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The advantages and disadvantages of long-term collective bargaining within the Metal & Engineering Industry and Mining Industry

- Labour Research Service (LRS)

Authors: Labour Research Service (LRS)
Date: 2002-11
Subjects: Uncatalogued
Language: English
Type: book , text
Identifier: http://hdl.handle.net/10962/60190 , vital:27745
Description: This report highlights the advantages and disadvantages of long-term collective bargaining within the Metal & Engineering and Mining industries. It does not aim to set standards but to provide useful information on the experiences of negotiators bargaining for multi-year agreements. To this end a questionnaire was designed to draw commentary from various role-players within the abovementioned industries on the issue under investigation.
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Date Issued: 2002-11

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The advantages and disadvantages of long-term collective bargaining within the Metal & Engineering Industry and Mining Industry

- Labour Research Service (Cape Town, South Africa)

Authors: Labour Research Service (Cape Town, South Africa)
Date: 2002-11
Subjects: Collective bargaining , Labour unions
Language: English
Type: text , pamphlet
Identifier: http://hdl.handle.net/10962/111475 , vital:33465
Description: In 1924 the Industrial Conciliation Act was passed setting up a system of centralised collective bargaining for white workers. Black employees were excluded from this legislation. The Act allowed for the establishment of industrial councils that set wages and conditions of sendee for white workers. The 1970’s was marked by a rapid increase in the number of black workers especially in the manufacturing industries. This led to the rise in militant black trade unions fighting against low wages and poor working conditions of black employees. The state then passed the Black Labour Relations Act of 1973 through which liaison and works committees were set up at plant level. These committees were however, rejected by black trade unions as they did not ensure any improvements in the working conditions of black workers. As the militancy of black trade unions began to grow, a new Industrial Conciliation Act was legislated in 1979 that included all black workers (although migrant workers were initially excluded). The Act allowed for the registration of black unions and participation in centralised bargaining within the industrial councils. The new law still did not protect the rights of black workers and the trade unions instead adopted a strategy of strengthening plant level negotiations as opposed to centralised bargaining. In the late 1980’s as the trade unions strengthened their power base on the shopfloor, they once again changed their strategy and opted for industry wide collective bargaining. This move came about as trade unions realised the potential of industry wide industrial action to ensure improved wages and working conditions of black workers. This move also allowed for the bargaining of non-wage benefits such as maternity benefits, provident funds, health and safety issues, etc. Employers were now opposed to centralised bargaining and reintroduced plant level negotiations by closing several key industrial councils. The 1990’s was characterised by increased pressure from trade unions to legislate centralised bargaining. The Labour Relations Act (LRA) of 1995 was enacted to allow for the establishment of bargaining councils, which replaced industrial councils. However, the LRA only facilitates and promotes centralised bargaining but does not make it compulsory. With the push for increased centralised bargaining came the expansion of the bargaining agenda to include industry' and sector policies, workplace and sector restructuring. HIV/AIDS policies, employment equity, skills training, etc. Employers then began to argue for the introduction of multi-year agreements so that sufficient time could be given to incorporate not only'wage issues but also other socio-economic concerns raised by workers. With the onset of globalisation came the pressures towards increased international competition, restructuring of workplaces, retrenchments, casualisation, privatisation, etc. Collective bargaining is thus being conducted under difficult economic pressures as workers lose their jobs and inflation rates are escalating. Within this climate employers are set to push for the reintroduction of enterprise level bargaining especially in sectors where trade union militancy is strongest. International trends show an increase in - enterprise level bargaining where individual contracts are negotiated. In addition, where centralised bargaining is set to continue, employers will fight to introduce multi-year agreements to allow for more time to phase in non-wage socio-economic demands placed on the negotiating table by workers.
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Date Issued: 2002-11

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