Proactive Management of a Company’s HR Related Risks

By Corné Broodryk, Cotney - Attorneys & Consultants.

All projects have various elements of labor legislation in some form or another to govern how the project will be managed.

The general and national legislation is straightforward and simple to apply, and its effectiveness has generally been accepted. Where things may become interesting and complicated is where a site-specific agreement negotiated by bargaining councils which are mostly formed by union representatives who dictate new rules, procedures and norms for workers and projects that can, to a certain extent, leave the employer toothless.

For example, the bargaining council can negotiate a site specific agreement which regulates any and all aspects of a human resource department, ranging from accommodation and meal requirements for employees, minimum wages that are higher than the industry norm, a bonus structure to ensure financial independence of the workers when their limited duration contracts come to an end, and various other detailed requirements which can almost be seen as luxuries not normally catered for unless the company policy allowed for it. Another interesting aspect of this specific agreement is the creation of an on-site dispute resolution body which would handle all disputes that could not be resolved through each company’s internal procedures and processes.

The objective as brilliant as it might have seemed in theory, in practise resulted in a project being managed and run by unions and the workers instead of the employer.

Various reasons contributed towards this but, in my opinion, one of the most significant underlying aspects that contributed towards this reversal in roles was the individual supervisory staff that were too ill equipped with the required knowledge related to labor relations and the associated procedures. Because of the magnitude of this project and the strenuous demands, management alone could not be expected to ensure the proper implementation and see through of disciplinary processes. The employer relied upon the supervisory staff to institute the required proceedings and to see it through without providing the necessary support to them in the form of education and knowledge.

The efforts of the supervisory staff as admirable as it might have been, mostly resulted in the decided outcomes being overturned by the dispute resolution body.

The subsequent effects were that the supervisory staff that attempted to enforce discipline and compliance were outnumbered, which resulted in them being manipulated or even victimised by their fellow co-workers.

If these supervisors were properly supported and confident enough with the implementation and application of the site specific rules and requirements and the associated processes, they would have been able to better represent and protect the employer which subsequently would have saved the project a lot of time and money.

Any contractor/employer in a similar situation should ensure that a legal practitioner with extensive experience in labor relations as well as site specific agreements, intensively studies the agreement before the commencement of each project. The legal practitioner must be tasked to compile a practical guideline for each role in the process that will assist them throughout the project with the execution of their daily operations. The employer can even be advised to consider in depth training for their supervisory staff. 

The involvement of an experienced legal practitioner from the inception can prove to be invaluable for any company to proactively manage their human resource related risks.

Learn more about Cotney Construction Law in their RoofersCoffeeShop® Directory or visit www.trentcotney.com.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

About Corné Broodryk

Corné Broodryk is an attorney at Cotney based in South Africa, and has over 13 years of experience in the construction industry. She focuses her practice on construction law, labor law, commercial law and property law. For more information, please visit www.cotneycl.com or call 866.303.5868.