Changes(to(the(LRA(impac2ng(on( bargaining(councils(€¦ ·...

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Changes to the LRA impac2ng on bargaining councils Paul Benjamin 7 March 2014 1

Transcript of Changes(to(the(LRA(impac2ng(on( bargaining(councils(€¦ ·...

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Changes  to  the  LRA  impac2ng  on  bargaining  councils  

Paul  Benjamin  7  March  2014  

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Collec&ve  bargaining  and  extension  of  agreements  (sec  49)  

 Changes  applicable  to  all  bargaining  councils  seeking  extension  of  collec5ve  

agreements      •  Change  to  factors  Minister  of  Labour  must  take  into  account  when  

deciding  to  extend  collec2ve  agreements  to  non-­‐par2es  within  the  registered  scope  of  BC    

   •  One  new    factor:    Minister  must  be  sa2sfied  that  BC  has  an  effec2ve  

procedure  to  deal  with  applica2ons  by  non-­‐par2es  for  exemp2ons  from  the  provisions  of  CA  and  that  applica2ons  for  exemp2ons  can  be  decided  within  30  days.    (Sec2on  32  (3)  (dA))    

 •  In  addi2on,  to  extend  an  agreement,  Minister  must  be  sa2sfied  that  BC  

has  a  procedure  in  place  that  enables  appeals  to  an  independent  body  against  a  refusal  to  grant,  or  withdrawal  of,    an  exemp2on  can  bee  resolved  within  30  days  of  the  appeal  being  lodged.  (Sec2on  32  (3)  (e)  (i))  

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Appeals  against  exemp2on  decisions  

•  No  representa2ve,  office  bearer  or  official  of  a  trade  union  or  employer's  organisa2on  party  to  a  BC  may  be  a  member  of,  or  in  any  other  way  par2cipate  in  the  delibera2ons  of,  the  appeal  body.  (Sec2on  32  (3  A))    Ensures  appeal  process  is  independent  of  BC  par2es.  

•  New  clause  (sec2on  32(11)  clarifies  that  obliga2on  to  ensure  appeals  are  dealt  with  in  30  days  rests  on  BC.    As  a  result,  BC  will  have  to  monitor  the  opera2on  of  the  independent  appeal  body  to  ensure  that  appeals  are  dealt  with  expedi2ously.  

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Bargaining  councils  that  do  not  have  majority  representa5on  

     

   •  The  Minister  must,  when  considering  an  applica2on  to  extend  a  CA  by  a  

BC  that  does  not  have  majority  representa2on,  publish  a  no2ce  in  the  Government  GazeZe  allowing  21  days  for  non-­‐par2es  to  comments  on  proposed  extension.  No2ce  must  specify  where  copy  of  CA  can  be  obtained.    The  Minister  must  consider  comments  before  extending  the  agreement.  (Sec2on  32  (5)  (c)  and  (d))  

•  When  evalua2ng  whether  the  par2es  to  a  BC  are  sufficiently  representa2ve,  Minister  may  take  into  account  the  composi2on  of  the  workforce  including  the  extent  to  which  employees  engaged  in  non-­‐standard  employment,  such  as  employment  through  temporary  employment  services,  fixed-­‐term  contracts  or  part  2me  employees.  (Sec2on  32  (5  A))    It  will  be  advisable  for  BCs  to  collect  sta2s2cs  concerning  the  composi2on  of  workforce  within  their  registered  scope.    

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 Provision  of  informa&on  to  registrar  

   •  Amendments  to  sec2on  49  extend  informa2on  that  BCs  that  have  CAs  extended  to  non-­‐

par2es  in  terms  of  s.  32  must  provide  annually  to  Registrar  of  Labour  Rela2ons.  

•  BC  with  an  extended  CA  must  advise  Registrar  annually  of    number  of  employees  who  are  –      »  employed  within  the  registered  scope  of  BC;  »  members  of  the  trade  unions  that  are  par2es  to  BC;  »  employed  by  members  of  the  employers'  organisa2on  par2es  to  BC;  »  covered  by  BC's  collec2ve  agreements  that  have  been  extended;  »  members  of  the  TUs  that  are  par2es  to  a  CA;  »  employed  by  members  of  employers’  organisa2ons    party  to  the  CA.                                                                                        

   •  Purpose  is  to  facilitate  Minister’s  considera2on  of  applica2ons  for  extension  by  requiring  BCs  

to  provide  relevant  informa2on  annually.    (Currently,  BCs  only  required  to  provide  informa2on  in  first  3  categories    on  request  by  Registrar.)  

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Dispute  resolu&on  levies  and  fees      

 •  Sec2on  51  amended  to  clarify  that  BC  CAs  may  provide  for  payment  of  dispute  resolu2on  levies  as  well  as  the  payment  of  fees  for  concilia2on  and  arbitra2on.    

•  Many  BCs  have  already  introduced  dispute  resolu2on  levies  through  their  collec2ve  agreements.  A  collec2ve  agreement  may  permit  a  bargaining  council  to  charge  fees  for  concilia2on  or  arbitra2on  in  circumstances  in  which  the  CCMA  is  permiZed  to  charge  fees.    The  fee  charged  may  not  exceed  the  fee  that  CCMA  may  charge.    (Sec2on  51(9)(b)  and  (c)).  

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Temporary  Employment  Services  •  198  (4)  –  full  joint  and  several  liability  –  employee  may  claim  against  TES  or  ER  or  both  

•  198A  –  new  protec2ons  iro  employees  earning  below  BCEA  threshold  (R193k)  (198A(2))  

•  (1)  Temporary  services  –  3  months/  as  subs2tute/  ito  BC  agr,    sectoral  determina2on  or  Ministerial  no2ce.      

•  (3)  Deemed  to  be  employee  of  client  ager  three  months  

•  (4)  Dismissal  to  avoid  deeming  unfair        

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Fixed  term  contracts    

*  Sec&on  186  –  defini2on  of  dismissal    *  Dismissal  extended  to  include  where  employee    reasonably  expected  to  be  offered  indefinite    employment  –  not  limited  to  expecta2on  of  renewal  of  fixed  term  

*  This  applies  to  all  fixed  term  contracts  

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Fixed  term  contracts  *  Sec&on  198B  –  new  restric2ons  on  use  of  fixed  term  contracts  

*  Does  not  apply  to:  *  Employees  earning  more  than  R193k  (BCEA      threshold)  *  Small  businesses  or  start  ups    *  Fixed  term  contracts  permiZed  by  statute,  ectoral    

determina2on  or  collec2ve  agreement  *  No  scru2ny  of  reasons  for  use  of  fixed  term  contracts  for  period  up  to  

3  months  

*  Fixed  term  contract  can  be  used  for  longer  then    3  months  only  if  nature  of  work  is  of  a  limited  or    definite  dura2on,  or  if  there  is  a  jus2fiable  reason  for  fixing  the  term  

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Fixed  term  contracts  *  Jus2fiable  reasons  include:  

*   Temporary  replacement  *   Temporary  increase  in  volume  of  work  –  up  to      12  months  

*   Work  exclusively  on  a  genuine  limited  dura2on  project  *   Student  or  recent  graduate  being  trained  or  gaining  work  experience  

*     Seasonal  work  *     Official  public  works  scheme  *     Limited  funding  by  external  source  *     Employee  is  over  re2rement  age  

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Fixed  term  contracts  

*  Sec&on  198B  (con5nued)  *  Employee    on  fixed  term  for  longer  than  3  months    without  jus2fiable  reason  is  deemed  to  be  employed  on  an  indefinite  contract  

*  Employee  on  fixed  term  for  longer  than  3  months  is  en2tled  to  be  treated  on  the  whole  not  less  favourably  than  comparable  indefinite  employee  

*  Fixed  term  contract  employees  must  have  same    opportunity  as  indefinite  employees  to  apply  for    vacancies    

*  If  fixed  term  for  project  work  extends  beyond  24  months,  employee  has  a  right  to  “severance  pay”  on  expiry  

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Part-­‐2me  employees  *  Sec&on  198C  *  Addi2onal  protec2on  does  not  apply  to  

*     employees  earning  over  R193k  *     Small  employers  *     Employees  who  ordinarily  work  less  than  24  hours    

   a  month  *     During  first  6  months  of  employment  

*  Employees  to  whom  the  sec2on  does  apply  are  en2tled  to:  *  Be  treated  on  the  whole  not  less  favourably  than    

comparable  full  2me  employees,  including  access    to  training  and  skills  development  

*  Same  access  to  opportuni2es  to  apply  for  vacancies  as  full  2me  employees  (gheZo  effect)    

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Cross-­‐culng  provisions  

•  Transi2onal  provisions  –  Exis2ng  non-­‐standard  employees  acquire  most  rights  three  months  ager  legisla2on  comes  into  effect  (198A(9),  198B  (8)(b)  198C  –  inserted  by  NCOP)  

•  Reasons  jus2fying  differen2al  treatment  –  198D(2)  –  impact  on  remunera2on  packages  

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BC  dispute  resolu2on      •  Sec2on  198D:  any  dispute  arising  out  of  the  interpreta2on  or  applica2on  of  sec2on  198A  to  C  may  

be  referred  to  CCMA  or  BC  for  concilia2on,  and  if  not  resolved,  arbitra2on.      •  Referral  to  concilia2on  within  180  days  of  dispute  arising;  dispute  must  be  referred  to  arb  within  90  

days  of  concilia2on  falling  to  resolve  dispute.    Condona2on  on  good  cause    for  both  periods.      •  Disputes  include  –    

–  Whether  a  TES  employee  dismissed  to  avoid  protec2ons  of  Act  (198A(4))  –  Whether  an  employee  placed  by  a  TES  service  with  a  client  and  deemed  to  be  an  employee  of  a  client  ager    

three  months  has  been  treated  on  the  whole  no  less  favourably  than  other  employees  of  the  client  performing  same  or  similar  work;  (sec2on  198A  (5)  

–  Disputes  concerning  the  conclusion  or  extension  of  fixed-­‐term  contracts  (sec2on  198B  (3)  to  (7));  –  Whether  an  employee  on  a  fixed-­‐term  contract  is  treated  on  the  whole  no  less  favourably  than  indefinite  

employees  performing  same  or  similar  work;  (sec2on  198B  (8))  –  Whether  a  part-­‐2me  employee  is  treated  on  the  whole  no  less  favourably  than  full-­‐2me  employees  of  the  

client  performing  the  same  or  similar  work;  (sec2on  198C(3))  –  Whether  a  part-­‐2me  employee  has  been  provided  with  access  to  opportuni2es  for  full-­‐2me  employment.  

(sec2on  198C(4)).      •  Significant  increase  in  the  case-­‐load  of  BCs  an2cipated.    Panelists  will  require  training.        

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 Addi&onal  provisions  that  may  be  regulated  by  collec&ve  agreement  

   Inquiries  by  arbitrators  (pre-­‐dismissal  arbitra5ons)      

 Sec2on  188A  (1)  provides  that  a  CA  may  provide  for  the  holding  of  an  inquiry  by  an  arbitrator.  Finding  in  an  inquiry  by  an  arbitrator  has  same  status  as  arbitra2on  by  CCMA  or  BC.  Currently,  employees  earning  below  BCEA  threshold  may  only  consent  in  respect  of  an  individual  hearing  and  employees  above  threshold  may  consent  in  contract  of  employment.    Accordingly,  BC  CA  may  provide  for  the  holding  of  inquiries  by  arbitrators.  

   Use  of  temporary  employment  services      

 BC  CA  may  specify  categories  of  work  which  cons2tute  “temporary  services”  and  in  which  employees  may  be  placed  to  work  with  clients  by  TES  for  a  period  specified  in  CA.  (s.  198  A(1)(c)).    BC  CA    may  define  categories  of  work  in  which  placement  by  TESs  is  permiKed  over  and  above  those  permiKed  by  the  LRA.      

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Bargaining  councils:  the  a1ack  on  extension  Valuline  CC  and  others  v  Minister  of  Labour  and  others  

[2013]  6  BLLR  614  (KZP)  

 •  Non-­‐party  employers  challenge  extension  of  Na2onal  Clothing  BC    under  

sec2on  32(3).  •  Jurisdic2onal  issue:  High  Court    has  concurrent  review  jurisdic2on  with  LC.  •  Minister    accepted  a  “cer2ficate  of  representa2veness”  issued  by  the  DG  

in  terms  of  sec2on  32()that  51%  of  employees  in  council’s  registered  scope  were  employed  by  members  of  the  party  employers’  organisa2ons  as  decisive.  

•  BC’s  papers  show  that  at  the  2me  members  of  party  employers’  organisa2ons  employed  48.5%  of  employees.  The  Minister  should  have  considered  this.  

•   Minister’s  reliance  on  the  cer2ficate  misplaced,  as  LRA  requires  her  to  consider  actual  figures,  not  to  deemed  figures.  

•  Extension  of  agreement  to  non-­‐par2es  null  and  void.    Court  did  not  suspend  opera2on  of  order  as  LC  had  done  in  NEASA  case.    

•  Cons2tu2onal  issue  raised  but  not  decided  

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BC  jurisdic7on:  PSA  obo  Liebenberg  v  Department  of  Defence  and  others  

[2013]  8  BLLR  804  (LC)  

•  Employee  unsuccessfully  applied  for  temporary  incapacity  leave  (TIL)  •  PSA  referred  a  dispute  to  PSCBC  under  sec2on  24  of  LRA  about  

interpreta2on  and/or  applica2on  of  collec2ve  agreement.    •  Commissioner  ruled  that  dispute  concerned  a  Ministerial  direc2ve  which  

was  not  part  of  collec2ve  agreement  and  council  could  not  arbitrate.    •  On  review,  the  par2es  agreed  that  the  Commissioner  had  erred  and  

direc2ve  was  part  of  collec2ve  agreement.    •  Steenkamp  J:  ques&on  for  determina&on  was  the  true  nature  of  the  

dispute.    SCA  and    CC  have  held  that  jurisdic2on  is  determined  by  the  manner  in  which  disputes  are  pleaded.  PSA  had  formulated  claim  as  concerning  applica2on  of  the  collec2ve  agreement.  

•  As  LAC  had  ruled  in  PSA  obo  De  Bruyn  v  Minister  of  Safety  &  Security  and  another  [2012]  9  BLLR  888  (LAC)  that  LC  lacked  jurisdic2on  to  hear  TIL  claim,  PSCBC  had  jurisdic2on  under  sec2on  24  of  the  LRA.  

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 PSA  obo  Strauss  and  others  v  Minister  of  Public  Works  N0  and  

others  [2013]  7  BLLR  710  (LC)    

 •  Chief  Construc2on  Project  Managers  classified  as  grade  A  in  terms  of  a  collec2ve  agreement  termed  the  Occupa2on  Specific  Dispensa2on  for  Engineers.    

•  Complained  that  they  were  treated  unfairly  because  their  subordinates  had  been  given  the  same  grade.  

•  Arbitrator  held  that  dispute  concerned  alleged  unfair  implementa&on  of  the  collec&ve  agreement  and  bargaining  council  had  no  jurisdic&on.  

•  Arbitrator’s  decision  confirmed  on  review.    

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 Arends  and  others  v  South  African  Local  Government  

Bargaining  Council  [2013]  5  BLLR  465  (LC)    •  Municipality  concluded  Pay  Parity  Agreement  (“PPA”),  with  two  unions  in  

2009  to  introduce  a  new  grading  system.    Certain  employees  told  they  were  overpaid  and  should  be  regraded  down  and  return  overpayments.  

•  Employees  referred  dispute  to  the  SALGBC  concerning  the  interpreta2on  and/or  applica2on  of  the  agreement  seeking  ruling  that  municipality  should  not  be  “allowed  to  implement  reduc2on  of  remunera2on”.    

•  Arbitrator  rules  Council  had  no  jurisdic2on.  •  Moshoana  AJ:  Individual  employees  are  not  par2es  to  collec2ve  

agreements  and  cannot  refer  disputes  under  sec2on  24  about  collec2ve  agreement.  

•  An  interpreta2on  dispute  if  par2es  in  dispute  over  the  meaning  of  agreement  or  part  of  it.    Dispute  over  applica2on  arises  when  a  party  alleges  something  contemplated  in  the  agreement  has  not  happened,  or  has  happened  incorrectly.  

•  As  no  provision  in  PPA  dealt  with  whether  or  not  reduc&on  of  salaries  were  permiKed,  dispute  did  not  concern  its  interpreta&on  or  applica&on.  

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 South  African  Municipal  Workers  Union  v  Syntell  (Pty)  Ltd  and  

others  [2013]  2  BLLR  207  (LC)    •  Syntell  contracts  with  municipali2es  to  provide  traffic  

services.    •  SAMWU  refers  dispute  to  CCMA  that  its    business  covered  

by  SALGBC.    •  Commissioner  rules  for  SAMWU  and  refers  maZer  to  

NEDLAC  as  demarca2on  issue.  •  NEDLAC  disagrees  with  provisional  award  as  Syntell  

employees  do  not  work  from  municipal  premises  and  tender  contracts  of  limited  dura2on.  

•  Commissioner  issues  revised  award  which  SAMWU  reviews.  

•  Review  fails:    Syntell  is  a  service  provider  and  not  TES  and  therefore  outside  of  BC  

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 South  African  Municipal  Workers  Union  v  Syntell  (Pty)  Ltd  and  

others  [2013]  2  BLLR  207  (LC)    •  Syntell  contracts  with  municipali2es  to  provide  traffic  

services.    •  SAMWU  refers  dispute  to  CCMA  that  its    business  covered  

by  SALGBC.    •  Commissioner  rules  for  SAMWU  and  refers  maZer  to  

NEDLAC  as  demarca2on  issue.  •  NEDLAC  disagrees  with  provisional  award  as  Syntell  

employees  do  not  work  from  municipal  premises  and  tender  contracts  of  limited  dura2on.  

•  Commissioner  issues  revised  award  which  SAMWU  reviews.  

•  Review  fails:    Syntell  is  a  service  provider  and  not  TES  and  therefore  outside  of  BC  

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Na&onal  Bargaining  Council  for  the  Road  Freight  Industry  and  another  v  Carlbank  Mining  Contracts  (Pty)  Ltd  and  another  

[2012]  11  BLLR  1110  (LAC)    

•  Labour  broker  objects  to  BC  adjudicate  unfair  dismissal  because  employment  contract  provided  for  private  arbitra2on.    

•  LAC  compared  bargaining  council  collec2ve  agreement  contained  detailed  provisions  for  concilia2on  and  arbitra2on  of  disputes  concerning  dismissals,  similar  to  LRA.  Contract  provided  for  arbitra2on  without  specifying  who  was  responsible  for  costs  and  without  limi2ng  the  arbitrator’s  right  to  award  costs  against  a  party.  

•  The  contract,  deprived  the  par2es  of  benefits  conferred  by  the  collec2ve  agreement  and  thus  allowed  less  favourable  treatment.  This  could  not  be  cured  by  the  appellant’s  offer  to  pay  the  costs  of  these  par2cular  proceedings.  It  was  an  impermissible  waiver  of  rights  under  the  collec2ve  agreement.      

•  LAC  confirmed  jurisdic2on  of  BC  to  hear  maZer.  

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