ADVANCED LABOUR RELATIONS AND COLLECTIVE BARGAINGING NOTES

Labour relations as a concept embraces all aspects of employment relations between the employer and the employees in an
organizational setting.

Labour relations is the study and practice of managing unionized employment situations.

‘The study of the institutions of job regulation’ (Flanders 1965 in Edwards)

The collective aspects of relationships between the workforce and management. Blyton & Turnbull (1994)

It relates to contractual relationship between the employer and the employees, regulation of conditions of service, collective
bargaining, management of strikes, industrial democracy, trade unions-employer relations, and structural decisions by the employer on
how to relate well with individual workers and their trade unions in the workplace.

It concerns the process of work

Basis for employment relationship

Labour relations is restricted to the relationships of employers and employees- not all types of work
Understanding by an employee to provide skill and effort to the employer in return for which the employer provides an employee a
wage (pay – work bargaining)
NB
Labour laws in Zimbabwe do not cover all types of work for example, consultancy work- form of payment is different or independent
contractors, women-domestic work, community service, court sentence(criminal),voluntary work, family work-children. The Labour
Act does not cover the informal sector. It relates to paid work in the formal sector. It covers a minority of workers in Zimbabwe where
the majority of people are in the informal sector

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Dynamics in labour relations
Centerpiece of Labour relationship between employers and employees.

 This relationship has both common and divergent interests

 Cooperation is key since employees will get conditions they like and employers get productivity.
 Employer wants to buy labour at the lowest possible cost whilst labour wants to sell their labour at the highest possible price.
 Employees are relatively weaker than employers so they have more power when they organise themselves into unions.
 Tendency to look at the two parties employees and employers as the only parties to employee relations. This is simplistic,
however there is a third more powerful force “government intervention”

Factors influencing employee relations

A variety of internal and external factors which include growth in trade unionism, changing product and employment market
conditions, labour law and new technology: (Marchington & Wilkinson, 2004). Endogenous factors such as culture of the
organization, prevailing management style, the organisation’s value, day to day interactions between managers and employees and HR
policies and practices in the business.

ACTORS IN LABOUR RELATIONS

There are 3 main actors in labour relations: employees and their organisations, employers and their organisations and the state.
Employees and their Trade unions
Trade unions represent the interests of their members. The trade union function has 5 distinctive features which are power, job
regulation, economic regulation, social change and self fulfilment.

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Power
It provides a countervailing force to the employer. There is a lot of strength in numbers as an individual employee cannot coerce either
the employer or state to change a certain policy that impinges on him or her.

Job Regulation

Employer - employee relationship creates rules and regulations to maintain harmonious relations and prevent arbitrary management
actions. Rules are both substantive and procedural. Without unions employees would be at the mercy of their employer as rules,
regulations and procedures which govern employment relationship would be designed without their input. There would be no
consultations on recruitment and selection, appointment, training, development, salaries and wage, allowances, work load work design
among other things. But if unions are present joint regulation would be there.

Economic regulation

Trade unions influence the rise of wages and employment of their members within the framework of the wage/work contract of
employment. This explains why employers are not comfortable with unions which they associate with machinery for pushing wages
higher.

Social change

Trade unions do express the social cohesion and aspirations or political ideology of their membership and seek to develop a society
which reflects this view. For example, apart from talking issues related to wages and conditions of employment, trade unions might
wish to advocate for a total transformation of society in terms of demands for gender balance at work, security policies for retired
citizens, pensions and gratuity, etc

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Self –fulfilment

This allows for individuals to develop outside the immediate confines of their jobs and participate in the decision making process. Self
fulfilment is not easy to achieve especially for the lower ranks of the organizational hierarchy. However, they may reach this level
through trade unionism. It creates a very powerful feeling of contentedness to realise that he/she enjoys a greater degree of obedience
from fellow workers.

What employees want from work?

 Opportunity to use their initiative allowing problem solving and creativity
 Job Security
 Working with friendly and supportive people and having a good relationship with their superior
 Good pay and satisfactory physical working conditions

The Role of the Employer in Labour Relations

The employer has a major role to play in labour relations since the buck ends at the doorstep of the organization. In essence, the role
of the employer revolves around the organization in terms of the structures it puts in place to ensure effective operational activities.
The role of the employer involves the following areas:
1. Establishing appropriate structures to ensure industrial harmony;
2. Ensuring harmonious relationship between the organization and the individual workers;
3. Recognition of the trade unions to operate in the organization;
4. Ensuring harmonious relationship between the organization, workers committee and the trade unions in the organization;
5. Providing appropriate and conducive environment for collective bargaining to thrive in the organization; and

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6. Taking cognizance of existing laws on labour relations in labour matters

Government Intervention in Labour Relations

The government in our society is both an employer and an umpire in labour relations matters. Therefore, besides the fact that the
government employs a sizeable number of labour, it also intervenes in the operations of almost all aspects of labour relations towards
ensuring healthy relationship between the other employers and the various categories of workers in the country.
The specific areas of government intervention in labour relations are as follows:
1. Regulates the legal framework, setting rules and regulations for the practice of labour relations in the country, for example
Labour Act Cap 28:01;
2. Making representation in roundtable discussion between the employers and the trade unions;
3. Playing mediating role in resolution of industrial conflicts through conciliation and arbitration,
4. Encouraging the use of collective bargaining in terms of conditions of service; and
5. Ensuring the protection of the workers’ rights and privileges in the workplace.
6. It plays the role of a model employer especially in developing countries where the state is the biggest employer through civil
service and state controlled enterprises.
7. It regulates incomes through macro-economic management to achieve high employment and productivity and to attract
investment, maintain low levels of inflation and avoid over-expenditure.
The government intervenes in labour relations matters because it has the responsibility to ensure that there is industrial harmony in the
country. Furthermore, the government also has the responsibility to entrench protective legislations to regulate all aspects of the work
situation in order to guide against the exploitation of the workers by their employers.
The state intervenes in employer-employee relations to ensure the following;
1. Work is not disturbed,

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 2. employers dominate,
3. Labour law institutionalize labour conflicts,
4. labour law coopts ‘sweetheart’ unions and smash and repress those who operate outside capitalist parameters e.g. labour Act
sect 109(6) union leaders who engage in illegal strike

PERSPECTIVES IN LABOUR RELATIONS

There are 3 major theories relating to the employment relationship. These are unitary approach, pluralist approach and Marxist
approach. Each attempts to explain the workplace in relation to conflict and harmony, employer prerogative and the role of trade
unions differently.

UNITARISM
Work organization is viewed as an integrated and harmonious whole existing for common objectives, values, interests and a single
centre of loyalty and authority. There is no space for opposition in the workplace. Management single handedly control the running of
the organization. Strong belief in unitarism. Conflict is unwanted, unnatural and dysfunctional and is viewed as pathological and work
of agitators. It is seen as caused by either lack of communication or the hand of enemies (agitators). Manager would employ his/her
power, dismissal, disciplinary procedures or transfer of trouble makers to other departments to stem conflict. Employee has a duty of
subordination and loyalty. Employment relationship is individualized. Trade unions are not wanted as they challenge the status quo
and where they exist they are used as instruments of communication with workers for the achievement of industrial harmony. There is
authoritarian style of management and workers do not participate in decision-making as this is not in sync with managerial
prerogative. There is a sense of mutuality of interest so whatever decision is made by management must be good for the employee.

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PLURALISM
The workplace is viewed as a microcosm of society replete with heterogeneity in social groups, social interest, values and beliefs that
generate conflict. So conflict is inherent as the actors have divergent interests and objectives. For example, employees are interested in
higher wages, safe working environment, increased leisure, autonomy, flexibility while employers are interested in making profits
through exploitation of labour. Thus, conflict is inevitable in today’s organisations but it needs to be controlled with effective
industrial relations strategies as it can be disruptive. Conflict between employers and employees is accepted to be natural but there is
compromise from both sides in their interests so that the organization survives. Trade unions are perceived as legitimate to protect
employees’ interests within the framework of rules provided by the state and collective bargaining is used as a tool to resolve disputes
at the work place. There is industrial democracy as employees are given a voice on decisions that affect them. The employer uses staff
meetings, quality circles, and works councils to articulate conflicting interests of employees to ensure superior organizational
performance. Employees’ right to strike and employer’s right to lock out provides an equilibrium (power balance).Both parties have to
use power with restraint for the relationship to be stable (not to have perennial winners/losers all the time as there can also be winners
and losers in the negotiation process(not balance all the time).

MARXISM
It views employer-employee relationships in the wider capitalist society which is believed to be exploitative. Industrial relations is
analysed as a subsystem of a larger society that shapes conflicting relations between capital and labour. Industrial relations is about
who owns what, where and how. There are two main classes of those who own the means of production and those who do not. The
capitalists are mainly interested in amassing super profits and regard labour as a factor of production to be exploited like other tangible
resources. For as long as there is unequal distribution of the means of production conflict will never end. Industrial conflict is seen as a
reflection of not just organizational demands and tensions but also the inherent nature of the capitalist economic and social system.
Thus, conflict cannot be resolved within the framework of capitalism but can only be ended with the overthrow of the capitalist mode

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of production and its substitution by the socialist mode of production as class struggle between the working class and capitalists
escalate and intensify. The source of conflict lies in that labour power is turned into a commodity which is subject to the law of
accumulation and profit. The growth of trade unions is seen as an inevitable response to capitalism and the need to protect their
interests. Fox (1973) assets that trade unions are like a permanent opposition, which does not seek to be an alternative management.
Trade unions are viewed as the basic defence of the working class that allow the workers through collective bargaining to push capital
to pay labour power at more or less its actual value. Trade unions are rudimentary instruments of class struggle which due to the
reserve army of the unemployed will never have equivalent power to that of capital or employers who own the money. The Marxist
theory has no confidence in the role of trade unions to represent employees as long as they cannot challenge capitalism. The creation
of institutions of joint regulation such as trade unions is seen as an enhancement of managerial position vis a vis the workers, rather
than its reduction (Dzimbiri, 2008). They want a revolution.

DISCUSSION
What has been the history of Employee Relations in Zimbabwe since 1980? Discuss

EMPLOYEE RELATIONS IN ZIMBABWE SINCE 1980

1980s regulation and legislation put in place to protect workers e.g. Employment Act, Minimum Wages Act, Workers committee
introduced, Labour relations Act in 1985. Employers needed to comply

1990s No change in labour legislation however inefficiencies at Labour court and delays caused some companies not to take seriously
legislation – employee rights violated. Market liberalization policies were embraced. Labour Relations Amendment No12 of 1992 and
Export Processing Zones Act Cap 14:07 were passed to deregulate the labour market and employer controlled codes of conduct were

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introduced. Contract or casual jobs paying lower wages were introduced. The new millennium witnessed forced compliance through
firm and farm invasions.

2002 &2005 changes in legislation adding more rights to employees. The Labour Relations Amendment Act No 17 of 2002 was
passed and according to Gwisai (2006) it was a transitional compromise law between neoliberalism, state corporatism and pluralism
reflecting the sharp political, ideological and class struggles of the period it was made.

-The Act was replaced by the Labour Amendment Act No 7 0f 2005 which incorporated Export Processing Zones employees,
strengthened the Labour Court and the remedies available on unfair dismissal and better maternity rights.

The Labour Act Cap 28:01 includes all amendments made by the Act up to the first of Feb 2006 but has a number of weaknesses

1) There is need to strengthen the Labour Court

2) Harmonization of all labour laws and statutes

3) Restrictive provisions on the right to strike

4) Criminalization of the right to strike

5) Involvement of the minister in CBAs

6) Strengthening of workers organization

7) Dispute resolution is too long

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8) Lack of job security and benefits for contract workers.

9) The employer also bemoans what it perceives as excessive leave provisions in the Labour Act .The Act entitles employees to 180
days sick leave, 30 days’ vacation leave, 12 days special leave and 98 days maternity leave. The argument is that an employee can be
on paid leave for 320 days of the 365 days in a calendar year!

THE CONTRACT OF EMPLOYMENT

-A contract is a binding agreement between 2 parties, can either be written, implied or psychological.

An agreement between an employer and an employee at the time the employee is hired that outlines the exact nature of their
business relationship, specifically what compensation the employee will receive in exchange for specific work performed.

It is an oral or written, express or implied agreement specifying terms and conditions under which a person consents to perform
certain duties as directed and controlled by an employer in return for an agreed upon wage or salary.

-According to Madhuku and Manase (1995) a contract is an agreement between 2 parties which is recognized or enforceable by law.
The contract of employment is the cornerstone of the employment relationship. It outlines many of the rights and obligations of the
employment relationship. Further, it provides the basis on which the structure of statutory protection is built. Statutory protections
provide a floor of employment rights. The employment relationship is founded upon contract of employment so no one is properly
regarded as an employee unless he or she is employed under a contract of employment (otherwise known as a contract of service and
distinguished from a contract for service) Many employment rights (eg the right to claim unfair dismissal and redundancy) are
dependent upon the worker qualifying as an employee

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-According to Gwisai (2006) a contract of employment comes into existence when one person, the employee, enters into an agreement
with another, the employer, to render personal services to, and under the control of the employer in return for remuneration.
Employment contracts are of 2 types; fixed term and indefinite.

Fixed term contracts

Parties clearly specify the duration of the contract, it endures for a specified period, unless it is terminated earlier by agreement or by
fundamental breach-The life of a contract may be determined either by naming a date for termination or by stipulating a particular
event the occurrence of which will bring the contract to an end eg the completion of a particular task

-If after the agreed date for the termination of the contract the employee remains in service and the employer continues to pay the
agreed remuneration, the contract is deemed to have been tacitly renewed, provided that an intention to renew is consistent with the
parties’ contact. Types of temporary contracts include casual, seasonal work, and probation

Indefinite contracts

-where the parties do not specify a date of termination, the contract then endures until it is terminated by agreement, by the giving of
the contractually stipulated or reasonable notice of termination or until either party elects to terminate on fundamental breach by the
other or on retirement at the agreed age or on the other grounds accepted in law

NB

The nature of contract has an impact on benefits and dismissal law. Benefits such as pensions and medical aid benefits, retrenchment
packages of security of employment are associated with permanent full time contracts of employment.

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ROLE OF HR
HR department are custodians of the contract of employment.

HR Departments are the ones representing the company at the Labour Court if employment contract is violated

Line management ensure that they provide the environment which enables the employee’s rights not to be violated

The employment contract: Rights and Duties of employers and employees

Once a contract of employment has been entered into, whether in writing or verbally, it is accepted that the parties have by implication
agreed to certain rights and duties at common law. The duties of the other constitute the rights of the other. For example, the employee
has the right to remuneration, to work, not to be demoted, not to work for any other employer but his own while the employer has the
right to expect that the employee does his work to the best of his ability, that he obeys reasonable orders, that he is honest and does not
compete with the employer’s business.

The common law duties of the employer include the following-the duty to receive the employee into his service, the duty to pay
employee’s remuneration, to ensure that working conditions are safe and healthy, the duty of good faith and to respect the employee’s
dignity.

The five principal duties of the employee in an employment contract under Common law are to enter and provide service, to maintain
reasonable efficiency, to further the employer’s business interests, to be respectful and obedient and to refrain from misconduct
generally.

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GROUP DISCUSSION

Examine key weaknesses, omissions and errors in crafting and administering contracts in Zimbabwe

PSYCHOLOGICAL CONTRACT

“Set of unwritten reciprocal expectations between the individual employee and the organisation” (Guest et al,2000)

“Represents mutual beliefs, perceptions, and informal obligations between an employer and employee” Wikipedia Encyclopedia

Psychological contract is a metaphor that captures a wide variety of largely unwritten expectations and understandings of the two
parties about their mutual obligations (Rousseau 1995).

A two way exchange of perceived promises and obligations

Guest and Conway (2002): “the perceptions of both parties to the employment relationship – organisation and individual – of the
reciprocal promises and obligations implied in that relationship

Ineffective communication practices are more likely to create different beliefs about the reciprocal promises and obligations.

Individual employees will have different perceptions of their psychological contract.

Concept started in 1960s recently become a fashionable framework within which to study aspects of employee relationships

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Organisations seek both flexibility and employee commitment and restructuring has increased number of “nonstandard” forms of
employment.

Notion of employee commitment emphasizes the importance of managing the psychological contract (Rousseau, 1995)

This starts at interview stages ―some initial statements no matter how informal may later be reminded as promises and give rise to
expectations and disappointment if not met
DISCUSSION
Assess the impact of the psychological contract on labour relations and how can HR managers, manage expectations arising from the
psychological contract effectively?

EMPLOYEE INVOLVEMENT AND PARTICIPATION

 Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their
jobs.
 Employee involvement is a philosophy practiced by companies that gives their employees stake in decisions that directly affect
their jobs
 Employee involvement entails downward communication whose main purpose is to inform employees including teambuilding,
notice boards, departmental meetings etc.
 Employee Involvement stops short of any degree of ‘power-sharing’ between managers and employees in eventual decision-
making and, as such, is regarded as a relatively weak form of voice in that whilst it seeks to engage employees and provide a
channel for employee expression it preserves management’s right to make decisions and generally provides for limited

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 employee influence. Employee Involvement is underpinned by the unitarist assumption that managers and employees share
common interests, and that management should retain fundamental control of decision-making. Therefore, whilst often
associated with employee empowerment, EI does not represent a true redistribution of power in the employment relationship as
managers can retract this ‘empowerment’ if it no longer serves its purpose. In practice, EI is often focused on the engagement
of small groups and individuals in addressing local, operational issues by facilitating information-sharing within work groups
and between line managers and employees. Generally, EI does not extend to providing the opportunity for workers to have any
input into higher-level, strategic decision-making, such as pay, working conditions or wider organisational policy. Mechanisms
for employee involvement are invariably ‘direct’ in that they do not involve employee representatives. Examples of
involvement mechanisms include suggestion schemes, quality circles team working and self-managed workgroups.

Workers’ participation in management is an essential ingredient of Industrial democracy. The concept of workers’ participation in
management is based on Human Relations approach to Management which brought about a new set of values to labour and
management.  Traditionally the concept of Workers’ Participation in Management (WPM) refers to participation of non-managerial
employees in the decision-making process of the organization. Workers’ participation is also known as ‘labour participation’ or
‘employee participation’ in management. In Germany it is known as co-determination while in Yugoslavia it is known as self-
management. The International Labour Organization has been encouraging member nations to promote the scheme of Workers’
Participation in Management.

Definition: According to Keith Davis, participation refers to the mental and emotional involvement of a person in a group situation
which encourages him to contribute to group goals and share the responsibility of achievement.

It is considered as a mechanism where workers have a say in the decision-making.

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 According to Walpole, Participation in Management gives the worker a sense of importance, pride and accomplishment; it gives him
the freedom of opportunity for self-expression; a feeling of belongingness with the place of work and a sense of workmanship and
creativity. 

A useful framework for analyzing the extent to which Employee Programmes schemes generally allow employee participation

1) Degree of say that employees have about organizational decisions. A greater degree is when employees can either in/directly
influence those decisions that are normally reserved for management or they are simply informed of management decisions.
2) Level at which participation takes place – this can be at work group, department, plant or corporate level eg organizational
strategy
3) Scope of participation- topics on which employees can contribute. This ranges from minor issues such as car parking space, to
more substantive issues such as future investments or plant relocation.
4) Form that participation takes- which may include downward communication, upward problem solving designed to tap into
employee knowledge and opinion, task participation and team working in which employees are encouraged or expected to extend
the range and types of tasks undertaken at work eg job redesign, job enrichment, team working and financial involvement.

Employee Participation is grounded in pluralism in that it implicitly acknowledges the existence of a range of organisational
stakeholders whose interests do not always coincide. Employee Participation implies some degree of power-sharing and dilution of the
absolute ‘right to manage’ among employers and therefore associated practices are often resisted by managers, particularly where it
involves trade union representation and where it is perceived to slow down the decision-making process. Participation can be
contrasted with involvement in that the mechanisms for participation often derive from employees themselves rather than being
managerially imposed and controlled. EP results, therefore, not from managerial desire to improve individual and organisational
performance rather from a desire among employees to have greater influence over decisions that directly or indirectly affect them.
Finally, whereas involvement is typically ‘direct’, participation is often ‘indirect’, involving the use of (elected) employee

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representatives to represent the interests of all employees. It, therefore, has more collective connotations than many forms of
involvement. Because participation is often concerned with negotiation, conflict may occur between employees and management,
particularly where employees participate in higher-level decisions and differing interests are most likely to be visible

THEORETICAL FRAMEWORK OF WORKER PARTICIPATION AND TRADE UNIONISM

Trade unionism is anchored in philosophical discourse, which relates to industrial democracy. It is against this backdrop that in this
course we examine the theory of trade unionism. The idea is to examine theories on labour and trade unionism and the models of
worker participation grounded in vigorous empirical scholarship. This is in recognition of the fact that worker organisations are not
restricted to trade unions as they take a variety of forms, particularly at the shop floor level. The concept of worker participation also
helps in involving a theory which explains why trade unions and workers committees co-exist in Zimbabwe.
The concept of democracy
The concise dictionary (Allen 1990:308) defines “democracy” “as a system of government by the whole population, through elected
representatives”. Generally, it may therefore be said that the term “democracy” refers to a situation in which a person or a group of
people has the right (and opportunity) to participate in making and carrying out decisions which may affect them as a group or as
individuals.
Western style democracy usually manifests itself in the economic and political spheres. Consequently, we may also distinguish two
specific applications of the concept “democracy”, namely political democracy and industrial democracy.
The concept of political democracy
According to Nel (2002:210), political democracy is characterized by the following phenomena:
• Majority rule and the opportunity for a minority group to become the majority by means of peaceful and orderly procedures.
• Respect for certain basic minority rights, including individual freedom of thought and expression.
• Due processes of law as well as equal treatment under the law.

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“Political Democracy” refers specially to “government by the masses” rather than by one or a few individual. Representatives are
elected and these representatives make the rules within a particular community. In Western democracies, individuals usually have the
right to vote for any political party which is recognized by the laws of the country. Individuals also have certain rights and obligations
in terms of legislation. Rights, for example, refer to the individuals’ right to freedom of movement, right to make political choices, and
right to administration action which is lawful, reasonable and procedurally fair. obligations are the observer side of rights and entail,
for example, that individuals should fulfill their roles in society in a lawful and orderly manner, should contribute to the general
welfare of society, should endeavor to play a constructive role in society, should abide by the laws of the land and should live in
accordance with the country’s goals and policies.
Note, also, that political democracy arise from the underlying philosophy of individual freedom and social equality. It is generally
accepted that social and economic market mechanism from the functional basis of a Western (political) democracy. Market
mechanism, in turn, imply freedom of choice and equal opportunities to share in communal goals.

The concept of industrial democracy

“Industrial Democracy” refers primarily to control and decision making in organisations; in other words, to labour relations systems in
which the democratic rights of workers are recognized, empowerment in the workplace is allowed and the employers and employees
are seen as partners (Pons & Deale 1998:4-3). Employees must be afforded the opportunity for directly or indirectly participating in
the management and decision making process of the organization. And the development of industrial democracy must be driven by
labour legislation.
Derber (1969:180), as quoted in Nel (2002:213), describes the underlying basis of industrial democracy as follows:

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…a respect for the dignity of man which must not be arbitrarily disregarded in the promotion of the interest of the total society. It
requires an equal opportunity for advancement to all men, regardless of race, or creed, religion, national origin, political belief or any
other personal characteristic apart from the requirements of the job. It calls for certain minimum standards of life relating to wages,
leisure, education, health, and safety. And it involves general atmosphere or climate of opinion which minimizes class differences,
rejects the master-servant relationship and regards all means spiritually equal, even though they may differ in intellectual; or physical
abilities.

However Elliot (1988:4) as quoted in Nel (2002:213) sees industrial democracy as follows:
Broadly, industrial democracy involves workers (normally through their trade unions) claiming rights to have a greater say over
matters affecting their work lives. This involves the running of the country’s economic and industrial affairs which in turn involves
those who are in positions of authority handing over some of their power to representatives of workers.

Salamon (1998:353-354) defines the concept “industrial democracy” as follows:

The determination by the whole labour force of the nature, methods and indeed purpose of production. Its central objectives is the
establishment of employee self management within an organisation whose managerial function is vested in either the employees or
the state and whose managerial function is exercised ultimately through a group, elected by the employees, which has the authority
over all decisions of the organisations including the allocation of “profits” between extra wages and reinvestment.

It is therefore clear that industrial democracy is related to the role and status of workers in community. Pons and Deale (1998:4-3)
define industrial democracy as the extent to which workers and their representatives influence the outcome of organizational
decisions. Here, two aspects are of importance, namely the extent of participation in decision making (the number of decisions) and
the importance/value which workers attach to the specific decision.

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Two important factors that have come to the fore in the above discussion are those of participation and representation. Recognition of
these factors is essential for the creation of political and industrial democracy in a community.

Industrial Democracy-historical development

In conceptual terms, the notion of worker participation is premised on industrial democracy.
Industrial democracy and its manifestations emerged following the industrial revolution of 19th century Britain. The emergence and
growth of trade unionism is very much associated with the industrial revolution. Poole (1984) observes that the rise of associations of
labour to a position of considerable prominence in the institutional structure of modern communities is linked to the industrial
revolution of the 19th century, workers agitated for improved working conditions in the factories. This was at the zenith of
industrialisation in Europe.
Though initially restricted in its application, the concept of democracy has increasingly become associated with several areas of
human endeavour including the world of work.
Cole (1981), a British sociologist, promoted the idea of extending political democracy to industry. In this regard, he wrote that
political democracy must be achieved through democracy in the workshop.
The industrial revolution demonstrated that, though liberty might be regarded as a universal right, it was not extended to those in
factories to enjoy. This explains why there was an agitation to introduce the notion of equality of opportunities in the exercise of
liberty in the world of employment, coupled with improved conditions of service in the factories during the industrial revolution.
The basic notion underlying the concept of industrial democracy is that the workplace is not solely an economic entity governed by
the laws of the market rather; it is seen as a microcosm of the wider society.

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In a democracy, workers should have some say and voice in how that “small society” that is so important to their well being is run.
The right of workers to “participate” in the workplace is equated to the right of citizens to “participate” in government (Chamberlain
and Kuhn, 1986).
The increasing popularity of the democratic idea owes a great deal to the fact that is identified with a system of worker participation.
This philosophical standpoint is predicated on the idea that democracy can only survive if the entire population participates and
maintains its interest in public affairs. Without this participation, democracy would be powerless to satisfy people’s aspirations and
would be no more than an empty shell.
Struggles for workers’ control and for the democratisation for workplaces were witnessed in advanced industrial societies in both the
capitalist and the former Socialist bloc. The idea of industrial democracy was also associated with nationalist movements during and
after colonial struggles characteristic of many developing countries, such as Zimbabwe.
Industrial democracy is anchored on the premise that those who are likely to be substantially affected by decisions made by
management or employers should be involved in the making of these decisions.

The concept of worker participation

Anstey (1997:1) defines worker participation as a “process which recognizes the needs and rights of employees -individually and
collectively- to participate with management in organizational decision-making process areas beyond those usually associated with
collective bargaining”.
Salamon (1998:149), on the other hand, defines participation as “philosophy or style or organizational management which recognizes
both the need and the right of employees, individually or collectively, to be involved with management in areas of the organization’s
decision making beyond that normally covered by collective bargaining”, and as “those initiatives by the state, unions and employees
which promote the collective rights of employees to be represented in organizational decision making.

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In the Directory of Personnel and Human resource management (Bennet 1994:149), participation is defined as employee involvement
in management decision making. This can occur individually or collectively through employee representation.

Nel(2001:215)defines participation as the involvement of one group of employees (not managers) in the decision making processes of
the organisations which were traditionally the responsibility and prerogative of another group of employees (managers).

Bendix (2001:655-656) describes workers participation as “ the involvement of the employee in the organizations, and planning of the
work process, in the establishment of procedures and future processes, in the decision- making function at various levels and in the
management and policy making bodies of the undertaking”. She also clearly states that participation can assume different forms, from
disclosure of information and consultation to joint decision making and shared ownership, with goal or participation being exclusively
the realization of industrial democracy in the workplace.
Nel, Erasmus and Swanepol (1998:83) describe worker participation as a process by means of which participate in and influence
traditional management decisions which may affect their work circumstances.

Paterman (1970), as quoted in Salaman(1998:354) maintains that “true” participation requires that both parties have equal power to
determine the outcome of decisions.

Swanepoel(2001:676) regards worker participation as those attempts on the part of the management to give workers the opportunity to
become involved with, or to participate in, the decision making processes which are related to their daily activities as well as to the
functioning of the organization as a whole. Worker participation thus refers to any process by means of which the relationship of
power in the organisations are changed directly or indirectly outside the confines of the traditional form of power sharing by way of

22
collective bargaining. Some methods of ensuring better communication in an organization, such as meetings and committees, may
thus also be regarded as forms of worker participation.
Worker participation thus mainly entails those processes by means of which non-managerial employees are afforded the opportunity
of participating in (and feeling part of ) decision making and of exerting a significant influence on decision making areas which,
traditionally, were regarded as the “employer’s prerogative”. Consequently, management will, to some extent have to give up some of
its power and resort to more participatory management styles and methods.

Overview of participation and democracy

The realization of democracy in the economic environment means that all workers must, directly or indirectly be given the opportunity
of participating in the management, and thus the decision making, of the organisations. However, democracy is usually seen as
comprising only direct participation in these processes.
According to Nel (2002:214) ,industrial democracy is important to workers because it results in an increased share in the control of
the organization, in the economy and in the community as a whole. In addition, for reasons, management also start becoming more
positive about industrial democracy, seeing it as a way of promoting the more effective operation of the organisations.

Essentially, participation means that workers who work under the supervision of others, as well as all those workers affected by the
activities of a particular organization, should have a say in the decisions regarding these activities.
The following goals of worker participation can be identified:
• The ethical goal, which is concerned with the personal growth of the worker.
• The political goal, which is aimed at extending the individuals’ civil rights in the organization-an aim which is in line with the
concept “democracy”.

23
• The social goal, which is concerned with the promotion of healthy relationships in the organization, which will have a
beneficial effect on the organization as well as on the community.
• The economic goal, which is aimed at the promotion of productivity and profitability.
According to Pons and Deale (1998:4-8-to4-9), there are two reasons in particular why organizations should establish structures
which promote worker participation in decision making. The first is the need to be internationally competitive, and the second is the
achievement of credibility in the context of social, economic and political change. Both these needs involve significant challenges in a
country where productivity is particularly low and where the level of skills necessary to increase productivity is rapidly declining.
Both these needs should be addressed simultaneously. The only way in which this can be done is through a shared vision and common
goals. Management, trade unions and workers must understand and support these visions and such goals.

Elements of participation
According to Nel (2002:215-216) participation consists primarily of three interrelated elements which may manifest themselves in
organizational decision making processes in a number of ways. If one of these elements is absent, workers will be unable to participate
in organizational decision making. The extent to which influence, interaction and information sharing occurs will also determine the
level of participation.

Degrees of power sharing in participation

According to Nel (2002:216), participation will always entail measure of power sharing. Briefly, power maybe defined as the ability
on the part of some to get something done in a particular way and or through certain other people. Legitimate power refers to that
“power” which a person has purely on the basis of the position which he or she holds. When workers (non-managers) are involved in
the decision making of managers, they share the decision making power. Earlier, this power was linked to the position concerned, and
therefore only the manager had power.

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Worker Participation Theories
Conceptually, worker participation embraces the idea of industrial democracy and seeks to apply in the field of employment and
labour the principles of the involvement of workers’ organisations in the affairs of enterprises. In practical terms such involvement
should not be restricted to issues of remuneration and conditions of employment. It should also include joint decision making in
respect of these matters which are ordinarily believed to be within the realm of management, such as investments or expansion
considerations.
It is by no means easy to single out one perspective, of worker participation, which receives widespread support amongst industrial
relations scholars and practitioners and yet is sufficiently broad in scope to include all aspects, which merit analytical attention. In this
respect, the following perspectives are to be considered:
 Moral and ethical perspective utopian-socialist perspective
 Marxist perspective
 Liberal collectivism perspective
 Corporatist perspective
 Pluralist perspective
Worker participation theories or models are based on the assumption that human beings tend to develop a strong desire to exercise
control over their own lives and by the same token to reject attempts by other human beings to restrict freedom. Consequently, the
issue of worker participation is of increasing contemporary concern.

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Worker participation perspectives
Moral and ethical perspective
As industrial societies were taking shape during the industrial revolution of the 19th century, writers of a religious persuasion joined
the broad worker participation discourse from a moral and ethical perspective.
The moral or ethical theories of worker organisations are premised on the assumption that worker organisations of the industrial
revolution. Poole (1981) argues that these are products of revolutionary developments in the wider vulture of which and emerging
opposition to the patent injustices and poverty of the period was an obvious manifestation. This perspective focussed on a number of
factors which were seen as critical to the formation of the British trade unions.
Roper (1942) in Flanders (1970:15) emphasises the importance of the value of justice as a driving force of trade unionism when he
asserts that:
Such values too, were articulated earlier on by Durkheim (1947) who highlighted the importance of equity and justice to the proper
and effective functioning of society.

In analysing the role of religion in the formation or worker organisations Perlman (1947) argues that in the 19th century, the Christian
socialists expounded a belief in the brotherhood of man which was perceived as vital to the formation of worker organisations.
Halevy (1971) argues that Methodism played an important role in shaping unionism. He also contends that peaceful transition from an
agricultural to an industrial society was largely due to the effects of Methodism tempering with the revolutionary aspirations.
Other writers however, do not subscribe to the notion that Methodism played a decisive role in the determination of early union
organisation and character. Poole (ibid) asserts that Methodism was less extensive in its impact that its supporters would claim. He
notes that Methodism’s influence was largely absent from communities of the urban poor.

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Methodism made only a supplementary contribution to trade union formation, class consciousness and general social outlook in the
early part of the 19th century and other forces of a more structural character were ultimately of far greater effect. Pelling (1976) views
Methodism as providing a one sided and idealistic view of world history.

Notwithstanding the criticism of the role of Methodism in shaping worker organisations in the 19th century, writers such as Bayat
(1991) acknowledge the ethical-moral elements inherent in the concept of worker participation. Bayat (ibid) postulates that the moral
approach makes an appeal to ideas of justice and participation and that this is what workers as human beings deserve. The idea of
justice expressed by all non- utilitarian and revolutionary movements in the world is reflected in the ideals of freedom (of choice),
equality (of opportunity) and solidarity (in relation to distribution according to needs).

Contributing to the moral-ethical discourse of worker participation, some writers argue that socio–political perspectives fail to
adequately address the reasons behind workers participation, in the same manner in which the “moral” argument which appeals to
ideas about the value of human life and what is good for human beings does.

The Utopian- Socialist Perspective

This represents one of the earliest perspectives of worker participation. The perspective is by and large premised on the notion of the
need to dismantle what are regarded as the exploitative structures of capitalism. Accordingly, Bayat (ibid) contends that some
renowned utopian socialists, such as Robert Owen and Charles Fourier advocated for the establishment of autonomous communities to
be organised by the working people were to be subordinated to the general management of the whole community. In this regard,
workers’ communities would provide a response to the alienation of workers in the bleak conditions of the industrial revolution.
Among the utopian thinkers, were anarchists such as Pierre Joseph Proadhon and Saint–Simon who according to Bayat (ibid)
advocated for the dismantling of capitalism through education, as opposed to violence in order to establish worker communities. On

27
the extreme of the “continuum” of anarchism, is anarcho-syndicalism, which stresses revolutionary violence to achieve similar goals.
Anarcho-syndicalism views the workers’ seizure of power in industry as a protection against the coercive power of the state Bayat
(ibid). This was believed to be achieved through a revolutionary general strike, during which the workers would occupy the factories.
In general, however, the syndicalism movement confined its activities to the industrial workplace, assuming in principle that social
relations at the point of production are the determining factor in social structure.

Marxist critics of the utopian approach argue that as long as the proletariat has not sufficiently developed to organise itself as a class,
its struggle with the bourgeoisie would remain without a political character

The Marxist Perspective

The Marxist theory of alienation and the revolutionary working class struggle is essentially a conflict theory. Conflict is perceived as
endemic to a system in which basic contradictions exist between the, workers (seller of labour power) and the capitalist (buyers of
labour power), with the latter constantly striving to maximise profits. The conflict of interests, which originates in the industrial
context and extends into all major social and political institutions and practices, is deemed to be irreconcilable.

The Marxist approach insists that in capitalist societies, the state is essentially on the side of the employer and seeks to protect the
interest of the bourgeoisie.
The emphasis is therefore placed on the need to fight for democratic political institutions. These political institutions however, cannot
be realized without economic and social democracy. Marxists advocate for a socialist democracy based upon the notion of self-
management of the associated producers. In this respect workers would shape their own development freely and consciously.

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Marxists insists that economic and political issues cannot be separated. They place great emphasis on the antagonistic interests of
capital and labour and they focus in a way that many other perspectives do not, on not, on the importance of assessing the power held
by opposing interests. The most concisely stated of the communist union theories, is Lenin’s work. Lenin argues that, oppressed
workers in capitalist societies form unions to shield themselves from employer power.
Lenin further observed that, to counter-balance employer power without political influence was both illusory and counter-productive
in terms of the ultimate “salvation” of the workers. The real power of unions was political, and this could be used productively only by
politically conscious revolutionary intellectuals who would lead the unions away from the economic, into the political struggle for a
socialist system which did not depend on the exploitative search for surplus value.
In the same manner, political theorists like Michels (1915) and Mills (1959) quoted by Palmer (1983) in Shadur (1994) have argued
that trade unions are hindrances in the process to radical change. Union activities were perceived as addressing small group or
sectional interests and not the interest of the working class as a whole. Anderson (1967) as cited by Palmer in Shadur (1994) argues
that as institutions, trade unions do not challenge the existence of a society based on a division of classes. Trade unions can never be
vehicles of advancing towards socialism. They bargain within society but cannot transform it.

According to Haralambos and Holborn (1992), Marx, saw danger and promise in the formation of trade unions. He feared that they
might be to exclusively bend upon the local and immediate struggles with capitalism. Trade unions could become preoccupied with
furthering the interest of their particular members and in doing so they could lose sight of the overall struggle between capital and
labour.

However, Haralambos and Holborn (ibid) further content that Marx believed that unions contained the potential to become “organised
agencies for superseding the very system of wage labour and capital rule”. By uniting workers in a struggle against employers, unions

29
could help to create class consciousness. Cooperation among against employers on a local level could lead to class solidarity on a
national level.

It follows therefore, that the Marxist, who are less dismissive of employee participation within capitalism, can quote Marx’s support
for trade unions as the organisations through which workers would gain the experience and political consensus which would lead them
on to effective struggle for social change.
The critics of the Marxist perspective of worker participation contend that the Marxist tradition does not really provide an alternative
model or framework for analysing the varieties of interaction between labour markets and political process. Marxism has been
primarily concerned with insisting that class conflict remains inherent in the fundamental structure of capitalism. In this respect, they
argue that Marxist analysis has neither specified the ways in which class conflict underlines empirically observable institutional
arrangements in the labour market and political arena, nor explained the conditions under which conflict within these spheres becomes
latent or manifest.

The Pluralist Perspective

The pluralist frame of reference accepts that within any industrial enterprise there exists variety of competing groups and individual as
is the case in wider society. Competing interest are maintained in some degree of equilibrium, each recognising the legitimacy of the
competition for instance between unions and management.

Pluralists such as Haralambos and Holborn (ibid) believe that power industrial societies is dispersed between interests groups, all over
which have some power. In this regard, trade unions form the major groups representing the interests of employees.
Pluralist scholars perceive organisations as complex social structures made up of a plurality of potentially conflicting interest groups.

30
Another element, which is emphasised by pluralists the collective nature of the groups. The pluralist’s paradigm tends to favours
collective entities over individual workers as the vehicle for articulating labour interest. Collective organisations, such as trade unions
workers’ committees are seen not only as efficient for representing individual interests, but also as devices for weighing and
aggregating these interests. They also provide accountability for economic and political decisions once a consensus has been reached.
However, critics of the pluralist’s ideology argue that pluralist-intuitionalists analysis is too conservative, too concerned with
controlling conflict for the benefit of the status quo and too involved with institutions instead of individual workers. Shadur (1994)
argues that pluralist-institutions define labour unrest as symptomatic of malfunctioning industrial relations system as a sign of the need
for reform. Reform is seen as a procedural matter in which labour and management, sometimes in cooperation with government, are
interested in re-organising the structure of the industrial relations system in order to eliminate the unrest. By implication, they endorse
procedures, which leave the balance of power between labour and management unchanged.
The pluralist ideology is often accused of lacking a distinctive frame of reference. Flanders (ibid) ascribes to pluralist an assumption
of equality of power between competing groups, an equality which is merely a delusion and, whether intend or not, serves to
perpetuate basic inequalities basic between workers and management.
Central to the pluralist paradigm, is the assumption that labour-capital conflict can be contained and that it is not necessarily
destructive.

The Liberal Collectivism Perspective

Central to this school of thought is the acceptance of the inevitability of conflict between employers and employees on economic
issues.
Liberal collectivism goes beyond pluralism and prescribes “collective bargaining as the fairest and most efficient, method of
institutionalising and resolving conflict at work”. Palmer (1983) in Shadur argues that liberal collectivism is sometimes confusingly
labelled pluralist industrial relations literature. In differentiating liberal collectivism from proper pluralism as it were Palmer (ibid)

31
argues the case for liberal collectivism by asserting that it is liberal because it advocates a limited, passive role for government and the
use of contracts freely negotiated between conflicting parties, as the best method for resolving disputes. It is collective since it accepts
the legitimate right of employees to from collective organisations to increase their bargaining power when negotiating contracts.
Liberal collectivists define collective bargaining as the process by which trade unions, representing groups of employees, negotiate
with employers or their representative with the object, of reaching agreement. Collective bargaining is a power bargaining method in
which the negotiating positions are backed by economic sanctions. On the employee side this requires the legal right and practical
ability to take industrial Act ion like strikes, go- slows or overtime bans. On the employer side it requires the right to act in the last
resort, without agreement, to managerial prerogative, and to lock out or sack employees in dispute. The government’s role in this
bargaining process is essentially passive.
Underlying liberal collectivism is a requirement of a political system which allows employees freedom of association so that they can
organise into economic pressure groups which are independent of employers’ or the state. Liberal collectivists believe bargaining
creates a form of industrial democracy by allowing employees a voice in the determination of their pay and conditions of employment.
politically, collective bargaining is viewed as capable of enhancing the ability of a society by removing potentially disruptive
industrial conflicts from the political arena and providing asset of institutions for the relatively peaceful resolution of employment-
base conflicts (Palmer, ibid).Collective bargaining is the great social invention that has institutionalised industrial conflict in the same
way that the electoral process and majority rule have institutionalised political conflict in a democracy.

Nevertheless, liberal collectivism, with its emphasis on collective bargaining has not been spared of criticism. Palmer (ibid), asserts
that the trade union role is too weak and limited under collective bargaining arrangements and that the separation of collective
bargaining from other political and managerial decision-making processes contributes to the weakening of the trade union role. He
further argues that, employees should not be limited in their influence to basic pay and conditions of employment but should have a
voice on a much wider range of economic and political decisions related to work. Accordingly, worker representatives should be

32
accepted on tripartite decision-making bodies at national government level and should be represented on management boards at
company level, in order to ensure genuine industrial democracy and the adequate representation of the labour forces’ interests.
From another point of view, some writers criticise the liberal collectivism ideology, arguing that collective bargaining which is central
to this philosophy, is to disruptive, either because the level of industrial Act ion is too high and costly to nations or because of because
employers and employees collude to push up wages and prices without due regard to consumers, thereby generating cost-push
inflation.

The Corporatist Perspective

The corporatist perspective of worker participation is premised on the peaceful co-operation among the state, labour and capital.
According to Bayat (ibid) the corporatist approach is best represented by the attitudes of the International Labour Organisation (ILO)
towards labour relations in general and worker participation in particular. The ILO in fact, emphasises a tripartite approach by the
social partners i.e. Government, labour and employers.
Corporatism is defined as a system of interest representation in which the state directs the activists of predominantly privately, owned
industries in partnership with the representatives of capital and labour. Palmer(ibid). The argument backing corporatists prescriptions
are that; unbridled competition and power–based bargaining between groups in society produce results that are socially divisive and
unjust and that more co-ordinated, centrally administered tripartite decision-making can produce fair and efficient results.
Shadur (ibid) presents Schmitter’s widely respected definition of corporatism as a system of interest group intermediation where the
units are organised into a limited number of singular, compulsory, non-competitive, hierarchically ordered and functionally
differentiated categories, recognised or licensed (if not created) by the state and granted a deliberate representational monopoly within
their respective categories in exchange for observing certain controls on their selection of leaders and articulation of demands.

33
Furthermore, Shadur (ibid) observes that Schmitter differentiates corporatism from pluralism in which interest groups operate as an
unspecified number of multiple, voluntary, competitive, non-hierarchically ordered and self–determined categories that are not
controlled by the state. He also identifies two types of corporatism i.e. societal and state. Other authors refer to them as liberal and
authoritarian corporatism respectively. Liberal or societal corporatism relates to associates that have a strong influence on the state
whereas state or authoritarian corporatism is unfettered by such influences and imposes a semblance, of unity Shadur (ibid).

The arguments backing corporatist prescriptions rest on important assumptions about the distribution of power in society. Durkheim
(ibid) submits that the division of labour in modern society has created numerous conflicting interests groups. Competition among
these groups is seen as the essence of social life. However, a key problem in modern society is to keep this competition within
reasonable bounds. moral advocates of corporatism, such as Palmer (ibid), point out that, society is sub-divided into numerous
competing groups and that there is sufficiently complex balance of power to ensure that no group dominates, and that the state will;
adopt a neutral, umpire role between competing interests.
Critics of corporatist’s models believe that capital and labour are not equal in the power they wield and therefore state intervention is
likely to lead to oppression. On specifics, Shadur (ibid) submits that Martin (1983) Nedelamnn and Meir (1977) have criticised
Schmitter for failing to adequately distinguish between societal corporatism and pluralism. He is also criticised for failing to examine
the issue of classes as it relates to the state.

In the process of analysis Schimitter’s model of corporatism Cawson (1986) in Shadur (1994) identifies three features that distinguish
corporatism from pluralism. These are:
a). The extent of competition in the group process;
b). The nature of the groups, and,
c). Their relationship to public authorities.

34
As ideal-types pluralism involves a large number of competing groups while corporatism entails the monopolisation of representation.
Pluralist groups voluntary associations of individuals whereas corporatism involves interest representation through compulsory
groups. Cawson 91986) in Shadur (ibid:14) offers the following definition:

Corporatism is a specific socio-political process in which organisation representing monopolistic functional interests engage in
political exchange with state agencies over public policy outputs which involves those organisations in a role which combines interest
representation and policy, implementation through delegated self-enforcement.

Nationalism and Worker Participation in Colonial Zimbabwe

Worker participation systems were as mentioned earlier on, developed and practised for many years in European before being
exported to Africa and elsewhere during the colonial period. Initially, trade unions, as shall be observed in unit 2 were only for white
workers in colonial Africa.
For black worker, the agitation for worker participation can be traced to the struggle against the colonial administration.
The nationalism crusade of the post-Second World War in Africa was supported by resistance by black workers to poor remuneration
and working conditions in factories and in the agricultural sector.
Black workers organised themselves to fight colonial injustices at the workplaces. It is not surprising that some of the renowned
Zimbabwean nationalist, such as Benjamin Burombo and Joshua Nkomo, emerged from the working class movement in the late
1940’s.

The entrance into the political arena of black trade unionist in colonial Zimbabwe ensured that the concerns of the black working class
were part of the nationalist agenda.

35
Aspirations for worker participation became part of the struggle against the successive colonial regimes in the period between 1945
and 1980. Democratisation of workplaces was high on the ZANU manifesto in the build up to the 1980 general elections.

Forms of participation
Traditionally, the role of management in organisations was seen as the management and coordination of organizational activities
through planning, organizing, motivating and control. The role of the worker, in turn, was to be recruited and trained to carryout
specific tasks (the execution function). However, the need arose to bridge this gap between the roles of management and workers.
Salamon (1998:355) proposes that forms of interaction should be brought about by means of which “workers” , while continuing to
fulfill the role of workers, can participate (directly or indirectly) in certain functions which have traditionally been classified as
“management”
There are various ways in which such interaction can be achieved, for example through joint consultation and collective bargaining.
Walker (1975), however, divides it into the following three elements.

• The method or degree of participation: direct participation is characterized by active individual involvement in the decision
making processes, while indirect participation is characterized by the activities of elected representatives.
• The level in the organization: participation may vary from ground level(the immediate work situation of the worker)
participation to participation at board level
• The goal or scope of participation: direct, lower-level participation in the organization is usually task-centred, whereas higher
–level indirect participation tends rather to be power centred.

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Cordova (1982) as quoted in Anesty (1997:2) proposes four basic forms of participation namely shop floor participation, works
council, collective bargaining and representation on company boards. Other forms of participation have also been developed in
specialist areas such as health and safety productivity, pension funds and training.

According to Nel (2002:218) participation in the work environment can assume different forms. It can take place from within the
organisations (internally) or by way of parties outside the organisations (externally). Internal participation can, in turn, also assume
different forms, namely statutory or voluntary participation. Statutory bodies for worker participation include workplace forums and
safety committees, while voluntary participation is achieved by means of methods such as quality circles, team work and task teams.

Participation may also be direct or indirect. Direct participation occurs when a worker participates, personally and directly, in the
decision making processes of the organisations. Usually, such participation is voluntary and there is thus no form of representation.
Workers elect representatives from among their ranks to participate in the decision making process on their behalf. These
representatives are usually shop stewards or fellow workers who work in the same workplace. When workers are represented by
persons outside the organisations, such as by fulltime trade union officials, this is known as participation by way of external
representation.
Nel (2002:218) defines direct worker participation as follows: “direct worker participation customarily entails that the subordinate
participants speak for themselves about work or matters related to work; [it] is regarded as a process of job enrichment and
enlargement where the worker is offered the possibility of extending the depth and width of his work tasks, but without any control
over organizational planning or goal setting”.

Where the worker is involved in the process giving rise to increased productivity, it is important that he or she should share in the
financial rewards resulting therefrom. To be of value, direct worker participation must also include the following elements:

37
• The provision of all information relevant to the particular task/ work.
• Consultation regarding changes which will affect the worker
• Personal involvement of the worker in the decision making process.

Direct worker participation is usually associated with low level participation, because this is the level at which workers operate and
where they are usually best able to contribute. It is important to note however, that, without some form of direct worker participation,
it is unlikely that indirect worker participation will be successful.
Anstey (1997:6) defines indirect worker participation as those forms of participation which occur through representation. Normally,
such forms of participation occur at higher levels in the organization and tend to be power-centered.

There are various statutory bodies which facilitate indirect worker participation. This type of participation takes place when, in
addition to their operational tasks, workers represent their fellow workers on management boards of directors, works councils and
other committees. Such representatives must be democratically nominated and elected and the election procedures are usually laid
down in an organization’s policy documents.

Salamon (1998:357) maintains that, according to the model represented, there are only two contrasting strategies namely:
• Direct forms of involvement. These forms of worker involvement (eg empowerment, team work, briefing groups, quality
circles) focus on the individual worker or work group, and on the immediate operational situation (task centered). Such strategy may
be referred to as one of decreasing involvement, since employers initiate such a development for their own purposes (involvement is
offered) and, as part of the changes, power and responsibility are transferred from employer to worker in respect of limited series of
job related decisions (eg work methods, task allocation, quality maintenance). However, the content of this phase is confined primarily
to the implementation phase of operational decisions that have already been taken by management. The aim of this approach is to

38
motivate the individual worker, to increase job satisfaction and to heighten the degree to which the worker identifies with the goals
and decisions (as determined by management) of the organisations.

• Indirect forms of participation: indirect forms of participation, for example the expansion of collective bargaining, the
establishment of works council/ workplace forums, and the appointment of worker directors, focus the attention on the execution of
the “managerial prerogative” and on the balance of a power between management and workers in the decision making process of the
organisations. This strategy may be referred to as one of increasing participation because it aims at protecting worker interests by
expanding their collective influence to include a wider range of decisions at higher levels in the organisations, and because the
initiatives for developing these forms of participation can come from workers and their representatives (indirect participation requires
representatives). Thus, this form of participation is concerned primarily with extending the workers’ influence by means of a process
of joint decision making in respect of policies and organizational planning which, formerly, were the exclusive prerogative of
management.

It should therefore be clear that a distinction must be drawn between “involvement” and participation” Lawler (1991),as quoted in
Anstey (1997:2) defines worker involvement as “extension of the power to make decisions and of business information, rewards for
performance and technical and social skills to the lowest levels of the organisations”. All the elements of this definition are very
important. Without the power to take decision, workers participating is merely superficial; it is naïve and potentially harmful if there is
inadequate information about the organization; rewards are necessary to bring individual motivation inline with organizational goals;
and effective participation requires technical and social skills. Workers involvement is reflected in the way in which it is managed and
structured rather than merely by the attitudes of individuals. Anstey(1997) identifies three types of worker involvement, namely:
• Involvement by suggestion is usually generated by structures such as quality circles. These structures function in parallel with
the formal organizational structure and require no change.

39
• Task involvement entails those forms of involvement where workers in self regulating acquire greater control over day to day
decisions which directly influence their tasks. These types of approaches automatically change the job/post design.
• High level involvement includes the above two approaches, but goes further in that it involves workers in the management of
the organization. Far-reaching changes, including the sharing of power and information, skills development and changed human
resources systems, are anticipated in such work environments.

Different levels of participation

Techniques of worker participation
The various worker participation techniques may be employed at any of the levels of participation or with form or participation. Nel
identifies the following techniques:

Participation by suggestion
Participation by suggestion involves individual workers trying to influence employer decision making, usually at a localized level (e.g
at a plant or shop floor level). It often concerns decisions which are of direct relevance to a workers’ job. The emphasis is generally on
day to day decision making of limited application within the organisations as a whole. Methods such as speak up sessions and
suggestions box systems may be used.

This technique focuses on offering workers an opportunity to make suggestions, for example about the use of raw materials,
technological improvement, ideas on cost saving, how to increase work efficiency by means of new techniques or equipment,
improvement in communication better supervisory practices and the like.

40
There will often be committees (sometimes consisting of both worker and management representatives) whose responsibility it is to
review, evaluate and consider these suggestions. A worker may ask his or her shop steward to put forward a suggestion on his or her
behalf. Thus participation is not always direct in nature and may be informal.
Participation through quality circles
The concept of quality circles has generally become a very popular technique for getting lower level workers involved in upward
problem solving and, consequently, in decision making.

Munetsi (1998:40) defines a quality circle as a team of workers which meets on a regular basis in order to analyze and solve work
related problems. According to Nel (2002:222) , a quality circle is essentially a worker discussion group which usually consists of six
to ten workers from the same section or department in organization. Such groups meet regularly, for instance weekly of fortnightly, to
identify, analyze, investigate, evaluate and consider problems in their work environment. These problems are work-or production
related with the focus falling on quality improvement. Meetings take place during working hours, when ideas are pooled in order to
come up with solutions to problems in the workplace and thus improve the quality of work and work output.

According to Anstey 1997:7), quality circles are the most common form of direct participation. He defines a quality circle as
consisting of a small group which meets voluntarily for the purpose of exercising quality control functions in the workplace. Usually,
such a group forms part of alarmed, organisations-wide quality improvement programme. Quality circles do not require significant
changes in the relationships of power within a traditionally, hierarchical structured organisation, but function linearly with the
existing, formal structure in the organization.

41
The members of quality circles are volunteers with the same objectives and experience. They should preferably be well trained in
aspects such as data collection, statistical and analytical methodologies, and general problem solving techniques. A quality circle
consists of a leader, a facilitator and a steering committee.

Often, departmental heads, section heads or supervisors assume the role of leaders of quality circles. However, leaders may also be
elected from among the ranks of workers or group members. The leader has a coordinating and liaison functions and must possess
sound leadership skills. The facilitator is appointed by the steering committee and is also a member of such committee. He or she
coordinates and keeps records of all activities, organizes meetings and arranges for submissions to management. The facilitator is
responsible for the training of leaders and assists with the training of team members. The steering committee is a way in which top
management provides the necessary support and such committee must be representative of all facets of the business. The committee
must provide he guidelines and resources which a quality circle needs, and must plan the implementation of proposals. Further
functions of the steering committee include the following:
• Monitoring progress and measuring the cost effectiveness of quality circle activities.
• Arranging publicity for quality-circle activities and achievements
• Controlling the degree of expansion of the quality circle.
Final decisions on changes in the workplace are usually not taken by the quality circle. Instead, suggestions are made and possible
solutions are passed on to the section/departmental head for final decision making regarding the implementation thereof.

Economic/financial participation
Economic or financial participation of employee may take various forms, such as profit sharing, individual and group bonus incentive
schemes, and share ownership schemes.

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These schemes are indeed not new in many companies. Their recent popularity does, however, reflect a comparative trend in several
Western industrialized economies towards devolution of financial participation to lower levels of the organisation (Horwitz 1990).

Goals of financial participation

The goals of financial participation are alleged by some to reflect managerial strategies aimed at the co-option of workers into a
management ethos- an ideological goal. Proponents of this view argue that it is simply a manipulate form of managerial control aimed
at humanizing capitalism and its work process, in the interest of better productivity.
A second goal of financial participation is that of stake holding whereby employees are given a genuine stake in the property of the
business and are likely to substantively benefit by its success. Whilst the stakeholder arguments could be criticized as similar to the
management ideology thesis, it can reflect a pluralist conception of industrial relations(IR),recognizing inherent conflicts of interest
between capital and labour and acknowledging the importance of collective bargaining as a primary process for wealth distribution.
The rationale of the stakeholder thesis focuses mainly on facilitating wealth creation by linking organisational commitment to rewards.
Research findings in the United States indicate that financial state holding through ESOPs is frequently considered as an employer
method to prevent potential takeover bids, as employee shareholders are more likely than outside ones to support the company’s
managers against a hostile takeover bid.

International comparatives studies have shown that the stakeholder thesis in general, and financial participation in a particular, are
more likely to work successfully where the trade union movement is strong and is able to influence the type and implementation of
these schemes (Poole 1988) in most Western industrial societies, as well as in South Africa, it has been argued by employers that
financial participation such as share ownership reflects the employers’ right to deal directly with employee to enhance their stake in
the organisation and is therefore a separate matter from that of collective bargaining. Since wealth generation has its origin in the
substantive (IR0 interest issue of wealth distribution can be separated from collective labour relations processes.

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Financial participation is an individual based form of participation based on the willing consent of an individual employee.it has little
to do with the de facto distribution of power in and governance of organisations. Representational or collective forms of worker
expression area necessary prerequisite for industrial democracy. Financial participation on its own cannot advance industrial
democracy. Financial participation on its own cannot advance industrial democracy, since worker influence is generally limited as
minority shareholders.

In South Africa, it paper’s that employee share ownership commonly amounts to between one and two percent of total shares in the
company (LERC 1987). A South African company, cash build, has endeavoured to create a new cooperate culture that incorporate
culture that incorporate and reaches all its employees through the implementation of participative management process. The company
has also made shares available to selected employees, called pioneers, who have over five years’ service, and to workers’
representatives. Shares are acquired either through a share option or a share incentive scheme, and currently two to three percent of
issued equity is owned by employees. The then Managing Director, Albert Koopman,points out the limitations of ESPOS: “that
without employee participation in decision making, share ownership does not generate changes in employee motivation, loyalty or
productivity.” Koopman (1986) describes it as follows: “you can’t sell free enterprise until you offer free enterprise. Profit sharing and
share allocations are a quick fix that won’t work. You have to have justice at the workplace.”

In contrast to developed industrial societies, trade unions density in some developing countries is increasing (e.g. in Namibia and
South Africa), with industrial relations policy choices reflecting a strong ideology content. Unitarist ideologies in the latter context can
be associated with employer responses to political conflict and the extent of polarization in the society, with organisational
manifestations in lower commitment, the strong prevalence of instrumental attitudes to work, and poor labour productivity. However

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financial participation in both developed and some developing countries, such as South Africa, is perhaps, for different reasons,
sometimes associated with practices and strategies which seek to achieve the following:
• Seducing employees away from collective of indirect or representative participation, towards individual, consensual forms of
direct involvement, such as financial participation and quality circles. For example, the then General Secretary of the National union
of Mineworkers in South Africa, Cyril Ramaphosa, described the Anglo American Corporation’s offer of shares to its employees as
“political and economic blackmail to try and seduce workers way from unionism and socialism”( 1987:51).
• Provision of a personal, economic stake holding in the organisation through financial participation, for example employee
share-ownership plans, profit sharing and performance-related incentives schemes. This seems generally to be the case in Australia
and British companies;
• De-emphasis way from interests based models of collective bargaining towards decentralized, joint consultation, problem
solving, strike free agreements and single union agreements, such as those in the united kingdom entered into between the Electrical,
Electronic, Telecommunications and Plumbing Union (EETPU) and employers such as Hitachi, Irlandus, Nissan,Sanyo,
Sharp,Shotton Paper and Xidex (Basset1989).
The somewhat persuasive emphasis of financial participation on achieving organisational and particularly managerial objectives,
belies the pluralist conception of organisations.
Types of financial participation
Comparatively, the following are four main types of financial participation which occur.
Profit sharing
This is the most prevalent in Australia, New Zealand and the United Kingdom, occurring at all organisational levels. Profit sharing is
considered by any employers as preferable to share ownership schemes, as effort and rewards are considered more measurable,
especially if short term rewards/ returns are offered, based on measurable performance in particular sectors (e.g. batch manufacturing,
and retailing). In the United Kingdom, over 20 % of companies have profit sharing or share ownership schemes (Poole 1988:23). The

45
share of profits fluctuates with the economic performance of the firm. Profit sharing may not therefore provide a stable level of
income over time.

Employee share ownership plan/ schemes

ESOPs are popular at various levels in the United States, United Kingdom and South Africa. It is estimated that at least 11 million
employees (10 % of the workforce) in the United States are on an ESOPs type scheme. Current estimates in the United Kingdom are
that over 50 % of publicly quoted companies have some type of financial participation scheme (Poole 1988:23). Kurland (1988)
considers ESOPs as a toll for broadening participation of employee in company profits and decision making. It aims to increase an
employee’s stake and commitment to the prosperity of the business.

In Britain, the sector which has the most “all –employee” schemes (both for ESOPs and profit sharing) is the financial sector (50
percent). However, evidence of a link between ESOPs and improved worker performance has proved elusive (Dewe 1988:3). Based
on a poll of 350 United States companies, those with ESOPs were found to have had a sales growth 40% higher and job creation 46%
higher in 10 year than those without ESOP schemes (Crainer 1988). Whilst legislation in the United States creates tax advantages for
ESOPs, research into the relationships between ESOPs and economic performance is fraught with methodological difficulties. Rival
casual or intervening variables may account for superior performance and not ESOPs, for example productivity increases in large
companies may occur independently as a result of the impact of other factors such as a particular economies of scale, technical
innovation sophisticated human resource management, together with other forms of participation. Changes in organisational culture
and structure, such as the devolution of decision making down to the lower levels in the organisation, and the associated autonomy,
are also factors in productivity improvement. There is an indication that, in wholly employee-owned firms in the United States, the
mix of ESOPs and other forms of participation can be linked with growth and productivity improvement, as, for example, in Austin

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industries and Wyatt Cafeterias. Studies at the University of Michigan have shown that (wholly) employee-owned companies are more
profitable than employee-owned companies (Hennery 1989).

An ESOP can combine several elements. These include employee benefits, incentive and productivity schemes a, services and
retirement benefits. It may be offered as a reward system, with a basic salary supplemented with cash bonuses and equity shares linked
to the proceeds of a company. It is two-way, interactive process between management and employees and means for workers to
participate both as workers and as shareholders in contributing to company goals.
Depending on the tax law as of a country, it can be an in-house, tax exempt stock exchange for both new equity purchases and the
repurchases of outstanding shares.it may offer workers a source of dividend income. ESOPs can bring capital gain to the worker as a
means by which people without savings and ownership can become owners of new wealth. In the past, capital gain has been available
to those who were already within the ownership framework.

Group financial/bonus incentive schemes occur largely in the manufacturing sectors, including unionized firms in the United
Kingdom, Scandavian countries, Northern European and Austria. Unions, whilst remaining wary are more likely to negotiate a group
productivity bonus scheme than an individual performance based scheme. The main purpose of bonus incentive schemes is to enhance
economic performance and motivation by means of financial reward.

Individual performance incentive schemes

Individual performance schemes occur in non-union or partially/ weakly unionized firms at all employee levels, but predominantly in
the United States. Elsewhere, they occur mainly at executive management levels and in respect of sales functions.

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Collective participation
An important issue is that of the relationship between financial participation and the collective representation of employees. According
to Poole 91988), the modem development of financial participation schemes at employee levels is connected with managerial “styles”
of industrial relations. Poole argues that the weakened position of trade unions in several western countries has enabled managers to
actively promote financial participation, rather than being constrained to accept extensions of collective bargaining or board level
union representation. As regards unionized firms, Poole’s’ research indicates that financial participation schemes tend to be apt of a
consultative process and are less likely to be unilaterally introduced than in non-unionised firms. His findings also suggest that there is
a consistent tendency for companies with financial participation schemes to be more likely than those without, to have various other
types of employee participation.

Stated differently, the evolutionary approach to participation posits that there has been a progressive expansion of many types of
participation during the twentieth century, and that financial participation is merely part of a continued expansion of, and advance in,
more enlightened and “democratic” management-employee relations practices. What limited research there is on defining the
organisational context for successful financial participation tends to support the evolutionary position. The second approach is the
cyclical position, which envisages participation as most likely to develop in areas of economic growth or unrest, or, conversely, when
an individual; organisation is in decline. Anecdotal evidence is however quite strong for the thesis that ailing organisations may often
resort to a participative initiative to try to survive (eg the Chrysler Motor Corporation). In this organisation, share ownership was
negotiated with agreement on wage cuts and interim job security guarantees. Employees at Chrysler thus forfeited $585 million in pay
increases over three years for equity of $165 million.

In sum, where economic feedback, consultation and joint decision making are part of the “culture” of industrial relations in a firm, it is
likely that these process will be invoked in respect of the introduction of financial participation, and that this is more likely so with

48
stronger trade unions. Kurland (1988) stresses that, to reinforce the gradual building of the ownership concept, an ESOP should be
supplemented with frequent economic feedback relating to the performance of the firm. This raises the important issues of the
compatibility of direct participation and existing collective bargaining arrangements. It seems likely that legitimated financial
participation is more and outcome of harmonious and cooperative industrial relations than its cause. Preconditions for the legitimation
of financial participation schemes have been referred to by Horwitz(1989).

Depending on the extent to which pluralist values and inherent conflict of interests and rights are institutionalised, unions tend to
consider managerial practices of direct employee involvement as undermining the independent nature of collective representation and
the power base derived rejecting and vetoing of the introduction of financial participation initiatives ; (ii) active subversion once
introduced (something which has occurred in some Australia companies); (iii) malicious compliance and occurred in subtle forms of
protest; (iv)grudging, passive acknowledgment (e.g. by the trade union congress in the United Kingdom, which has endorsed financial
participation schemes, proved that they materially improve their member’s standard of living); (v)exerting union influence beyond
collective bargaining by reconsidering participation in other forms and at levels of both direct (eg by the EETPU in Britain) and
indirect participation; and, (vi) centrally influencing corporate strategic decision making, for example by means of pressure from trade
unions (eg the pressure by the Chemical Workers Industrial Union on multinational oil companies in South Africa for participation in
decisions on social responsibility programmes, for disinvestment and for alternative forms of investment).

Effectiveness of financial participation

Assessment of the effectiveness of employee ownership scheme tends to be defined in terms of profit improvement and growth, for
example in Weirton Steel and the Vermont Asbestos group in United Sates (Rosen & Quarry 1987). Employee s share purchase
schemes have often been introduced in circumstances of financial crisis and when jobs and union membership were under serious
threat, for example in the United States motor industry.

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The increasing popularity of direct employee involvement, whilst having important advantages for management and employees, can
mask a deeper underlying distaste for unionism. Attendant managerial strategies seek to formulate more “effective” techniques for
humanizing the work environment, gaining cooperation and competing with the union for employee support. However, various types
of participation can evolve incrementally at all levels of an organisation.
New forms of individual, consensual participation are, however, different from participation by negotiation. Strongest resistance to
participate in practices which seek greater loyalty, commitment and motivation is more likely where unions are still developing and
workers have strongly positive views about the instrumental and ideological benefits of union membership. According to Poole
(1988), a strong, powerful and established trade union movement is less likely to see these managerial approaches as potentially
undermining its traditional role. Unions in these circumstances may indeed be willing to consider alternative forms of participation in
a more favourable light, given the durability of existing collective bargaining institutions and structures.

There is also a re-emerging debate in Western Europe and Scandinavia on the notion of democratizing capital through collective
capital formation as a means of socializing, rather than nationalizing, control in organisations. Such control can apply to several
institutions, such as pension schemes and employee investment funds, though it does not necessarily disturb prevailing property
relations. The theory of collective capital formation sees trade union as a major participant in this largely long term transformative
process. The Hisadrut trade union moment in Israel is vivid example of social ownership and control, providing employment in union-
owned business. Kurland (1988) also describes the introduction of share ownership philosophy in developing countries such as Egypt.
The definitional and contextual understating of financial participation does, however, require a reconceptualization of its assumptions
about employees and structures in organizations. This requires a review of the exclusive managerial definition of the work milieu.

WORKERS COMMITTEE

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It is essentially a body established to represent employees at plant level irrespective of the representation of employee interests by a
union or different unions. It is a body through which management communicates and consults with representatives of employees who,
in turn communicate employee requests, problems and suggestions to management. Effective workers committees will cover the
whole range of employee interests such as wage rates, benefit schemes, training, work organization, employee facilities, productivity,
retrenchments, working hours, employee education, grievance and discipline. They enjoy their right to democracy in the workplace.
They should not be obstructed in the conduct of their business and should be protected from interference by the employer. It also has a
right to represent employees on the works council, before a determining authority and before the Labour court.

SECTION 7: PROTECTION OF EMPLOYEES’ RIGHT TO DEMOCRACY IN THE WORKPLACE

(1 ) No person shall—

(a) hinder, obstruct or prevent any employee from forming or conducting any workers committee for the purpose of airing any
grievance, negotiating any matter or advancing or protecting the rights or interests of employees;

(b) threaten any employee with any reprisal for any lawful action taken by him in advancing or protecting his rights or interests.

(2 ) Every employer shall permit a labour officer or a representative of the appropriate trade union, if any, to have reasonable access to
his employees at their place of work during working hours for the purpose of—
of—

(a) advising the employees on the law relating to their employment; and

(b) advising and assisting the employees in regard to the formation or conducting of workers committees and trade unions; and

(c) ensuring that the rights and interests of the employees are protected and advanced; and shall provide such labour officer or
representative of the appropriate trade union, if any, with reasonable facilities and access for the exercise of such functions.

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SECTION 24: FUNCTIONS OF WORKERS COMMITTEE

A workers committee shall—

(a) subject to this Act, represent the employees concerned in any matter affecting their rights and interests; and

(b) subject to subsection (3 ), be entitled to negotiate with the employer concerned a collective bargaining agreement relating to the
terms and conditions of employment of the employees concerned; and

(c) subject to Part XIII, be entitled to recommend collective job action to the employees concerned; and

(d) where a works council is or is to be constituted at any workplace, elect some of its members to represent employees on the works
council.

Subject to subsection (3), where a workers committee has been appointed or elected to represent employees, no person other than such
workers committee and the appropriate trade union, if any, may—

(a) act or purport to act for the employees in negotiating any collective bargaining agreement; or

(b) direct or recommend collective job action to the employees.

(3 ) Where an appropriate trade union exists for any employees, a workers committee of those employees may negotiate a collective
bargaining agreement with an employer—

(a) in the case where the trade union has no collective bargaining agreement with the employer concerned, only to the extent that such
negotiation is authorized in writing by the trade union concerned; or in the case where there is a collective bargaining agreement, only
to the extent permitted by such collective bargaining agreement; or
(c) where the Minister certifies in writing that—

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(i) the issue in question was omitted from or included in the principal collective bargaining agreement when it should not have been so
omitted or included; and

(ii) the parties to the principal collective bargaining agreement have failed or are not in a position to reach an agreement on such an
issue

WORKS COUNCIL
It is composed of representatives of all employees at an undertaking and the representatives of the employer. It is mandated to deal
with all problems arising at the workplace.

ROLE OF WORKS COUNCIL sec 25A

In every establishment in which a workers committee representing employees other than managerial employees has been elected, there
shall be a works council composed of an equal number of members representing the employer and the workers committee. Procedure
of a works council shall be as determined by the employer and the workers committee at the establishment concerned.

Functions of WC
(a) to focus the best interests of the establishment and employees on the best possible use of its human, capital, equipment and other
resources, so that maximum productivity and optimum employment standards may be maintained; and

(b) to foster, encourage and maintain good relations between the employer and employees at all levels, and to understand and seek
solutions to their common problems; and to promote the general and common interest, including the health, safety and welfare of both
the establishment and its workers; and in general, to promote and maintain the effective participation of employees in the
establishment, and to secure the mutual co-operation and trust of employees, the employer and any registered trade union

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Without prejudice to the provisions of any collective bargaining agreement that may be applicable to the establishment concerned, a
works council shall be entitled to be consulted by the employer about proposals relating to any of the following matters—

(a) the restructuring of the workplace caused by the introduction of new technology and work methods; (b) product development
plans, job grading and training and education schemes affecting employees;

(c) partial or total plant closures and mergers and transfers of ownership; (d) the implementation of an employment code of conduct;

(e) the criteria for merit increases or payment of discretionary bonuses; (f) the retrenchment of employees, whether voluntary or
compulsory

Before an employer may implement a proposal relating to any matter referred to in subsection (5), the employer shall—

(a) afford the members of the works council representing the workers committee a reasonable opportunity to make representations and
to advance alternative proposals;
(b) consider and respond to the representations and alternative proposals, if any, made under paragraph

(a) and, if the employer does not agree with them, state the reasons for disagreeing;

(c) generally, attempt to reach consensus with the members of the works council representing the workers committee on any matter
referred to in subsection (5 )
DISCUSSION

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How effective has been the Works Council arrangements in promoting workplace negotiations and conducive employee relations in
Zimbabwe? Give an illustration with an organization of your choice

EMPLOYMENT COUNCILS
Employer organization and a trade union can form an employment council and there is equal representation. It is covered in the
Labour Act section 55.Its main duty is to assist in the conclusion of Collective Bargaining Agreement. NECs appoint designated
agents and are issued with certificates of appointment. A designated agent needs reasonable access to employees to assist them about
their rights. He is given reasonable access to books and records relating to employment records and he prevents and detect an offence
and may be asked to address a dispute.

DISCUSSION
Analyse the history of an NEC of your choice and answer the following
What is the name of the employer’s organization in that industry?
What are the names of the unions in that industry?
Between the 2 where does the power lie?
Give evidence of your answers

TRADE UNIONS
Section 27 of LRA a group of employees may form a trade union

What is a trade union?

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An organisation of workers created to protect and advance the interests of its members by negotiating agreements with employers on
pay and conditions of work.

History of Trade unions in Zimbabwe

Common law does not recognize trade unions. Initial legislation (master and servant ordinance act of 1901 did not recognize trade
unions. Industrial conciliation act of 1934-Act number 10 of 1934 was first in the history of Zimbabwe to recognize trade unions.
Section 21 of the old constitution and labour relations act of 1985 gave full recognition of rights of employees to form unions in
Zimbabwe. The conciliation Act was partially for whites.
Unions may also provide legal advice, financial assistance, sickness benefits and education facilities.

Within 6 months of formation the trade union 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

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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

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Minister may regulate the collection of union dues in terms of maximum amount, accounting procedures and the auditing

DISCUSSION
Analyse the factors that gave rise to the formation of ZFTU

Analyse Trade Union activities in the Public Service

Analyse Trade Union Activities in the Private Sector and their role in NECs in Zimbabwe

What is trade union recognition?

A trade union is “recognised” by an employer when it negotiates agreements with employers on pay and other terms and conditions of
employment on behalf of a group of workers, defined as the ‘bargaining unit’. This process is known as ‘collective bargaining’.
Recognition, in relation to a trade union, means the recognition of the union by an employer for the purpose of collective bargaining
(Hutchinson 1994).

Trade union recognition

How does a ‘non-union’ company differ from a company which recognises trade unions?

There is of course no such thing as a typical ‘union’ or ‘non-union’ company.

However, employers who do not recognise trade unions will usually:

• deal directly with workers who have employee relations problems. So, workers who have grievances will raise them directly
with the managers concerned* *Workers have the right to be accompanied by a colleague or by a trade union official if
they have a grievance or if they are subject to disciplinary action. This right applies to all organisations – non union as well
as union.

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 • determine increases in pay or other terms and conditions of employment for a group of workers without negotiating with a
trade union representative

• set up an employee or works council to inform and consult with workers. Such a body will not normally negotiate terms and
conditions of employment or be ‘independent’ of the employer

Employers who recognise trade unions:

• will negotiate with representatives of a trade union who act on behalf of their members to get improvements on pay and other terms
and conditions of employment through the process of collective bargaining.

• will give representatives of the trade union paid time off to carry out their union duties

COLLECTIVE BARGAINING

Matsikidze (2013) define collective bargaining as a process that involves negotiation, consultation and the exchange of information
pertaining to conditions of service between employers and workers, the end objective being a collective agreement that is mutually
owned by the parties. For Mucheche (2014) collective bargaining is a process of negotiation between employers and a group of
employees aimed at reaching agreements that regulate working conditions.

Gwisai (2006) defines it as a voluntary process for reconciling the conflicting interests and aspirations of management and labour
through the joint regulation of terms and conditions of employment.

The result of negotiation is referred to as collective bargaining agreement and it functions as a labour contract between an employer
and one or more unions. The rationale for collective bargaining is to resolve conflicts at the organization since conflict is inherent.

It is called collective because the employees, as a group, select representatives to meet and discuss differences with the employer.

Parties to Collective Bargaining Process

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  trade unions

 employers' organisations

 workers committee- section 23 of the Labour Act (Chapter 28:01)

 management

 Managerial workers committee- section 23(the Labour Act.)

PROTECTION OF COLLECTIVE BARGAINING

Article 23 of the Universal Declaration of Human Rights identifies the ability to organise trade unions as a fundamental human right

Item 2(a) of the International Labour Organisation’s Declaration on Fundamental Principles and Rights at work defines a freedom of
association and the effective recognition of the right to collective bargaining as an essential right of workers

The constitution of Zimbabwe section 24 deals with work and labour relations and section 65 deals with labour rights

Section 2A (1) (c) of the Labour Act

Section 23 of the Labour Act

Sections 74-82 of the Labour Act

ISSUES FOR DISCUSSION

Determining working conditions and terms of employment.

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Regulating relations between employers and workers

Regulating relationships between employers or their organisation and a worker’s organisation

Collective agreements usually set out-

Wage scales, working hours, training, health and safety, overtime, grievance mechanisms, right to participate in workplace or
company affairs

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

CONDITIONS NEEDED FOR EFFECTIVE CB

Recognition of divergent interests of employers and employees.

Recognition of the need for equilibrium of power between the two parties

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Recognition of the philosophy of mutual survival

Elimination of direct and indirect obstacles to effective CB

Characteristics

1. It is a 2 way process ie a method of partnership of workers in management.

2. It is a continuous process .It establishes regular and stable relationship between the parties involved. It involves not only the
negotiation of the contract, but also the administration of the contract.
3. It is a collective process. The representatives of both workers and management participate in bargaining. It is a group or
collective action as opposed to individual action. It is initiated through the representatives of the employees
4. It is a flexible and dynamic process. The parties have to adopt a flexible attitude through the process of bargaining.
5. It is not a competitive process rather it is essentially a complementary process..
6. It is a voluntary process without any third-party intervention. Both workers and management voluntarily participate in the
negotiations, discuss and arrive at a solution. That is why it is known as a bipartite process where workers’ representatives and
management get an opportunity for clear, face-to-face communication.
7. It ensures industrial democracy at the workplace; it is a self-run government in action.

CB AS A KEY COMPONENT OF EMPLOYEE RELATIONS

CB is a significant part of employee relations

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Hyman (1997) describes CB as a “hollow shell” Argues that the only reasons why some employers offer better conditions than those
negotiated by unions in CBAs is so that they remain “union free”

Collective Bargaining is concerned with substantive issues (what is determined) and procedural issues (how the decisions are made.

CORE ISSUES IN CB AS PER LABOUR ACT

Parties should negotiate in good faith

Employer has a duty to disclose once the inability to pay is alleged.

Parties shall be represented by committees and agents.

CBAs should be registered

Amendment by Minister if CBA is inconsistent with the Labour Act

Existence of CBA may not preclude employer from giving higher rates than those agreed

GLOBALISATION INDUSTRIAL RELATIONS AND ENTERPRISE BARGAINING

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Globalization has led employers to push for less regulation of IR, less standardization of the employment relationship, and a greater
focus on the workplace as the centre of gravity of IR.

Since productivity and quality have become major considerations in competitiveness, the quality of the workforce and training have
become critical factors

Employee skills have become important determinants not only of flexibility, productivity and quality, but also of employability,
investment and the ability to rapidly adapt to market changes.
Shifting the focus of collective bargaining from the nation/industry level to the enterprise level. Employers are of the view that issues
relevant to the employment relationship such as work re-organization, flexible working hours and contractual arrangements, and pay
for performance and skills, are increasingly workplace-related, and should therefore be addressed at the enterprise level.

Employees who are engaged in their work and committed to their organizations give companies crucial competitive advantages—
including higher productivity and lower employee turnover.

It also results in employees’ satisfaction with their work and pride in their employer, the extent to which people enjoy and believe in
what they do for work and the perception that their employer values what they bring to the table.

APPROACHES TO COLLECTIVE BARGAINING

Most labour negotiations still employ positional or distributive bargaining.

In this process, the respective parties adopt positions or table demands at opposing ends of the negotiating spectrum, whittling down
their demands in an effort to negotiate into an area of common ground. There is a lot of haggling and cajoling.
The parties are often forced to defend their positions

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According to Hofmeyer (2012) two chefs are said to have fought over the use of the single orange left in the kitchen. Both needed the
orange for their recipes. Each chef unsuccessfully tried to convince the other to give up his half share of the orange. They then agreed
to split the orange in half.

This resulted in one chef being left with juice of half an orange while the other had only the rind of his half of the same orange –
neither had the volume needed for their respective recipes. Had each party tried to understand what the other needed, they would have
realised that the one needed the juice of a whole orange while the other need only the rind of one orange. They could have given each
other exactly what they needed without having to compromise on their own needs.

CB IN ZIMBABWE

Companies abrogating all issues to NEC putting a heavy burden on them. Not willing to take responsibility

NEC wages can be heavy for some organisations – Application for Exemptions not very easy

Lack of clearly articulated productivity goals for industries and at enterprise level

Adversarial approach at wage negotiations

Training on negotiation techniques at NEC levels

Training and Development and skills development for staff before asking for productivity – productivity cannot be viewed in a
vacuum

PRODUCTIVITY BARGAINING

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The process of reaching an agreement (productivity agreement) through collective bargaining whereby the employees of an
organization agree to changes which are intended to improve productivity in return for an increase in pay or other benefits
(Collins Dictionary)

Pay to be linked to productivity

CHALLENGES TO PRODUCTIVITY BARGAINING IN ZIMBABWE

Capacity utilisation issues – lack of capital to purchase equipment which will enhance productivity

Lack of clarity in some organisation on productivity benchmarks which will translate into clear targets for employees

Suspicion from employees of changing goal posts by employers as they control the means of production

Composition – quality of some people involved in the Collective Bargaining process

Lack of training of negotiators

Narrowing of discussion issues at Collective bargaining to just salaries

Problems of Collective Bargaining

 There is multiplicity of unions which are weak and unstable and do not represent the majority of the employees. Moreover,
there are inter-union rivalries, which further hinder the process of collective bargaining between labour and management.

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 Unions are dominated by politicians, since most of the unions have political affiliations and they use these unions and their
members to meet their political ends.
 There has been a very close association between the trade unions and political parties. As a result, trade unions have leaned
towards political orientations rather than collective bargaining. Collective bargaining has collapsed mainly due to the crisis
period of 1997 – 2008, a period characterized by:
 State repression and restrictive laws like POSA
 State interference in court of law procedures, since some disputes were labeled political.
 Delays in delivering judgments by courts of law
 Reliance on the courts rather than CB means the system has collapsed
 A weak and fragmented trade union movement has also led to collapse of CB as they fail to confront the employers
 Hyperinflation (pre 2008) and the impact of the financial crisis that affected most quarters of the world economies
 CB is also hard in a de industrializing economy where rate of unemployment is more than 90%
 CB in Zimbabwe seems to be mainly centred more on wage negotiation currently.

BARRIERS TO EFFECTIVE COLLECTIVE BARGAINING

Lack of utmost good faith in negotiations
 Material non disclosure of the financial status of the company
 Lack of training on techniques for collective bargaining
 Hard bargaining or positional bargaining
 Turf war between trade unions, employees and workers’ committees
 Lack of authority on the part of those who participate in the collective bargaining agreement with a leash tied around their
waist.

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  Force of emotions as opposed to reason and commonsense
 Polarisation
 Intimidation and dirty tactics
 Mindset to disagree and refer a matter for compulsory arbitration
 Failure to grasp the essence of alternative dispute resolution methods like conciliation and mediation.

STRIKES AND INDUSTRIAL ACTION

Basically, strikes and other forms of industrial action are an inherent part of collective bargaining and, by extension, of labour
relations in general. Strikes are the ultimate “weapon of power” that may be used by labour against employers (if necessary). You may
regard strikes as completely unnecessary, many workers may have taken part in strikes themselves; and yet others may have had to
deal with a striking labour force. Whatever is the case, strikes (and other forms of industrial action) are an issue which many people
find easy to identify. Strikes are highly visual events, and people usually know from media coverage when a prominent strike is in
progress. Due to the fact that one cannot always be certain that negotiations (collective bargaining) will be “free” of serious labour
conflict, it is necessary to develop a good understanding of strikes and other forms of industrial action. From a management
viewpoint, strikes are a very important issue. In this study unit, therefore, the emphasis falls on the management of strikes as a form of
industrial action.

Definition of a Strike
A strike is termed as the partial or complete, concerted refusal to work, or the retardation or obstruction of work, by persons who are
or have been employed by the same employer, or by different employers, for the purpose of remedying a grievance or resolving a
dispute in respect of any matter of mutual interest between employer and employee. According to Akubuiro (2003), in terms of
incidence of strike, there are a host of strikes such as:

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i. Official strike: - this refers to all strikes which are approved by the union.
ii. Unofficial strike: - which as the name indicates, refers to the strike not sanctioned by the union executives but initiated especially
by the shop stewards.
iii. Unconstitutional strike: - this refers to all strikes caused by the union leaders but are in breach of the constitution or did not follow
legal procedures.
iv. Work to rule: - this indicates that the workers still report to work, do some routine assignment but do not exceed the normal time
for work
v. Dealing with equipment: - this means that workers cannibalize the major work tools thus making work impossible.
In terms of the costs of strike, the following areas are affected:
i. Number of man hours lost
ii. Loss of business
iii. Disruption of operations
iv. Dampening of the workers morale
v. Enmity created between management and workers
vi. Goodwill and image of the company destroyed
vii. Loss of valued customers
viii. Distortion in the projected earnings
ix. Loss of output
x. Loss of sales and revenue
xi. Payment of Compensation to customers
xii. Loss of competent employees.
Types and Forms of Strike or Industrial Action

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The types and forms of a strike are often the result of the cause of a strike. There are many types or forms of industrial action, and
these can be classified according to their different approaches or structures.
Common types or forms of industrial action include the following.

1. The Wildcat Strike

This type of strike occurs suddenly and is not preceded by any notice or intensive negotiations. It can assume various forms;
2. The Go-Slow Strike
Here, employees perform their work, but at a snail’s pace. They work strictly according to the rules, and sometimes even slower. They
thus refuse to maintain normal production rates and volumes;
3. The Solidarity Strike
In the case of the solidarity strike, employees at one plant or company stop work in solidarity with other employees who wish to
enforce a demand made on their employers;
4. The Rotating Strike
Here, groups of employees at different plants or in different departments or sections take turns to stop work according to a set pattern;
5. The Boycott
In the case of a boycott, labour is not necessarily withheld, but employees bring pressure to bear by way of other drastic action. For
example, in the case of an overtime ban; employees refuse to work overtime. Production boycotts involve mainly trade union
members and their families who stand together and refuse to buy the products (or services) produced by the employer;
6. Picketing
This is a form of demonstration of power. Employees and/or their representatives form groups inside or outside the workplace and
state clearly that they are dissatisfied about something. Picket lines are usually a peaceful way in which striking workers make public

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(and advertise) their industrial action with the purpose of encouraging others to join them. Workers normally stand in front of their
workplace with placards. In addition, they try to convince suppliers and customers not to enter the premises. It is important that a
labour relations manager is familiar with the various types of industrial action so that he or she can decide how such action should be
managed
THE RIGHT TO STRIKE
There is a raging debate on whether workers have a right to strike or not and whether it is a human right or not.
Justification
The right to strike has been defended as a fundamental human right just like the right to life, liberty and other common human rights.
But this has been resisted because of a strke’s coercive nature and delictual consequences as there is no other right exists for the
explicit purpose of forcing others to do what they do not want to do. It has been justified on the grounds of democracy. It has also been
justified because of the ‘equilibrium’ argument. It is argued that the withdrawal of labour acts as the only effective countervailing
force to the power of capital (management) to hire and fire. The right to strike is seen as creating an equilibrium in labour relations
which is seen as essential for the establishment of a properly functioning industrial relations system. It facilitates collective bargaining
as it acts as ‘the sanction that impels the parties to bargain collectively.’

There is no ILO Convention which deals specifically with the right to strike. ILO Conventions, No 87(On Freedom of Association and
Protection of the Right to Organise) and 98(On the right to Organise and Collective Bargaining) do not make any specific reference to
the right to strike. However, the right to strike is derived from the concept of Freedom of Association as enshrined in Conventions 87
and 98 holding that the right to strike is ’an intrinsic corollary to the right to organize protected by Convention No 87’ and the right to
strike is ‘a legitimate means… through which workers may promote and defend their economic and social interests’. However, ILO
jurisprudence is clear that this right is not absolute and certain restrictions have been admitted. In the interest of public order, security,
safety and health certain derogations are allowed. For example, ILO recognizes two restrictions in respect of the public service and in

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essential services. In respect of civil servants ILO recognizes prohibition of top civil servants only and on essential services ILO
accepts that strikes may be prohibited or restricted but it insists on the provision of compensatory mechanisms such as reference of
disputes to compulsory arbitration.

Right to strike in Zimbabwe

The constitution of Zimbabwe is the supreme law of the country and any law which is inconsistent is devoid. Zimbabwean law
recognizes all form of strikes that entail partial strikes, secondary strikes and protest action. It is entrenched in the fundamental
bill of rights in terms of the constitution of Zimbabwe. Enactment of section 65 of the Constitution of Zimbabwe allows
workers to go on strike. However, the only permissible constitutional derogation from the right to strike is in respect of
essential services. It only applies in respect of disputes of interest and not a dispute of right. There is no automatic right to refer
a dispute of interest to arbitration for other employees other than those in essential service where it is preemptory that once a
certificate of no settlement is issued after an impasse in conciliation, the dispute should be referred to compulsory arbitration.
Those who offer essential services are not allowed to go on collective job action. In terms of section 102(b) an essential service
is defined as any service the interruption of which endangers immediately the life, personal safety or health of the whole or any
part of the public and that is declared by notice in the gazette made by the minister after consultation with the appropriate
advisory council; and these include fire brigade /services employees, electricity employees, veterinary services, health services,
transport and communication etc.

NB

In terms of section (3) of S.I 137 of 2003 “any non-essential service maybe declared as an essential service by the minister if a strike
in a sector ,industry or enterprise persist to a point that lives, personal safety or health of the whole or part of the population is

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endangered. Thus, the problem with this sector is that there is no independent committee to determine what constitute essential
services as the Minister is given an open cheque to do so.

 Restrictions are placed on members of the army, police and prisons as well as civil servants.

 It is prohibited to go on collective job action to redress a dispute of right. It is a right to which a party is entitled to by law, by
contract, by agreement. Disputes of right are settled by legal arbitration and not by negotiation.

 It is also prohibited where the dispute has been referred to arbitration whether voluntary or compulsory.

 Unregistered trade unions and employers’ organizations are prohibited from recommending or engage in collective job action.
 Collective job action is permissible even in an essential service in order to avoid any occupational hazard and in defense of an
immediate threat to the existence of a workers committee or a registered trade union.
 The new constitution demolished the artificial divide between public and private sector employees and extends the right to
strike to both private and public sector employees.

Limitations on the right to strike

 It should be a dispute of interest. A dispute of interest is that to which a party is not yet entitled but to which he would like it to
become entitled thus interests are subject to collective bargaining or negotiation. Once an agreement has been reached the
interest sought becomes a right.
 An attempt to resolve the dispute through conciliation should have been made and a certificate of no settlement issued. The
conciliation process can last from a period ranging from 30 days to a period ad infinitum if the conciliation is extended.

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  The conciliator may refer the dispute for arbitration and once its referred for compulsory arbitration, the door for the right to
strike is firmly closed.
 Give advance notice i.e., a 14 days’ notice to the party against whom the action is taken, to the employment council and the
appropriate trade union or employers’ organisation or federation stating grounds for going on action. In South Africa and
Namibia, for example, only 48 hours’ notice is required.
 More than 50% of the workers must vote by secret ballot in the presence of a labour officer or TU official for a strike and this
will be followed by 30 day conciliation period and the possibility of binding arbitration.
 Before embarking on collective job action they need to get union approval from a registered union or employer organization.
 Furthermore, employees cannot engage in collective job action if there is a union agreement restriction.
 The minister has the power to terminate, postpone or suspend any strike action by issuing a show cause order. One can appeal
to the labour court after the issuance of the show cause order but the appeal itself does not suspend the decision appealed
against that such that this purported remedy becomes hollow and academic.

RIGHT TO STRIKE IN THE PUBLIC SERVICE

Workers in the public service are not covered by the Labour Act Cap 28:01. Government workers have their terms and conditions of
employment regulated by a mechanism set up by the constitution. The constitution creates two main groups of government workers.
The first group is called the Public Service which is administered by the Civil Service Commission operating in terms of the Public
Service Act. The second group consists of other special groups outside the Civil Service such as the police, the army, the prison
service and the judiciary and these are governed by specific Acts of Parliament enjoined by the Constitution. There is no right to strike
in the Civil Service. For the uniformed forces its unthinkable to go on strike as going on strike in the police force may constitute
several offences such as desertion, insubordination or ‘being absent without leave’. The blanket ban on strike action in the civil service
is not in tandem with ILO jurisprudence. The constitution allows part of the civil servants to go collective job action and there is need
for alignment of the Public Service Act with the Constitution.

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Rights of persons on lawful collective job action

 Protection from discipline and dismissal

 immunity from civil liability-this is important because reprisals can instil fear in the victims and thus burying the right to
strike.
 right to remuneration in kind-where his remuneration includes payment in kind by way of accommodation, the provision of
food and other basic amenities of life, the worker is entitled to continue receiving these during the strike but wages are
excluded.
 right not to be interdicted
 right not to be replaced by scab labor
 right to picket

RIGHT TO STRIKE IN SADC

The SADC Charter of Fundamental Social Rights provides for the right to strike. The constitution of South Africa fully guarantees the
right to strike but restrictions are imposed on those employees who are in essential services. Government workers are allowed to go
strike. Both private and public servants can go on strike after giving a 48 hour notice. In Malawi, Zambia and Namibia government
employees are granted the right to collective bargaining and a right to strike. The constitution of Malawi does not have an express
right to strike but simply makes reference to fair labour practices and to fair remuneration. The Zambian constitution does not provide
for the right to strike but there are certain provisions thereof than can be stretched to provide basis for a strike. In Botswana, the right
to strike is a fundamental right entrenched in the Constitution.

THIRD PARTY DISPUTE RESOLUTION

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Matsikidze (2013) defines ADR as a range of procedures that serve as alternatives to litigation through the Courts for resolutions of
disputes; generally involving the intercession and assistance of a neutral third party.
Conciliation

It is an act of procuring good will and results in the parties reaching an agreement themselves. The parties are encouraged to try to find
solution themselves. The conciliator leaves the parties to come to their own solution rather than to try to persuade them to any
particular choice. Conciliation is an alternative out-of-court dispute resolution instrument. It is a voluntary, flexible, confidential, and
interest based process. The parties seek to reach an amicable dispute settlement with the assistance of the conciliator, who acts as a
neutral third party.

Conciliation is a voluntary proceeding, where the parties involved are free to agree and attempt to resolve their dispute by conciliation.
The process is flexible, allowing parties to define the time, structure and content of the conciliation proceedings. These proceedings
are rarely public. They are interest-based, as the conciliator will when proposing a settlement, not only take into account the parties'
legal positions, but also their; commercial, financial and / or personal interests.

 Conciliation ensures party autonomy. The parties can choose the timing, language, place, structure and content of the
conciliation proceedings.
 Conciliation ensures the expertise of the decision maker. The parties is free to select their conciliator. A conciliator does not
have to have a specific professional background. The parties may base their selection on criteria such as; experience,
professional and / or personal expertise, availability, language and cultural skills. A conciliator should be impartial and
independent.
 Conciliation is time and cost efficient. Due to the informal and flexible nature of conciliation proceedings, they can be
conducted in a time and cost-efficient manner.

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  Conciliation ensures confidentiality. The parties usually agree on confidentiality. Thus, disputes can be settled discretely and
business secrets will remain confidential.

ARBITRATION
Matsikidze (2013) defines it as a private mechanism for the resolution of disputes which takes place in private pursuant to an
agreement between two or more parties, under which the parties agree to be bound by the decision to be given by the arbitrator
according to law after a fair hearing, such decision being enforceable at law.
Key Arbitration Principles
Parties may agree to the choice of arbitrator
The parties the dispute present their case and evidence to the arbitrator
The arbitrator makes a determination/decision or an award
The parties to the dispute are bound by the arbitrator’s decision
 The Arbitration Act (cap 7:02) provides a general framework for voluntary arbitration, the provisions of the Act also cover
arbitration done under the L A
 There is voluntary and compulsory arbitration. In voluntary arbitration the parties choose the arbitrator and in compulsory
arbitration the arbitrator is appointed by the conciliator from the Ministry Panel
 Under Compulsory Arbitration an aggrieved party appeals to the Labour Court but only on a question of law. Under voluntary
arbitration a party makes an application for review to the High Court in terms of the specified grounds under the Arbitration
Act. There are two remedies or recourses against an arbitral award and these are Review and Appeal. Review applications
deals with the procedural issues in most cases and the processes which were done before coming up with an award. An
violation with regard to the processes or procedures followed to come up with a decision may result in the award being set
aside. The grounds for review must be brief and precise. The reviewable issues are as provided for in terms of SI27 of the high

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 court Act and these among other issues involves issues of capacity, notice adequacy, breach of natural justice rules, dealing
with issues outside the terms of reference, failure to consult parties in coming up with terms of reference, Arbitral exceeding
powers impartiality, bias, refusing parties procedural rights etc. Appeals lies with the Labour Court.S98 (10) of the Labour Act
provides that an appeal on a question of law shall lie with the Labour court from the decision of any arbitrator. Labour court is
on point of law not facts. When dealing with an appeal, the Labour Court does so in terms of S89 (2) (a).Labour court can
conduct a hearing into the matter (hearing denovo).It can decide the matter on record. IT can confirm, vary or set aside the
decision or order or action appealed against
 The appointment of arbitrators under Compulsory arbitration is done by the conciliator or Labour Court. Arbitrators are
appointed by the Minister after consultation with the senior President of the court. In voluntary arbitration the parties
themselves decide who will be the arbitrator. It is advisable for the parties to draw up an agreement on the appointment and
Terms of Reference of the arbitrator including the period within which s/he must conclude proceedings and the procedure to
follow in case of deadlock.

THE AWARD

There is no universal formulae for writing of an arbitral award. However, there are certain essentials that must be covered. Each award
must address the following:

1) What issues arise? The issues emanate from the nature of dispute of the dispute and matter referred to the arbitrator

2) What is the law applicable to the issues? This refers to the various areas of law which are relevant to the issues

3) Apply the law to the facts. At this stage, use the law to answer the issues. What specific answer does the law give to the issue of
issues.

4) What is the final result? Or How is the dispute then resolved? What is the conclusion?

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The general rule applicable to arbitral awards is that an award is final and can only be set aside on very limited grounds provided for
in article 34 of the model law. With labour matters governed by the Labour Act, there is an appeal available on ‘a point of law’. The
Act does not define a point of law. The courts have defined it so widely as to make it easy to challenge arbitral awards in labour
matters. In labour matters the courts have defined a ‘point of law’ to cover not only issues on what the law is but also aspects where
there is a serious misdirection of facts. It has been held that a serious misdirection on the facts raises a point of law. See Hama v NRZ
1996(1) ZLR 641.A serious misdirection on the facts occurs where the decision is irrational- where the finding on the facts is so
outrageous in its defiance of logic that no sensible person will have applied his or her mind to the facts could have arrived at such a
decision. An irrational finding on the facts is a question of law. The irrationality ground provides a warning to arbitrators. An
arbitrator must make every effort to give reasons for his or her conclusions on the facts. Every step must be taken with sensitivity to a
possible attack based on irrationality. In arbitrations covered by the Arbitration Act, that is arbitral awards in labour matters not
covered by the Labour Act. Article 34 does not provide for an appeal. It provides for an application for the setting aside of an award.
The grounds are only those stipulated in article 34.It is not permissible to challenge an award outside the grounds in article
34.However,article 34 has a ground that allows a challenge on the basis that the award ‘is contrary to public policy’. See ZESA v
Maposa 1999

Structure of an Award

There is no specified structure of an award. The structure must be determined by the arbitrator but special attention must be paid to the
general practice in the jurisdiction.

Some of the relevant guidelines are;

Background/introduction

Issues in dispute

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Summary of the Evidence where facts are in dispute

Arguments of the parties must be split into Applicants and Respondent’s argument

Analysis of the evidence

Analysis of arguments

The arbitrator’s Conclusion and view

Determination/ The Award

GLOBALISATION

 Globalisation can be defined as a process of increasing global connectivity, integration and interdependence in the economic,
social, technological, cultural, political and institutional spheres.
 Globalisation refers, for instance, to the processes that reduce 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).
The economic aspects of globalisation
 intensifying economic competition among nations,
 rapidly expanding international trade and financial flows and foreign direct investment (FDI) by multinational
corporations (MNCs),
 disseminating advanced management practices and newer forms of work organisation and in some cases
 sharing of internationally recognised labour standards

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  Increase in the migration of labour
 increasing integration of global economic activities,
 rising competitiveness,
 relocation of economic activities,
 structural changes in the economy,
 rapid technological advancements and innovation.
 Globalisation has obviously contributed to rising unemployment (through the introduction of technology) increasing
casual employment (For example, road construction, buildings etc in Mozambique) and weakening labour movements
(Ali 2005).

Globalisation and labour market effects

 flexibilisation of labour markets;
 increasing labour migration;
 rising atypical and non-standard forms of employment;
 changes in work content and working conditions;
 Skills mismatch, multi-skilling and the need for lifelong learning.
 Due to growing competitiveness, many countries are obliged to relax their employment protection mechanisms in order to
increase their labour market flexibility. Therefore, a new balance between labour market flexibility and social protection will
have to be established (HM Treasury 2005).
 Several countries propose labour market reforms as a way of coping with the challenges of flexibilisation while providing an
adequate level of job and employment security.

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 Overall, employment rates are increasing, but non-standard forms of work such as part-time, fixed-term and self-employment
are also rising.
 Broad social developments in many countries have also led to an increasing participation rate of women in the labour market
which, in turn, has augmented the demand for atypical forms of employment.
 As a result of these developments, working conditions do not improve for a lot of workers while their job security may decline
 The problem in developing countries relates to underemployment and disguised unemployment.
 The majority of developed countries face serious labour and skill shortages which threaten their sustainability of economic
growth, productivity performance and international competitiveness
 The temporary employment of foreign workers introduces flexibility into the labour market while also increasing competition
between foreign and domestic labour with varying implications for the countries sending and receiving workers.
 Another area of enterprise activity to be affected by globalisation concerns the organisation of work.
 To achieve the flexibility and productive efficiency required to respond quickly and effectively to market changes, the need
arises to reorganise work; for example, to put greater emphasis on team-based activities or to improve connections across
business units within a company
 Globalisation affects employment relations and industrial relations at regional, national and international levels

Globalisation and IR in developing countries
 Developing countries are facing further population growth and a labour surplus. At least over the next 20-30 years, these
countries will have a relative advantage over the more developed countries assuming they are able to control labour costs,
since most of the labour intensive production will be concentrated in these countries and their neighbouring regions

Globalisation and IR in Developed countries

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  Labour shortages
 Economic communities and borderless countries to meet labour requirements
 Open to immigration of experienced individuals
Globalisation has a contradictory impact on industrial relations:
 On the one hand, it is accelerating economic interdependence between countries on an intraregional and interregional basis and
encouraging similar business approaches of individual companies in competitive markets. This may lead to some convergence
in industrial relations arrangements worldwide.
 On the other hand, evidence exists that industrial relations in some countries resist the convergence trend; such resistance from
industrial relations actors is based on particular national and regional circumstances, such as in Europe and Asia (Macdonald
1997).
The effect of globalisation on industrial relations procedures and their substantive outcomes depends on the conditions under
which industrial relations take place within a country. For instance, the pressure for greater flexibility in the use of labour is
omnipresent, but the outcome is constrained by cultural norms, valuing, hierarchy and security. Countries’ IR strategies vary due to
historical circumstances, resources and internal political dynamics, including the influence of trade unions. Thus, the extent and
impact of globalisation differs between countries, resulting in similar concerns for policymakers yet leading to variable responses
and industrial relations outcomes (Frenkel and Peetz 1998)
 Globalisation is regarded as a pressure that comes from ‘outside’ the country.
 Since globalisation is portrayed as emanating from the outside, it is frequently reduced to a small number of relatively
discrete changes or trends which, like other transformations in the industrial relations environment, represent challenges to
or pressures on national industrial relations systems and institutions

WOMEN AND INDUSTRIAL RELATIONS

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  The label 'industrial relations' carries connotations associated with male-dominated heavy industry, trade unions, and
strikes. The dominant masculine construction of industrial relations has contributed to the invisibility of gender and
equality. While this traditional understanding of industrial relations is less widespread today, as a field of study it still
commonly neglects gender, women's and equality issues (Forrest, 1993; Greene, 2002; Hansen, 2002; Wacjman,
2000).
 Women are less powerful than men in most situations, they are less represented by unions, and they are more
vulnerable to personal pressure from their employer. They argue their workplace treatment from a much weaker
position than most men.
 Women had less effective access to enterprise bargaining to increase their wages and conditions because of the
following:

a) They were concentrated in mediocre work, often at the bottom of employment hierarchies in many workplaces.
b) They were concentrated in a narrow range of industries and in relatively few occupations. This means that they rarely got a
seat at the workplace bargaining table--whether representing employees or employers. They are less unionised than their
working brothers and severely under-represented amongst union workplace,
c) Women are socialised to be quieter, to ask for less and to stand back for men. They are consequently less likely to play
an active part because, much more than men, they are fearful of the employer or supervisor's opposition--and many fear for
their jobs.
d) women have more responsibility on the domestic front which makes them more willing to accept bad treatment lower
wages, and gives them less time for workplace involvement beyond their jobs

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Further structural barriers to women’s access to social and economic rights include:

a) women’s responsibilities for child-caring and the elderly; women’s unpaid work in the home and in family
concerns;
b) the undervaluation of women’s work;
c) lack of access to credit or social security;
d) lack of appropriate education or training, violence against women in the public space, the workplace and in the
home;
e) stereotypes which are prejudicial to women.
- Discrimination, unequal pay, inflexible working conditions and limited access to training and promotion are important issues
for women in IR.

WOMEN’S RIGHTS IN ZIMBABWE

- In order to address the gender imbalances prevailing in industrial set-ups, our government in particular saw the need to put in
place some legal interventions through the Labour Act Chapter 28:01
- A number of legislative measures were brought up in order to recognise and protect women in industrial relations
a) Protection of employees against discrimination
o Section 5(1) of the Labour Act provides for non-discrimination “against any employee or prospective employee on
grounds…….gender, pregnancy….” was included in the Act in order to provide strong protection on women in
employment relationship. Discrimination on the basis of discrimination is unlawful see Wazara v Principal Belvedere
Teachers’ college the court held that discrimination against women on the basis of pregnancy was unlawful

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 o To further advance favour to female employees, section 5(7)(a)(1) “….no person shall be deemed to have discriminated
against another person on the grounds of gender or pregnancy where – in accordance with this Act or any other law, he
provides special conditions for employees…..”.
o Also in the same section, 5(2a), though it was already industry practice, the government wanted to re-affirm its position
of being sensitive to women by providing that “No employer shall fail to pay equal remuneration to male and female
employees for work of equal value”, (i.e. no gender differentiation for work of equal value)
b) Sexual harassment (unfair labour practice by employer)
On section 8(h) outlines that “….an employer or any other person, commits an unfair labour practice if by act or omission
engages in unwelcome sexually-determined behaviour towards an employee, whether verbal or otherwise, such as making
physical contact or advances, or sexually-coloured remarks, or displaying pornographic material in the workplace”. (added
in 2003 amendment… mouthful.. some snr managers seem to see as a perk of their position the pick of a junior female
staff even though the lady concerned has no interest in a relationship at all)
Though it is not express, it is quite apparent that this clause is meant to curb sexual harassment which was being
perpetuated on women by male bosses. In the Mudzingwa v One Stop the Supreme Court held that the conduct of the
appellant towards the female employees whilst under the influence of alcohol amounted to sexual harassment. In the public
service, in terms of section 4 of the Public service Regulations SI 1 of 200, First Schedule (Section 2) sexual harassment
is an act of misconduct which attracts a penalty of dismissal from the public service.

Provision of maternity leave

 Gwisai posits that workplaces are conditioned by the assumption that the typical worker does not get pregnant and has
no childcare responsibilities.

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 The Labour Act section 18(1) provides for maternity leave on full pay for a female employee who has served for one
year and above.
 In 2003, subsection (2) was amended to provide that maternity leave will be on full pay, but to be unpaid in the first
year of service.
 From December 2005 subsection (4) which provided for unpaid maternity leave in the first year of service was
repealed.
 Maternity leave days were increased from 90 to 98 (in line with the 14 weeks in line with an ILO convention). In South
Africa, under the Basic Conditions of Employment Act of 1997 female employees are entitled to 4 months maternity
leave. Furthermore, the employee is not allowed to work for 6 weeks after the birth of the child unless a doctor or
midwife certifies that one is fit for work.
 If there is a miscarriage or have a stillborn child the female employee is entitled to 6 weeks maternity leave.
 Benefit of fully paid maternity leave is limited to a maximum of 3 periods with respect to her total service with one
employer.
 Paid maternity leave will be granted at 24 months interval. Any maternity leave outside this scope will be unpaid.
 Subsection (7) provides that all benefits, including accumulation of service towards seniority, continue during
maternity leave.
 The employer cannot suspend any of female employee’s rights due to pregnancy or maternity leave.
 Breast feeding period for 6 months period is also provided for. Female employee is entitled to one hour or 2 half hour
periods each day for breastfeeding the baby.
 Any person who contravenes this provision shall be guilty of an unfair labour practice.
 However, this provision has now been supplanted by the new constitution of Zimbabwe which provides an open
cheque in the form of fully paid maternity leave for at least 3 months to any female employee despite the duration of

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 service with a particular employer. Furthermore, there is no longer a limit of the number of times a female
employee can go on fully paid maternity leave with any given employer (Mucheche).

 However, though they are basking in the glory of legislative protection as provided for by the Labour Act, the reality on the
ground shows otherwise.
 Discrimination of women is being practiced in a tacit and subtle manner to the extent that it cannot be seen by a naked eye.
 A lot more work needs to be done to ensure that any form of discrimination against women is practically eliminated.

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