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The effects of the Labour Relations Act on small, medium and micro enterprises (SMME's) in the Nelson Mandela Metropolitan

The society in which we live is economically based and the greater part of our activities centres in the economy. Within this context, the Department of Trade and Industry recognized that small business development was an important area for government intervention. A long process of highlighting the importance of this sector and creating the right environment in which small businesses could grow and flourish was initiated at the level of policy and legislation. In the Labour Relations field, an attempt at achieving some measure of certainty in previously disputed areas was made through the passing of the Labour Relations Act of 1995. This study aims at exploring the effects of this Act on the growth and development of the small business sector in the Nelson Mandela Metropole. In fulfilling this aim, the focus was restricted to factors such as dismissal of workers, strikes and lock-outs, freedom of association and dispute resolution. The theory pertaining to Labour Legislation and small business development was obtained by means of conducting a comprehensive literature study. The literature study included all relevant perspectives on the Labour Relations Act and Government Policy on small businesses. From the study, a questionnaire was developed to test the impact of the Act on the growth and development of the small business sector in the Nelson Mandela Metropole. The empirical results, in general, indicated non-compliance with the Labour Relations Act and negative views on the value of the Act on the growth and development of the small business sector in the Nelson Mandela Metropole. From the literature study and the findings of the research questionnaire, it became apparent that: · A comprehensive audit of the small business sector in the Nelson Mandela Metropole is needed. The aim of the audit would be to review the current operations of the small business sector in the Metropole. This outcome will indicate the extent of understanding and compliance with the various aspects of the Labour Relations Act. · The acquisition of industrial relations knowledge and skills by owners and leaders in the sector is vital for the development of the sector. The Skills Development Act provides a funding framework for skills training that is relevant to a specific industry. The small business sector could benefit significantly from the provision of this piece of legislation. · A comprehensive support programme for SMME’s is a necessary prerequisite for the growth and development of the sector. The support system could include tax incentives, flexible labour legislation and training as indicated in the above paragraph.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:10912
Date January 2003
CreatorsMatiso, Khayalethu Goodman
PublisherPort Elizabeth Technikon, Faculty of Management
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MTech (Business Administration)
Formatix, 98 leaves, pdf
RightsNelson Mandela Metropolitan University

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