Vanessa Botha

Vanessa (BCom Hons, University of the Witwatersrand) is the Training Manager at Conflict Dynamics. In this capacity, she manages client relationships and marketing and is also actively involved in the design and development of our training materials. She also facilitates a number of our training courses and workshops. She is an experienced consultant in the areas of Labour Relations and Learning and Development and was previously a part-time lecturer at the University of the Witwatersrand’s Business School and Faculty of Commerce for 17 years.

So here we are, 8 months into 2022 post-Covid South Africa and well into the collective bargaining season. If we were to insert a hypothetical thermometer into our current labour relations landscape, where on the continuum of “stable and healthy” to “head immediately for the emergency room” would we find ourselves?

Inflation, interest rates, unemployment and poverty

It goes without saying that the current state of our country’s economy leaves a lot to be desired: alarmingly high inflation, rapidly rising interest rates and eye-watering levels of unemployment and poverty all point to what can probably be seen as the most challenging environment for collective bargaining. It then comes as no surprise that much of the collective bargaining that has already taken place this year has been fraught with distrust, difficulty, deadlock and dispute, frequently culminating in industrial action. We only need to think back to the recent Eskom scenario – fractious and unrealistic negotiations accompanied by an unprotected strike, including violence and incidents of sabotage, with no real consequence at all for those involved, but with heinous consequences for our already highly troubled economy and further decimating South Africa’s reputation as an investment destination. And the eventual outcome? Settling on a wage increase which is literally unaffordable for the organisation.

Sadly, all signs are pointing towards more of the above as collecting bargaining continues this year. The upcoming negotiations in the public sector are, by all accounts, headed for deadlock and dispute, with a high likelihood of strike action taking place. And bearing in mind that our public sector has the largest contingent of workers in the South African labour market, this is bound to further depress the already struggling economy. It is also likely to create a “spill-over” effect into negotiations due to take place in other sectors.

Unprotected strike action

A particularly worrying factor plaguing collective bargaining this year has been the increase in the incidence of not just strike action but also unprotected strike action. The Eskom strike is one highly visible example of a seeming disregard for the provisions of our employment law regarding dispute resolution in essential services. This is a worrying trend indeed, particularly considering that strikes beget strikes and unprotected strikes will almost certainly do likewise, bringing with them a high likelihood of striker misconduct and violence.

Union demands

But what of the rands and cents aspect of negotiations still to take place this year? The bottom line (no pun intended) is that along with rapidly rising inflation will come the pressure for higher than “normal” or planned settlement figures in collective bargaining. A vicious spiral is likely to play itself out for at least the remainder of this year, if not a lot longer: inflation rises leading to higher wages which in turn further pushes up inflation, and so the cycle continues. Sadly, there is a high likelihood of this spiral destabilising collective bargaining for a number of years to come.

Realistically, employers are likely to find themselves between a rock and a hard place in upcoming negotiations – either recognise the likely need for a higher than planned settlement or face the likelihood of strike action. There seems to be no possible escape from this dilemma in the immediate future, particularly in light of the most recent food and fuel inflation numbers which of course impact the ordinary, struggling worker more than any other rising costs.

As the often quoted saying (attributed by some to Albert Einstein) goes: “The definition of insanity is doing the same thing over and over again and expecting a different result”. How appropriate this is in the context of the South African collective bargaining landscape.

Alternative approaches to negotiation

The South African labour market needs radical reform, and this can, and should, start with a radically new and more productive approach to the collective bargaining process. What is it going to take for the parties to employment relationships in South Africa to recognise that their traditional negotiation “dance” is entirely destructive to the labour relationship and is therefore contributing directly to our economic collapse and spiralling unemployment levels?

We desperately need to create a widespread understanding of the value of adopting more sophisticated approaches to substantive negotiations, across all sectors of the South African labour market. We need parties to understand what it truly means to negotiate in good faith and most importantly, what the benefits of such an approach can be.

We need to create an awareness and appreciation for the Code of Good Practice: Collective Bargaining, Industrial Action and Picketing which exists to promote and encourage approaches to bargaining underscored by good faith.

Given the state of collective bargaining generally this year-to-date, and the extremely concerning prognosis for negotiations over the remainder of the year and indeed into the years to come, it surely is time to stop the insanity of doing the same thing over and over again and expecting a different result.

Conflict Dynamics is passionate about creating the understanding and skills required to adopt more effective approaches to labour negotiation, based on the Code of Good Practice on Collective Bargaining and the principles of good faith bargaining. Contact us to discuss how we can assist your organisation (management, shop stewards or both) to improve your negotiated settlements as well as the overall labour relationship.