Management must exercise great care when changing so-called conditions of employment, such as working hours.  But the courts have accepted that it is unrealistic to force management to honour contracts when the needs of the business must come first.

Disputes about changing ‘conditions’ can involve ‘rights’ and ‘interests’.  Dispute of right are resolved by arbitration or adjudication whereas the respective parties may use coercion to resolve ‘interest’ disputes.  Power-play should be regarded as a last resort because of the damage it does to relationships at work.

If the dispute has to be resolved by arbitration or adjudication management must prove not only that the ‘joint consensus-seeking’ process was lawful but also that there was a lawful, valid and fair reason to dismiss if agreement was not reached.  Offering reasonable and  acceptable alternatives is most important.

Click on the link to read Zeenat Moorad’s report ‘This is not a retrenchment exercise,’ says Woolworths first published by Business Day in BDlive today.

Excerpts

UPMARKET retailer Woolworths Holdings said on Monday its decision to shift 3% of its store employees onto a flexible working hours contract was not a retrenchment exercise.

The group said discussions had been initiated due to the increasing need for longer trading hours, and the seven-days-a-week operation expected of retailers.

“All Woolworths store employees are permanent with benefits,” the group noted.

About 17,000 of its staff complement’s contracts stipulate flexible working hours.   But the remaining 3%, or 600 employees, work set, inflexible hours.

The employment category of inflexible hours was created many years ago when Woolworths stores operated from 8am to 5pm, Monday to Friday, and until 1pm on Saturdays, and were closed on Sundays and public holidays.

The affected employees have been given three options:

  • changing to a contract that stipulates flexible hours,
  • leaving with a voluntary severance payment, or
  • for those over 50, taking early retirement.

The vast majority of employees affected by the change are beneficiaries of the Woolworths employee share ownership scheme, which has paid out more than R80m to employees since 2007.

The full benefits of the scheme will be realised at the end of the scheme in June 2015, and employees who leave will carry part of their benefits over to 2015 based on the rules of the scheme”.