Labour Relations Act Impact on Businesses

Labour Relations Act (LRA)

• The LRA promotes a healthy relationship between employers and employees, protecting the rights of both parties in labour-related issues.
• Labour disputes are settled quickly and are less expensive.
• The Act provides for the principles of collective bargaining and structures for settling disputes in the workplace.
• It provides specific guidelines for employers on correct and fair disciplinary procedures and dismissal procedures.
• Mechanisms such as statutory councils, collective bargaining, and the CCMA are established to resolve disputes.
• Employers are entitled to compensation from the Labour Court if they suffer damages as a result of unprotected strikes.

Impact of the LRA on Businesses

• Positives:
  • Protects the rights of businesses in labour-related issues.
  • Labour disputes are settled quickly and are less expensive.
  • Workplace forums can add value if they function properly.
  • Protects employers who embark on lawful lock-outs when negotiations fail.
• Negatives:
  • Employers may not get a court interdict to stop a strike.
  • Costs of labour increase due to legal strikes.
  • Strike actions result in loss of production for which employers may not claim.
  • Productivity may decrease if employees participate in trade union activities during work time.

Technological, Environmental, and Legal Challenges

• Technological challenges:
  • Businesses may not keep up with the latest technology.
  • Employees may not be skilled to operate or maintain new technology.
  • Businesses may not be able to afford new technology.
• Environmental challenges:
  • Chemicals in products may be harmful to customers.
  • Disposing of business waste may be expensive.
  • Packaging may not be environmentally friendly or recyclable.
• Legal challenges:
  • Certain Acts may impact businesses directly (e.g., CPA, BCEA).
  • Legal requirements for operating certain types of businesses can be time-consuming.
  • High legal costs are involved in obtaining a licence, trade mark, or patent.

Recommendation

• Continuous research on the latest available technology and equipment.
• Train existing or appoint new employees to maintain and use new equipment.

Implication of Labour Legislation on Human Resources

• Labour Relations Act (LRA):
  • Workers cannot be easily dismissed as the bargaining council/CCMA processes need to be followed.
  • Provides a framework for employees, trade unions, and employers to discuss employment matters.
  • Human resource managers should allow workers to form workplace forums/trade unions to promote employee interests.
• Basic Conditions of Employment Act (BCEA):
  • Workers should work 9 hours per day in a 5-day work week or 8 hours per day in a 6-day work week.
  • Overtime may not exceed 10 hours per week.
  • Workers must have a break of 60 minutes after 5 hours of work.
  • Workers can take up to 6 weeks paid sick leave during a 36-month cycle.
  • Businesses should not employ children under the age of 16.