In an important article with the above title in BusinessDay today Professor Paul Benjamin has correctly drawn attention to the need to have regard to the facts when assessing the flexibility of the labour market in South Africa.
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In this article Professor Benjamin highlights the flexibility of our labour law as a framework. However, these same laws facilitate far greater operational flexibility and management prerogative where employment costs are integrated and managed according to the same financial rules and practices as all other operational expenditures. The ultimate worth of any job is an employer’s ability to pay an employee. Measuring the costs and value creating capacity requirements of all jobs are the business case rationale (facts) required to justify all employment related decisions. When employers and employees disagree about workplace circumstances, but don’t have relevant information, they can only rely on labour law, which being a framework and rules based, will appear rigid and inflexible.