ABV 320 UNIT 2 Final Summary
ABV 320 UNIT 2 Final Summary
ABV 320 UNIT 2 Final Summary
What is important?
● LR system
● Ideological basis
● Role of the State
● Forms of state interference
● Roles adopted by the state
1. LR system
• A country’s LR system is shaped by all the different forces in that society
• LR systems are unique because societies are unique
• As societies change, so will the LR system
2. Components of the LR system
1. parties to the relationship
2. processes- such as collective bargaining and worker’s participation favoured by the parties
3. legal system governing the relationship
1. Parties to the relationship– employers, employees and state are the major role players in
employment relationship
o The role that each party plays and how important each participant is to this relationship will
ascertain the kind of system that is applicable.
o In certain systems the state dominates the relationship, in other systems the state plays a
junior role.
o In some societies the interests of the employer will be emphasised while in other societies
the employee will be regarded as the most important participant.
o Employees usually act through trade unions and the extent to which trade unions may be
exercise their power will depend on the government of that country, e.g., in some countries
trade unions are facilitated while in other efforts in organising may be restricted by
legislation and social circumstances- trade union actions vary in different countries
2. Processes and procedures–(Collective bargaining, dispute settlement(CCMA, LC, LAC),
communication structures and channels, in-plant disciplinary and grievance procedures)
o predominant processes in LR system: collective bargaining and worker’s participation
o varying emphasis placed on these processes
o sometimes one or both of these processes are compulsory and sometimes voluntary,
sometimes centralized and sometimes decentralized
o other processes include:
▪ dispute settlement procedures
▪ communication structures
▪ systems for the conclusion of agreements
▪ in-plant disciplinary and grievance procedures
3. Legal Framework-Legislation that regulates the employment relationship will differ from
country to country
o (degrees of compulsion protection granted to employers and employees freedom of
association (s23 of the constitution, s64 and 65 of the LRA) and collective bargaining
concepts of fairness)
o differences in the legal framework are found in:
➢ varying degrees of compulsion
➢ different forms of protection granted to employees and employers
➢ differences in application of freedom of association and the right to bargain collectively
➢ differing concepts of fairness and differences in legislation pertaining to this concept
➢ societies may establish laws not directly related to ER but influence the system
3. Ideological basis- a system of beliefs and values that have an effect to justify morally a society’s
social and economic relationship
These shape how individuals view themselves in relation to society and their roles within it and
represent different perspectives on the balance between individual rights and autonomy versus
collective interests and responsibilities
• Represents society at large e.g., public policies based on societal needs and preferences, these
policies enhance the wellbeing of the society such as education, healthcare, social security etc
• In SA democracy diminishes when representatives in parliament are not elected directly by their
constituents, but by the relevant political parties.
• State / Government used interchangeably.
• State has a political bias
• Can be pro-labour or pro-capital
o This is important in labour/employment relations since it will with other factors determine
the degree of state interference in the work relationship.
• The degree of state interference in the working relationship will depend on whether it supports
voluntarism or mandatorism: (also depends on ideological basis)
• Voluntarism – minimal or no interference from gvt in the conduct of the relationship
• E.g., if gvt believes in voluntarism there will be little to no interference by the gvt in the conduct
of the relationship
• most societies, operating to a greater or lesser degree on the free-market principle supports
voluntarism as basis of labour relations system- but pure voluntarism doesn’t exist anywhere in
the world.
• Mandatorism- absolute or maximal gov. control of all aspects of employment (requires the gvt to
have full control and interfere in the conduct or regulation of the relationship)
• The government would need to regulate the employment relationship e.g., set minimum wages,
implement policies
• Occurs in a society where gvt also exercises control over all economic and social forces.
• In reality, voluntarism would have elements of mandatorism, because absolute voluntarism does
not exist anywhere in the world:
ꟷ The gvt which establishes legal framework for society, necessarily impinges on
labour/employment system
ꟷ Employment relationships if left solely to the main participants
(employers/employees/unions) may be inequitable, making it necessary to restore power
balance
ꟷ The conduct of labour/employment relations will impact society and economy.
ꟷ Labour relations involve politics- the gvt, being a political instrument , necessarily interests
itself in developments in this sphere.
• The government’s involvement is important because it would:
➢ Provide a legal framework for the conduct of the relationship
➢ Provide minimum protection to employers and employees
➢ Protect the society against extreme behaviour by either party
➢ Attempt to preserve labour peace
• State as legislator- (Most important role) the state may enact legislation on employee rights,
CB, prescribe procedures to be followed by parties to relationship e.g. LRA, Code of Good
practice, BCEA,COIDA,OHSA
Type and amount of legislation will depend on a gvt’s overall policy regarding intervention in
the LR.
Income policy: effort by gvt to control the incomes of labour and capital, usually by limiting
increases in wages and prices
• State as adviser- As employment conditions change new challenges emerge as such the state
needs to monitor the work relationship, identify gaps and challenges, and provide guidelines
on the conduct of the relationship and suggest areas that require improvement in the form
of recommendations. The state will establish various bodies to monitor developments in LR,
to produce guidelines on the conduct of the relationship and to suggest innovations to the
participants.
• State as controller of income distribution-state collect taxes from individuals (and public
enterprises) and utilize it for other purposes e.g., loans and use its financial power to bring
changes in the system. This will allow it to affect relative positions of capital and labour. Most
gvts make use of concessions in the form of lower taxes and other allowances for low income
earners. The state may also boost certain industries by loans or concessions and may use it
its financial power to bring about changes in the system.
• Role of the judiciary- The judiciary remains an instrument of the gvt (despite its
independence) The judiciary interprets common law and legislation relating to employment
relationships and interprets and applies the statutes passed by gvt to regulate the
relationship. The law and legislation is interpreted by competent dispute resolution bodies
e.g. LC, LAC, CC, HC etc. Certain gvts introduce labour courts dealing with only labour matters
to prevent problems.
• Role of the police-Role of the police is to protect the public & play a crucial role in
employment relationship e.g., during strikes and lock-outs where unions are also involved.
They do not side with any party and may intervene as the law-enforcement arm of the state
in cases of public disturbance= however the unions and employees are usually the ones who
cause disturbance, and the police are often seen as siding with employers. There police
intervention is only allowed in extreme cases- and only for public protection.
Tutorial questions:
Question 2: Name and explain 2 intrinsic factors that regulate the labour relationship. (6)
Question 3: Name and explain 3 different traditional approaches to the labour/employment
relationship. (9)
Question 4: Name and explain the ideological basis and the different ideological poles. (6)