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Current Labour Market Realities. COMMISSION FOR CONCILIATION, MEDIATION AND ARBITRATION. Presentation to the ANNUAL LABOUR LAW SEMINAR 30 JUNE 2011. LABOUR MARKET REALITIES. Imagine a workplace… You performing the same job as someone else …but For a Different wage
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Current Labour Market Realities COMMISSION FOR CONCILIATION, MEDIATION AND ARBITRATION Presentation to the ANNUAL LABOUR LAW SEMINAR 30 JUNE 2011
LABOUR MARKET REALITIES Imagine a workplace… • You performing the same job as someone else …but • For a Different wage • Different working conditions • Different training benefits • No or Absent management • No or low unionization IS THIS OUR NEW NORM?
LABOUR MARKET REALITIES • New reality started creeping in when re entered the global economy. • Not envisaged in the honeymoon period of social dialogue and a belief of shared values (Moral and in the system). • Spirit of LRA was self regulation and strong tripartism, everything could be resolved through dialogue. • We created institutions to embody this - NEDLAC and CCMA
LABOUR MARKET REALITIES • Early years social partners sought to comply with the social partnership dream • We saw the benefits, decline in unprocedural strikes, good relations in some workplaces, an outlet for disputes • Excitement in many workplaces as innovation began to occur • Dialogue, partnerships and joint decision making developed in many workplaces
LABOUR MARKET REALITIES • As years passed, global economic realities began to hit home • Idealism faded, compliance dwindled, and a culture of circumvention rather than compliance crept in • Economy changed…rise and rise of unemployment, poverty remained but also services sector developed in line with global trends……..Labour market focus changed. • Need for unskilled to need for semi skilled and skilled labour. • Finally move towards different forms of employment relationships..outsourcing or triangles crept in, home work Workplace is now different
LABOUR MARKET REALITIES • These changes are significant to the labour market…and the dialogue relationships envisaged • Trend has emerged that managers no longer manage or deal with employees, all outsourced to HR, Labour brokers or consultants • Come running to the CCMA to sort out workplace issues and relationships • The CCMA was there for social justice for vulnerable workers
LABOUR MARKET REALITIES • Not the reality..rub shoulders with executives…& workers • CCMA possibly contributed to this in it’s over proceduralism phase • CCMA is now operating as envisioned, and is efficient. • This has lead to its own problem…victim of its success. • Workers, employees bypassing the establishment channels and coming straight to the CCMA • Mandate expanded, job security project
LABOUR MARKET REALITIES • Management has out sourced its main function to manage people • Downgraded the HR function, not always key decision making forums • Eroded the idealistic gains of the initial phase • Move to technology, yes, but we still need people • Over emphasis on performance outcomes and management, and less and less on people management. • So we are all busy alienating our employees
LABOUR MARKET REALITIES From a Trade Union perspective • New economy hampers capacity to organize • Hard to get new members, new kind of workplaces • Insufficient resources to adequately service members • Inadequate skills, training • Trade Union’s tend to focus on policy to solve workplace issues • Distance between officials and membership • No leadership or direction given as a result Trade unionism as a profession not as noble or as sexy as it was
LABOUR MARKET REALITIES Impact on Collective Bargaining vision? • Not strategic • Neglected area by both sides • Employers have outsourced / downgraded HR & IR • Trade Unions revert to using policy and politics to change workers’ lives • Overall in the CCMA we see a loss of skill and capacity to bargain (loss of influence, continuity, resources)
LABOUR MARKET REALITIES • Trade Unions just pushing for higher wages? • Both sides need strategic engagement, preparation and understanding of where they are going to • Need to have general education about the political and social economy • Not just in times of crisis
LABOUR MARKET REALITIES Where does this leave us? • Workers don’t believe that employers can solve their problems • Plays out where Collective Bargaining disputes are no longer resolved in the Bargaining room • Disempowers everyone in the process – Employer, Worker and Commissioner
LABOUR MARKET REALITIES Why do I say this? • Increase / blurring of lines between who is business and who is in politics • Lines are unclear in workers mind between ownership and control of business Who are the leaders of the country and . . . who are the leaders of the company
LABOUR MARKET REALITIES Greatest impact is on Collective Bargaining • Change in nature of demands, emphasis on comparison with executive pay, class related demands • More adversarial • Post apartheid labour market has been widened, growing income inequality, some economic growth, increase in real wages ? • Related to conspicuous consumption, emerging tenderprenuers, a growing elite
How do we revive the ideal? • Go back to negotiating on the shop floor and take back responsibility for management staff • Recommit to the spirit of the LRA • Build capacity, elevate the importance of HR & IR • Relook at collective agreements and how we are bargaining • Refocus attention on education and training and a real commitment to skills development