
atmosphere to the negotiating process.
 Sometimes there is a blending of the traditional and partnership styles in labour
and management negotiations.
Key issues in Collective Bargaining
 Scope
Issues discussed (both substantive and procedural issues, including; Rates of
remuneration, Benefits, Deductions from employee wages, Methods of calculating
or adjusting rate of pay, Overtime, piecework, vacation leave, Demarcation of
categories of jobs, Apprentices conditions of service, Hours of work, Occupational
safety, Access of parties to records, Procedures to deal with disputes, Housing and
transport facilities, Measures to combat workplace violence,
 Level,
Collective bargaining takes place at 3 levels, the micro/enterprise level, and the
macro-levels which include the industry and national levels.
 Coverage
This includes the specific groups/ constituencies that are covered by collective
agreements at various levels.
Historical Background to Collective Bargaining in Zimbabwe
 The Industrial Conciliations 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
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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.
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 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 labour 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
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agreements (s79) as well as internal and external regulation or variation of
agreements (including the powers of the minister to vary the agreements so mades81).
 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
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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 labour 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
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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 fire-fighting and retrogressive ploy considering how poorly the
public sector has addressed issues of working conditions.
 The lack of coordination amongst bargaining centres 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 channelling 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
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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 reoriented to a new dollarized Zimbabwe, which is a bit certain and more likely
predictable.
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 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 industrywide 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.
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Globalisation
Introductory food for thought
Question: What is the truest definition of Globalization?
Answer: Princess Diana's death.
Question: How come?
Answer: An English princess with an Egyptian boyfriend crashes in a French tunnel, driving a German car
with a Dutch engine, driven by a Belgian who was drunk on Scottish whisky: followed closely by Italian
Paparazzi in Japanese motorcycles; treated by an American doctor, using Brazilian medicines. And
moreover this is sent to you by a Zimbo, using American (Bill Gate’s) technology and you're probably
reading this on your computer that uses Taiwanese chips, and a Korean monitor, assembled by Bangladeshi
workers in a Singapore plant, transported by PAKISTANI lorry-drivers, hijacked by Indonesians, unloaded
by Sicilian longshoremen, and trucked to you illegally by Mexican.
That’s Globalization" my friend.
Thank You
What is?
Is the process by which development of a “global ideology” has begun to transcend
national boundaries with far reaching consequences for both the conduct of business
transactions and the theory and practice of management ( Vernon – Wortzel et al 1990)
 The growing economic dependence among countries as reflected in increasing cross
boarder flows of goods and services, capital and know-how” (Govindarajan and
Gupta 1998a in Leopold et al 1999:99)
 Scholte (2000) viewed globalization as involving ‘the growth of supra-territorial
relations among people’ fostered by the development of high technology and
increasing complex international supply links are developed”
 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).
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 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 accompanied 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
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-border
data flow.
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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.
Forces for Globalisation
 Lowering and removal of trade barriers
 Revolution in international transport and communication
 Emergence of a new wave of competitors
 New global markets segments
Globalization Solidifying Forces
 Trends towards regionalism e.g NAFTA (North American Free Trade Area) and
EU. These argue that open trade has more advantages than disadvantages and opt
for the creation of world with few or no trade restrictions.
 Abatement of ideological conflicts and the end of cold war. With the collapse of
Berlin Wall in 1989 and socialism in much of the world global co-operations
expanded virtually throughout the world. Governments became more inclined than
ever to solve international problems through constructive engagement and
dialogue, e.g. Geneva Convention for equal rights. Governments not only
restructure economies through liberalization and privatization but also invest in
productive sectors and therefore the adoption of free trade systems.
 The rising influence of NGOs in addressing and regulating a wide range of
international problems and issues eg Amnesty International and Green Peace
contribute to the world economic, social and technological integration. NGOs such
as ISO set widely observed standards in the global market place. This has affected
even organizations such as Turnall where it is under pressure from health and
safety groups on its failure to meet standards on OHS.
 Mobility of capital across the globe so as to seize better financial opportunities
and expansion of markets by investors. Over $US1 trillion is traded in the global
foreign exchange market and therefore solidifying the creation of a global market.
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 Ease of foreign direct investments (FDIs) and labour flow across the globe.
Liberalization and restructuring of world economies enhance MNC’s investment
activities. Such organizations will be targeting cheap labour so that they achieve
higher returns from their investments. Programmes that include ESAP ensured the
solidification of globalization where there was trade liberalization in Zimbabwe in
1991/2 years and was driven by World Bank and IMF super powers.
 Revolution
in
international
transport
and
ICT
(International
Communications Technology). This has eased communication, knowledge
transfer and transportation and therefore geographical space and time have lost
their utility as a serious barrier for people and business interactions. Internet has
increased connectivity and worldwide information can be easily accessed and
decisions made in a short span of time.
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.
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 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 implicationsthe 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
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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 (influences on labour market performance)
 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.
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Flexibility defined:  At a more global scale, we can identify flexibility as the capacity to which an
economies and organisations can adapt to global pressures.
 Flexibility – hours, part-time work, variable contracts, functional flexibility, pay
(including PRP common in Zim.)
 We can distinguish between various 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.
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 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
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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, Blanchardtoday’s organisations share a commitment to constant improvement.......)
Globalisation and Industrial Relations
 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.
ELEMENTS
-
IMPACTS
Internationalisation
INDUSTRIAL RELATIONS SYS
of Increasing integration of global
markets
-Trade
Increase in competition
-
Rising competitiveness
-
Free movement of capital
-
Relocation
and labour across borders
to
less
stringent
-
regulations. As a result,
markets
are
of
integrating
and
ICT
promote networking.
ACTIONS/PROCESSES
Industrial Actions, Conflict
-
Rapid
technological
innovation
-
-
Structural changes in the
competition is increasing,
are
economic
Collective Bargaining, W
advancements
markets
Empl
Government
economy
-
Unions,
activities
internationalising,
global
ACTORS
economic activities
-
due
-
-Political,
and
Economic,
L
Technological Environmen
-
Knowledge
CONTEXT
society,
OUTCOMES
-Scope of regulation of em
networking, social capital
working time, working con
-
Labour market flexibility
globalisation
-
Increasing labour migration
-Productivity, job and
through rapid development of
-
Rise of atypical and non
industrial peace and democ
Informational
ICT
standard employment forms
-
Changes
in
working
conditions and work content
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IMPACTS
54 | P a g e
Job-skills
mismatches,
multi-
skilling, need for lifelong learning
Some of the impacts of Globalisation
 Increasing international economic interdependence has affected traditional IR
arrangements viz:
-
Structurally changed & expanded marketplace, making possible information
flows through tech. Tearing down traditional boundaries of the organisation.
-
Foreign Direct Investment (FDI) allows MNCs to influence country, regional
bodies trade policies and labour laws as they control assets in more than one
country.
-
MNCs have created complex international production processes.
-
Locally based businesses are now focusing on technology based focus in their
business creating as they do, growing individualism and decollectivism of
work.
 Globalisation has shaken the status quo that hitherto existed between Capital and
Labour – while Labour is relatively immobile, capital moves at the same speed
irrespective of location.
-
Capital can employ labour in cheaper areas with ease thereby prejudicing
countries of origination – Daimler Chrysler
 Contradictory impact on IR
-
Accelerates the interdependence of states which has the capacity of creating
uniform IR arrangements beyond borders.
-
There is resistance towards convergence based on the particular
circumstances of different countries and regions.
Impacts on Business
 Internationalization of companies
-
The development of new strategies to manage organisations, influenced by
the ideas of individuals like Michael Porter on Competitive strategies in the
80’s
-
The growth of MNCs
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Mergers
and
Alliances-GlaxoSmithKline,
PricewaterhouseCoopers,
DaimlerChrysler:
 Markets – driven by customer orientation not products (the need for organisations
to respond to customer-driven demand for products)
-
Asian Tigers – world’s fastest growing economy.
•
Dubai, Chinese, Japanese products in Zimbabwe (issues of culture,
mass production, management practices etc)
 Whole production departments are moved to areas of cheaper labour Asia and
recently Africa – Mercedez Benz, VW, Parmalat, Toyota, Nokia etc
 Movements also facilitate sensitivities to local and regional markets in a customer
oriented environment.
 New management practices such as Downsizing/rightsizing, Contracting and
outsourcing to allow concentration on core business, Increase in need for casual of
labour, BPR with a view to increasing organisational effectiveness, lower costs
leading to increasing technology etc.
 Businesses relying on outsourcing to:
-
Reduce time-to-market, time-to-volume
-
Lower operating costs, investment, etc.
-
Improve inventory management
-
Access leading technology, etc.
-
Produce on a global scale using parallel production facilities
-
Focus on core competencies
-
Organise supply chain
-
Enhance purchasing power
 Pushing for more deregulated and flexible labour markets.
 Increased Competition defined by knowledge/innovation, skills and productivity
compelling business to develop new models of managing resources, including
human resources hence the coming in of the HRM Agenda, which is concerned
with the attraction, development and retention of skilled employees that are
willing, and able to work towards the organisation at all levels. (influence of the
Michigan School of thought, The Harvard School and Guest 1987)
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“The success global companies is to a large extent dependant on their ability to
organize (sic) (within and between organisations) across national boundaries
information, money, people and other resources)”
 Employers seen encouraging more employee involvement in job design and
execution of work – multi-skilling; they cover up for absenteeism and make jobs
redundant reducing the need to employ certain replacements.
 Reducing the scope of C.B to issues that cannot be employer specific – removing
work re-organisation, flexible working hours (Mining in Zim), and contractual
arrangements (PRP).
•
US – enterprise level CB
•
UK and EU – movement is towards the enterprise level
 Increased training expenditure and pressure to up educational qualification –
increasing need for self dvpt.
 Knowledge is driving employment, investment & productivity.
Managing a Global Workforce: Emerging Issues
 Armstrong defines the 7 characteristics of people management being adopted viz:
•
Cosmopolitan, Culture, Compensation, Communication, Consultancy,
Competence and Coordination
 Centralisation strategy – extent of parent country control of employment policies
•
Helps plan for Mgt. Succession
•
Secure high quality staff members
•
Managing existing operations effectively
•
More commitment because of assurance of a global outlook
 Merging employment practice and culture (the convergence thesis)
 Managing diverse cultures, social systems and legal requirements
 Managing people spread across the globe even with the most sophisticated global
system is not the same e.g. video conferencing – the absentee boss.
 Chia (1995) says of management: “the earlier generation’s recipe for success
hinged on hard work, smart moves, the right business and political connections,
monopolies, protectionist barriers… and a docile labour force. …the new
…manager has to exercise greater levels of leadership …balance this with being an
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entrepreneur… To this has to be added coaching, team building and motivating the
company , the ability to visualize, plan strategically, market and reengineer
products and services and the belief in a customer driven culture.”
Globalization and the role of the State
 Traditional role of the state in a tripartite IR system is being threatened by
enterprise level C.B
 Role of international bodies external governments
-
Laws in some countries in Europe forbid investment for poor labour
practice records
-
International pressure groups on Corp. Responsibility e.g. on Shell
 Integration based legal changes have made it difficult to institute legal measures
that are not practice in the group – critical in EU, ASEAN, COMESA and SADC
-
Creation of common market, free movement of goods
-
Unity of Currency or parity
-
Removal of Tariffs
-
Free flow of capital, people (dropping visas)
 IR policy is managed through compliance with ILO conventions
-
No 87 – Freedom of association & protection of the right to organize
Globalization and Labour
 The permanent job is disappearing
-
Casualisation of labour
 Organized labour is threatened by enterprise level bargaining under the auspices of
the democratization of the workplace
 IT – As businesses seek ways to improve the product (through innovation, quality,
availability & pricing) cross functional teams, cutting across traditional segments
& stable processes that facilitated collective IR
 Reduction as well of the numbers that is available to the organisation into Trade
Unions.
 The rise of the knowledge worker
 The impact of MNCs on C.B in host countries
 Globalization and labour market performance
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 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.
 Twist of trade union power from membership to information
 The impacts of the growing informal sector
Social Dialogue
Definition of Social Dialogue
 Social Dialogue is defined to include all types of negotiations or simply the
exchange of information between, or among representatives of governments,
employers and workers, on issues of common interest relating to economic and
social policy. It is perceived as an instrument of democracy, which promotes
consensus building for the national good.
Prerequisite for Social Dialogue
 The following are key conditions for Social Dialogue:
-
Establishment of a Social Dialogue culture;
-
cultivation of a Social Dialogue mindset;
-
establishment of effective institutions for Social Dialogue;
-
political tolerance and social cohesion for the sake of national development.
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Social Dialogue approaches in Zimbabwe
 The approach to Social Dialogue is two-pronged. The National Economic
Consultative Forum (NECF) under the banner of smart partnership is pursuing the
broader initiatives. Secondly, resolving of national socio-economic problems
through negotiations is pursued within the auspices of the Tripartite Negotiating
Forum (TNF).
Smart partnership and NECF
 The Commonwealth Partnership for Technology Management Ltd. (CPTM),
created by Commonwealth Heads of Government in 1995 promotes networking
between governments, business and labour organisations.
 It involves partnership among government, business and labour at the national,
regional and international levels, helping Commonwealth countries to make the
most of opportunities offered by the new global market. Smart Partnership is based
on a deliberate policy of co-operation among the government, the private sector
and labour aimed at transforming a country into a winning nation.
 The primary responsibility of government in a Smart Partnership is to set a clear
vision, which is shared by all stakeholders and clearly articulated national strategic
plan, which captures that vision. All parties must see themselves as stakeholders in
a common endeavour, with the prospect of a “win-win” outcome for all. Smart
Partnership is, therefore, about creating limitless opportunities for the generation
of wealth. It is also a process that unites people in contributing towards prosperity
for all. One such example of International Dialogues co-ordinated by CPTM was
the 2nd Southern African International Dialogue (SAID 99) held in Victoria Falls in
October 1999, which focused on economic empowerment and wealth creation in
the region. Both labour and business participated.
 The NECF, set up in 1997, is the national hub for Smart Partnership in Zimbabwe.
The objectives of the NECF are:
-
to create a Smart Partnership amongst key economic players - government,
private sector, labour and other stakeholders in order to enhance the economic
development process of the nation;
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-
to provide a broad participatory framework in the formation of national
economic policy through an interchange of ideas and experiences amongst the
stakeholders;
-
to facilitate the co-ordination, monitoring and evaluation of national economic
policy implementation.
The NECF operates through the following task forces:
 Macro-economic Task Force
 Land Reform Task Force
 Industrial Policy Task Force
 Incomes and Pricing Task Force
 Human Resources Development Task Force
 Health and Environment Task Force
 Taxation and Expenditure Task Force, and
 Anti-corruption Task Force
Smart Partnership for what?
 In the Zimbabwean context, Smart Partnership is for:
-
strengthening co-operative networks and enhancing working relationships
among Governments, Labour and the Private Sector;
-
building a Zimbabwean co-operative team and a common vision;
-
identifying “win-win” situations so as to promote the development of
Zimbabwe;
-
projecting Zimbabwe to the international business community as a destiny for
investments.
 The Smart Partnership approach is a means of creating a uniquely Zimbabwean
pathway to global competitiveness by building on the systems of co-operation,
which are inherent in the Zimbabwean culture. After all, the Zimbabwean culture
stresses the important role of co-operative action within the family and
community. Competitiveness in the global market is achievable within a cooperative framework.
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In the context of globalisation, government should:
 create an enabling environment;
 Pursue policies essential to successes in the global economy.
Labour should:
 be driven by a clear understanding that only through productivity enhancing
measures and commitment to excellence in the provision of goods and services,
can they guarantee workers good salaries, wages, employment and job security;
 adopt less conflictual labour relations;
 assist in building the capacity of workers.
Private sector should:
 encourage managers to employ progressive business practices;
 assist in the building the capacity of workers in line with the new concept of social
capital;
 place productivity and quality through Smart Partnership at the apex of
organisational endeavour;
 maintain core standards at the work place in line with the Declaration on
Fundamental Principles and Rights at Work.
Shortcomings of the NECF
Some of the shortcomings are:
 It is not a negotiating chamber though some of its positions are factored into the
government decision-making machinery.
 Public Service Associations are not players of this forum despite the fact that there
are critical components of labour in Zimbabwe.
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The Tripartite Negotiating Forum
Background information
Since independence in 1980, tripartite consultations among government, labour and
business have been taking place following the ratification by government of the ILO
Convention No. 144 (Tripartite Consultations, 1976). The tripartite consultations have
been, to a greater extent, restricted to meetings among the Ministry responsible for
Labour Administration, the Zimbabwe Congress of Trade Unions (ZCTU) and the
Employers Confederation of Zimbabwe (EMCOZ).
Up to 1998, the consultations had remained narrow in scope
It is against this background that in 1998, at the zenith of the labour movement’s
protests, demonstrations and job stay-aways against macro-economic problems, that
the idea to transform the tripartite consultation arrangements by broadening the scope
in line with paragraph 3(b) of ILO Recommendation No. 152 was mooted. With Social
Dialogue in mind and as the way forward to deal with issues of national outlook, the
Government, Labour and Business formalised in October 1998 their meetings into the
Tripartite Negotiating Forum (TNF).
The agreed terms of reference of the TNF are:
 to identify and deal with all macro- economic issues that affect the well- being of
the economy and social development;
 to deal with issues debated in the NECF and render themselves for negotiations. (A
practical example is the issue of a Social Contract, which was debated in the NECF
in September 1999 and was referred to the TNF since it is a negotiable matter);
 to negotiate and recommend positions to the respective constituent bodies;
 to monitor the implementation of the agreed positions once ratified by constituent
bodies.
Composition for the TNF
Government
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 Public Service, Labour and Social Welfare (Chairperson)
 Finance and Economic Development
 Industry and International Trade
 Mines and Energy
 Lands and Agriculture
 Environment and Tourism
 Information and Publicity
 Other Ministers are invited depending on the issues under consideration.
Business
 Employers Confederation of Zimbabwe (EMCOZ) (business co-ordinator and cochairperson)
 Confederation of Zimbabwe Industries (CZI)
 Zimbabwe National Chamber of Commerce (ZNCC)
 Bankers Association of Zimbabwe (BAZ)
 Chamber of Mines
 Commercial Farmers Union (CFU)
 Zimbabwe Farmers Union (ZFU)
Labour
 The Zimbabwe Congress of Trade Union’s (ZCTU) (labour co-ordinator and cochairperson)
 Public Service Association (PSA)
 Zimbabwe Teachers Association (ZIMTA)
 Zimbabwe Nurses Association (ZNA)
 5 members of the Executive Office of the ZCTU attend the TNF
Issues finalised by Social Partners in the TNF
The following issues were discussed and agreed upon within the auspices of the TNF
in October 1999:
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 the scrapping of the Development Levy;
 the scrapping of the 2½ sales tax which the Government had effected in November
1997;
 the deferment of taxation on Pension Funds to allow for a comprehensive study.
Current discussions on Social Contract
At the beginning of September 2000, the social partners started negotiations aimed at
the conclusion of a Social Contract. The social partners agreed to start with a
Declaration of Intent towards a Social Contract. This is a prelude to the conclusion of
a Social Contract and its main objectives are:
 to create a conducive and tolerant environment for the discussion and conclusion
of a Social Contract;
 to overcome constituents differences and work towards a common goal being
guided by a common vision regarding the future of the economy;
 to remove the fears and mistrust among Social Partners;
 to commit social partners to sustainable Social Dialogue.
Advantages of the TNF approach
 It is a negotiating chamber
 It is result-oriented
 Representation in the TNF is by institutional arrangement
 It is a forum, which affords social partners to meaningfully engage in decisionmaking processes on issues, which have a national outlook.
Concluding Remarks
 Social dialogue is the only way forward for this country to survive in depressed
political and economic environments.
 Economic problems have to be tackled by all social partners – government, labour,
capital, and society in general. Not one single party can resolve some of the
teething problems being faced by the country.
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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.
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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.
REFERENCES
Grogan J, (2000), Workplace Law, 5th ED
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
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