2. Labour Relations Act Flashcards
When did it come into effect?
11 November 1996
What is it based on?
The Constitution
What does it provide?
Basic legal framework for the SA labour relations system
Main objectives
• Enforce fundaments rights grantees by section 23 Constitution
• Enforce SA’s international obligations - member of International Labour Organisation
• Provide framework collective bargaining - trade and employees
• Promote effective resolution of labour disputes - employee particulars decision making in workplace
What does the Act contain?
Basic rules and mechanisms - use control communication, bargain or negotiate relationships between employers and employees
Who does the Act apply to?
Every employer and employee
Who does the Act not apply to?
National Defence Force, National Intelligence Agency and South African Secret Service
What issues does the Act contain?
Freedom of association, Trade Unions, strikes and lockouts, collective bargaining, dispute resolution to unfair labour practice, unfair dismissal
What is it founded on?
Common-law contract of employment (individual relationship)
What is the content described in?
Statues and collective agreements that are negotiated between employers and trade unions
What are individual and collective relationships subject to?
International labour standards and provisions of the South African Constitution of 1996
What is the highest law of South Africa?
The Constitution
Whats up can’t the state do with rights?
Not able to pass legislation which takes rights in the Constitution away
Instead what can they do with these rights?
Place restrictions on how rights are exercised
Define trade union
Any number of employees in a particular undertaking, industry, trade or occupation associated together for the purpose of regulating relations in that undertaking, industry, trade or occupation between employees and employers
Define employer organisation
Enables employees to work together to negotiate with trade unions in a specific industry
What does the Constitution guarantee?
Principle of Freedom of Association
What does the Freedom of Association allow?
Employees the right to join a trade union of choice
Vice versa
How can trade unions and employer organisations make use of procedures?
Registered
Registration requirements of trade unions and employer organisations
- Proper constitution
- Constitution must be consistent with LRA
- Union not formed to evade law or not affiliated to any political party
Why is registration important?
Gives certain rights to trade unions
What is an important right of trade unions?
Allow to be party to Bargaining and Statutory council
What does a Statutory council mean?
Wages and conditions of employment can be negotiated that may be made binding by law
How does an employee pay a trade union?
Deduct trade union membership fee from wages of employees
How does an employee pay a trade union?
Deduct trade union membership fee from wages of employees
What actions may the employer not prevent with trade unions?
Engage in union action and hold meetings at work place
What is the main aim of the trade union?
Engage in collective bargaining with employers on behalf of members
What will the trade union advise?
Advise and represent members on conditions of service, grievances and disciplinary issues, labour relations issues
Name functions of trade unions
- Protecting rights of workers, ensure fair treatment workers
- Improve conditions of employment
- Represent members in negotiations w employers
- Represent employees in disciplinary issues
- Advising employees in labour relations issues
- Strive achieve industrial peace while influencing policies and decisions regarding labour issues
Improving conditions of service/employment
• Salaries
• Employee benefits
• Job security
• Physical work environment (safety)
What is the best interest of a healthy economy?
Maintain industrial peace through effective Industrial Relations (IR)
What two issues does collective bargaining cover?
- Contract negotiations between employers (Employer organisations)
- Trade Unions (handling of grievances)
Define strike
Temporary, collective refusal of employees to work in order to put pressure on the employer to agree to the demands of the workers
Define go-slow
Workers continue to work but slow down to reduce productivity
What pre-empts a full strike?
Go slow
Define work to rule
Workers stick to the letter of their contracts, reducing productivity
Define picketing
Group of employees demonstrating outside the place of work to show their dissatisfaction with a certain issues
Does picketing disrupt work?
No work is disrupted
Define lock-out
Refusal on part of an employer to allow employees to continue to work unless they expect certain conditions of employer
What was the major develops on the Labour front?
National Economic Development and Labour Council
NEDLAC
National Economic Development and Labour Council
What does NEDLAC ensure?
Government, organised labour and employers are in agreement prior to labour policies that will impact social and economical levels are submitted to government
What is one of the aims of NEDLAC?
Function as a body to promote economic growth, reach consensus (labour legislation) and promote social and economic polices (significant improvements for labour on social economic terrain)
How will trade unions participate in the economy? NEDLAC
Through more institutionalised approach
Why must trade unions participate in the economy?
Ensure increased competitiveness on a global scale while continuing to achieve long term socioeconomic development and maintain political stability
What does NEDLAC do at a national level?
Brings employers, employees and government together
Why is there collective bargaining between trade unions and employers/organisations?
• Determine wages, terms and conditions of employment and other matters of mutual interest
• Formulate industrial policy
Name the three collective bargaining structures
- Bargaining councils
- Statutory councils
- Workplace forums
What is the function of a bargaining council?
Help establish collective agreements for a certain sector or industry
Where are statutory councils established ?
Sectors and areas where there are no bargaining councils
What are the three main functions of statutory councils?
- Solve disputes within area of jurisdiction
- Establish training and education schemes
- Establish and administer pension funds, provident funds, medical aid and unemployment schemes
What does the workplace forum do?
Grass root level labour relations and shits focus of joint problem solving and decision making to workplace
What does the Labour Relations Act force the employer to do with the workplace forum?
Employer to conduct intensively with the workplace forum over a wide range of matters of mutual interest
How can employees access bargaining structures?
Part of the Grievance Procedure if they have problem with employer
Define grievance procedure
Route of communication that must be followed by worker who wants to lodge a formal complaint
Who does the worker consult before submitting a complaint?
Shop steward
What is a shop steward?
Trade union representative in business
How do you submit a complaint?
Writing
What happens if the grievance cannot be resolved within the department?
Communicated upwards through different levels of authority or industrial relations structures outside of company
Name industrial relations structures
Bargaining councils, CCMA, Labour Court, Labour Appeal Court
How does the Labour Relations Act resolve disputes quickly?
Provide basic two step procedure
What is step one?
Conciliation
When does step two occur?
If step one is unsuccessful
What is step two?
mediation, arbitration, adjudication or industrial action
When does conciliation occur?
Parties in dispute get together with a neutral third party. Conciliator does not decide right and wrong, helps party reach agreement
What is mediation?
Process of mediator making a recommendation to parties. Recommendations cannot be enforced and not legally binding
When does arbitration occur?
The dispute is referred to a neutral third party who makes a decision about who is rigjt
What is Adjudication?
Dispute does to the Labour Court after arbitration
What happens in Adjudication?
Party can appeal against decision of Labour court if leave to appeal is granted. Go to Labour Appeal Court (LAC)
What happens in Adjudication?
Party can appeal against decision of Labour court if leave to appeal is granted. Go to Labour Appeal Court (LAC)
LAC
Labour Appeal Court
CCMA
Commission for Conciliation, Mediation and Arbitration
Who is the CCMA funded by?
State and governed by NEDLAC
How does the CCMA function?
Independently
What is the CCMA vital for?
South African Labour dispute resolution system
What do employees have the right to do for collective bargaining?
Right to strike
What do employees have the right to do for collective bargaining?
Right to strike
What do employers have the right to do for collective bargaining?
Lock out employees for disputes
Why are strikes and lockouts the last resort?
Labour unrest is detrimental to the country
What are the forms of industrial actions?
Strikes, lockouts and other
When is it regarded as a strike?
Two or more employees participate
When is it regarded as a strike?
Two or more employees participate
What must striking employees have in common?
Common work related purpose, not same employer
What must the reason for the strike be?
To solve a grievance or dispute about a matter of mutual interest that condemns employees and employers
What are protected strikes?
Enjoy certain benefits which employees who engage in unprotected strikes do not have
What procedures need to be followed for a strike to be considered protected?
• Collective agreement - dispute relation procedures must be followed
• No agreed dispute resolution procedure, procedures of LRA followed
What procedures of the LRA must be followed?
- Issue disputes in writing to CCMA, bargains council, statutory council
- CCMA or council must try settle dispute - conciliation within 30 days
- Fails, CCMA or council issue a certificate saying dispute not resolved
- 48 hours notice in writing of proposed strike given to private employer or seven day notice (employer)
When is a strike not protected?
- Collective agreement states workers may not strike over issue
- Correct procedures have not been followed or arbitration decision ignored
- Essential service
What happens during a protected strike?
- Employees may not be dismissed
- Employee can’t apply for court interdict to stop strike, may apply court interdict to prevent unlawful action
- Refusal to work is not breach of contract and employer cannot claim damage
- Does not have to pay employees participating in protected strike
What does lockout force?
Employees to accept a demand or offer
Name the reasons for strikes and lockouts
- Wage increases
- Demand to recognise trade union
- Unhappiness - unilateral changes that the employer made to working conditions
- Sympathy by another party
- Issues of common national interest
What are the other forms of industrial action?
- Picketing
- Secondary action
What is picketing?
Peaceful demonstration by workers or interested parties, and takes place outside of premises
What is the difference between picketing and a strike?
Outside normal work hours
Who can organise a picket?
Registered trade union
When must pickets obtain employers permission
Can happen any public place
Permission: inside workplace
What is secondary action?
Employees striking in support of a strike by other employees
When will secondary action be protected?
- Main strike is protected
- Secondary strikers give seven days notice to employer
