LABOUR RELATIONS ACT/LRA

Business studies Grade 12 Labour relations Act

Purpose of the Labour Relations

Provides a framework/structure for labour relations between employers and employees.
Promotes collective bargaining at the workplace.
Promotes workplace forums to accommodate employees in decision-making.
Establishes Labour Courts and Labour Appeal Courts.
Promotes simple procedures for the registration of trade unions and employer organisations.
Provides for the right to be locked out by the employer as a reaction to lengthy strikes.
Promotes fair labour practices between employers and employees.
Clarifies the transfer of employment contracts between the existing and new employers.
Advances economic development/social justice/labour peace to ensure that the workplace maintains the basic rights of employees.
Establishes the Commission for Conciliation, Mediation and Arbitration (CCMA) for dispute resolutions.

Promotes a healthy relationship between the employer and employees
Protects the rights of businesses in labour-related issues.
Labour disputes are settled quicker and are less expensive.
Protect employers who embark on lawful lock-outs when negotiations between parties fail.
LRA provides for the principles of collective bargaining and puts structures in place with which disputes in the workplace can be settled.
Provides specific guidelines for employers on correct and fair disciplinary procedures.
Employers and employees have guidelines regarding correct and fair dismissal procedures.
Provides mechanisms such as statutory councils/collective bargaining/ CCMA.
Employers are entitled to compensation from the Labour Court if they suffered damages as a result of unprotected strikes.
Workplace forums can add value to businesses if they function properly.

Negatives/Disadvantages

Productivity may decrease if employees are allowed to participate in the activities of trade unions during work time.
Costs of labour increase because of legal strikes
Reduced global competitiveness due to lower productivity
Employers may have to disclose information about workplace issues to union representatives that could be the core of their competitive advantage.
Employers may not dismiss employees at will, as procedures have to be followed.
Some businesses may feel that the LRA gives employees too much power as it creates lengthy procedures, e.g. consulting with workplace forums.
Employers may not get a court interdict to stop a strike.
Strike actions always result in loss of production for which employers may not claim.
Some trade unions may not promote the mandate of their members but embark on industrial action, which is harmful to labour relations between employers and employees.
Many employees and employers do not understand/respect the Labour Relations Act.
Labour disputes and bargaining council processes become disruptive/time-consuming and can lead to a decrease in productivity in businesses.
Many employees take advantage of the right to strike without acknowledging their responsibilities.

Discriminatory actions according to the LRA

Unfair/Illegal dismissal of employees.
Cancellation of employees’ contracts by a new employer when a business is sold
Refusing the establishment of workplace forums.
Refusing to give workplace forum members paid time off for attending meetings during working hours.
Forcing employees to give up trade union membership.
Preventing employees from joining trade unions.
Refusing to leave to trade union representatives to attend trade union activities.
Breaching of collective agreements/resolution mechanisms by either employer/employee.
Not allowing employees to take part in legal strikes( Employees’ rights)
Penalties for non-compliance with the LRA
The employer may be forced to enter into a dispute resolution process.
Businesses will be fined if they fail to comply with the agreements reached during the dispute resolution process.
Businesses that fail to comply with this Act may risk financial costs e.g. legal/CCMA fees and fines.

Ways in which businesses can comply with the LRA

Businesses must allow employees to form trade unions/participate in union activities/legal strikes.
Allow/Support the establishment of workplace forums.
Employees should not be unfairly/illegally dismissed
Employers should not breach/ignore any collective agreement
Disclose all relevant information required by trade union representatives to do their jobs effectively.

Employers have the right to lock out employees who engage in unprotected/illegal strike/labour action.
Form employer organisations.
Form a bargaining council for collective bargaining purposes.
Dismiss employees who are engaged in an unprotected strike/misconduct such as intimidation/violence during a strike action.
Right not to pay an employee who has taken part in a protected strike for services/work they did not do during the strike.

Employees may join a trade union of their choice.
Request trade union representatives to assist/represent employees in the grievance/disciplinary hearing.
Trade union representatives may take reasonable time off work with pay, to attend to trade union duties.
Embark on legal strikes as a remedy for grievances.
Refer unresolved workplace disputes to the CCMA.
Refer unresolved CCMA disputes to the Labour Court on appeal

Business studies Grade 12 Labour relations Act

Labour Relations Act