Trade Unions

Labour issues

Read the passage below and answer the questions that follow.

 

Labour refers to the workforce of a country. These are the people who own the factors of production and without whom there would be no production. This is why industrial action can cripple an industry.

 

In South Africa we have an official unemployment rate of about 25%. This means that one in four people who could be part of the workforce don’t have a job. The fact that many people are desperate for work could lead to exploitation of the labour force, as happened in the past all around the world. Workers did not enjoy fringe benefits, were paid very little and had to work long hours in poor working conditions without receiving overtime payment. Fringe benefits refer to benefits a worker can enjoy in addition to the salary or wages he or she receives. Common fringe benefits are a medical aid and pension fund to which both the employee and the employer contribute.

 

In South Africa, Parliament passed the Labour Relations Act (LRA) in 1995, which prescribed how employers should treat their employees. The Act sets out the rights and responsibilities of the employer and the employee. It makes provision for employees to belong to trade unions and to negotiate with their employers about any matter that is in their interest. The Labour Relations Act also protects the rights of domestic and farm workers. These workers must now be paid a minimum wage as prescribed in the Act. In terms of legislation, employers now have to contribute to the unemployment insurance fund of domestic, garden and farm workers. Failure to do so places you in contravention of the law.

Contribution of trade unions to sustainable growth and development

In order to create more jobs the economy has to develop and grow. Growth in the economy means production of goods and services needs to increase and this in turn increases the gross domestic product (GDP). The grow needs to be ongoing and not stopped through strikes. It needs to be sustainable meaning it must grow year after year in order to create more jobs every year as well for a growing population. But this growth should not have any bad affect on the environment and the communities.

Trade unions can contribute in the following way:

             To put pressure on government to spend money on big infrastructure project to create more jobs and help develop transport and communication networks.

             To urge government to increase spending on skills training for workers through the Skills Education and Training Authorities (Seta’s), which help workers to be trained a number of industries.

             They ensure workers are paid fair wages and this improves productivity in the work place, which adds to growth

             They ensure good working conditions and safety in the work place and this also increase productivity.

             They ensure that workers are happy with their wages and  working conditions.

             Through negotiations they can settle disputes in an orderly manner with employers. This reduces disruptions to work that would occur if workers were negotiating as individuals.

Lesson Files
Lesson Questions

Answer the following by sating if the statement is TRUE or FALSE

Statement

True

False

a) One in four South Africans has a job.

 

 

b) Exploitation of workers took place not only in South Africa, but in European and other countries too.

 

 

c) Fringe benefits are things such as medical aid and a pension fund.

 

 

d) Domestic workers and farm workers are excluded from minimum payment and unemployment insurance.

 

 

e) The employer must contribute to a worker’s unemployment insurance.

 

 

f) Labourers own the capital necessary for production to take place.

 

 

g) Labour refers to the people in an economy who can work.

 

 

h) Unemployment can lead to exploitation of employers.

 

 

i) In the past, workers were paid very little and had poor working conditions.

 

 

j) The LRA came into effect in 1995.

 

 

Activity 3:           

Complete the following questions in your class work book

1. Explain each of the following terms

   a) Economic development

   b) Globalisation

   c) Productivity

 

2. List two factors that contribute to unemployment which trade unions can address

 

3. Describe how trade unions can reduce poverty in South Africa

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