Chapter 1 - LRA

Question 1

Outline/Describe/Explain/Discuss the purpose of the Labour Relations Act (LRA)

Answer 1

• Promotes simple procedures for the registration of trade unions and employees’ organisations
• Promotes the effectiveness of bargaining councils and statutory councils.
• Promotes workplace forums where employees may participate in decision making
• Establishes the Commission for Conciliation, mediation and Arbitration (CCMA)
• Provides the right to strike against retrenchments, and facilitates disputes retrenchment
• Clarifies the transfer of contracts of employment. If a business is transferred to another owner, then the employee contacts are also transferred

Question 2

Discuss/Explain/Evaluate the impact of the LRA (advantages and/or disadvantages/negatives) on businesses

Answer 2

Advantages

• The Act provides mechanisms such as statutory councils, collective bargaining and the CCMA
• Labour disputes are settled quicker and are less expensive
• The Act provides protection for employers who embark on lawful lock-outs when negotiations between management and union representatives have failed
• Employers are entitled to compensation from the Labour Court if they suffered losses because of unprotected strikes

Disadvantages

• Businesses may find it hard to cope with the administrative load and paperwork
• Less management time is available for dealing with labour related issues
• Leads to increased labour costs –some businesses may not be able to employ additional employees
• Employment is inhibited as the cost of labour increases
• Labour disputes and bargaining council processes can become disruptive and time-consuming and can lead to a decrease in productivity in business

Question 3

• Discuss/Explain/Evaluate the impact of the LRA (advantages and/or disadvantages/negatives) on workers.

Answer 3

Advantages

• The Act protects employees who embark on lawful strikes
• It protects employees against unfair dismissal
• It provides for workplace forums for employees to meet with employers to discuss work related
• Employees are free to form trade unions

Disadvantages

• Can increase unemployment
• Contributes to inflation and raises cost of products and services

Question 4

Suggest/Recommend ways in which businesses can comply with the LRA

Answer 4

• A trade union representative must report any contravention of the LRA to the responsible authority or agency
• An employer must disclose all relevant information that the trade union representative needs to do their job except for information excluded in the Act such as personal information of an employee

Question 5

Outline/Discuss penalties/consequences for non-compliance

Answer 5

• An agreement, reached between employers and unions at a bargaining council, is enforceable. Should any of the parties not comply with the agreement a fine will be imposed by an arbitrator
• The minister may publish notice in the Government Gazette that sets out the maximum fines that may be imposed by an arbitrator for:
  
  • Breach of a collective agreement by either party
  • Failure to pay the costs of arbitration
  • Repeated breaches of the collective agreement
• Any employer or employee that does not comply with the Act will be forced to enter into a dispute resolution process.
  
  • Dispute resolution Process

Step1: CCMA or Bargaining Councils

Step2: Labour Court

Step3: Labour Appeal Court

Question 6

Outline/Explain actions regarded as discriminatory by the LRA

Answer 6

IIn terms of the LRA the following actions are considered discriminatory:

• No person may be discriminated against for taking part in a legal strike
• An employer may not prevent an employee from joining a trade union or participating in any lawful activity of a trade union
• An employer may not demand that an employee give up membership of a trade union or workplace forum
• No person may discriminate against an employer for exercising any rights contained in the LRA, or require them not to be part of an employers’ organisation
• No employee may be dismissed for taking part in a legal or protected strike
• An employer may not employ the services of temporary workers or independent contractors while employees are on strike or locked out