Trade Union Membership and
Collective Bargaining
FEDUSA Collective Bargaining Conference
27/28 January 2011
DEPARTMENT OF LABOUR
1
Introduction
1.
Primary Objectives of LRA
2.
Government’s Approach
3.
Strategic objectives of the Department of Labour
4
Key Role Players in the Labour Market
1.
2.
3.
Trade unions
Employers Organizations
Barging Councils
2
Primary Objectives Of LRA
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To give effect to and to regulate the fundamental rights contemplated in
section 23 of the Constitution;
To provide a framework for the determination, through collective
bargaining of wages and terms of conditions of employment or any
other matter of mutual interest to employees and their trade unions on
the one hand and employers and their employers’ organizations on the
other hand;
To promote orderly collective bargaining;
To encourage collective bargaining at sector level;
To promote consultation and joint decision making in the workplace;
To promote the effective resolution of disputes, primarily by way of
conciliation;
To give effect to the Constitution of the International Labour
Organization (ILO) and those conventions of the International Labour
Organization which are ratified by the Republic.
3
Government’s Approach

The approach of the Government has always been that the employer
and employee parties in a sector, industry, trade or service are best
able to deal with matters of mutual interest by themselves through
negotiation so as to maintain labour peace.

The State’s function is to provide the legislative machinery for the
interaction of employers and employees in a neutral framework, which
balances the power relationship.

The great strength of this approach is that the it is conducive to the
regulation of those issues that affect an industry or service as a whole.
It is able to set minimum standards and conditions of employment
which can be operative throughout a sector with a peace obligation and
a prohibition on strikes and lockouts whilst an agreement is in force.
4
Department of Labour
Strategic Objectives
1.
2.
3.
4.
5.
6.
7.
8.
Contribute to employment creation
Promote equity in the labour market
Protecting vulnerable workers
Strengthening multilateral and bilateral relations
Strengthening social protection
Promoting sound labour relations
Strengthening the capacity of labour market institutions
Strengthening the institutional capacity of the Department.
5
Key Features of the Labour Market
Employed
=
12 974 000
Unemployed
=
4 165 000
Labour Force (EAP)
=
17 138 000
Not in Labour Force
=
14 123 000
Population of Working Age =
31 261 000
6
Key Role Players in the Labour Market
(1)
Registered Trade Unions
Year
1990
1996
2000
2005
2007
2008
2009
2010
Numbers
209
334
464 *
341
261
216
205
200
Collective Membership
2,810 712
3,016 933
3,552 113
3,134 865
3,294 913
3,057 772
*Highest no of TU
7
Key Role players cont.
(2)
Employers Organizations
Year
1990
1996
2000
2005
2007
2008
2009
2010
Numbers
237
196
252*
229
201
180
174
165
*Highest no of EO
8
Labour Relations Amendment Act 2002

As a result of the dramatic increase in new applications for
registration.
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Brought about by bogus organizations / unions.
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Non-compliant organizations / unions.
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Guidelines for registration.
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Brought more sense to the role-players in the collective
bargaining system.
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Dissatisfaction from individuals who had to turn to something
else for a living.
9
Effects of LRA Amendments
1 January to 31 December
Year
EO Registration Cancelled
T U Registration Cancelled
2002
6
20
2003
32
155
2004
14
36
2005
5
13
2006
10
45
2007
21
47
2008
20
38
2009
21
37
2010
4
20
Total
133
411 =
544
10
Trends in Labour Organization Registrations
1 Jan to 31 December 2010

119 New applications for registration received
(Trade Unions
= 85)
(Employers’ Organizations = 34)

Last 12 months 3 Employers’ Organizations registered
Last 12 months 16 Trade Union registered

94 Application for registration refused

Trade Unions
= 72
Employers’ Organizations = 22
(2008/2009 = 84)
(2008/2009) = 20)

Mostly non-genuineness and not established by members.

In 2010 17 decisions to either refuse an application or cancel registration were
challenged in the Labour Court.
11
Labour Court Developments
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Union and Emp Org’s whose registration was cancelled only had to appeal
to the Labour Court to suspend the decision of the registrar
Consequently, it gave the non-genuine organizations room to continue its
practices until the case was heard.
Some cases have been dragging since 2006
At least 15 organizations were functioning on this basis until the CCMA
decided to obtain a declaratory Order in 2010 to have certainty whether an
appeal suspends the decision of the Registrar.
Court found that the decision of the Registrar is final until a court order is
obtained to suspend such decision.
The outcome of the judgment lead to a number of urgent application being
brought in a short space of time
12
Legal Compliance of Trade Unions
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Financial statements
2007- 140 of 261 submitted (53%) (28 not submitted)
2008- 112 of 216 submitted (52%) (62 not submitted)
2009- 66 of 205 submitted (32%) (121 not submitted
Office bearers
2007
145 submitted 22 not submitted
2008
149 submitted 23 not submitted
2009
117 submitted 70 not submitted
Total Membership
2007
149 submitted 18 not submitted
2008
203 submitted 35 not submitted
2009
106 submitted 79 not submitted
13
Agency Shop Compliance
34
Trade Unions submitted financial statements + audit reports on
Agency Shop fees
Total income as reflected in those statements R146 046 435
No way to accurately determine whether it is the actual situation
It is not always possible from the statements to determine what funds
are used for.
Employers Organizations that has a agency fee arrangement at BC is also
required to submit financial statements in respect of such fee
14
Comments on Registration
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Smaller union per sector is more successful in obtaining registration
(usually not in a sector covered by other unions/councils)
Does not contribute to strengthening trade union
New unions cannot achieve recognition, especially where there is an
agency shop agreement
(Correctional Service Workers Union union not allowed to organize or
obtain recognition)
Protecting unions that are not acting in members interest
Union becoming complacent/ aggravated by Agency Shop Agreements
( Lazy)
A question that the Department ask to a new union is what benefit will it
bring to the collective bargaining system and to its members
15
Overview of Bargaining Councils
Year
1990
1996
2000
2005
2009
2010
Numbers
91
99
73
58
47
47
Employees under Agreements
810 589
+-700 000
16
Overview of bargaining councils cont.

47 Registered Bargaining Councils
 41 Private Sector Bargaining Councils
 6 Public Sector Bargaining Councils
 3 Statutory Councils
(a) In total there are 13 active private sector bargaining councils that cover
less than a 1,000 workers.
(b) Private sector bargaining councils cover approximately 1, 016, 920
workers (8% of the economically active population).
(c) According to the latest information bargaining councils in the public
sector (including Local Government) covers approximately 1,189,000
workers
(d) In total registered bargaining councils cover approximately 2,205 920
workers which represents 18 % of the economically active population.
17
Bargaining Councils Representivity
1 April 2009 – 31 March 2010
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41 Private Sector Bargaining Councils
25 Certificates of representivity issued
5 Refused
11 not submitted.
18
Federations
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22 Trade Union Federations
9 Employer Organization Federations

New registration of 10/2/2010 of TU Federation

Uni Global Union Federation LR2/6/4/26
19
Quo Vadis?
What are you as a Federation with your affiliate unions
going to do in the next 12 months to assist the
government in achieving the ambitious objective of
saving existing jobs and creating some new jobs?
20
THANK YOU
DEPARTMENT OF LABOUR
21