Page 39 - DRG HR HANDBOOK- Nikita Pillay
P. 39

SHORT-TIME: AN ALTERNATIVE TO


                           RETRENCHMENT





          n terms of Section 189 of the Labour Relations      CONSULTATION AND AGREEMENTS –
          Act when an employer contemplates dismissing        RELEVANT DOCUMENTS:
       I one or more employees for reasons based on the
                                                                 ƒ All consultations need to be documented and
        employer’s operational requirements, the employer
                                                                 minuted.
        must first consider alternatives to retrenchment.
                                                                 ƒ Each set of minutes must be signed by all
        The introduction of short time constitutes a change in
                                                                 employees, and all other parties present.
        the terms and conditions of employment.
                                                                 ƒ You would need to maintain a register of the
        Such a change cannot be implemented unilaterally.
                                                                 employees that are present at each consultation
        An employer wishing to institute short time must
                                                                 meeting.
        first try to obtain the employees’ consent to such
                                                                 ƒ Upon agreement on the short-time, the minutes
        change. If the employees will not agree to the change
                                                                 should be signed by each individual employee.
        it may be necessary to embark on a retrenchment
                                                                 ƒ The employer must give employees official written
        procedure and then offer short time as an alternative
                                                                 notice, or post to the notice board, of the short time
        to retrenchment.
                                                                 commencement date.
        In terms of the Contract of Employment, the employee
        undertakes to put a certain of his time at the disposal  DRAWBACKS TO LENGTHY PERIODS OF
        of the employer and the employer in turn is obliged to  SHORT TIME
        pay an agreed wage for such time.
                                                              The biggest drawback to lengthy periods of short time
        By proposing short time, the employer is proposing to
                                                              is that employees become demotivated, often resulting
        change the terms and conditions of employment.
                                                              in the best employees leaving.
        This must be done by consultation and negotiation.
                                                              Others may deliberately work slowly and drag out
                                                              jobs in the belief that this will enhance their job
        ISSUES FOR NEGOTIATION AND
                                                              security. In other words, productivity is negatively
        CONSULTATION WILL INCLUDE:
                                                              impacted – a job that should be done in a day can
           ƒ The reasons for short time working               take 2 or 3 days.

           ƒ When short time will commence                    Employee attitudes during short time work and the
                                                              numbers actually on site can also impact on safety
           ƒ When it is likely to end (often difficult to
                                                              (i.e. in the absence of a sick employee the remaining
           determine)
                                                              employees may be at risk because there is not sufficient
           ƒ The amount of short time (i.e. days/weeks
                                                              cover).
           employees will not work/not be paid)
                                                              Sometimes employees take up other employment or
           ƒ Alternatives to short time
                                                              do private jobs (effectively starting a business) during
           ƒ Who will work short time and/or an even spread of
                                                              the short time. When business returns to normal, the
           short time over the entire work force
                                                              employees may not want to give up the extra income
           ƒ What criteria were used in the selection, if it does    (especially if their private jobs paid well). This can
           not include all staff                              lead to conflicts of interest when employees
                                                              fail to declare their other work interests.
           ƒ What will happen to existing conditions of service
           during short time (provident fund contributions,    Occurrences of theft, sick leave are likely
           medical aid, etc.)                                 to increase.                                      39
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