CHAPTER 5 & 8

(LABOUR RELATIONS: A SOUTHERN PERSPECTIVE: CHAPTER 5)

(INTRODUCTION TO LABOUR RELATIONS IN SOUTH AFRICA:
CHAPTER 8)

COLLECTIVE BARGAINING
 COLLECTIVE BARGAINING
MEANING OF BARGAINING

IS A PROCESS OF NEGOTIATING AND INTERACTING THROUGH OTHER MEANS SUCH AS COMMUNICATING AND
EXCHANGE INFORMATION; PRESENTING DEMANDS AND MAKING OFFERS; TABLING COUNTER-DEMANDS AND
OFFERING ALTERNATIVE PROPOSALS; HAGGLING; AND ENGAGING IN PERSUASIVE COMMUNICATION IN ORDER TO
CONVINCE.

MEANING OF COLLECTIVE BARGAINING

• COLLECTIVE BARGAINING IS THE PROCESS IN WHICH REPRESENTATIVES OF THE INTERESTS OF EMPLOYEES

AND THE REPRESENTATIVES OF THE EMPLOYER ORGANISATION NEGOTIATE AND INTERACT IN AN ATTEMPT TO
REACH AGREEMENT ON MATTERS OF MUTUAL INTEREST.

AIM OF COLLECTIVE BARGAINING

• IS TO REACH AGREEMENTS (COLLECTIVE AGREEMENTS) THAT REGULATES ASPECTS OF THE PARTIES’ RELATIONS.
THOSE AGREEMENTS ARE VALID FOR SPECIFIC PERIODS OR UNTIL CERTAIN CONDITIONS CHANGE. AS LONG AS
THOSE AGREEMENTS ARE VALID, THE PARTIES INVOLVED OR COVERED BY SUCH AGREEMENTS SHOULD UPHOLD
THEM.
 OBJECTIVES OF COLLECTIVE BARGAINING
• THE PROVISION OF INSTITUTIONALISED STRUCTURES AND PROCESSES WHEREBY POTENTIAL
CONFLICTS OVER MATTERS OF MUTUAL INTEREST MAY BE CHANNELED AND RESOLVED IN A
CONTROLLED MANNER, THUS REDUING UNNECESSARY DISPUTES.
• CREATION OF CONFORMITY AND PREDICTABILITY THROUGH THE DEVELOPMENT OF AND
COMMITMENT TO COLLECTIVE AGREEMENTS WHICH ESTABLISH COMMON SUBSTANTIVE
CONDITIONS AND PROCEDURAL RULES.
• THE PROVISION OF EMPLOYEE PARTICIPATION IN MANAGERIAL DECISION-MAKING THAT
CONCERNS THE WORKING LIVES OF EMPLOYEES; AND
• THE ENHANCEMENT OF DEMOCRACY, LABOUR PEACE AND ECONOMIC DEVELOPMENT AT
NATIONAL AND EVEN INTERNATIONAL LEVEL.
 POWERS AND FUNCTIONS OF BARGAINING
COUNCIL
ACCORDING TO SECTION 27 OF THE LABOUR RELATIONS ACT, BARGAINING COUNCILS MAY:
• CONCLUDE AND ENFORCE COLLECTIVE AGREEMENTS
• PREVENT AND RESOLVE LABOUR DISPUTES
• CONDUCT CONCILIATION AND ARBITRATION IN TERMS OF THE ACT, OR PROVIDE FOR SUCH CONCILIATION AND
ARBITRATION
• ESTABLISH A FUND FOR SETTLEMENT OF DISPUTES
• ESTABLISH AND PROMOTE EDUCATION AND TRAINING SCHEMES
• ESTABLISH AND ADMINISTER PENSION, PROVIDENT, MEDICAL AID, SICK, HOLIDAY AND UNEMPLOYMENT FUNDS
• TO DEVELOP PROPOSALS FOR SUBMISSION TO NEDLAC REGARDING POLICY OR APPROPRIATE FORUM AND
LEGISLATION THAT MAY AFFECT THEIR SECTOR
• DETERMINE, BY COLLECTIVE AGREEMENT, ISSUE WHICH FOR THE PURPOSES OF A STRIKE OR LOCKOUT WILL BE
REGARDED AS AN ISSUE IN DISPUTE
• DELETE TO WORKPLACE FORUMS ADDITIONAL MATTERS FOR CONSULTATION
• PROVIDE INDUSTRIAL SUPPORT SERVICES IN THEIR SECTOR
• EXTEND THEIR FUNCTIONS AND SERVICES TO HOME WORKERS AND THE INFORMAL SECTOR.
 COLLECTIVE BARGAINING IN SOUTH
AFRICA
THE RIGHT TO FREE COLLECTIVE BARGAINING
• LABOUR RELATIONS POLICY SUPPORTS THE FOLLOWING PRINCIPLES:
 VOLUNTARISM
 FREE COLLECTIVE BARGAINING
 FREEDOM OF ASSOCIATION
FREEDOM OF ASSOCIATION AND FREEDOM FROM VICTIMIZATION
• IF POWER IS TO BE BALANCED AND FREE COLLECTIVE BARGAINING IS TO TAKE PLACE, IT IS
ESSENTIAL THAT:
 INDIVIDUALS SHOULD HAVE FREEDOM TO JOIN THE ORGANISATION OF THEIR CHOICE
 NO MANIPULATION OF MEMBERSHIP SHOULD OCCUR
 COLLECTIVE ORGANISATIONS THEMSELVES SHOULD HAVE FREE CHOICE AND BE FROM INFLUENCE
 MEMBERS OF SUCH ORGANISATIONS OR THEIR OFFICE BEARERS SHOULD NOT FEAR VICTIMASATION.
 TRADE UNION RECOGNITION
• AN EMPLOYER IS OBLIGED TO ACCORD THE RIGHTS OF RECOGNITION ONLY TO REGISTERED TRADE UNIONS WHICH
ARE “REPRESENTATIVE”.
• REPRESENTATIVENESS HAS THREE MEANINGS:
i. SUFFICIENT REPRESENTATION: ONLY A REGISTERED TRADE UNION WHICH IS SUFFICIENTLY
REPRESENTATIVE OF EMPLOYEES AT A PARTICULAR WORKPLACE MAY DEMAND ORGANIZATIONAL
RIGHTS, SUCH AS ACCESS TO WORKPLACE, STOP-ORDER FACILITIES AND LEAVE DURING WORKING
HOURS FOR ITS OFFICE BEARERS. TWO OR MORE TRADE UNIONS IN A WORKPLACE MAY ACT JOINTLY
IN ORDER TO ESTABLISH SUFFICIENT REPRESENTATION.
ii. MAJORITY MEMBERSHIP: A MAJORITY INDICATE A CLEAR MAJORITY OF TRADE UNION MEMBERS IN
THE WORKPLACE, THAT IS 50% PLUS OF THE EMPLOYEES HAVE JOINED THE UNION. ONLY REGISTERED
UNIONS WITH A MAJORITY SUPPORT IN THE WORKPLACE WILL BE ABLE TO DEMAND STATUTORY
RIGHTS WITH REGARD TO AGENCY SHOP, CLOSED SHOP AND WORKPLACE FORUM AGREEMENTS.
iii. 30% MEMBERSHIP: A REGISTERED TRADE UNION WISHING TO ESTABLISH A STATUTORY COUNCIL
MUST HAVE A MEMBERSHIP OF AT LEAST 30% IN THE RELEVANT INDUSTRY.

• CHAPTER 3 OF THE LABOUR RELATIONS ACT 66 OF 1995 GRANTS REGISTERED UNIONS A NUMBER OF ORGANISATIONAL RIGHTS.
• AN EMPLOYER FACED WITH A UNION THAT ENJOYS STRONG WORKPLACE SUPPORT AND WHICH IS ENTITLED TO ORGANIZATIONAL
RIGHTS WOULD BE LEFT WITH LITTLE OPTION BUT TO AGREE TO ENTER INTO COLLECTIVE BARGAINING ARRANGEMENTS WITH IT.
 ORGANISATIONAL RIGHTS
RIGHTS OF MAJORITY TRADE
UNION
MAJORITY UNIONS ARE ENTITLED:
• TO ENTER THE EMPLOYER’S PREMISES
• HOLD MEETINGS ON THE EMPLOYER’S PREMISES
OUTSIDE WORKING HOURS
• CONDUCT BALLOTS
• REQUEST STOP-ORDER FACILITIES
• REQUEST TIME OFF FOR OFFICE BEARERS
• ELECT SHOP STEWARDS/ UNION REPRESENTATIVES
• DEMAND DISCLOSER OF RELEVANT INFORMATION
• ESTABLISH WITH THE EMPLOYER, THRESHOLDS OF
REPRESENTATIVENESS
• NEGOTIATE AN AGENCY SHOP OR CLOSED AGREEMENTS
RIGHTS GRANTED TO REPRESENTATIVE
UNIONS
ACCORDING TO SECTIONS 12, 13, AND 15 OF THE
LRA REPRESENTATIVE UNIONS ARE ENTITLED
TO:
• GAIN ACCESS TO THE EMPLOYER’S PREMISES FOR THE
PURPOSE OF RECRUITING MEMBERS.
• COMMUNICATE WITH MEMBERS OR SERVE THEIR
INTERESTS.
• HOLD MEETINGS WITH EMPLOYEES ON THE PREMISES
OF THE EMPLOYER OUTSIDE WORKING HOURS.
• CONDUCT BALLOTS AMONG EMPLOYEES.
• ARRANGE FOR STOP-ORDER FACILITIES FOR THE
PAYMENT OF UNION DUES.
• GET TIME OFF FOR UNION BEARERS TO PERFORM THEIR
DUTIES.
 EXERCISING ORGANISATIONAL RIGHTS
ACCORDING TO SECTION 21 OF THE LRA, A REGISTERED UNION WISHING TO EXERCISE ANY OF THE RIGHTS
PROVIDED IN THE ACT SHOULD INFORM THE EMPLOYER IN WRITING OF ITS INTENTION. SUCH NOTICE SHOULD:

 BE ACCOMPANIED BY A CERTIFIED COPY OF THE UNION’S REGISTRATION CERTIFICATE

 SPECIFY THE WORKPLACE WHERE THE UNION WANTS TO EXERCISE THESE RIGHTS

 PROVIDE PROOF OF THE UNION’S REPRESENTATIVENESS

 LIST THE RIGHTS WHICH THE UNION WISHES TO EXERCISE.

• THE EMPLOYER IS OBLIGED TO MEET WITH THE UNION WITHIN 30 DAYS OF RECEIVING SUCH NOTICE,.

• THEREAFTER, THE PARTIES SHOULD ATTEMPT TO REACH AGREEMENT ON THE MANNER IN WHICH THESE
RIGHTS WILL BE EXERCISED.

• IF NO AGREEMENT CAN BE REACHED, EITHER PARTY MAY REFER THE DISPUTE TO THE CCMA WHICH WILL
ATTEMPT CONCILIATION.

• IF CONCILIATION FAILS, EITHER PARTY MAY REQUEST THAT THE MATTER BE TAKEN TO ARBITRATION.
 COLLECTIVE AGREEMENTS
• COLLECTIVE AGREEMENT: IS A WRITTEN AGREEMENT CONCERNING TERMS AND
CONDITIONS OF EMPLOYMENT OR ANY OTHER MATTER OF MUTUAL INTEREST BETWEEN
ONE OR MORE REGISTERED TRADE UNIONS, AND ON THE OTHER, ONE OR MORE
EMPLOYERS, OR ONE OR MORE REGISTERED EMPLOYERS’ ORGANISATION.
• COLLECTIVE AGREEMENTS BINDS ALL THE PARTIES TO AGREEMENT.
• COLLECTIVE AGREEMENT CAN ALSO BIND AN EMPLOYEE WHO IS NOT A MEMBER OF A
REGISTERED TRADE UNION THAT IS THE PARTY TO THE AGREEMENT, PROVIDED THAT
THE TRADE UNION REPRESENTS A MAJORITY OF EMPLOYEES IN THE ORGANISATION, THE
EMPLOYEE IS IDENTIFIED IN THE AGREEMENT, AND THE AGREEMENT SPECIFICALLY
BINDS THE EMPLOYEE.
• COLLECTIVE AGREEMENT MUST PROVIDES FOR A PROCEDURE TO RESOLVE ANY DISPUTE
ABOUT THE INTERPRETATION OR APPLICATION OF THE AGREEMENT, FIRST BY WAY OF
CONCILIATION AND SECONDLY IF UNRESOLVED BY WAY OF ARBITRATION.
 COLLECTIVE AGREEMENTS

• COLLECTIVE AGREEMENT DEAL WITH BOTH PROCEDURAL AND SUBSTANTIVE ISSUES

PROCEDURAL AGREEMENT
• BOTH THE EMPLOYER AND THE TRADE UNION WILL AGREE ON WHAT HAS BECOME KNOWN AS A
RECOGNITION AND PROCEDURAL OR RELATIONSHIP AGREEMENT. (ORGANIZATIONAL CONSULTATION
AND DISPUTE RESOLUTION)
SUBSTANTIVE AGREEMENT
• THIS AGREEMENT REGULATES THE RIGHTS AND OBLIGATIONS OF THE PARTIES TO THE EMPLOYMENT
RELATIONSHIP IN TERMS OF WHAT THE EMPLOYER IS PREPARED TO PROVIDE EPLOYEES IN RETURN FOR
SERVICES RENDERED.
• BOTH THE EMPLOYER AND THE TRADE UNION NEGOTIATE SUBSTANTIVE AGREEMENTS FOR A LONGER
DURATION THAN ONE YEAR.
• ISSUES SUCH AS WAGE RATES AND EMPLOYEE BENEFITS ARE NORMALLY NEGOTIATED ON AN ANNUAL
BASIS. (WAGES, TERMS AND CONDITIONS OF EMPLOYMENT AND PEACE OBLIGATIONS).
 COLLECTIVE AGREEMENTS REGARDING
MEMBERSHIP

THE RIGHT TO NEGOTIATE FOR AGENCY OR CLOSED SHOPS

• UNIONS ARE HAVING A PROBLEM WITH SO CALLED ‘FREE RIDERS’.
• FREE RIDERS ARE EMPLOYEES WHO DO NOT BELONG TO THE UNION AND DO NOT PAY
UNION DUES.
• THOSE EMPLOYEES FALL WITHIN THE BARGAINING UNIT.
• WHEN CONDITIONS OF SERVICES AND WAGES ARE NEGOTIATED, THE FREE RIDERS ARE
ALSO BENEFITTING.
• IN ORDER TO GET RID OF THE FREE RIDERS THE UNIONS NEGOTIATE THE
ESTABLISHMENT OF AGENCY SHOPS OR CLOSED SHOPS.
 AGENCY SHOPS (SECTION 25 OF LRA)
DEFINITION: IS SOFTER FORM OF UNION SECURITY ARRANGEMENT IN TERMS OF WHICH AN EMPLOYER AND MAJORITY
UNION AGREE THAT ALL EMPLOYEES WITHIN AN AGREED BARGAINNING UNIT WHO ARE NOT WILLING TO BELONG THE
UNION MUST PAY AN AGENCY FEE THAT IS NO HIGHER THAN NORMAL UNION FEE.
• ACCORDING TO SECTION 25(1) OF THE LRA A REPRESENTATIVE OF UNION AND AN EMPLOYER OR EMPLOYERS’
ORGANISATION MAY CONCLUDE A COLLECTIVE AGREEMENT KNOWN AS AGENCY SHOPS.

ARGUMENTS IN FAVOUR OF THE AGENCY SHOP

• AN AGENCY SHOP AGREEMENT DOES NOT OBLIGE EMPLOYEES TO BECOME UNION MEMBERS BUT IT MAY OBLIGE
NON-MEMBERS WHO ARE ELIGIBLE FOR UNION MEMBERSHIP TO PAY SUBSCRIPTION FEE.
• THE AGREED AGENCY FEE OR SUBSCRIPTION FEE SHOULD NOT EXCEED THE AMOUNT PAYABLE IN DUES BY UNION
MEMBERS.
• THOSE SUBSCRIPTIONS ARE PAID INTO A SEPARATE FUND, ADMINISTERED BY THE MAJORITY UNION.
• THOSE FUNDS SHOULD BE USED TO ADVANCE SOCIO-ECONOMIC WELFARE OF ALL EMPLOYEES.
• AN EMPLOYER OR EMPLOYER ORGANIZATION MAY CHALLENGE A UNION TO PROVE THAT IT IS STILL A MAJORITY
UNION, BUT MUST GIVE THE UNION 90 DAYS TO PROVE THAT IT IS REPRESENTATIVE.
• IF THE UNION FAILS TO PROVE ITS REPRESENTIVITY, THE EMPLOYER MUST GIVE 30 DAYS NOTICE OF TERMINATION OF
THE AGREEMENT.
 CLOSED SHOP (SECTION 26 OF LRA)
DEFINITION: IS A FORM OF UNION SECURITY WHICH AN EMPLOYER AND MAJORITY UNION ENTER INTO AN
AGREEMENT THAT ALL EMPLOYEES COVERED BY THE AGREEMENT WITHIN A CERTAIN BARGAINING UNIT MUST
BECOME MEMBERS OF A MAJORITY UNION.
ACCORDING TO SCTION 26(1) OF THE LRA, A REPRESENTATIVE OF A UNION AND AN EMPLOYER OR EMPLOYERS’
ORGANISATION MAY CONCLUDE A COLLECTIVE AGREEMENT KNOWN AS CLOSED SHOP AGREEMENT.
• A CLOSED SHOP AGREEMENT OBLIGES ALL ELIGIBLE EMPLOYEES TO BECOME MEMBERS OF THE MAJORITY UNION.
• A CLOSE SHOP AGREEMENT MAYBE CONCLUDED ONLY IF TWO – THIRDS OF THE EMPLOYEES TO BE COVERED HAVE
VOTED IN FAVOUR OF SUCH AGREEMENT.
ARGUMENTS IN FAVOUR OF THE CLOSED SHOP
• IT OVERCOMES THE FREE-RIDER PROBLEM, WHERE SOME WORKERS DO NOT PAY MEMBERSHIP FEES AND DO NOT
JOIN TRADE UNION, BUT RECEIVE ALL THE BENEFITS.
• IT INCREASES UNION POWER BY ENSURING SOLIDARITY DURING THE STRIKE ACTION AND STRENGTHENS THE
UNION’S FINANCIAL RESOURCES.
• IT OVERCOMES PROBLEM OF UNION RIVALRY AND REDUCES FRICTION ON THE SHOP FLOOR.
• IT FACILITATES MANAGEMENT COMMUNICATION WITH ITS EMPLOYEES THROUGH A SINGLE CHANNEL.
• IT CONFIRMS THE STATUS OF THE UNION IN THE COMPANY, THEREFORE ALLEVIATE THE PRESSURE ON THE UNION
TO CONSTANTLY CHALLENGE MANAGEMENT TO SUSTAIN ITS ROLE.
 LEVELS OF COLLECTIVE BARGAINING

• BARGAINING FORUMS MAYBE ESTABLISHED AT A HIGHLY CENTRALISED OR

DECENTRALISED LEVEL.
MOST COMMON FORMS OF COLLECTIVE BARGAINING FOUND THROUGHOUT THE
WORLD ARE:
1. CENTRALISED NATIONAL BARGAINING IN NEDLAC
2. CENTRALISED SECTORAL BARGAINING IN BARGAINING COUNCILS
3. DECENTRALISED COLLECTIVE BARGAINING AT WORKPLACE OR
ORGANIZATIONAL LEVEL
 1. CENTRALISED NATIONAL BARGAINING IN NEDLAC
• ITS PURPOSE WAS TO BRINGING TOGETHER OF LABOUR, BUSINESS, GOVERNMENT AND
DEVELOPMENT ACTORS IN ORDER TO ENSURE CONSENSUS ON MATTERS RELATED TO ECONOMIC
POLICY AND CONSIDER ALL PROPOSED LABOUR LEGISLATION.
• NEDLAC IS NOT FORMALLY DESCRIBED AS A COLLECTIVE BARGAINING FORUM BUT RATHER AS A
CONSENSUS-SEEKING BODY, PROMOTING EMPLOYEE PARTICIPATION IN SOCIO-ECONOMIC DECISION-
MAKING.
• NEDLAC PROVIDES A FORUM WHERE PEAK OF EMPLOYER FEDERATIONS SUCH AS BUSINESS UNITY
SOUTH AFRICA (BUSA) AND BLACK BUSINESS COUNCIL AND THE PEAK OF TRADE UNION
FEDERATIONS SUCH AS CONGRESS OF SOUTH AFRICAN TRADE UNIONS (COSATU), FEDERATION OF
UNIONS OF SOUTH AFRICA (FEDUSA) AND NATIONAL COUNCIL OF TRADE UNIONS (NACTU) MEET
AND ATTEMPT TO COME TO AGREEMENT OVER LABOUR LEGISLATION AND OTHER SOCIAL POLICY
MATTERS.
• IT MAYBE ARGUED THAT NO WAGE NEGOTIATIONS TAKE PLACE AT THIS LEVEL AND THEREFORE IT IS
NOT A COLLECTIVE BARGAINING FORUM.
• HOWEVER, BY INDIRECTLY INFLUENCING SOCIO-POLITICAL POLICY RELATING TO MATTERS SUCH AS
TAXATION AND SOCIAL BENEFITS INCLUDING PENSIONS AND HEALTH CARE BENEFITS.
 2. CENTRALISED SECTORAL BARGAINING IN BARGAINING COUNCILS

THIS LEVEL OF COLLECTIVE BARGAINING TAKES PLACE AT TWO FORUMS:

1. PRIVATE SECTOR BARGAINING COUNCILS
• THE LARGEST AND MOST COMPREHENSIVE NATIONAL BARGAINING COUNCIL IN THE PRIVATE SECTOR
EXIST IN THE METAL INDUSTRY SUCH AS METAL AND ENGINEERING INDUSTRIES BARGAINING
COUNCIL (MEIBC).
• THE EMPLOYER ORGANISATION SUCH AS THE STEEL AND ENGINEERING INDUSTRIES FEDERATION
OF SOUTHERN AFRICA BARGAIN ON BEHALF OF THE SMALLER EMPLOYER ASSOCIATIONS WHO ARE
MEMBERS.
• SIX UNIONS ARE PARTIES TO THE METAL AND ENGINEERING INDUSTRIES BARGAINING COUNCIL MAIN
AGREEMENT.
• SALARIES AND WORKING CONDITIONS OF APPROXIMATELY 10 624 COMPANIES AND 306 747
EMPLOYEES ARE ULTIMATELY COVERED BY THE COLLECTIVE AGREEMENT.
• OTHER NATIONAL BARGAINING COUNCIL OPERATE IN THE CHEMICAL, CLOTHING, ELECTRICAL,
LEATHER, RETAIL MOTOR, SUGAR MANUFACTURING AND REFINING, ROAD FREIGHT, TEXTILES, AND
SUGAR INDUSTRIES
2. CENTRALISED SECTORAL BARGAINING IN BARGAINING COUNCILS

2. BARGAINING COUNCILS IN PUBLIC SECTOR BARGAINING

COUNCILS
• THE BARGAINING COUNCIL IN PUBLIC SERVICE OR SECTOR IS KNOWN AS THE PUBLIC SERVICE CO-ORDINATING BARGAINING
COUNCIL.

• THE PUBLIC SERVICE BARGAINING COUNCIL COVERS THE ENTIRE PUBLIC SERVICE AS DEFINED IN SECTION 1 OF THE PUBLIC
SERVICE ACT 0F 1994, EXCLUDING MEMBERS OF THE SANDF, NATIONAL INTELLIGENCE AGENCY, SOUTH AFRICAN SECRET
SERVICES AND SOUTH AFRICAN NATIONAL ACADEMY OF INTELLIGENCE.

• THE FUNCTIONS OF SERVICE CO-ORDINATING BARGAIING COUNCIL IS TO NEGOTIATE MATTERS SUCH AS WAGES AND WORKING
CONDITIONS.

• PUBLIC SERVICE CO-ORDINATING BARGAINING COUNCIL MAY PERFORM ALL THE FUNCTIONS OF A BARGAINING COUNCIL IN
RESPECT OF THOSE MATTERS THAT:

a) ARE REGULATED BY UNIFORM RULES, NORMS AND STANDARDS THAT APPLY TO ACROSS THE PUBLIC SERVICE;

b) APPLY TO TERMS AND CONDITIONS OF SERVICE THAT APPLY TO TWO OR MORE SECTORS;

c) ARE ASSIGNED TO THE STATE AS EMPLOYER IN RESPECT OF THE PUBLIC SERVICE THAT ARE NOT ASSIGNED TO THE STATE AS
EMPLOYER IN ANY SECTOR.

* A BARGAINING COUNCIL ESTABLISHED FOR A PARTICULAR SERVICE HAVE SOLE JURISDICTION IN THAT SECTOR WITH REGARDS
TO MATTERS WHICH ARE SUBJECT TO NEGOTIATIONS WITH THE STATE AS EMPLOYER.
TYPES OF PUBLIC SERVICE BARGAINING COUNCIL
• THERE ARE FOUR SECTORAL BARGAINING COUNCILS:
i. EDUCATION LABOUR RELATIONS COUNCIL
ii. GENERAL PUBLIC SERVICE SECTORAL BARGAINING COUNCIL
iii. PUBLIC HEALTH AND SOCIAL DEVELOPMENT SECTORAL BARGAINING COUNCIL
iv. SAFETY AND SECURITY SECTORAL BARGAINING COUNCIL WHICH COVERS SOUTH AFRICAN
POLICE SERVICE.
THESE COUNCILS OPERATE SEPARATELY AS FULL BARGAINING COUNCILS TO NEGOTIATE ON ISSUES
PARTICULARLY TO THE SECTOR.
 NEGOTIATIONS IN LOCAL GOVERNMENT ARE COORDINATED IN THE SOUTH AFRICAN LOCAL
GOVERNMENT BARGAINING COUNCIL.
 LOCAL GOVERNMENT EMPLOYERS NEGOTIATE THROUGH THE UMBRELLA ORGANIZATION OF SOUTH
AFRICAN LOCAL GOVERNMENT ASSOCIATION.
 MAJOR ISSUES IN THE COUNCIL RELATE TO PERCEIVED INEQUITABLE WAGE LEVELS AND THE
PROPOSED OUTSOURCING OF MUNICIPAL SERVICES.
 ADVANTAGES OF CENTRALISED BARGAINING
COUNCIL
• PROVIDE PROTECTION FOR NON-UNIONISED EMPLOYEES WHO WOULD OTHERWISE BE EXPLOITED, ESPECIALLY IN
SMALL COMPANIES.
• THE ENFORCEMENT OF UNIFORM WAGES IN THE SECTOR PREVENTS THE SHIFT OF PRODUCTION FROM THE UNIONIZED
SECTOR TO THE LOWER WAGE, NON-UNION SECTOR, THUS PREVENTING EXPLOITATION.
• LARGE EMPLOYERS FAVOUR THE EXTENSION OF AGREEMENTS BECAUSE UNIFORM WAGES PREVENT UNDERCUTTING OF
WAGES BY SMALLER COMPETITORS, WHO OFFER LOWER WAGES AND POORER WORKING CONDITIONS AND BENEFITS.
• COMMON CONDITIONS ARE SET FOR A SPECIFIC SECTOR, AND ACCEPTABLE MINIMUM WAGES AND FAIR PROCEDURES
ARE ESTABLISHED.
• BECAUSE OF THEIR LARGE AND ECONOMIES OF SCALE, BENEFITS SCHEMES SUCH AS MEDICAL AID AND PROVIDENT
FUNDS ORGANIZED ON A SECTORAL BASIS ARE ABLE TO PROVIDE BETTER BENEFITS FOR MEMBERS.
• NEGOTIATIONS ARE CONDUCTED BY SKILLED NEGOTIATORS IN THE BARGAINING COUNCIL.
• COMPREHENSIVE TRAINING PROGRAMMES AND FACILITIES MAY BE DEVELOPED ON A COST-EFFECTIVE BASIS.
• THE DISPUTE SETTLING PROCEDURES ESTABLISHED BY BARGAINING COUNCILS OFFER AN OPPORTUNITY FOR AN
UNBIASED HEARING OF ALLEGED UNFAIR DISMISSALS OR UNFAIR LABOUR PRACTICES.
• THE NUMBER OF STRIKES IS LIKELY TO DECLINE DUE TO THE SEROUS NATURE OF SUCH STRIKES, AND THUS GREATER
EFFORT IS MADE TO AVOID TO THEM.
• AS NEGOTIATIONS TAKE PLACE AT A HIGHER LEVEL, THERE IS LESS INTER-PERSONAL TENSION AT THE WORKPLACE.
 DISADVANTAGES OF CENTRALISED
BARGAINING COUNCIL

• COUNCIL AGREEMENTS RESTRICT THE OPERATION OF MARKET FORCES.

• CENTRALISED BARGAINING COUNCIL AGREEMENTS MAY INHIBIT SMALL BUSINESS.
• BARAGINING COUNCIL AGREEMENTS MAY LIMIT FLEXIBILITY IN EMPLOYMENT
PRACTICES, INCLUDING PAY SYSTEM.
• BARAGAINING COUNCIL AGREEMENTS LIMIT FLEXIBILITY IN EMPLOYMENT
PRACTICES, INCLUDING PAY SYSTEMS.
 3. DECENTRALISED BARGAINING AT COMPANY OR ENTERPRISE
LEVEL

• DECENTRALIZED BARGAINING COUNCIL INVOLVES A SINGLE TRADE UNION AND

EMPLOYER IN PARTICULAR WORKPLACE.
• TRADE UNIONS NEGOTIATE WITH AN EMPLOYER, WHOSE OWNERSHIP MAY EXTEND TO A
SINGLE WORKPLACE OR MULTIPLE WORKPLACES SITUATED AT DIFFERENT SITES
REGIONALLY OR NATIONALLY.
• WITH COLLECTIVE AGREEMENTS OF BARGAINING COUNCILS, THE COMPANY COLLECTIVE
AGREEMENTS COVER ALL SUBSTANTIVE MATTERS RELATING TO SALARIES AND WORKING
CONDITIONS.
• DISPUTES ARE LESS LIKELY TO ARISE OVER THE INTERPRETATION OF AGREEMENTS
BECAUSE MOST EMPLOYEES AT THE WORKPLACE ARE DIRECTLY INVOLVED IN
NEGOTIATION OF THE AGREEMENT.
• THESE AGREEMENTS ARE GENERALLY EXTENDED TO NON-UNION MEMBERS IN THE
BARGAINING UNIT COVERED BY THE AGREEMENT.
 ADVANTAGES OF DECENTRALIZED
BARGAINING COUNCIL
• WAGES TEND TO ACCOMMODATE THE ECONOMIC REALITIES OF INDIVIDUAL
ORGANISATIONS.
• BENEFITS ARE ADAPTED TO THE PARTICULAR NEEDS OF INDIVIDUAL ORGANISATIONS
• IT IS MORE FLEXIBLE
• UNIONS AND EMPLOYERS ARE ENCOURAGED TO ENGAGE MORE ACTIVELY IN DIALOGUE
AND REDRESS ISSUES IMPACTING ON PARTICULAR WORKPLACE.
 DISADVANTAGES OF DECENTRALIZED
BARGAINING COUNCIL
• IS MORE COSTLY TO IMPLEMENT TRAINING INTERVENTIONS ON A SIMILAR MORE
LIMITED SCALE.
• LESS UNIFORM APPLICATION OF EMPLOYMENT STANDARDS
• FOCUS MAY BECOME TOO NARROW AND LIMITED
• BROADER ECONOMIC OBJECTIVES ARE NOT ACCOUNTED FOR.