DOES COLLECTIVE BARGAINING DETER FOREIGN DIRECT INVESTMENT IN THE VEHICLE INDUSTRY

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CONSOLIDATED LITERATURE REVIEW DEFINITION To understand the bases of my hypothesis, I first need to define what collative barraging is and the effect collective bargaining has on the South African economy, this will then put into perspective the impact collective bargaining has on the motor industry in the South Africa. Collective bargaining by definition mean is the process “of good faith” that takes place between an organisation’s management and a trade union (representing the organisation’s employees) for negotiating: o Wage/salary increase o Working hours o Working conditions o Matters that affect relevant parties Management sees this process as negotiating with one set of people (as a unit) but on the other hand to employees it is a bargaining tool. Therefore collective bargaining is the framework around which a trade union operates. EVOLUTION OF COLLECTIVE BARGAINING IN SOUTH AFRICA Initially trade unions were called industrial councils as they were vehicle of negotiations at the time. The first legislation implemented in 1924 was called the Industrial Conciliation Act 11 of 1924 (IC Act) this was the foundation of all the Labour Relation Acts up to this day. This legislation was then amended and renamed as the Labour Relations Act 28 of 1956. The shortfall of this piece of legislation (including the amendment) excluded all black Africans from the definition of “employee”. After 1979 the legislation was changed again to include all individuals to benefit from this Act. Post apartheid necessary changes were made to the legislation through the Labour Relations Act 66 of 1995. Because of these changes allowing all employees including civil servants the number of membership to trade unions and trade unions increas... ... middle of paper ... .../www.tysto.com/articles08/q3/20080720cars.shtml [Accessed: 03/06/2014] 5. Karl Gernetzky. (2013). Bdlive. [Online] Available from: http://www.bdlive.co.za/national/labour/2013/09/30/numsa-threat-to-motor-sector-collective-bargaining [Accessed: 14/01/2014] 6. Karl Gernetzky. (2013)Bdlive. [Online] Available from: http://www.bdlive.co.za/business [Accessed: 14/01/2014] 7. SAPA. (2013). Mail and Guardian. [Online] Available from: http://mg.co.za/article/2013-05-20-mercedes-benz0workers-strike-over-outsourcing/ [Accessed: 14/01/2014] 8. Irma Venter. (2013). Engineering news. [Online] Available from: http://www.engineeringnews.co.za/article/auto-sector-will-never-have-cheap-labour-collective-bargaining-process-faces-restructuring-2013 [Accessed: 14/01/2014] GRAPHS 1. Statistics SA. [online] Available from: http://beta2.statssa.gov.za/?p=1891 [Accessed: 02/02/2014]

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