N5 Entrepreneurship 1. Introduction


Module 5 dealt with the recruitment and appointment of staff in a business. In this module we will discuss the rights of employers and employees as well as how their relationship is regulated by law.


The relationship between an owner/manager and his or her staff is a vital part in the successful running of any business. The Labour Relations Act (1997) spells out the rights of the different parties and provides a framework to regulate relationships between these parties. The Act promotes the right to fair labour practices, to form and join trade unions and employers’ organisations, to organise and bargain collectively, and to strike and lock out. The Act also protects employers and employees from discrimination and victimisation if they exercise these rights.


Trade unions Trade unions are formed when employees in a specific business, industry, trade or career unite with the aim of organising the relations between them and their employers. This organisation of employees strives to promote the social, economical and political interests of these employees. Employees are free to join a trade union and an employer cannot prevent him or her from doing so or dismiss an employee for joining. Trade unions play a very important role in businesses and managers should be prepared and learn the necessary skills to deal with them. The Labour Relations Act (1997) spells out the following rights for trade unions:


1. Access to the workplace • unions can enter an employer’s premises to recruit or meet members • hold meeting outside working hours on employer’s premises • conduct elections or ballots among its members


2. Subscriptions Trade union subscriptions can be deducted from employees’ wages.


3. Elections Election of trade union representatives at the workplace. The representative can: • assist and represent employees in grievance and disciplinary proceedings • monitor employer’s compliance with labour laws


4. Union Duties


Union representatives are entitled to reasonable time off with pay during working hours to: • perform their functions as union representatives • receive training in the functions of union representatives


5. Disclosure Unions have a right to disclosure of information by the employer on certain workplace issues.


The Act protects employees and job seekers in the following ways: • it prohibits employers from victimising employees or job seekers because of their trade union activities


• it prohibits employers from favouring employees in some way to prevent them from joining a trade union.


Activity 1 1. In which areas of a business can trade unions have an input? 2. Refer back to the activity dealing with departmentation of well-known businesses. For each of these companies find out which trade unions are active in that industry?


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