He says communication is the most important thing to get right, particularly when it comes to automation strategies.
Neil Coetzer, a Partner in the Employment Law, Benefits and Industrial Relations Department of Cowan-Harper Attorneys, says one of the things that lead to major labour relations conflicts is the lack of proper communication between management and the employees on the shop floor. Neil advises clients on employment law and industrial relations issues across various industries including civil engineering, construction, metals, pharmaceuticals, logistics and banking. He has been involved in several reported court cases which have helped to shape and clarify several aspects of employment law in South Africa.
He says employers sometimes assume that the correct messages would be carried over to its employees, either by unions or that the information would somehow filter down and be understood as it had been intended. This is not always the case. Similarly, things that concern the employees on the ground are not always properly articulated in order to allow employers to understand them. This is a challenge facing employers. He has spent many hours with organisations in setting up channels of communication in order to prevent disputes from arising, as opposed to going in only when the time comes to manage one.
“We try to resolve disputes as early as possible or avoid them altogether, so we work closely with our clients to improve relationships with their workforce and providing focused advice to prevent situations that result in expensive legal battles,” he says.
Neil says that, in countries like Germany, many employers have trade union involvement at board level. The South African approach is, however, still very much an ‘us-and-them’ scenario. The proliferation of Unions, which does not limit the number of unions per industry, has also played a role in complicating employer-employee relationships.
Navigating automation
Robots have been the solution to leading a cost-effective economy. The use of robots has had a growing impact on the manufacturing industry for some time now and continues to innovate the globalised economy. But machines are even being incorporated into service industries, meaning that people’s jobs are changing rapidly and some of them are becoming obsolete. In fact, the prevailing belief is that the use of robots has moved away from the large, expensive machines recently used in industries such as the automotive sector to more advanced robots that are capable of completing more complex tasks, thus enhances the competition inside the economy.
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“The constant threat of a strike means that many companies would rather automate, particularly as it is becoming cheaper to do so. Machines also don’t take leave, refer disputes or grievances. Machines deliver predictable levels of productivity. As a general rule, technology is also not affected by changes in employment regulations and things like the national minimum wages so the push towards automation will continue. How our society deals with it should be at the forefront of everyone’s mind“ says Neil.
It’s a balancing act
A tough balancing act that executives might have to manage when implementing automation technology is how the strategy is communicated to employees internally. That is because one of the biggest barriers to automation in the workplace is employees’ fear of losing their jobs. Employees may not always lose their jobs because there are still human tasks to do around robots and automation, including maintenance, repairs, verifying data, and interpreting it.
As an executive, the aim is to create value for shareholders, so the incentive to automate is palpable. That said, in a country like South Africa, Neil says employers are increasingly expected to play a positive and dynamic role in relation to uplifting communities. That is why there are some companies that are able to automate – and perhaps should in order to become more profitable – but don’t because they are aware of the impact that this would have on their employees and the communities in which they operate.
