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In this paper, the authors examine the strategies used to reduce labour costs in three public hospitals in South Africa, which were effective and why. In the democratic era, after the revelations of large-scale corruption, the authors ask whether their case studies provide lessons for how public service institutions might re-make themselves, under circumstances of austerity.

A comparative qualitative case study approach, collecting data using a combination of interviews with managers, focus group discussions and interviews with shop stewards and staff was used.

Management in two hospitals relied on their financial power, divisions between unions and employees' loyalty. They lacked the insight to manage different actors, and their efforts to outsource services and draw on the Extended Public Works Program failed. They failed to support staff when working beyond their scope of practice, reducing employees' willingness to take on extra responsibilities. In the remaining hospital, while previous management had been removed due to protests by the unions, the new CEO provided stability and union–management relations were collaborative. Her legitimate power enabled unions and management to agree on appropriate cost cutting strategies.

Finding an appropriate balance between the new reality of reduced financial resources and the needs of staff and patients, requires competent unions and management, transparency and trust to develop legitimate power; managing in an authoritarian manner, without legitimate power, reduces organisational capacity. Ensuring a fair and orderly process to replace ineffective management is key, while South Africa grows cohorts of competent managers and builds managerial experience.

Sustainable Development Goals (SDG) 5 and 8, respectively, indicate that decent work and gender equality are challenges that business organizations must face in order to achieve the social well-being and sustainable development of communities. Considering these goals, the present article aims to define the concept of fair work and examine the current degree of knowledge among staff in the hotel sector in Barcelona about the indicators of the Fair Labor Responsible Hotels (HJLR) certification.

A mixed methodology is used to analyze the primary data. A survey of 248 employees is complemented by nine semi-structured interviews with experts, general managers and heads of department of independently owned hotels and national and international chains.

The results show that this certification is necessary for the economic and social sustainability of the hospitality sector and to raise awareness that fair work is an urgent need. However, these currently tend to be little more than artificial actions.

The paper aims to emphasize the perspective of real actors in hotel industry about the actors' considerations of fair work to enhance the actors' job involvement and satisfaction.