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PRESENTATION TO THE 2012 IRMSA CONFERENCE 19 20 NOVEMBER 2012 UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL ACTION

UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL … · UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL ACTION . OUTLINE AN INHERENT RISK DEBUNKING CONVENTIONAL WISDOM UNPACKING

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Page 1: UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL … · UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL ACTION . OUTLINE AN INHERENT RISK DEBUNKING CONVENTIONAL WISDOM UNPACKING

P R E S E N TAT I O N T O T H E 2 0 1 2 I R M S A C O N F E R E N C E

1 9 – 2 0 N O V E M B E R 2 0 1 2

UNDERSTANDING AND MANAGING

THE RISK OF INDUSTRIAL ACTION

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OUTLINE

AN INHERENT RISK

DEBUNKING CONVENTIONAL WISDOM

UNPACKING THE CAUSES OF INDUSTRIAL ACTION

MITIGATING THE RISK

CONCLUSIONS

Page 3: UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL … · UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL ACTION . OUTLINE AN INHERENT RISK DEBUNKING CONVENTIONAL WISDOM UNPACKING
Page 4: UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL … · UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL ACTION . OUTLINE AN INHERENT RISK DEBUNKING CONVENTIONAL WISDOM UNPACKING

INDUSTRIAL ACTION, AN INHERENT RISK

A constitutional right to strike

A normal element of the collective bargaining process

A means of balancing power in the employment relationship

A risk with adverse consequences

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AN INHERENT RISK WITH ADVERSE CONSEQUENCES

Leads to breakdown of relationships

Disrupts business continuity

Adversely impacts productivity

Causes loss of profits & loss of jobs

Trade union rivalry and instability

Marred by intimidation and violence

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Page 9: UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL … · UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL ACTION . OUTLINE AN INHERENT RISK DEBUNKING CONVENTIONAL WISDOM UNPACKING

DEBUNKING CONVENTIONAL WISDOM

Conventional wisdom lays the accountability and responsibility of

industrial action and its consequences at the feet of Trade Unions

solely

Experience has shown that the seeds for industrial action are,

more often than not, sown long before the customary ‘48 hour

notice’ is issued.

Page 10: UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL … · UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL ACTION . OUTLINE AN INHERENT RISK DEBUNKING CONVENTIONAL WISDOM UNPACKING
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SYMPTOM / EFFECT = INDUSTRIAL ACTION

CAUSES = VARIOUS FACTORS INVOLVING

THE ROLEPLAYERS

Page 12: UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL … · UNDERSTANDING AND MANAGING THE RISK OF INDUSTRIAL ACTION . OUTLINE AN INHERENT RISK DEBUNKING CONVENTIONAL WISDOM UNPACKING

CAUSES WITHIN CONTROL OF EMPLOYERS

Unhealthy organisational culture

Autocratic management style

Outdated workplace practices

Inequitable employment practices

Managing industrial relations by proxy

Abdicating the right to communicate

‘Lawyering up’ as a first resort

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CAUSES WITHIN CONTROL OF UNIONS

Under organising / no organising

Ineffective representation

Lack of accountability to trade union members

Reluctance to lead in times of crisis

Ineffective / absent Strike Management

Reluctance / refusal to speak out or act against violence

Heat of Congress Fever

Ignoring Worker Voice

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CAUSES WITHIN CONTROL OF BOTH PARTIES

Failure to show Leadership

Ignoring Worker Voice

Failure to agree Rules of Engagement

Poorly defined bargaining unit

Little / no joint preparation for collective bargaining

Adherence to adversarial collective bargaining practices

Over-familiarity between negotiators

Failure to learn from successive collective bargaining rounds

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CAUSES OUTSIDE CONTROL OF BOTH PARTIES

Marikana was not a labour dispute, but socio-economic frustration

manifesting as labour dispute.

Responsibility for Socio-economic issues vs Workplace issues?

Rejecting the existing rule of law?

What do employers and trade unions do while we wait on

government to provide?

Role and commentary of Media

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INDUSTRIAL ACTION

EMPLOYERS TRADE UNIONS

GOVERNMENT

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MITIGATING THE RISK– STRATEGIC LEVEL

Education & awareness raising regarding rights in law

Managing conflict & resolving disputes in the workplace

Effective communication with staff

Bargaining Units effectively constituted & represented

Progressive bargaining paradigm adopted

Institutional drivers monitored

Institutionalised commitment to peaceful industrial action

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MITIGATING THE RISK– OPERATIONAL LEVEL

BEFORE THE STRIKE

Command Centre

Business continuity plan

Picketing rules

Media plan

Plan for communication with workers

Don’t stop talking

Visible leadership

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MITIGATING THE RISK– OPERATIONAL LEVEL

DURING THE STRIKE

Manage the media

Constantly reassess options

Be open to third party assistance

Communicate with striking & non-striking workers

Demonstrate respect to strikers

Don’t “lawyer up”, keep talking

Daily intelligence gathering, debriefing & planning

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MITIGATING THE RISK– OPERATIONAL LEVEL

AFTER THE STRIKE

Communication and the Return-to-work process

Media announcement

Reflect on causes of strike

Evaluate efficacy of contingency plans

Counseling and support

Make up don’t break up

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CONCLUSIONS

Industrial action is an inherent risk associated with adverse

consequences

Accountability for industrial action must be apportioned between

business and labour

The risk can be mitigated through strategic and operational

interventions involving both employers and trade unions