Chapter 1

An introduction to labour
relations
 Learning objectives
• Define labour relations
• Reflect on the origins of labour relations
• List and describe the major theories of labour
relations
• Identify the parties that are involved in the labour
relationship, as well as their roles.
• Distinguish between “employee” and
“independent contractor”
 Learning objectives (cont.)
• Explore the concept of conflict and conflict
resolution in the context of the labour
relationship
• List and discuss the micro- and macro-
environmental factors that impact on labour
relations
• Understand that labour relations is an academic
discipline as well as a practice
1.1 What is labour relations?
• An all-encompassing term used to describe the
dynamic complexities of the various
relationships between parties to the employment
relationship.
• “A broad, interdisciplinary field of study and
practice that encompasses all aspects of the
employment relationship” (Kochan & Katz 1998)
• Note: ‘Labour relations’ versus ‘industrial
relations’
1.2 Defining labour relations
Features:
• All about interactions (tripartite)
• Contextualised within an environment
• Based on managing relationships
• Institutionalisation of labour relations
1.2 Defining labour relations
Labour relations may be defined as:
The area of study and practice of the roles of
and the interactions between the parties to
the labour relationship, the various rules and
regulations which govern that relationship,
and the environment in which the relationship
plays out.
1.3 The origins of labour relations
• Labour originally for the benefit of family /
landowner / community
• Industrial revolution
• Factory system
• Division of labour
• Adam Smith
• Dehumanisation of workers
1.3 The origins of labour relations

• Karl Marx (communism & capitalism)

• Workers organisations
• Industrial action
• 1891: “collective bargaining” (Webb)
1.4 The major theories on labour
relations

• Unitarist approach (authoritarian; conflict denial)

• Pluralist approach (conflict management)
• Marxist approach (exploitation & revolution)
1.4 The major theories on labour relations

“What is the closest analogy to the organisation?

Is it …

• Like a team unified by a common purpose, e.g. a sports

team?
• Or is it more like a miniature democratic state composed
of sectional groups with divergent interests over which
the government tries to maintain some kind of dynamic
equilibrium?”
(Fox 1966)
UNITARISM
• Organisation is a cohesive unit with common
goals and values subscribed to by all
• Managerial prerogative
• Conflict is irrational / unnatural
• Trade unions seen as “agitators” & subversive
• Industrial action unacceptable
PLURALISM
• Organisation is a multifaceted grouping of
individuals with differing viewpoints
• Conflict seen as inevitable / natural
• Conflict must be managed effectively
• Trade unions a legitimate forum for coordinating
and expressing interests
• Industrial action legitimate
• Power-balance necessary
MARXISM
• Organisations are all about wealth creation for
the few - capitalism
• Marxism – productive capacity and fruits thereof
to be owned and shared among the people
• Overthrow capitalism through social revolution
• Trade unions are vehicles for fundamental
societal change
1.5 The parties to the employment
relationship and their respective roles
The secondary employment
relationship
• State & employers/employees
• State provides a framework by establishing rules
& regulations
• SA a highly regulated labour market:
- Constitutional right to fair labour practices
- Comprehensive labour legislation (also
largely governing the state as employer)
The primary employment
relationship

• Employee & employer

• Conflict a key feature
• Who is an employer?
• Who is an employee?
• LRA: S 213
Employee vs Independent Contractor

• Why distinguish?
• Contract of Employment/Service (“master-servant”)
• Contract of Work (independent contractor)
• Can be difficult to distinguish
- IT progressions
- Physical location
- Skill advancement
- Outsourcing
Employee vs Independent Contractor

• Control test
• Organisation test
• Dominant impression test
Employee vs Independent Contractor

• LRA: S 200(A)

• Now difficult for employers to

“contract out” of protection given to
employees by legislation.
Power and Conflict
• Traditionally, employer inherently more powerful than
employee = exploitation
• Conflict is inherent to all relationships
• Conflict can be constructive if properly managed
• Potential sources of conflict:
• Relationship itself
• Wage disputes
• Scarcity of resources
• Goal incongruence
• Diversity
• Etc.
Potential for conflict

A CASE STUDY: FRANK & JOE

Routes towards conflict resolution

• Avoidance
• Power
• Rights
• Consensus
1.6 The environment for labour
relations in South Africa