Labour must know the labour markets

1. TEST 1 FEEDBACK
Not studying at all
Spot studying
Question analysis
Application of theory

2. UNITARISM
Autocratic style –
control at the hand
of the employer
No room for
opposition
groups in the
workplace
Controlling
boss rule is
legitimate
Commitment to
the org and to
management is
expected
Conflict seen as
unnatural and
dysfunctional
If conflict
occurs –
breakdown in
communication
Trade unions
seen as an
interference

3. PLURALISM People have the right to
freedom of association
Conflict is
accepted, natural
and important
Trade unions and employer
organisations seen as legitimate
as it provides protection
Collective bargaining –
generally decentralised,
dynamic and democratic
Ee’s right to strike and er’s
right to lockout is
beneficial to maintaining a
balance of power between
the parties
It does not imply that all
conflict will be settled by
compromise
Give and take

4. TYPES OF POWER

5. RELATIONSHIP BUILDING INTERVENTIONS
(RBI)
 Globally, organisations face pressure to transform – build and
sustain competitive advantage.
 In SA, due to historical political imbalances companies are
also under pressure to transform based on demography of
ownership, workforces and their suppliers.
 RESULT – Conflict within organisations
 NB – RBI offer an approach to assist organisations

6. 4 STAGES/PHASES OF RBI
Preparatory
Problem
Analysis
Action Planning
Implementation
and follow-up

7. TYPES OF LABOUR DISPUTES
 Disputes of rights
 A dispute of right constitutes a legal claim to which a
party to the employment relationship is entitled. This
entitlement is constituted by virtue of the (1) employment
contract, (2) a collective agreement, (3) a statute or even
common law.
 Disputes of interest
 An interest dispute involves a claim by a party which
relates to something new, that the party would like to
achieve, therefore something that party is not entitled to
yet. (COVID-19 – flexible working arrangements).

8. IMPORTANT CHARACTERISTICS OF
THE LABOUR MARKET IN SA
 Sharp increase in the supply of
labour
 Low increases in the demand for (1)
unskilled and (2) semi-skilled workers
 Demand for labour has been most
affected
 Unemployment
 High labour costs and low
productivity
 Labour market segmentation is
substantial
 Income inequality

9. FACTORS THAT INFLUENCE NEGOTIATIONS
Economic factors
• Economic growth, inflation and unemployment.
Social influence
• Attitudes in society will either (1) support or (2) show
lack of support for union activity.
• Lack of housing, inadequate childcare in the
community will find its way to the bargaining table in
terms of benefits.
Technology
• Threat of job losses due to technology

10. FACTORS THAT INFLUENCE NEGOTIATIONS
 DEMOGRAPHIC INFLUENCES
Composition, average age, gender, education level reflect directly on
union composition and objectives, therefore,
on the bargaining relationship and negotiation issues.
1. Younger workers?
2. More female workers?
THE ROLE OF THE PRESS
An opinion forming medium and have an active influence on
negotiations.
May disproportionately emphasise issues, or misrepresent events,
thus heightening the tension between parties

11. IMMIGRATION, EMIGRATION, MIGRANT
LABOUR
Coming to live permanently in a foreign country
(Consequences for SA???)
Leaving own country to settle permanently in other
country (Losing high/scarce skills)
Persons who moves from one place to
another to find work or better living
conditions

13. LECTURE TIME
27/04/2024
 Starting time: 08:30
 Ending time: 12:00
 Focus area: Units 6 and
7

14. GLOBAL COMPETITIVENESS RANKING: 2021 -
2022
 63 countries surveyed – SA results below:
 Overall competitiveness – 60th
 Business efficiency – 56th
 Economic performance – 59th
 Infrastructure – 60th
14

15. THE DEMAND FOR LABOUR
UNIT 5

16. DEMAND
FOR
LABOUR
 Is a derived demand
 It is dependent of the consumer
demand for the product produced by
that labour or service provided by
that labour

17. WORK
VS
EMPLOYMENT

18. WHAT ARE WORK AND EMPLOYMENT
 Work – Is not employment
 The application of physical and mental effort to a task
 Work exists inside and outside of EMPLOYMENT
 Employment – Is paid work
 The condition of working for pay
 Employment is work performed under contractual arrangements &
involves material rewards.
 It can be an exchange relationship between a contractor or an employer,
employee.
18

19. WORK AND
EMPLOYMENT ARE
CORE ACTIVITIES
FOR INDIVIDUALS
AND SOCIETY

20. FUNCTION OF WORK IN SOCIETY
 Satisfy basic needs – farming
 Material rewards
 Emotional – self-confidence, self-efficacy
 Personal identity
 Social relations and identity
 Status
 Spiritual – The creation of meaning
20

21. EMPLOYMENT
NB – Level of employment
in SA is difficult to measure
due to:
 Informal activities
 Small businesses
 Irregular forms of
employment
 Employment in some
important sectors

22. 22
MAIN DRIVERS OF DEMAND FOR LABOUR
Political Systems: [Governance and Power structures]
Nation.
Economic Systems: A system of production, resource
allocation, exchange and distribution of goods in a society.
Technology: Agrarian production; 1st
, 2nd
, 3rd
and 4th
Industrial Revolutions

23. UNEMPLOYMENT IN SOUTH AFRICA
 CURRENTLY: 32.1% - 7,9 million
 Unemployment increase to 33.5% - end
of 2024
 Unemployment increase to 33.9% - end
of 2025
23

24. REASONS?

25. MAIN REASONS

26. THE NATURE AND EFFECT OF
EMPLOYMENT ON THE LABOUR MARKET
 Increase in production – increase in the demand for labour.
 Impact of economic growth on the demand for labour change over
time.
 Can be measured by employment elasticity of economic growth.

27. ATYPICAL EMPLOYMENT
 Is defined as employment that is not full-
time
 It is characterised as employment of a
limited duration (temporary)
 Eg. Labour Brokers
 Sharp increase in the utilisation of such
employees
 Non-standard employment.
 Sharp increase in the use of non-standard
employment.
 NB – Atypical employment is an important
element to address youth unemployment.
 Reduces labour costs
 Allows flexibility in the use of labour

28. UNDEREMPLOYMENT
 Similar to atypical employment
 Refers to underutilisation of labour
(two types):
 Visible underemployment:
Involuntarily work fewer then
normal hours
 Invisible underemployment:
Misallocation of labour resources

29. FACTORS THAT INFLUENCE
THE DEMAND FOR LABOUR IN
SOUTH AFRICA
 The rate and nature of economic
growth
 Trade liberalization – Grey listing
 The impact of unions and
bargaining councils on labour costs
 Labour legislation that increases
the indirect cost of labour or
hinders productivity increases

30. STRATEGIES TO CREATE JOBS IN SOUTH AFRICA
 Economic growth and export – S.A’s economic performance has been
under impressive by world standards
 Allowing higher inflation in order to create more jobs – Has a levelling
out effect at the end
 Implementing employment enhancing policies
 The cost of labour
 Labour market flexibility and productivity
 Active labour market policies
 Strong skills base
 Formal and informal small enterprise sector

31. Questions