EXPERT ADVICE: Taking a look at the South African Labour Law

Written by Ivan Israelstam, Chief Executive of Labour Law Management Consulting.

Large and small businesses alike are now being approached by trade unions with demands for pay increases and improvements in other conditions of employment. Those employers that do not have unionised employees are holding their breath in case a new union approaches them. Such an approach causes a tough dilemma for employers because:

• On the one hand, refusing the union demands could result in a strike. Not only would a strike be bad for business but it could also ferment workforce hostility against the company’s management
• But, on the other hand, if you agree to bargain annual wage increases with the union then your right to manage the company’s finances goes out the window

Employers have become nervous at the prospect of concluding collective agreements with unions because:

• Previous experience with such agreements which have been one-sided in favour of employees
• The employer’s lack of awareness as to what demands it could make on its employees
• The employer’s uncertainty as to how to negotiate such agreements

While there are different types of collective agreement the employer’s approach should be firm but reasonable.

Whichever type of collective agreement an employer is entering into he/she needs to ensure that the business gets as much out of it as possible.

In order to ensure that they do get the maximum out of collective agreements with unions, employers require the following:

• Above all, a clear idea as to what they want to achieve out of the agreement
• Training in the objects of the various types of agreement
• Negotiating skills

The assistance of a labour law/industrial relations expert experienced in dealing with trade unions. This strategy could help you avoidthe costs of a strike on the one hand and the cost of an excessive wageincrease on the other hand. But, should you bring in a labour expert be sure that he/she:

• Has experience in dealing with trade unions and wage bargaining
• Is an expert in strategising and preparing for wage negotiations
• Has a thorough knowledge of the labour legislation which dictates what the bargaining parties are and are not allowed to do
• Understands your need to gain from the negotiations the workers’ willingness to earn better pay by improving productivity
• Is able to win you the best deal but, at the same time, reduce the chance of a strike through the use of a professional and unemotional approach

Details: 011 888-7944, 0828522973 or ivan@labourlawadvice.co.za

To buy our e-Book entitled Walking The New Labourlaw Tightrope, please go to www.labourlawadvice.co.za