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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
• Academic Study of I.R
- I.R defined
- The growth of I.R as a discipline.
2 The Employment Relationship
- Nature of the Employment Relationship,
- The Employment Contract (origins, types, elements etc.)
- The Concepts of Power, Conflict and Job Regulation.
- Implications on the study of Industrial Relations
• Industrial Relations Perspectives
- Unitarism
- Pluralism
- Marxism
ACTORS IN INDUSTRIAL RELATIONS
4 Management
- Management defined
- Historical features of labour management
- The Managerial Prerogative
- Management Styles in Employment R/ships
- Management Control Strategies
- Contemporary issues in Management
- Management and Employers Organisations
5 Trade Unions
- Trade Unions defined
- Types of unions
- The rise and fall of trade unions
- Trade union Structure and democracy
- Contemporary Issues on Trade Unions
6 The State in Industrial Relations
- Forms of State Interventions
- The changing and future role of the State in Industrial Relations
INDUSTRIAL RELATIONS PROCESSES
7 Negotiations
• Purpose of Negotiation
• Types of Negotiation
• Negotiation Strategies
8. Collective Bargaining
- Definition
- Types of Bargaining
- Functions of Bargaining
- Management and Trade Union roles in bargaining
- Contemporary issues in Collective Bargaining
9. Industrial Action
- Functions
- Forms of Industrial Relations
- The Legal Framework of Industrial Action in Zimbabwe
10. I. R dynamics in Zimbabwe
- A historical account of Industrial Relations in Zimbabwe
- Organisation of workers
FACTORS SHAPING I.R IN ZIMBABWE TODAY
• Globalisation
• Technology
• Flexibility
• The new H.R Agenda
• Social Dialogue
• The future of Industrial Relations and the study of HRM in Zimbabwe

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)
• “…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

• 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
• Collective agreements
• Organizational rules
• Custom and practice
• Common law and duties of employers
• Common law and duties of employees

Psychological Contract
• It refers to the expectations of the employer and the employee that operate in addition to
the formal contract of employment
• It has been defined by Rousseau (1994) cited by Hiltrop (1995:287) as “the
understanding people have regarding the commitments made between themselves and
their organisation.”
• It therefore, is concerned with each party’s perception of what the other party to the
employment relationship owes them over and above that which may be specified in the
contract of employment.
• The contract is not clear as to the content and because it is based on perceptions, it is not
written down
• Mullins (1996) points out that there is a continuous process of balancing and explicit and
implicit bargaining over the contract content and more over that the individual and the
organisation may not be aware consciously of the contract “terms”. However, these terms
affect their behavior and relationship.
• One of the aspects of the psychological contract that has gained prominence over the
years is the traditional employee perception that the organisation promises a “job for life”
(examples) in return for employee loyalty and commitment. This is still practiced if we
take the case of local government, civil service and parastatals.
• Some jobs are fast changing in terms of nature and content hence driving a twist of the
psychological contract for example, the changes in the banking sector. The coming in of
IT to replace people has shifted people’s expectations and hence the psychological
contract.
• Organisations now need managers that are less experienced, more commercially aware,
more energetic, and they could be easily obtained, and retained, more cheaply than their
predecessors.
• Research reviewed by Sparrow (2000) highlights the changing nature of the organisation
of work and its implications on the psychological contract, e.g., experiences of
redundancy, for example, are often viewed by the older workers as a violation of the
psychological contract, and are significantly related to their adoption of personal
responsibility for their career development (Sparrow 2000) also issues of termination or
grows of incapacitation, etc.
• Herriot and Pemberton (1995) argued that the psychological contract has moved from one
that is relational- based on mutual trust and commitment- to one that is transactional-
based upon mutual instrumentality of the work- effort- reward bargain.
• It demonstrates a shift from focus on job security on the part of employees towards
employability security.
• According to Hiltrop (1995:289) in the new type of psychological contract “there is no
job security. The employee will be employed as long as s (he) adds value to the
organisation and is personally responsible for finding new ways to add value. In return
the employee has the right to demand interesting and important work has the freedom and
resources to perform it well, receives extra pay that reflect his/her contribution and gets
the experience and training needed to be employable here or elsewhere.”
Characteristics of the ‘old’ and new psychological contract
Characteristic Old New
Focus of the E/R Security and long term Employability to cope with
careers in the company changes 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
Employer’s key Fair pay for a fair day’s High pay for job performance
responsibility work
Employee’s key Good performance in Making a difference to the
responsibility present 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)


• Unitarism
• It assumes that an organisation is or should be, an integrated group of people with a
single authority/loyalty structure, and a set of common values, interests and
objectives shared by all members of the organisation.
• The management prerogative (that is, the right for management to manage and make
decisions) is regarded as legitimate and rational and accepted and any opposition to it
(whether formal or informal, internal or external) is seen as irrational.
• The underlying assumption therefore is that, the organizational system is in basic
harmony and conflict is unnecessary and exceptional.
• Conflict, when it does arise, is believed to be primarily frictional rather than structural
in nature and caused by such factors as clashes of personalities within the
organisation, poor communication by management of its plans and decisions, lack of
understanding on the part of the employees that management decisions and actions
are made for the good of all in the organisation.
• The use of coercion (including law) is legitimate in the use of managerial power. In
other words, management does not 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.
• 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.
• Pluralism
• The perspective views society as being post-capitalist in nature, a relatively wide
distribution of authority and power within the society, a separation of ownership from
management, a separation, acceptance and institutionalization of political and
industrial conflict.
• Organisations are viewed as coalition of individuals with contrasting interests,
objectives and leadership. According to Fox (1973), the organisation is multi-
structured and competitive in terms of groupings, leadership, authority and loyalty
and this gives rise to a complex of tensions and competing claims which have to be
managed in the interests of maintaining a viable collaborative structure.
• Conflict is perceived to be both rational and inevitable. It results from individual and
organizational factors (structurally determined) and different roles of managerial and
employee groups. (Management objectives include efficiency, productivity and
profitability whilst for employees working conditions, better pay, job and
employability securities are crucial).
• Because of such divergence of interests, the issue of power and authority to control
the production process become fundamental. The resolution of conflict is
characterized by the need to establish acceptable procedures and institutions which
achieve collaboration through comprehensive, codified systems and negotiated
regulation.
• There has to be an acceptance of the need for shared decision making, the legitimacy
of management’s role is not automatic but must be sought by and maintained by
management itself ‘management by consent” rather than “management by right”.
• Trade unions are seen to provide a countervailing power of management and
therefore are seen as legitimate.
• Such legitimacy, according to Fox (ibid) is founded not just on industrial power or
management acceptance, but on social values which recognize the right of interest
groups to combine and have an effective voice in their own destiny.
• Marxism
• Concentrates on the nature of the capitalist society surrounding organisations, where
Hyman (1975) argues, “the production system is privately owned…., profit is the key
influence on Company policy…., and control over production is enforced downwards
by the owner’s managerial agents…”
• Marxist general theory argues that: (1) class/group conflict is the source of societal
change, without it, the society will stagnate (2) class conflict arises primarily from the
disparity in the distribution of, and access to, economic power within society – the
principal disparity being between those who own capital and those who supply their
labour (3) the nature of the society’s social and political institutions is derived from
this economic disparity and reinforces the position of the dominant establishment
group, for example, through differential access to education, the media, employment
in government and other establishment bodies.
• Social and political conflict in whatever form is merely an expression of the
underlying economic conflict within the society.
• It is seen as a reflection of not just organizational demands and tensions, but the
economic and social divisions within society between those whose who own and
manage means of production and those who have their labour for sale.
• Therefore it is continuous, unavoidable and synonymous with political and social
conflict.
• Employers do not need to exercise their full industrial power by choosing plants and
withdrawing their capital, the implicit threat that they have such power is 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
• Pollard attributed that the industrial revolution provides evidence of the origins of
management.
• Writers such as Braverman argue that initial managers were recruited from the family
of business people
• This is necessary to keep control of business, but in the growing size of businesses
nepotism was quickly replaced by merit
• This provides an insight into modern ownership and control and becomes the real
underlying factor in terms of management into the ranks of owners
• The managerial prerogative, which are the managements rights and functions are
asserted to derive property rights
• Managerial rights are the right to decide what to be done, when, where, and by
whom.
• Managers act as legal trustees to the owners of property

Managerial Prerogative

Management Control Strategies


• Is the process through which plans are implemented and objectives achieved by setting
standards of measuring performance, comparing the actual performance against the target
and then putting up corrective actions
• Strategies adopted by management are based on ways of thinking about the employment
relationship
• They include a pluralist view which asserts that a potential conflict defines the
employment relationship due to differences in the interests of the stakeholders
• Blighton and Turnbull (1998) forwarded that the employment relationship is founded on
the principles of structured antagonism
• most of them enter the employment relationship not because they want but for economic
reasons hence management control becomes important
• management devise ways of making people do what they want to do

Friedman (1977)
• talks of two types of strategies which managers use to exercise authority over labour
power namely responsible autonomy and direct control
• Responsible Autonomy mobilizes labour power by giving employees an opportunity to
have control over the work situation (being responsible citizens) in a manner that is
beneficial to the whole organisation
• It includes such elements such as employee involvement and participation, delegation of
authority and empowerment.
• Direct Control on the other hand involves close supervision of employees, a harsher
regime of discipline characterized by threats of pay reduction or dismissal
• This approach owes much to Taylorism and Scientific Management which has some of
the elements as reflected by Morgen (1986)

Helrigel and Slocum (1978)


• Identify 3 common strategies used by managers, that is
• Control through Organizational Structure
• Control through Recruitment and Training
• Control through Rewards and Punishment
• Control through Policies and Rules
• Control through budgets
• Control through machinery

Managerial Styles in an Employment Relationship


Style Characteristics
Traditional Fire fighting approach, ER not important until there is trouble,
Low pay, hostile unions, authoritarian, typical of small owner
managed businesses
Paternalistic Unions regarded as unnecessary because of employer’s
enlightenment. Concentrating on getting employees to identify
with business objectives
Consultative Union participation encouraged through recognition. Problem
solving informal approach to employee relations. Emphasis on
two way communication
Constitutional Emphasis is on formal agreements to regulate relationship
between two powerful protagonists
Opportunist Large Companies devolving ER to subsidiaries, no common
approach emphasis on 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”
• 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 interpretation 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.

"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 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 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 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
• 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: -
• Perceived lack of job security,
• Management’s lack of respect for employees
• Anger at the employer,
• The belief that union representation would be effective
• Favorable attitudes towards unions in general
• Ultimately, they conclude, the decision to join trade unions “may involve a combination
of pre-dispositional attitudes, situational conditions, intense emotional effect, as well as a
calculative cost/benefit analysis of the pros and cons of union representation”
• Employees will join trade unions if such membership wields utility. The utility that they
find usually emanate from the cost-benefit analysis, premised on the assumption of trade
unions bargaining for batter wages and working conditions,
• Job security is increasingly becoming an all important factor, in an era where there are
changing trends on the nature of work and the new psychological contract and this is
exacerbated by the unfavorable labour market conditions locally with very high
unemployment levels, leading employees to prioritizing security as exoneration
• Job insecurity is defined by Bender and Sloane (1999) as “a situation where employees
experience a sense of powerlessness to maintain desired continuity in a threatened job
situation. Now because of the power element associated with trade unions, this insecurity,
it is argued, is sufficient to influence the propensity of employees to unionize hence it is
argued by some scholars that “the overall impact of trade unions is to reduce the
proportion of workers who are insecure of their jobs.
• Apart from the legal rights to freedom of association and assembly and of trade unions
organizing to get recognition in the workplace as representatives of employees
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
- 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

A NOTE ON TRADE UNION DEMOCRACY: Michael P. Jackson
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
• 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.

• 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 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.

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 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: -
• Determining working conditions and terms of employment, and /or
• Regulating relations between employers and workers, and /or
• 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.

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.
• 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 black
unions, but, to provide a wage setting machinery by setting the parameters for collective
bargaining as well as the development of Industrial Boards and Industrial Councils.
• Amongst the weaknesses it had however, Sachikonye (1986:52) in Schiphorst (2001) has
summarised thus “…the institutionalization of wage setting machinery has meant
breaking in part of the employer monopoly on wage determination even though the
process is far from complete…the exercise of labour power has established the basis for
intervention in the system and resulted in the development of additional threats to
employers’ interests…the institutionalization of unionism has permitted the entrenchment
of a protective instrument of working-class welfare, this being not an insignificant
achievement in the prevailing climate…”.
• The 1973 Act twisted the system of collective bargaining with the empowering of the
minister to vary CBAs, thus reducing the freedom to bargain (Collective Bargaining
Autonomy).
• Not so much change occurred post-independence, as had been forecasted, but just the
flow within the direction of the 1959 Industrial Conciliation Act. Within the first five
years of independence, wages continued to be determined through bargaining at an
industry level, albeit after the removal of racial overtones.
• This period also marked the time to debate on whether to introduce workers committees
and works councils in the new system, or instead to strengthen the machinery already
present.
• To trade unions, this had obvious implications in terms of their strengths, at a time when
they believed that the development of a trade union movement was more an important
achievement of worker expectations than worker participation, while to business; it meant
an alteration to the existing power structures and an opening of new forms of worker
control.
• That witnessed the formation of enterprise councils and the strengthening of the one-
industry-one-union policy. Collective bargaining became largely centralized at the
industry level.
• The coming in of the 1985 Act witnessed the institutionalization of collective bargaining
at industrial level with the possibility of enterprise flexibility through flexibility through
workers committees (Schiphorst 2001).
• Concepts such as the unfair 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 agreements (s79) as well as
internal and external regulation or variation of agreements (including the powers of the
minister to vary the agreements so made-s81).
• Collective bargaining law in Zimbabwe has tremendously contributed to the whole
industrial relations framework both economically and socially.
• The major economic benefit so derived by parties to the employment relationship has
been the establishment of a framework upon which individual and collective workplace
relations are managed and where industrial conflict is institutionalized for the pursuit of a
harmonious employee relations climate.
• Gwisai (2006) also acknowledges how law has aided employee relations socially (in
terms of justice and democracy) by the strength of S2A of the Act (Purpose of the Act).
Collective Bargaining Autonomy, though some argue is limited, remains, but a
significant factor that has been enjoyed by parties to Employee Relations.
• The legally binding nature of Collective Bargaining has been significant. It falls at the
hub of such works like Otto Kahn Freund who argue that law comes as a force to
“…regulate, support, and restrain the powers of management and organized labour…” In
other words, there is a clear recognition of the power differences between individual
employees against management or organized labour against management respectively,
the inadequacies of the former (organized labour) to provide a power base that can be
equated to that of the later (management) at the bargaining table, which then justifies the
need for a machinery to govern their relationship (in terms of setting the framework upon
which terms and conditions of employment are regulated).
• Furthermore, the law has improved on trade union effectiveness, as measured by the
meeting of primary needs of workers such as better pay and conditions, increased
influence on what they regard as increased influence on what they regard as workplace
decisions, and protection against arbitrary management action (Freeman 1996). This is
regardless of whether unions are instrumentally or ideologically motivated to do so.
• In as much as the law on collective bargaining has posed improvements on employer-
employee relations, it has also had its own weaknesses, or limitations. A critical analysis
of one element key to the process, the recognition of a need to balance the powers of the
parties to the employee relations, has not been addressed carefully.
• The rhetoric of the argument provides a seemingly clear manner in which the government
has tried to create a balance of power between parties to employee relations, but the
reality is very different.
• The state has made it very difficult for 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 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 charges have
increased for example, pressure for payments mounting against a rather dismal
performance of these, in terms of service delivery. These companies have managed to
comprise market leaders in terms of pay and benefits despite the fact that there is a sharp
contrast between productivity and pay, a flaw of the law. At one time the minister even
had to interfere in order to get allowances cut for some employees in the energy industry.
• Within this context, a great deal of questions has been raised over the effectiveness of
Arbitrators in collective dispute management, especially amid reports from business that
they were not factoring in these issues of productivity in wage determination.
• This has been exacerbated by the continued inclination of the labour movement on
measuring minimum wages basing on the basic needs as explained in calculating the
Poverty Datum Line thus building on stagnation of the economy by way of creating a
dependency syndrome where they focus on milking business of productive funds instead
of realizing the relationship between productivity, performance, revenues and pay
increases.
• A more similar argument has been raised in that the binding effect of collective
bargaining agreements on everyone in a specific industry has largely affected many
companies in terms of their capacities to pay since they are affected differently by the
business environmental factors. The moment we have Companies failing to meet wage
payment among other collective bargaining obligations, stagnation, rightsizing elements
or even Company closure becomes imminent.
• Whilst taking note of the failures of the law to take into consideration the factors that
affected collective bargaining after the 2006 Act (esp. 2008) thus shaping the scope of
bargaining, where a great deal of both substantive and procedural rules was varied, the
frequency of bargaining increased, the levels of bargaining decentralized to the
workplace, and coverage of agreements also varied, equally, challenges have been noted
in trying to get parties to employee relations re-oriented to a new dollarized Zimbabwe,
which is a bit certain and more likely predictable.
• The same applies to its failure to take cognizance of the increasingly growing informal
sector.
• The weaknesses of law on collective bargaining in adapting to the prevailing economic
situation has also paved way for the administration of sophisticated HRM practices and
an intimate relationship between labour and business that has witnessed new trends on
Collective bargaining (to include productivity bargaining elements, e.g, at Wankie
Colliery) as well as other agreements that fall outside the legal framework of Collective
bargaining in Zimbabwe being binding on parties, for example in 2008.
Recommendations
• Productivity bargaining should be factored in on the scope of bargaining explicitly, since
it lies at the hub of collective bargaining. This should be complemented by an effort to
apprise the labour movement of the need to view negotiations within the context of
organizational and industry performance.
• Trade unions will always remain ineffective for as long as they cannot exercise their right
to resort to collective job action as part of bargaining. This is but the most important area
that builds on trade union strength and hence forces employers to negotiate effectively.
• The law should also put up a clause governing the frequency of bargaining and
circumstances upon which agreements can be reviewed in a clear and precise manner.
• There is need to reduce the number of bargaining councils so as to try create a platform
for the formulation of more homogeneous agreements that allow for internalization of
negative pay externalities whilst at the same time allowing for coordination amongst
bargaining centers and the mapping of a whole industry-wide bargaining strategy.
• There is need for the creation of a legal framework guiding and binding parties to the
social contract and then cascading to the workplace through a machinery of collective
bargaining. This is largely because the social contract has significant impacts on
collective bargaining.

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).
• 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.
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.

• 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.

• In addition, their relationships with trade unions are influenced by both the management
and workforce relations in the Company’s country of origin and the situation in host
country, which makes it effectively difficult to remove the rigidities of their policies. In
most instances, they do not recognise trade unions in bargaining on terms and conditions
of employment, except for when they are complying with the labour relations regulations
of that particular host country. (Macdonald, 1997, Ali, 2005)
• Rising Competitiveness – increased competition in global markets creates demand for
more specialised and better quality products, leading to a higher volatility in product
markets and shorter product life cycles, which ultimately requires companies to respond
quicker to changes in market demands (HR implications- the need to manage people in a
quality way, to build on audible readiness, to develop globats, the need for HR to
transcend the stewardship of taking care of conditions of employment to look at factors
that bring shareholder value and organisational competitiveness. Production
implications-the need to introduce new technologies and increase the scope of flexibility
in the production processes and resolve any information and coordination difficulties
which previously limited the production capacities of enterprises in different locations
around the world. The main focus in on individualising and decollectivising work
through new work organisation in the form of niches, SBUs, while on the other end, a
great deal of effort is placed on reducing the input cost to the production process by
replacing people with technologies and then emphasising on building higher value
capacities and skills on workers to perform a variety of jobs (multi-skilling). This has
blurred the functional and hierarchical distinctions between different types of jobs and
between labour and management in general, Organisation of work – efforts to improve
products through innovation, quality, availability and pricing have led companies to set
up cross-functional development TEAMS, thus transcending the traditional boundaries
between engineering, manufacturing, and marketing. All these developments have been
accompanied by standardised, segmented, stable production process which had
facilitated collective industrial relations (Macdonalds, 1997) and a continual shift of
employment from manufacturing to service oriented industries, i.e., jobs shift from
traditional manual occupations to various forms of white collar occupations, though
these have been different amongst countries, largely because of differences in stages of
development. The developments in technologies, for example, are affected by the
willingness of countries with technologies to provide other countries with them
(situations of sanctions), and also the extent to which economically developed countries
are seeking access to the emerging markets to sell their products. On the other hand,
developing countries face many barriers to entry into the developed world’s markets,
hence affecting their rate of growth; hence the impact and pace of growth vary from one
country to another.
• Relocation of economic activities
• Structural changes in the economy
• Rapid advancements and innovation.
Labour Markets Effects
The most influential effects here include: -
• Labour market flexibility (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.
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.
• Pillay (2006) argues that outsourcing and subcontracting have been seen by COSATU as
backdoor attempts to introduce labour market flexibility in the country- in other words,
lowering employment standards. This is in contrast with the developed world, which sees
a shortage in labour and skills threatening their competitiveness, productivity
performance and sustainability of their economic growth, hence resulting in them steering
labour migration to cover the void from the developing world in the form of temporary
employment. This introduces flexibility into the labour market while increasing
competition between foreign and domestic labour with varying implications for the
countries sending and receiving workers. (They put restrictions of migrant labour into
their markets in order to limit competition for work between domestic and foreign
workers.
• The other issue we can talk about is the issue of reorganisation of work, which result in: -
• Greater emphasis on team working
• Flattening of management hierarchies and the transfer of greater operational
responsibility and authority to lower level managers, supervisors and work teams. All
these are channelled at increasing workers’ commitment to the organisation and its
goals, as well as in establishing closer relationships between managers and workers
based on consultation and cooperation (Macdonald, 1997). In addition to that, there is
an argument that, while globalisation and rapid changes in economies demand that
workers become proactive, adaptable, multi-skilled, responsible and competent, these
demands put additional pressure on workers, thus exacerbating their difficulties at a
time when working conditions are deteriorating and wages are compressed. The
results of this change will be on an unbearable price, with ill health associated with a
decrease in quality of life and unfair costs for individuals and society.
• However, to become aware of the benefits arising from global integration, countries will
need effective education and training systems in order to supply the higher skills levels,
which underpin strong and flexible labour markets, economic growth and high
unemployment, address inequalities and ensure social cohesion (HM Treasury, 2005). In
countries where competition is based on quality and innovation, governments emphasize
the need for adequate skills training to improve workers’ competencies, esp. for those
countries where shortages of qualified labour exist, hence we have LIFELONG
LEARNING-which is based on continuous learning, as well as updating and upgrading of
skills as a viable alternative to lifelong employment (Senge-learning organisations,
Blanchard-today’s organisations share a commitment to constant improvement.......)
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 INDUSTRIAL RELATIONS


• Internationalisation of Increasing SYSTEM
markets integration of global • ACTORS
• Increase in economic activities -Trade Unions, Employers
competition • Rising Organisations, Government
• Free movement of competitivene • ACTIONS/PROCESSES
capital and labour ss Collective Bargaining,
across borders due to • Relocation of Workers Participation,
less stringent economic Industrial Actions, Conflict
regulations. As a activities Resolution
result, markets are • Structural • CONTEXT
internationalising, changes in the -Political, Economic, Legal,
competition is economy Socio-Cultural,
increasing, global • Rapid Technological Environments
markets are technological • OUTCOMES
integrating and ICT advancements -Scope of regulation of
promote networking. and innovation employment, i.e., wages,
Informational globalisation • Knowledge working time, working
through rapid development society, conditions etc
of ICT networking, • IMPACTS
social capital -Productivity, job and
• Labour market employment security,
flexibility industrial peace and
• Increasing democracy
labour
migration
• Rise of
atypical and
non standard
employment
forms
• Changes in
working
conditions and
work content
Job-skills
mismatches, multi-
skilling, need for
lifelong learning
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
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)
“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 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

• 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.

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;
• 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 co-operative framework.

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.

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

• 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 co-
chairperson)
• 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 co-
chairperson)
• 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:

• 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 decision-making
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.

PAST EXAM QUESTIONS FOR REVISION


• Discuss Robert Mitchell’s “Iron Law of Oligarchy” and its relevance to trade union
democracy.
• 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.
• “An unceasing power struggle is therefore the central feature of industrial
relations…..”Hyman (1975). Discuss
• 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.
• Does the definition of Industrial relations as job regulation represent a narrow framework
for the study of the subject? Discuss
• Conflict is always inherent in Industrial Relations. Discuss this argument with reference
to the three Industrial Relations perspectives.
• The issues of power and control are central to the study of industrial relations. Discuss
• Discuss the various elements that are fundamental in developing a legally binding
employment contract as discussed in class.
• Analyse the factors that have led to the growth and decline of trade unions in Zimbabwe
since 1900 to date.
• Discuss the role of the State in industrial Relations.
• 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.
• Discuss the impact of globalization on Industrial Relations in Zimbabwe. In your answer,
take note of how flexibility issues have shaped the employment contract.
• a) “…the issues of power and control are central to the study of industrial
relations…”.Outline the various types and sources of managerial power in Industrial
Relations.
b) Discuss the strategies employed by management in order to gain full control of the
labour process.
• 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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