Impact of Recent Legislation on Businesses- Labour Relations Act [1]
1 LABOUR RELATIONS ACT/LRA
Purpose of the Labour Relations
• Provides a framework/structure for labour relations between employers and employees.
• Promotes collective bargaining at the workplace.
• Promotes workplace forums to accommodate employees in decision making.
• Establishes Labour Courts and Labour Appeal Courts.
• Promotes simple procedures for the registration of trade unions and employer organisations.
• Provides for the right to lock-out by the employer as a reaction to lengthy strikes.
• Promotes fair labour practice between the employers and employees.
• Clarifies the transfer of employment contracts between the existing and new employers.
• Advances economic development/social justice/labour peace to ensure that the workplace maintains the basic rights of employees.
• Establishes the Commission for Conciliation, Mediation and Arbitration (CCMA) for dispute resolutions.
Impact of the LRA on business
Positives/Advantages
• Promotes a healthy relationship between the employer and employees Protects the rights of businesses in labour related issues.
• Labour disputes are settled quicker and are less expensive.
• Protect employers who embark on lawful lock-outs when negotiations between parties fail.
• LRA provides for the principles of collective bargaining and puts structures in place with which disputes in the workplace can be settled.
• Provides specific guidelines for employers on correct and fair disciplinary procedures.
• Employers and employees have guidelines regarding correct and fair dismissal procedures.
• Provides mechanisms such as statutory councils/collective bargaining/ CCMA.
• Employers are entitled to compensation from the Labour Court if they suffered damages as a result of unprotected strikes.
• Workplace forums can add value to businesses if it functions properly.
AND/OR
Negatives/Disadvantages
• Productivity may decrease if employees are allowed to participate in the activities of trade unions during work time.
• Costs of labour increases because of legal strikes
• Reduced global competitiveness due to lower productivity
• Employers may have to disclose information about workplace issues to union representatives that could be the core of their competitive advantage.
• Employers may not dismiss employees at will, as procedures have to be followed.
• Some businesses may feel that the LRA gives employees too much power as it creates lengthy procedures, e.g.
consulting with workplace forums.
• Employers may not get a court interdict to stop a strike.
• Strike actions always result in loss of production for which employers may not claim.
• Some trade unions may not promote the mandate of their members but embark on industrial action, which is harmful to labour relations between employers and employees.
• Many employees and employers do not understand/respect the Labour Relations Act.
• Labour disputes and bargaining council processes become disruptive/ time consuming and can lead to a decrease in productivity in businesses.
• Many employees take advantage of the right to strike without acknowledging their responsibilities.
Discriminatory actions according to the LRA
• Promoting the interest of one trade union over others in the workplace.
• Dismissing employees from a racial group participated/engaged in an illegal strike action.
• Allowing only particular gender/age groups to be part of workplace forums.
• Granting leaves to attend union meetings/activities/programmes only to site stewards/union representatives.