I would like to thank my family for their continued support throughout the thesis writing process. This study draws attention to the effect of cost-saving strategies such as VRPs and labor brokers in the workplace.
Background
Rationale
However, research has shown that when downsizing is implemented, it often results in negative consequences for the worker and their household. Studies have shown that workers use their severance pay to pay debts and renovate homes, not considering the fact that they will lose access to a stable income that was provided through formal employment (Kinderen and Greef. 2003; Xaba, 2006). .
Research question and sub-questions
In the retail sector, corporations remain present within their respective physical locations, so there is a possibility of re-entering the workplace after being laid off - which worker's do. Therefore, it is important to understand how and why workers return to the same workplace as contract workers after taking a voluntary layoff and thus losing permanent employment.
Theoretical concepts: Worlds of Work Model and industrial citizenship
Methodological overview
Thesis outline
The following literature review will identify various studies that have examined labor restructuring in South Africa with a particular interest in understanding the erosion of industrial citizenship. The third section describes the effects of labor restructuring, specifically the role that downsizing has on workers' rights to industrial citizenship, resulting in bleak working conditions in the retail sector.
The erosion of industrial citizenship through Labour restructuring
These five industrial citizenship rights are essential to categorizing retail workers' rights in the workplace. In this thesis, the erosion of industrial citizenship will be discussed in relation to labor restructuring mechanisms.
The consequences of labour restructuring
Research by Bezuidenhout et al (2007) reveals that with the rise of global competition, factories have been relocated to cheaper locations outside of South Africa. Bezuidenhout, et al (2007) reiterated that layoffs had negative consequences for the South African economy and households because the loss of wages led to poverty.
The South African civil actors vs Walmart/Massmart merger
Bezuidenhout and Kleynhans (2014) investigated how the Walmart/Massmart merger was challenged by the government and unions to ensure that the multinational corporation did not take advantage of or endanger the South African government (Bezuidenhout and Kleynhans. As the implementation of quotas to ensure that a certain percentage of supplies are sourced locally and secondly to ensure that Walmart invests in local businesses (Walmart Stores Inc and Massmart Holdings Inc. 2011).
Retrenchment and Voluntary retrenchment in South Africa
Thus, workers would receive less money as it would be seen as their choice to take the cut and not necessarily that the company would force them to do so. Innovations for workers to generate income after layoffs are not successful due to various factors identified by Xaba (2006).
Effects on industrial citizenship
Since it is clear that after a few months or within a year, most of the worker's payouts are withdrawn due to investment in things that they value, such as renovations in their homes. I would often use the word work to refer to what the political and social aspects of the worker and work were used in relation to the worker's mental and physical effort and input.
Industrial citizenship in retail
Mathekga and Maciko's (2018) research provides further examples of how easily contract workers are exploited in the workplace. Arbitrage of labor leads to the loss of industrial citizenship rights, which will be discussed in the following section: the section on shop relations, not only in South Africa, but also the rest of the Southern African region.
Store conditions
For example, contract workers work the same hours as permanent workers, but are paid less wages and they do not get the same representation from trade unions as permanent workers (Maciko and Mathekga, 2018: 43).
Retail conditions in Southern Africa: A case of Zambia
In this sense, services offered by companies such as PnP and Shoprite are often informal traders (Miller, et al Aceska and Heer, 2019). Reiterating the idea that most of Southern Africa consists of informal traders in the retail market and corporations such as Shoprite are able to exploit these situations.
Trade unions
The consensus from this scholarship is that workers are increasingly employed through employment agencies and are not recognized in the workplace. The examples above highlight the erosion of industrial citizenship and the type of insecurity many workers face in the retail sector.
Conclusion
Several scholars argue that workers are under-represented in trade unions and often have to resort to informal actions to make their voices heard, so these workers are pushed into more precarious and intensive working conditions due to global competition (Mathekga and Maciko, Kenny 2018, Xaba 2006, Webster 2005). The reason for this is that side workers are more beneficial to the organization's bottom line, as there are fewer liabilities with these types of workers - in this case, companies would only pay the workers' wages and not other costs such as health care.
Qualitative research
This chapter begins by explaining the qualitative approach and why it was appropriate for this study. This is followed by an explanation of the sampling data collection strategies, the data analysis process, and finally the ethical considerations and limitations of the study.
Research Setting
Sample criteria
Sample size and sampling strategy
To avoid these biases – I would ensure that the participant would provide more than one referral or ask the referrals if they knew anyone who would meet the criteria. Thus, following the criteria for potential participants and obtaining more than one referral from each participant who could recommend potential participants avoided these biases and lack of control.
Participant’s profile
Using a snowball approach gave me very little control over the research sampling method, because the sampling bias would recommend participants to potential future participants they knew well (Etikan, Alkassim, and Abubakar, 2016:55).
Data collection
This platform can be used to ensure issues are resolved before speaking to the participant as the technology offers a lot of flexibility in conducting interviews. These interviews were successful because I kept in constant contact with the participants a few days before the agreed date of the interview. Communication is therefore critical when it comes to using technology for interviews.
Data Analysis
Ultimately, each theme aimed to understand employee transition, as well as participants' decisions, perceptions, and attitudes toward voluntary cutbacks. In December 2019, a test interview took place via an informal interview with someone who had participated in the 2017 VRPs and from there I was able to fill in and fill in any gaps that were missing from my interview process.
Reliability and validity of data
How did the company offer voluntary redundancy to the employee?” or "How did the company help employees during the voluntary redundancy process?". Finally, as a researcher, I drew conclusions related to what the participants and resources (peer-reviewed journal articles, books, and academic articles) argued for.
Research ethics
I have not been in contact with anyone who has had COVID-19 and I have not shown any symptoms related to COVID-19 - this indicates that I could not have tested for COVID-19. I always contacted the participant the day before the interview to make sure they were well and had no symptoms of COVID-19.
Limitations
As stated, three face-to-face interviews were conducted, I exhausted all options for conducting interviews electronically, but the participants did not have devices to conduct electronic interviews, so I accepted face-to-face interviews. First, I made sure that I was healthy - that I was not sick and that I had no symptoms of COVID19.
Conclusion
Finally, the findings cannot be generalized to the general population as the aim of this dissertation was to understand the transition of workers from permanent (core) to contract (non-core) employment after receiving a VRP (Queirós, Faria and Almeida. the second section discusses workers' meeting with VRPs in 2017, how the process unfolded, which individuals or departments helped workers through the layoff process, and the incentives workers received.
Transition from casual to permanent employment
Casual employment
So, as noted in the quote above, these employees had other aspirations and saw these opportunities as stepping stones to something better. One of these opportunities within the organization was permanent employment and as indicated in the quote above, employees would be intrigued to take up these opportunities, but the process was thought through.
Permanent employment
Family leave is important because the organization recognizes that you have a family and it exists. The statement confirms that the company understands that the employee contributes to its organization and deserves a stake in the organization.
Organisational changes that influenced workers into taking the VRP’s
If it was clearly communicated to the workers, then it should have been clear that the workers knew exactly why PnP was laying off workers. Ultimately, this statement of the worker shows that the workers were not aware of the reasons why PnP dismissed workers.
VRP process
In the sense that the worker has the option to receive VR or not. The idea that the organization was aware of workers returning to the organization after they took the cut.
Leaving Pick n Pay
The quote highlights the idea that the workers no longer felt valued in the organization - that the solidarity once felt among the organization and the worker was non-existent. The idea that the worker felt that he was contributing something more to the organization was no longer there.
Post-work life
They felt that their value to the organization was no longer needed and were very disappointed that they had spent a large part of their careers with the organization and never even said goodbye. Next, the workers were exposed to the strategic actions taken to corporatize the organization and develop with the retail industry influenced by Walmart.
Returning to Pick n Pay: Deteriorated Working conditions
- Erosion of Job security
- Erosion of work security
- Erosion of representation security
- Erosion of employment security
This chapter has shown that after taking on the VRPs and returning to the same workplace as temporary workers, they experienced a loss of industrial citizenship rights and precarious working conditions in the store. In the transition from permanent to temporary workers, it can be noted that the industrial citizenship rights of the workers have been eroded and that working conditions have deteriorated.
Solidarity in the workplace
This chapter aims to answer the central research question: How did retail employees who took advantage of the voluntary retrenchment package (VRP) experience the transition from permanent employment to temporary employment through labor brokers or franchises in the same workplace. The final section discusses (4) workplace insecurity by focusing on the transition experiences, in particular the current working conditions for retail workers after they re-enter the workplace.
It was my Choice
Workers constantly reiterated that it was their choice to leave the organization and took the opportunity to leave voluntarily. This shows that it was an opportunity for them to get out of the organization.
Post-work life preparation
Finances and sustainable living costs
There is a lot of concern about maintaining their lifestyle and money, which is not enough until they can secure another form of employment or income. It's an important part of the worker experience, the idea that your finances will eventually work out.
Employability
They were careful about how they spent their money, but above all, they were aware that they would eventually run out of money if they didn't find a way to sustain a new form of income.
Precariousness in the workplace
Unfortunately, pick n pay can’t re-employ you, but do try an agency
Low pay, no benefits and no privileges, just work
As non-core workers compete for permanent positions if positions become vacant, these workers will thus be able to move into the core level and be recognized by the organization. The idea that workers would be within the core level before taking the voluntary redundancy to have some kind of stability and move into the non-core level (Webster Happiness, 2017).
Conclusion
Available at: https://www.iol.co.za/business-report/companies/pick-n-pay-predicts-half-year-profits-jump-thanks-to-staff-layoffs-17158178 [accessed 1 Oct. Available at: https://ewn.co.za pick-n-pay-ceo-we-had-no-choice-but-to-offer-voluntary-retrenchment [Accessed 7 Oct.
