2. Labour Relations Act (LRA), 1995 (Act 66 of 1995)

Question 1

2.1 Purpose of the LRA

Answer 1

• Establishes Labour Courts and Labour Appeal Courts.
• Promotes fair labour practices between the employer and employees.
• Provides for the right to lock-out by employer as a reaction to lengthy strikes.
• Promotes collective bargaining at the workplace.

Question 2

2.2 (A) Impact of the LRA on businesses (ADVANTAGES)

Answer 2

• Protects the rights of businesses in labour related issues.
• Labour disputes are settled quicker and are less expensive.
• Promotes a healthy relationship between the employer and employees.
• Workplace forums can add value to businesses if they are functioning properly.

Question 3

2.2 (B) Impact of the LRA on businesses (DISADVANTAGES)

Answer 3

• Costs of labour increases because of legal strikes.
• Employers may not get a court interdict to stop a strike.
• Strike actions always result in loss of production for which employers may not claim.
• Reduces global competitiveness due to lower productivity.

Question 4

2.3 Actions regarded as non-compliance by the LRA

Answer 4

• Preventing employees from joining trade unions.
• Refusing the establishment of workplace forums.
• Forcing employees to give up trade union membership.
• Not allowing employees to take part in a legal strike.

Question 5

2.4 Penalties or consequences for non-compliance to the LRA

Answer 5

• The employer may be forced to enter into a dispute resolution process.
• Business that fails to comply with this Act may risk financial costs, e.g., CCMA fees.
• Businesses will be fined if they fail to comply with the agreements reached during the dispute resolution process.

Question 6

2.5 Ways in which businesses can comply with the LRA

Answer 6

• Businesses must allow employees to form trade unions or participate in union activities or legal strikes.
• Employers should not breach or ignore any collective agreements.
• Allow or support the establishment of workplace forums.
• Employees should not be unfairly or illegally dismissed.

Question 7

2.6 (A) Rights of Employers and Employees in terms of LRA (EMPLOYERS)

Answer 7

• Form a bargaining council for collective bargaining purposes.
• Dismiss employees who engage in an unprotected strike.
• Form employer organizations.
• Employers have a right to lockout employees who engage in illegal strikes.

Question 8

2.6 (B) Rights of Employers and Employees in terms of LRA (EMPLOYEES)

Answer 8

• Refer unresolved workplace disputes to the CCMA.
• Refer unresolved CCMA disputes to the Labour Court on appeal.
• Embark on legal strikes as a remedy for grievances.