Example of Collective Agreement South Africa
There are different forms of collective bargaining or centralised collective bargaining, and not only at the level of collective bargaining councils. This is observed in the workshop of a company when a group of workers is represented by a representative or a union pursuing different objectives. Here are the predominant forms of collective bargaining currently taking place in South Africa: (These forms will be discussed at length by the CEO in February) A closed-door agreement is when a representative union and an employer or employers` organization enter into a collective agreement called a closed-door contract, which requires that all employees covered by the agreement be members of the union. It is important to note that this may also include or exclude certain other forms of recognition agreement, such as a closed workshop agreement or an agency contract: however, the increase in material costs and operating costs has not been negotiated with third parties such as suppliers, service providers and state-owned enterprises (SOEs) in the past. In turn, collective bargaining has naturally created industrial peace, stability and security within an industry because collective agreements are cyclical. However, this is about to change, as employers are now trying to proactively negotiate their own demands with unions over labour costs, but are now also trying to negotiate with third parties who have a common interest in a particular industry, who are suppliers and service providers, that is, state-owned enterprises. The challenge is that the current legal framework for collective bargaining does not currently allow for this level of bargaining. Last but not least, there are 48 tariff councils registered with the Ministry of Employment and Labour, whose field of activity extends from a national, provincial, regional, municipal or departmental state presence. Collective bargaining councils play a central role in providing the necessary platform for companies and unions that are parties to a particular industry to negotiate collective agreements for the sustainability, safety and security of an industry. This is an important platform, as such collective agreements can be extended by the Minister of Employment and Labour to all third parties/non-parties. We have seen some disturbing steps taken by some collective bargaining boards with respect to their collective agreements. The CEO currently leads 5 national councils and plans to become a party in other boards to represent our members in them.
The term collective agreement is defined in Article 213 of the Industrial Relations Act, as amended, and consists of a written agreement on terms and conditions of employment or any other matter of mutual interest concluded by one or more registered trade unions on the one hand and one or more employers, registered employers` organizations on the other hand- and employers and one or more registered employers` associations. Any mutual interest of either party may be contained in such an agreement, which is of potential value and must be reviewed by employers, such as our members. At CEO, we believe that legislators should consider redefining the definition of collective bargaining to include suppliers, service providers and state-owned enterprises. An agency contract exists when a representative union and an employer or employers` organization enter into a collective agreement, known as an agency contract, which requires the employer to deduct an agreed temporary work allowance from the wages of employees named in the agreement who are not members of the union but are eligible for union membership. The legislator`s goal here was to be accountable to the union, where all workers benefit from the union`s activities, such as wage negotiations .B. However, only union members pay the union in the form of dues. Until now, collective bargaining has been considered one of the most important functions of a union for its members and for itself. However, collective bargaining is used by employers and businesses for other purposes where employers seek to level the "level playing field" of each with uniform pay schedules, working conditions and benefits attributed to the work. The idea here is to allow companies to compete on an equal footing when it comes to the labor costs of their operations.
Mediation, conciliation, strike and lockout can also be part of the process. In other words, collective bargaining is the process by which a union tries to get an employer to formally accept the demands made by workers in the workplace. Recognition agreements are agreements in which an employer recognizes one or more specific unions that have the right to represent and bargain employees in that workplace on behalf of employees. It specifies whether a particular union has the exclusive right to bargain for a collective bargaining group or whether the employer recognizes two or more unions together. This is regulated in Chapter 3, Parts A and B (sections 11 to 26) of the LRA. There are various competing jurisdictions over recognition agreements that will be discussed and unpacked in the future. Please follow our articles for the month of February for more information. Remember that union negotiators enter into negotiations on behalf of workers. This means that it is their mandate that counts, not yours. Convening a caucus is a tactic that allows you to stop negotiations at any time so you can think, get more information, or manage your emotions. Collective bargaining may include wages, working conditions, trade union rights, maternity and paternity leave. These are mainly negotiations.
But mediation, arbitration, strike and lockout can be part of the process. Workplace forums are governed by Chapter 5 (§§ 78 to 94) of the Industrial Relations Act as amended from time to time (LRA). This forum is a platform-level forum where employees come together to discuss/negotiate issues of common interest with their employer. Certain criteria must be legally met to set up such a forum. This may include or exclude the representation of a union. This form of centralized collective bargaining is largely rare, as there is a widespread historical perception that workplace forums are open to abuse by employers to the detriment of their employees. Due to the global economic slowdown, which has also been caused by the international Covid-19 pandemic, companies have increasingly suffered from keeping their doors open, with many companies having to restructure their operations, resulting in a reduction in their employees, requests for company bailouts, and even plant closures. We believe that the time for "unilateral" negotiations, where only the unions have demands, is over.
If companies in established and regulated industries want to survive the new economic standards, they must proactively work with unions and collective bargaining councils with their own demands to restore economic stability. This will lead to an extremely robust new way of negotiating. So far, the unions have generally been the only party to introduce their demands into negotiations in which organised employers have only reacted. The bargaining team must inform the workers of the outcome of the negotiations. The team must keep workers informed of the process and provide assessments and recommendations. But negotiators cannot present a new mandate to bosses without first talking to workers. Sometimes workers give negotiators a fallback position that they accept if they can`t win their first demand. When negotiators agree on a new position at the bargaining table, they must convene a caucus and consult with workers. The rule of thumb here is, don`t accept anything that isn`t approved by the people you represent.
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