Poverty and Inequality

The Labour Relations Act is an essential law in South Africa as it ensures fair labour practices and also contributes to organisational success. Read the article referenced below and answer the question that follows.
Fin24. 2014. Unemployment because of SA labour laws – Naesa. [Online].
“Whilst we agree that the current labour legislation is not a direct or the only driver of the violent strikes, one should not shy away from admitting that South Africa’s labour laws play a huge role in exacerbating unemployment, poverty and inequality,” Neasa CEO, Gerhard Papenfus, said.
This is a statement made by the author of the article above. The South African labour law has many benefits, but, as stated in the article, there are some disadvantages as well.
Provide a brief discussion of the following:

  •  The Labour Relations Act: What it is and its purpose.
  •  Reasons why labour law is necessary for businesses and employees.

Sources of information:
To answer the above question, you will need to read widely beyond your module textbook.
Additional, appropriate academic literature can and should be consulted. Please note that references to general websites, such as, Wikipedia should be avoided. Sources such as newspapers and magazines can be used but their content is not always accurate and reliable. It is thus suggested that academic journals and respected trade magazines be used.

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