Co-Determination: The Answer to South Africa’s Industrial Relations Crisis

358 Pages·2019·8.345 MB·English

by  Rica Viljoen, Henk van Zyl, Joyce Toendepi, Stefan Viljoen

CO-DETERMINATION
The Answer to South Africa’s
Industrial Relations Crisis
RICA VILJOEN • HENK VAN ZYL
JOYCE TOENDEPI • STEFAN VILJOEN
CO-DETERMINATION
ENDORSEMENTS
Conflict to Co-determination
The economic crises and political situations in South Africa and Africa are not
conducive to the survival and sustainability of companies. Co-determination is a model
that encourages unions and companies to view and consider their positional approach
when dealing with operational and strategic issues. This does not necessarily mean
unions should abandon their fundamental principles when dealing with the mandates
and interests of their constituencies, however. 
It is common cause that some unions view co-determination in a negative light,
in the sense that a union that participates in co-determination is seen as sleeping
in the same bed as the employer. I think this perception emanates from the South
African historical perception that companies are not trustworthy, and that their interests
lie with the profit margin without taking their staff complement into consideration.
My experience with this model is that it is a platform or vehicle that union
leaders can utilise to enhance the interests of their constituencies.  Simultaneously,
they can have a clear vision of the challenges that the company is facing and the kind
of assistance and role they can play to assist in the situation.  At the same time, they
are also saving their constituencies’ work and retain sustainable membership. Union
leaders sometimes make a serious mistake if they don’t interact with companies or
have insufficient information prior to taking a decision. 
Co-determination promotes  collective decision-making between a company
and a union.  The company decision alone is no longer applicable in terms of
this model; it is gone and buried. Marikana is a classic example of company and
union decisions that were far apart from each other, and at the end of the day, both
parties suffered the negative consequences.
 Motebang Botsane, National Office Bearer of the Transport and Services Worker Union
(TASWU); full time Shop Steward from IBL.
Mr Botsane played a significant role in the transformation of Interstate Bus Lines.
Central to the reasonable and justifiable management of the ever-present conditions for
creating conflict in the workplace, is acceptance by the representatives of capital, who
are positioned in various highly-placed company structures, that of equal importance
for the successful running of the enterprise is acknowledgement of the positive role
that the people who possess labour (intellectually or physically) can play in ensuring
the sustained growth of the enterprise.
In democratic South Africa, there remains a need for the conscious recognition
of the diverse nature of the productive forces found in the workplace, as well as a
desirability for the interaction of these forces as equal partners through democratic
practices, with the aim of harnessing the collective brain power of all the recognised
stakeholders populating and surrounding the enterprise, for the purpose of working
towards the benefit of the enterprise and all who make a living out of its proceeds.
The object and purpose of the LRA, as seen in Chapter 1 [section 1(a) and section
1(d)(iii)] of the Act, together with the provisions for the establishment of Workplace
Forums (Chapter 5 of the LRA), which inter alia are envisaged to promote employee
participation in decisions that affect their working lives, is to provide employees with
greater participation in matters affecting the quality of their lives. In so doing they
give effect to the fundamental rights guaranteed in the Constitution of the Republic
of South Africa Act 108 of 1996, which collectively aim to achieve this mutually
beneficial arrangement of harnessing the collective brain power of all stakeholders
populating and surrounding the enterprise.
Co-determination gives structure towards the realisation of this objective.
Rapesha Meshack John Ramela, CEO: Commuter Bus Employers Organisation
Prior to 1994, bargaining had many different dimensions, with the focus being on
who could gain and who could retain. Shared economic empowerment, other than
shareholder advancement and investor interest, was not considered. With the dawn
of democracy, the creation of a new model based on collective bargaining was
introduced, with a lot of emphasis being placed on creating controlled bargaining
environments. This did not take into account a model of shared capital gains for all
who worked in industries. It seemed like a safe haven as it reduced industrial action,
or better-controlled strikes, with the introduction of laws regulating such strikes. The
introduction of this book and the research and studies that have gone into it bring
a new dimension of shared ownership, where those concerned take equal control of
their future and destiny, and where all share in the growth and welfare of the entity.
The introduction of co-determination opens a new debate, and, more importantly,
endeavours to bring about shared economic empowerment.
Gary Wilson, General Secretary: SARPBAC (South African Road Passenger Bargaining
Council)
The Labour Relations Act (66 of 1995) places a high premium on collective
bargaining, with a focus on employers and employees engaging each other for some
mutually beneficial relationships. Sections 78 to 94 of the aforementioned Act enable
the establishment of workplace forums, which are intended to promote employees’
interest in the workplace while enhancing efficiency. When employees and employers
work towards common goals, new heights will be achieved in organisations, entities
and businesses. Due to many factors, this seems to be only a pipe dream to most
role players, however. Factors such as different goals, varying cultural diversities
and an imbalance of economic power are often cited as reasons why a process of
co-determination cannot work in South Africa as it does in the Scandinavian and
European countries, but the reasons are not limited to the above. This book, however,
puts different perspectives and working models on display that will hopefully create a
new wave for industries to ride.
Douglas Roye Els, CCMA Dispute Management Commissioner (Free State)

Public road transport operations in South Africa fall under the ambit of the South
African Road Passenger Bargaining Council (SARPBAC).
Prior to the establishment of SARPBAC in 1997, conditions of employment
within the Road Passenger Transport sector were regulated by Wage Determination
452, or alternatively by agreements concluded within other industrial councils. The
terms of employment and working conditions were far from uniform amongst the
different operators within the industry. Labour’s demand for the establishment of a
single National Bargaining Council was resisted by employers, who thought that there
would be a propensity for Labour to cherry pick and endeavour to settle collective
agreements at the highest prevailing levels. This in fact proved to be the case, together
with a number of other contributing factors. The move to transport contracts and the
manner in which government passenger subsidies were determined bedeviled wage
negotiations within the National Bargaining Council.
During the 20 years since the establishment of SARPBAC, there have been
pitifully few occasions when wage negotiations have been concluded within the
SARPBAC National Bargaining Forum without third party interventions and/or
strike action. Wage negotiations tend to be adversarial, with very little attempt made
to find win-win solutions that take cognisance of prevailing conditions and try to
meet the needs of all stakeholders. This situation is not peculiar to the road passenger
transport industry, but is, sadly, prevalent in many other sectors within South Africa.
The stark reality is that national wage negotiations are simply not working in the long-
term interests of the industry or its stakeholders.
It has often been said that one cannot expect a different outcome when one
continues to tackle an issue in the same way. Something has to change and this is true
for labour relations in South Africa.
The well-being of company stakeholders requires the well-being of the company.
Employers and employees have a shared and joint responsibility to ensure the success
and well-being of the company. One party cannot expect to “win” at the expense of the
other. Employers need labour and labour needs employers – the parties are inextricably
linked by an umbilical cord that determines success or failure.
Co-determination, as has been introduced at Interstate Bus Lines, is new to the
South African context and is still in an early trial stage. Only time will tell whether it
can prove to be a success here as it is in other arguably more developed countries like
Germany.
What is inescapable, however, is that the path we have been walking has not
successfully addressed growing employer/employee issues or contributed to improving
labour relations. A new approach is long overdue and co-determination might warrant
a closer look and consideration. This book will hopefully contribute to an understanding
and evaluation of co-determination as a possible way forward.
Barry W. Gie, Previous Bus Line Executive
Copyright © KR Publishing and Dr Rica Viljoen, Henk van Zyl, Dr Joyce Toendepi & Stefan Viljoen
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First published in 2019
ISBN: 978-1-86922-755-5 (Printed)
ISBN: 978-1-86922-756-2 (ePDF)
Published by KR Publishing
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Typesetting, layout and design: Cia Joubert, [email protected]
Cover design: Marlene de Villiers, [email protected]
Editing and proofreading: Jennifer Renton, [email protected]
Project management: Cia Joubert, [email protected]
CO-DETERMINATION
The answer to South Africa’s industrial relations crisis
Edited by:
Dr Rica Viljoen
Henk van Zyl
Dr Joyce Toendepi
Stefan Viljoen
2019
DEDICATION
For Dr George Lindeque
This publication is also dedicated to all those human resources practitioners who
have developed processes and new knowledge to enhance the management and
development of those in the world of work.
ACKNOWLEDGEMENTS
This book serves as an acknowledgement to the workers of our rainbow country who
keep our economy ticking.
From the blog The Reading Point, the following dedication is spoken over our
workers in South Africa and the world:
Stand for something without falling for something.
From each according to his ability, to each according to his needs.
God sells us all things at the price of workers.
Labor disgraces no man; unfortunately, you occasionally
find men who disgrace labor.
Let us celebrate the Labour, Those built up this Great Land, Happy May Day.
It was thus important for us to launch this book on Workers Day.