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Industrial relations
Date: 20-02-2015
Dr. N Shivakami

Sanil A T
2nd msw 4th sem
Reg no: 13so1112


New amendments on the Labour Relations Act and the Basic
Conditions of Employment Act
In order to avoid exploitation of workers and ensure decent work for all workers
as well as to protect the employment relationship, introduce laws to regulate
contract work, subcontracting and out- sourcing, address the problem of labour
broking and prohibit certain abusive practices. Provisions will be introduced to
facilitate unionisation of workers and conclusion of sectoral collective agreements
to cover vulnerable workers in these different legal relationships and ensure the
right to permanent employment for affected workers.
Amendments to the LRA and the BCEA therefore have a major focus on
addressing what is now commonly referred to as the phenomenon
of labourbroking.
Additional amendments have been effected to these acts to achieve the following:

To bring them in line with labour law developments;

To improve the functioning of the Commission for Conciliation

Mediation and Arbitration (CCMA), and;

To fulfill our obligations as a member state of the

International Labour Organisation (ILO).
The Labour Relations Amendment Bill, 2012 and the Basic Conditions of
Employment Amendment Bill, 2012 are now very different to the bills published in
December 2010.
The following are, in summary, the major areas of amendment in the bills.
1. Labour Relations Amendment Bill, 2012

Addressing the problem of labour broking

The Labour Relations Amendment Bill retains section 198 and it will continue to
apply to all employees. Temporary employment is limited to genuine temporary
work that does not exceed six months. A temporary employment service is the
employer of persons whom it pays to work for a client and the temporary
employment service and its client are jointly and severally liable for specified
contraventions of employment laws. Additional protection is extended to persons
employed in temporary work and who earn below an earnings threshold (set at the

BCEA threshold of R172, 000.00 per annum). Unequal treatment of those

employed in temporary work who earn below the threshold is prohibited.

Regulating contract work

The amendments introduce regulation of fixed term contracts for those who earn
below the threshold. An employee may be employed on a fixed term contract for
longer than six months only if the work is of limited duration or the employer can
demonstrate a justifiable reason for fixing the term of the contract. An employee
who is employed for longer than six months is deemed to be employed for an
indefinite period and must be treated no less favourable than a permanent
employee doing the same or similar work. The provisions relating to fixed term
contracts do not apply to an employer who employs less than 10 employees, nor
does it apply to an employer who employs less than 50 employees and whose
business has been in operation for less than two years.

Commission for Conciliation Mediation and Arbitration (CCMA)

The bill proposes a range of amendments to the provisions that deal with the
operations of the CCMA to facilitate the resolution of disputes and enhance the
efficiency of the CCMAs operations. These amendments include the exclusion of
high-income earners from bringing unfair dismissal claims to the CCMA.

Strikes and lock-outs

Important amendments are made to chapter four of the LRA which deal with the
procedural requirements for protected industrial action. The changes are intended
to respond to unacceptable levels of unprotected industrial action and unlawful acts
in support of industrial action, including violence and intimidation.

Essential Services
A number of amendments are made to deal with problems that have been identified
with the current system for dealing with disputes in essential services. These
problems include the scope of essential service determinations made, the small
number of minimum service determinations ratified by the Essential Service
Committee (ESC) and the high level of unlawful strike action in essential services.
A new provision deals with public officials exercising authority in the name of the
state, defined as customsofficials, immigration officers, judicial officers and
officials working in the administration of justice.

Organizational rights and collective bargaining

A few amendments are introduced to change the circumstances under which a
Commissioner of the CCMA may grant organizational rights where trade unions
refer disputes relating to these rights. A Commissioner may consider the
composition of the workforce, including the extent to which employees are
engaged in non-standard working arrangements. This provision is aimed at
promoting the organization of those in atypical work situations including being

placed in employment through temporary employment services. Amendments to

provisions dealing with collective bargaining aim to improve the effectiveness
of exemption procedures from collective agreements extended to non-parties.
Bargaining councils will now have 30 days within which to decide on exemption
applications. Appeals against exemption decisions will also have to be dealt with
by an independent body within 30 days.
2. Basic Conditions of Employment Amendment Bill, 2012

Changes to the power of the Minister

Amendments are proposed to give the Minister the power to prescribe thresholds
of representativeness of a trade union to have the organizational rights of access to
employer premises. This is intended to apply to situations where unionization
is difficult but where a more flexible threshold may facilitate unionization within a
sector or area.
Further amendments in this regard propose that the Minister could set
increases to actual wages instead of minimum wages for vulnerable workers in
sectoral determinations
A proposed enabling provision in the Basic Conditions of Employment Act will
provide the Minister with the power to determine the conditions of labour tenants.

Sectoral Determinations
Amendments are proposed to adjust the powers of the Minister and the
Employment Conditions Commission in respect of sectoral determinations to, inter
alia, facilitate regulation of temporary employment by also extending protection of
vulnerable workers and facilitate their right to freedom of association.

Child labour
The provisions in the BCEA dealing with the prohibition and regulation of
child labour are to be extended to cover all work by children and not only
work by children as employees. These amendments will align the BCEA with
South Africas international law obligations in terms of the
International Labour Organisation Convention (No. 182) on the Worst Forms of
Child Labour.

Strengthening the power of the inspectorate

While the framework for enforcing compliance with the BCEA is maintained,
amendments are proposed to sections 68 and 73 to remove bottle-necks and delays
in the enforcement process.

The maximum term of imprisonment for an offence involving child labour or
forced labour is increased from three to six years. A new clause also prohibits
conduct by employers where they require or accept any payment by or on behalf of
an employee in respect of employment or the allocation of work and an employer

may not require an employee to purchase any goods or services from the employer.
The maximum penalties that may be imposed for a breach of the BCEA not
involving underpayment are increased for the first time since the Act came into
effect in 1998.
The two bills that are to be submitted to Parliament have been the subject of robust
engagement between the social partners at NEDLAC during the past year. While
there has been substantial agreement on many of the amendments, there remain
key areas of disagreement. On these areas of disagreement, business and labour are
entitled to put forward their views during the Parliamentary process in terms of the
NEDLAC Protocol.
The Department will be conducting briefing sessions in the major centres of each
province over the next few weeks. The aim of these sessions will be to inform the
public of the proposed amendments to the LRA and the BCEA. We recognise the
important role that the media will play in this regard and we look forward to your
cooperation in ensuring that information on the bills is disseminated in an objective
and accurate manner.


Works Committee
A committee of workers and management which discusses the organisation of
work in a factory
An committee established to accomplish a particular task or to oversee an ongoing
area in need of control or oversight. Many are research or co-ordination
committees in type or purpose, and can be temporary. Some are a sub-group of a
larger society with a particular area of interest which decides to meet and discuss
matters pertaining to their interests


Works Committee
(1) In the case of any industrial establishment in which one hundred or more
workmen are employed or have been employed on any day in the preceding twelve
months, the appropriate government may by general or special order require the
employer to constitute in the prescribed manner a Works Committee consisting of
representatives of employers and workmen engaged in the establishment, so however
that the number of representatives of workmen on the Committee shall not be less
than the number of representatives of the employer. The representatives of the
workmen shall be chosen in the prescribed manner from among the workmen engaged
in the establishment and in consultation with their trade union, if any, registered under
the Indian Trade Unions Act, 1926 (16 of 1926).
(2) It shall be the duty of the Works Committee to promote measures for securing and
preserving amity and good relations between the employer and workmen and, to that
end, to comment upon matters of their common interest or concern and endeavor to
compose any material difference of opinion in respect of such matters.

Central Government Act Section 3 in The Industrial Disputes Act, 1947 3.
WorksCommittee.- (1) In the case of any industrial establishment in which one
hundred or more workmen are employed or have been employed on any day in the
preceding twelve months, the appropriate Government may by general or special
order require the employer to constitute in the prescribed manner a
WorksCommittee consisting of representatives of employers and workmen
engaged in the establishment so however that the number of representatives of
workmen on the Committeeshall not be less than the number of representatives


Safety is the state of being "safe" , the condition of being protected against
physical, social, spiritual, financial, political, emotional, occupational,

psychological, educational or other types or consequences of failure, damage,

error, accidents, harm or any other event which could be considered non-desirable.
Safety can also be defined to be the control of recognized hazards to achieve an
acceptable level of risk. This can take the form of being protected from the event or
from exposure to something that causes health or economical losses. It can include
protection of people or of possessions.


There are two slightly different meanings of safety. For example, home safety may
indicate a building's ability to protect against external harm events (such as
weather, home invasion, etc.), or may indicate that its internal installations (such as
appliances, stairs, etc.) are safe (not dangerous or harmful) for its inhabitants.
Discussions of safety often include mention of related terms. Security is such a
term. With time the definitions between these two have often become interchanged,
equated, and frequently appear juxtaposed in the same sentence. Readers
unfortunately are left to conclude whether they comprise a redundancy. This
confuses the uniqueness that should be reserved for each by itself. When seen as
unique, as we intend here, each term will assume its rightful place in influencing
and being influenced by the other.
Safety is the condition of a steady state of an organization or place doing what it
is supposed to do. What it is supposed to do is defined in terms of public codes
and standards, associated architectural and engineering designs, corporate vision
and mission statements, and operational plans and personnel policies. For any
organization, place, or function, large or small, safety is a normative concept. It
complies with situation-specific definitions of what is expected and acceptable.
Using this definition, protection from a homes external threats and protection from
its internal structural and equipment failures (see Meanings, above) are not two
types of safety but rather two aspects of a homes steady state.

In the world of everyday affairs, not all goes as planned. Some entitys steady state
is challenged. This is where security science, which is of more recent date, enters.
Drawing from the definition of safety, then:
Security is the process or means, physical or human, of delaying, preventing, and
otherwise protecting against external or internal, defects, dangers, loss, criminals,
and other individuals or actions that threaten, hinder or destroy an organizations
steady state, and deprive it of its intended purpose for being.
Using this generic definition of safety it is possible to specify the elements of a
security program.


1 Canteen facilities: Cafeteria or canteens are to be provided by the employer
so as to provide hygienic and nutritious food to the employees.
Def : a restaurant provided by an organization such as a college, factory, or
company for its students or staff.

.Equipment.(1) There shall be provided and maintained sufficient utensils, crockery,

cutlery, furniture and any other equipment necessary for the efficient running
of the canteen. Suitable clean clothes for the employees serving in the
canteen shall also be provided and maintained.
(2)The furniture, utensils and other equipmenrt shall be maintained in a
clean and hygienic condition. A service counter, if provided, shall have a top
of smooth and impervious material. Suitable facilities including an adequate
supply of hot water shall be provided for the cleaning of utensils and
Prices to be charged.(1) Food, drink and other items served in the canteen shall be sold on a non-profit
basis and the prices charged shall be subject to the approval of the canteen
Managing Committee:

Provided that where a canteen is managed by workers co-operative society, the

prices to be charged may include a margin of profit upto maximum of 5 percent of
its working capital.
(2) In computing the prices referred to in sub-rule (1) the following items of
expenditure shall not be taken into consideration, but will be borne by the
occupier :(a) the rent for the land and building;
(b) the depreciation and maintenance charges of the building and equipment
provided for the canteen;
the cost of purchase, repairs and replacement of equipment including furniture,
crockery, cutlery and utensils;
(d) the water charges and expenses for providing lighting and ventilation


The Co-op Committee is responsible for planning the annual Co-op picnic each
fall, which includes decisions pertaining to food, fun and entertainment
All committees report to the Board of Directors and should work strictly
within the charges given them by the Board of Directors. Each committee
will have a board member assigned to them as a liaison.
Committee members play a supportive role to the board by doing research,
gathering information, tabulating data, making comparisons, determining
cost options, and presenting recommendations to the Board. Committees
contribute to productive board meetings and facilitate the co-ops orderly

Committees enable the Board of Directors to receive more resident input.

Their suggestions and recommendations to the board are intended to
represent the cooperative owners point of view and to offer different
viewpoints from those of the manager or a contractor.

Committees do not set policy. Committee members must understand that it is

their duty to recommend, and that it is the duty of the Board to consider and
enact. Members who understand the proper role of the committee are less
likely to become disillusioned if their recommendations are not followed.
The committee may be concerned with but one segment of the co-op, while
the Board must consider what is best for the development as a whole, both
for the present and for the future. The responsibility for making decisions
rests with the Board of Directors.

Committees are an excellent place to for developing leaders to learn the

cooperative and can be a future board member. Committee members work
on bits and pieces of the huge job of making the cooperative work.
Committee members are an excellent place to look for new board members
to replace a board member who is moving away. Depending on the
committees task, from three to ten members form a group of workable size.
Committee members should, insofar as possible, represent all elements of
the co-op population with regard to age, race, religion, and sex.


Statement of purpose:
The Co-op committee is responsible for planning the annual Co-op picnic
each fall, which includes decisions pertaining to food, fun and
The Co-op Committee is responsible for planning the annual Co-op picnic
each fall, which includes decisions pertaining to food, fun and entertainment
1. Responsible for encouraging member participation.
2. Plan, set up and run the Co-op fest, which include food and
3. Prepare fliers for the news letter.

4. Give monthly reports to the Board of Directors.

5. Submit a final accounting of all funds spent for the co-op fest.
6. Prepare an annual budget for the committees needs.



A cooperative is an organization formed and owned by its members to serve a

specific purpose. Cooperatives in business are usually strategic partnerships
consisting of businesses and influential individuals in a single industry coming
together to achieve a common goal. Cooperatives appoint boards of directors
similar to corporations and nonprofit organizations, and the duties of cooperative
boards are much the same as their counterparts in other organizations. However, a
number of distinct characteristics of co-op board duties are worth studying to gain
insight into how cooperatives work.
Strategic Guidance
Simply stated, the main purpose of a cooperative board of directors is to set grand
strategic goals and develop an overarching vision for the organization. The board
comes together to set organizational objectives for upper-level managers, who
translate grand strategic goals into more measurable and specific objectives. The
board of directors bears the responsibility for moving the organization in a
productive direction, as defined by the cooperative's strategic goals.

Cooperative boards of directors can be made up of representatives from each
member entity, creating a situation almost resembling a congressional body.
Having a representative from each organization on the board of directors of a
cooperative ensures that each company has a voice in strategic decision-making.
This can ease relations between members of a co-op, which may have been direct
competitors before entering into the partnership. Because of this, nonprofit board
members almost have to play the role of politicians as well as business leaders,
keeping relations smooth between all of the member entities.
Co-op boards are responsible for recruiting and hiring executive level managers in
the organization, who are then responsible for hiring at lower levels. This is
another way to ensure that each member organization's interests are represented in
the decisions and actions of the co-op -- each member's organization has voting
power in appointing members of the board, who appoint the executives that make
day-to-day decisions. Although this can be said of all boards, this function takes on
additional significance due to co-op members' relationships.
Policy Development
A board of directors in a cooperative functions as a policy-making body when it
comes to big-picture issues such as financial responsibility, equal employment
opportunity issues, compliance with applicable legal guidelines and the co-op's
business dealings with its own members. Board members also create policies
governing the appointment and duties of board officers, including the board
president, secretary and treasurer. The board may set specific guidelines for hiring
practices to ensure compliance with EEO laws, for example, or may set policies
regarding executive compensation.
Financial Functions
Cooperative boards of directors are actively involved in the budgeting and
financial reporting processes of the organizations they oversee. Board members
function as intermediaries between the organization and external stakeholders at
annual meetings, press conferences and public relations events, as well as setting
financial goals for co-op managers to reach for. In this way, board members
function as the face of the cooperative when dealing with the public and potential


Employee grievance refers to the dissatisfaction of an employee with what he
expects from the company and its management. A company has to provide an
employee with a safe working environment, realistic job preview, adequate
compensation, respect etc.
However, when there is a gap between what the employee expects and what he
receives, it leads to grievances.
Employee grievances may or may not be justified. However, they need to be
tackled adequately because they not only lower the motivation and performance of
the employee but also affects the work environment. Employee grievances if left
unchecked can lead to large disputes within the company. Any company must have
a proper channel for employee grievance redressal.


The causes of grievances
The causes of grievances may be broadly classified into the following categories:
(1) Grievances resulting from working conditions

(i) Improper matching of the worker with the job.

(ii) Changes in schedules or procedures.
(iii) Non-availability of proper tools, machines and equipment for doing the job.
(iv) Unreasonably high production standards.
(v) Poor working conditions.
(vi) Bad employer employee relationship, etc.
(2) Grievances resulting from management policy
(i) Wage payment and job rates.
(ii) Leave.
(iii) Overtime.
(iv) Seniority and Promotional.
(v) Transfer.
(vi) Disciplinary action.
(vii) Lack of employee development plan.
(viii) Lack of role clarity.
(3) Grievances resulting from personal maladjustment
(i) Over ambition.
(ii) Excessive self-esteem or what we better know as ego.
(iii) Impractical attitude to life etc. Let us see what can you add to this list.