10/20/2022 EMS: TRADE UNIONS GRADE 9 1

THE ECONOMY:
TRADE UNIONS
GRADE 9
10/20/2022 EMS: TRADE UNIONS GRADE 9 2

TRADE UNIONS
DEFINITION
• Is an association where employees
(workers) belong together.
• Trade unions are created to represent
the interests of the workers
• A Trade Union acts on behalf of its
membership to improve cooperation
between management and workers
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HISTORICAL DEVELOPMENT OF TRADE

UNIONS
• The start of trade unions stems from the struggle against
racism and national liberation.
• South African trade unions came about with the discovery
of diamonds and later gold.
• Working people got together in the fight for the right to a
decent wage, equality, fraternity and freedom
• 1920 - the dominance of South African labour and trade
union politics by the Industrial and Commercial Workers
Union (ICU).
• Between 1920 – 1980 many different trade unions were
formed in the different industries
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HISTORICAL DEVELOPMENT OF TRADE

UNIONS
• The 1980s witnessed a convergence of forces in the trade
union movement as they formed themselves under an
umbrella union in various sectors where they worked.
Unions such as NUMSA, NEHAWU, CAWU, CCAWUSA and
SADWU were formed often by several trade unions that
merged.
• Numerous strikes broke out in the early part of the
decade across a number of industries.
• Over the decade, the labour movement consolidated its
position with the formation of the Congress of South
African Trade Unions (COSATU) in 1985.
10/20/2022 EMS: TRADE UNIONS GRADE 9 5

HISTORICAL DEVELOPMENT OF TRADE

UNIONS
• The vibrancy of trade unionism in the 80s was
accompanied by increased police brutality on trade
unionists, for instance the death of Neil Agget in
detention and the arrest of six leading women trade union
activists in 1981 among other forms of state sanctioned
harassment.
• All this pointed to the state’s nervousness about an
emboldened trade union movement whose activities
reflected a sense that the edifice of Apartheid was
crumbling.
http://www.sahistory.org.za/article/history-labour-movements-south-africa
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TRADE UNIONS
• Workers join Trade Unions:
• so that they create a stronger position during
negotiations or collective bargaining.
• Negotiate for better working conditions
• Have access to expert opinion on labour issues
• Able to demand:
• better wages,
• working hours
• working conditions
• Challenge unfair dismissal
• Labour issues such as maternity/paternity leave,
benefits, pension. Medical aid etc.
10/20/2022 EMS: TRADE UNIONS GRADE 9 7

TRADE UNIONS
• The 1980s witnessed a convergence of forces in the trade
union movement as they formed themselves under an
umbrella union in various sectors where they worked.
Unions such as NUMSA, NEHAWU, CAWU, CCAWUSA and
SADWU were formed often by several trade unions that
merged.
• Numerous strikes broke out in the early part of the
decade across a number of industries.
• Over the decade, the labour movement consolidated its
position with the formation of the Congress of South
African Trade Unions (COSATU) in 1985
10/20/2022 EMS: TRADE UNIONS GRADE 9 8

TRADE UNIONS
• Trade unions are created to represent the
interests of the workers
• A Trade Union acts on behalf of its membership
to improve cooperation between management
and workers.
• Trade Unions rights are:
• Communicate with members
• Encourage workers to join unions
• Meet with the shop steward at the work place
• Call a strike or stayaway
• Represent workers in negotiations
 10/20/2022 EMS: TRADE UNIONS GRADE 9 9

MAIN UNION FEDERATIONS

• Congress of SA Trade Unions (COSATU)
• Has the largest number of members
• The majority of their members are in the mining and
quarrying sector, followed by the public sector in community,
social and personal services, and electricity, gas and water
supply
• COSATU believes in non-racialism, worker control, paid-up
membership and international worker solidarity. It also
subscribes to the principles of "one industry, one union" and "
one country, one federation".
• It has entered into an alliance with the ANC and the South
African Communist Party, referred to as the tripartite
alliance
10/20/2022 EMS: TRADE UNIONS GRADE 9 10

MAIN UNION FEDERATIONS

• Federation of Unions of SA (FEDUSA)
• The second largest trade union movement
• Its biggest affiliate union is the Public Service
Association
• It describes itself as socially democratic and
politically non-aligned
10/20/2022 EMS: TRADE UNIONS GRADE 9 11

MAIN UNION FEDERATIONS

• National Council of Trade Unions (NACTU)
• Third largest trade union
• NACTU was formed in 1986, an amalgamation of
the Azanian Confederation of Trade Unions and
the Council of Unions of South Africa.
• It aims to build a united worker movement in the
country, and believes in the creation of a just
society where there shall be political power in the
hands of workers.
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WHO CAN BELONG TO A TRADE UNION

• Anyone working in a particular industry can
belong to a union
• e.g. anyone working in an education field can
belong to either SADTU, NEPTOSA, SAOU etc.
• It is voluntary for a person to belong to a union
• However, in most cases there is an agreement
between employers and unions that workers
must join the union if they are working in that
particular industry
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ROLE OF TRADE UNIONS

• Act on behalf of the employees
• Negotiate with employees on behalf of members
• Increase in wages
• Increase in other benefits such as health
schemes etc.
• To establish co-operation between workers and
their employees
• To improve conditions of services
• To improve the work environment of workers
10/20/2022 EMS: TRADE UNIONS GRADE 9 14

ROLE OF TRADE UNIONS

• To provide legal advise to members
• To administer membership fees
• To resolve disputes between members and
their employers
• To study new laws that affect their members
• Assist in establishing skills development
training thus allowing for continuing
professional development and providing
opportunities for advancement
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RIGHTS OF TRADE UNIONS

• Trade Unions rights are:
• Communicate with members
• Encourage workers to join unions
• Meet with the shop steward at the work
place
• Call a strike or stayaway
• Represent workers in negotiations
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RESPONSIBILITIES OF TRADE UNIONS

• Trade unions should not be affiliated with any of the
political parties in South Africa
• The Trade Union must register with the Industrial
registrar
• It should not instigate or encourage strike action in
support of its members
• To solve disputes trade unions should use the
industrial council first
• They may make use of conciliation boards, mediation,
arbitration and the Industrial Court
• They must follow the laid down legislation pertaining
to strike action
10/20/2022 EMS: TRADE UNIONS GRADE 9 17

RIGHTS AND RESPONSIBILITIES OF WORKERS

RIGHTS
• The right to work
• The right to freedom of association
• The right to collective bargaining
• The right to fair treatment

RESPONSIBILITIES
• To attend work regularly and punctually
• Work effectively and productively
• To be honest, trustworthy and respectful
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RIGHTS AND RESPONSIBILITIES OF THE

EMPLOYER

• To remunerate (wages and salaries) workers the

minimum/or better wage/salary
• To provide workers with sufficient work
• To provide a safe working environment for all its
workers.
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STRIKES AND STAYAWAYS BY TRADE UNIONS

• Employees and trade unions are entitled to

participate in industrial action
• This may take place only after certain processes
have been followed
• During Apartheid strikes and stayaways occurred
to force political change
10/20/2022 EMS: TRADE UNIONS GRADE 9 20

STRIKES AND STAYAWAYS BY TRADE UNIONS

• “Go-slow” workers work only for a certain number
of hours. Businesses function at a slower rate.
• Stay away – here workers stay away from work.
No work is done and businesses come to a stop.
• Strike – here workers do not work. They protest
by
• Placard protestations
• Marching to parliament to hand over a
memorandum of their demands
• This may lead to violence and destruction.
• Lock out – the management refuses to allow
workers onto the premises to do work until
demands are met
10/20/2022 EMS: TRADE UNIONS GRADE 9 21

INFLUENCE OF STRIKES AND STAYAWAYS BY

TRADE UNIONS
• Strikes and stayaways poses a negative influence
on the general economy
• The economy declines
• Sales and services decrease
• Income to business declines
• This all leads to less money in circulation
10/20/2022 EMS: TRADE UNIONS GRADE 9 22

EFFECT OF TRADE UNIONS ON

BUSINESS
• Trade Unions recognise that businesses have to be
competitive in the domestic and international markets.
• If businesses are successful then this will secure the
employment of their members (employees).
• Therefore in most instances Trade Unions have a working
relationship with businesses
• Improving communication between employees and
managers so that employees can understand and be
committed to the business’ objectives
10/20/2022 EMS: TRADE UNIONS GRADE 9 23

EFFECT OF TRADE UNIONS ON

BUSINESS
• Negotiating improvements to pay and working conditions
so that people feel more satisfaction at work and stay
longer in their jobs
• Encouraging companies to invest in training and
development so that employees have the skills necessary
for improved products and services
• Acting as a positive force for change - by winning
employees' support to the introduction of new
technologies and work organisation
• The negative effects:
• Lost productivity
10/20/2022 EMS: TRADE UNIONS GRADE 9 24

THE CONTRIBUTION OF TRADE UNIONS TO

SUSTAINABLE GROWTH AND DEVELOPMENT
• Contribute to the redistribution of income, wealth,
economic power and resources
• Ensuring that all citizens have decent work, wage
and working environment
• Assist in meeting basic needs of the people:
housing, water, energy, education, healthcare and
social protection
• Promoting fair and equitable trade, industrial and
social development across the Southern African
region
• Promoting an environmentally sustainable social
and economic development strategy
10/20/2022 EMS: TRADE UNIONS GRADE 9 25

COMPLETE
ACTIVITY 1
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A strike is a challenge which many businesses in South Africa must face

today. Strikes, wildcat strikes and go-slows are often very costly for
businesses and/for the workers.
10/20/2022 EMS: TRADE UNIONS GRADE 9 27

1.1 Write an explanation on how strike action can

be dangerous to the business.
 Raw materials used in the production process
and unfinished products may spoil while the
strike is on.
 Buyers may go to other businesses to find
products because they cannot wait until the
strike is over and production continues.
 Business sales (turnover) drops.
 10/20/2022 EMS: TRADE UNIONS GRADE 9 28

1.2 The workers will also be in trouble. Why?

 They will lose wages for the time that they are off
work. This is called the ‘no work, no pay’ principle.
 If the strikers are dismissed they will lose their
income altogether.
 Layoffs of employees.

1.3 What does the acronym COSATU stand for?

Congress of South African Trade Unions
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1.4 Read the following article and answer the questions that follow
Employers, trade unions rapped over the knuckles.

Analysts say parties are too quick to haul each other before the
CCMA writes S’thembiso Nsomi.
Employers and organized labour have come under fire from labour
analysts for inflexibility in collective bargaining, resulting in
unnecessary strikes and legal disputes.
Labour Minister Membathisi Mdladlana this week released the
Industrial Action annual report. It shows 3.8 million man-days were
lost following strike action last year.
Analysts warn that the figure is likely to be far higher this year
unless the public service sector wage dispute is resolved soon.
Central government was the least affected by industrial action last
year. It is feared that a full-blown strike by civil servants could have
severe consequences.
 10/20/2022 EMS: TRADE UNIONS GRADE 9 30

1.4 Read the following article and answer the questions that follow
Because of the sheer size of the civil service, a one-day strike
could easily result in the loss of 800 000 workdays. The conflicting
labour relations environment prevalent in SA is blamed for a
dramatic 35% increase in the number of disputes brought before
the Commission for Conciliation, Mediation and Arbitration (CCMA)
. The commission’s director, Thandi Orleyn, says an average of 344
new cases is referred to the CCMA each working day.
Orleyn says some parties appear willing to “haul” each other to the
CCMA “at the drop of a hat” on trivial issues.
Addressing a media briefing this week Mdladlana appealed to
employers and trade unions to resolve their disputes internally and
allow the CCMA to be better utilized by unorganised workers.
At the beginning of the year we predicted there was going to be an
increase in industrial action as a result of a number of factors
including the downward pressure on wages and a fall in interest
rates. But another problem is the rule of thumb which exists in SA
collective bargaining which says you do not settle for less than
what you got in the last wage negotiations.
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1.4 Read the following article and answer the questions that follow
This clearly results in conflict as unions want higher increases than
the previous year while employers want to settle for the same, if
not lesser, percentage than the previous year.
The manufacturing sector had the highest number of industrial
disputes, 86, last year – resulting in the loss of 2 440 406 workdays.
Although the CCMA has a severe work overload, the body has been
praised by Mdladlana for helping to avert a substantial number of
strikes in various industries.
Adapted from the Business Times
 10/20/2022 EMS: TRADE UNIONS GRADE 9 32

1.4.1 What according to labour analysts are the reasons for

unnecessary strikes and legal disputes?
The inflexibility of unions and employers during the
bargaining period

1.4.2 What is the name of the organisation that settles a

large number of labour disputes in SA?
CCMA [Commission for Conciliation, Mediation and
Arbitration]

1.4.3 What would be the cause of a strike by the civil

service?
A wage dispute
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1.4.4 How should disputes in the workplace be handled?

Disputes should be resolved internally

1.4.5 What does ‘unorganised workers’ mean?

Workers who do not belong to a union

1.4.6 Discuss FOUR roles of a trade union

 To take strike action- the unions can call a strike
when all negotiations have failed
 To form bargaining councils with employers - the
unions can recruit workers within the workplace
 To improve the standard of living of workers -
through wage negotiations, better working
condition
 To promote job satisfaction - safe environment
 10/20/2022 EMS: TRADE UNIONS GRADE 9 34

1.4.7 Do you have to belong to a union to enjoy one’s rights

as a worker? Explain briefly.
No
 All workers are protected by the labour legislation
laws
1.4.8 Name FOUR responsibilities of a trade union
 Negotiate improved working conditions for
workers
 Maintain peaceful relations with employers to
maintain productivity
 Not to be associated with any political party
 Must register the union
1.4.9 Name the biggest trade union in South Africa
COSATU
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1.4.10 What are the international consequences of strikes?

International investment will decrease
Exports will decrease, resulting in job losses

1.4.11 How can strikes be avoided?

Inflation should be considered when wages are
negotiated
Disputes should be handled internally