07 Nov Partnerships key to business
As the South African economy struggles to recover, new long-term partnerships between business leaders and union leaders are crucila to the future of both business and employees, according Chris Jacobs, a director at OIM, one of the country’s leading business consultancy firms. Jacobs says the significance of the agreement between trade unions and employers to lower the minimum wage in the clothing and textile industry in South Africa in return for job creation should not be underestimated, particularly in the wake of the recent strike season, described by some as one of the most disruptive ever experienced in the country.
He says: “South Africa cannot afford to go through repeated cycles of drawn-out strike action. The strike season of 2011 cost the economy dearly. Many people who took part in the strikes now have to cope with the subsequent loss of income that may take months or years to recover. At the same time, businesses experienced a major loss of productivity and many companies have been forced to shut their doors permanently.” This aside, Jacobs says, the strikes have a major impact on FDI and ultimately on South Africa’s ability to compete in the global market. Jacobs, who has consulted on various types of disputes in the mining, construction and manufacturing industreis over the past 20 years, says that a completely different relationship between business managers and union leaders is required, not only to secure the future for shareholders, employees and the communities from which they come, but also to create job opportunities and promote higher productivity.
“It is necessary to create an understanding of the roles and responsibilities of all role players. This involves both managers and unions looking at the basic principles of business, management and leadership and developing an understanding of the perspective of the other party,” he says. Jacobs says business managers and unions must focus on the intent of the South African labour law – in a social and economic context – and not the letter of its content.
He says: “South Africa has very progressive labour laws. The challenge is to cultivate an understanding between an organisation’s business and union leaders, which is crucial to achieving the objectives of both parties.
Jacobs says at the moment, many union leaders hold the perception that labour give businesses all the power. Meanwhile, many business leaders perceive the laws as only benefiting employees. As a result of these conflicting perspectives, the labour laws are achieving the exact opposite of their intentions. He says the intention of the labour laws is firstly to achieve labour peace and stability.
“Secondly, they are intended to achieve social justice as well as social responsibilty. Thirdly, they aim for economic development and productivity, and finally, they aim for the democratisation of the workplace.” – Wiseman Khuzwayo