WAGE ISSUES AND THE ROLE AND REGULATION OF TRADE UNIONS

By
NYARARAI GOMBA
68184743
Submitted in partial fulfilment of the requirements for the degree

BACHELOR OF LAWS
In the

SCHOOL OF LAW

UNIVERSITY OF SOUTH AFRICA

RRLLB81 – ASSIGNMENT 2

MR LC COETZEE
2024
ACADEMIC HONESTY DECLARATION
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this regard.
2. I declare that this assignment is my own, original work. Where I have used someone
else’s work, I have indicated this by using the prescribed style of referencing. Every
contribution to, and quotation in, this assignment from the work or works of other people
has been referenced according to the prescribed style.
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passing it off as his or her own work.
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NAME: NYARARAI GOMBA

SIGNATURE:

STUDENT NUMBER: 68184743

MODULE CODE: RRLLB81

DATE:
TOPIC SELECTED: Topic 2: Labour Law: Wage Issues in Labour Law
MARK RECEIVED FOR ASSIGNMENT 01: MARK RECEIVED FOR ASSIGNMENT 02:
ABSTRACT
A harmonious labour relations climate is deeply rooted in the establishment of a
mutually beneficial relationship between employers and employees. Both the parties to
the employment relationship are afforded legal protection through various legal
provisions. The Labour Relations act regulates the employment relationship. It governs
both the parties and dictates how they are to conduct themselves. Employers have legal
tools to prevent possible abuses like lockouts, even though workers have rights to resist
exploitation, such as the powerful right to strike. In order to ensure fair treatment, it is
essential to preserve a careful balance between the interests of both parties, which is
achieved through negotiation. One of the major functions of trade unions is that of
procuring better working conditions and wages and salaries for its members.1
Trade unions play a crucial role in advocating for employees interests, as well as
protecting the same. The role of trade unions is still ambiguous and its somewhat
unclear exactly what trade unions do and how they do it to further the interests of their
members. There are still unanswered questions about how much trade unions should
follow employee directives versus having autonomy over negotiations. Trade
unions' political involvement can increase uncertainty for workers. Arbitration platforms
aim to rectify imbalances, prompting legal scrutiny. Resolving disputes within forums for
employer and employee welfare is crucial. Strike rights and wage regulation are pivotal
for good faith negotiations. Fostering equitable negotiation practices is essential for both
parties. Collective bargaining was a system of institutionalising conflict that “suited the
sociological features of manufacturing industries which concentrated sizeable groups of
wage earners doing similar tasks into workplaces that were relatively large.”2

1 Van Jaarsveld, Fourie and Olivier, Principles and Practice of Labour Law (2004) par 354-355.
2
Blanpain et al, Comparative Labour Law and Industrial Relations in Industrialised Market Economies
(2001) ch 21 p 3.
LIST OF ABBREVIATIONS AND ACRONYMS

WU Worker’s Rights

RTS Right to Strike

LO Lockout

SA South Africa

ARB Arbitration

WN Wage Negotiations

S Section
TABLE OF CONTENTS
Declaration.........................................................................................................2
Summarry.......................................................................................................... 3
Key words… ..................................................................................................... 3
List of Acronyms…............................................................................................ 4
1.INTRODUCTION............................................................................................ 6
1.1 Background ................................................................................................. 6
1.2 Problem statement .......................................................................................6-7
1.3 Hypothesis… ................................................................................................ 8
1.4 Description of research methodology……………………………………………8-9
2. ROLE OF TRADE UNIONS IN WAGE NEGOTIATIONS................................. 9
2.1 Advocating Employee Interests ...................................................................... 9
2.2 Navigating Negotiating Strategies…................................................................9-10
2.3 Balancing Mandates and Autonomy ..............................................................10-11
3. THE IMPORTANCE OF RESOLVING WAGE ISSUES IN BALANCED FORUM ..12
4.CASE LAW 13
4.1 Public Servants Association v National Prosecuting Authority [2012] 8 BLLR 765
(LAC); (2012) 33 ILJ 1831 (LAC) ...........................................................................13-14
4.2 Working On Fire (Pty) Ltd v National Union of Metalworkers of South Africa
(NUMSA) (2022) 43 ILJ 2764 (LAC); [2023] 1 BLLR 39
(LAC)………………………………………………… ………………………………… 14-16
5. LABOUR RELATIONS ACT 66 OF 1995 ……………………………………. 16-17
6.CONCLUSION…………………………………………………………………………17
Bibliography… .........................................................................................................18-19
Marking rubric… ……………………………………………………………...…… …… 20
INTRODUCTION
1.1 Background to the research problem
A trade union is traditionally defined as ‘a continuous association of wage-earners
for the purpose of maintaining or improving the conditions of theirworking lives’.3 To
understand the current wage issues and the role of trade unions in South Africa, it is
essential to examine the historical context in which these dynamics have evolved. South
Africa has a long history of racial and economic inequality, stemming from the legacy of
apartheid, which institutionalized racial segregation and discrimination. The apartheid
regime systematically marginalized the black population, relegating them to low-paying
jobs and denying them access to educational and economic opportunities. The labor
movement in South Africa has deep roots in the struggle against apartheid and the fight
for workers' rights. Trade unions played a pivotal role in mobilizing workers and
challenging the oppressive labor practices of the apartheid regime. The Congress of
South African Trade Unions (COSATU), formed in 1985, emerged as a powerful voice
for workers and played a significant role in the anti-apartheid struggle. Trade unions
played an important part in developing political and economic resistance, and eventually
were one of the driving forces in realizing the transition to an inclusive democratic
government. In Africa, trade unionism cannot be studied successfully in isolation
from its association with national politics. Milbrun argues that individual unions have
usually been concerned primarily with improvingworking conditions and providing
services to their members, while federations have tended to be more involved in
relations with political parties and in national politics. None of the groups has,
however, devoted itselfexclusively to a particular area.4
In labour law, the relationship between employers and personnel has to be managed
well and operate in mutual prosperity, labour laws play a pivotal role in ensuring that the
relationship is well balanced. However, disputes regularly occur related to wages, the
place employees searching for to withstand exploitation and demand fair
compensation. They are designed to protect the rights and interests of both parties,
ensuring a fair and safe working environment. Chapter Two of the Constitution,
enshrines the rights of all South Africans. The following labour rights are enshrined in
the Constitution: Section 18: freedom of Association, Section 23: Labour Relations,
everyone has the right to fair labour practices, every worker has the right to form and
join a trade union and to participate in the union’s activities. Trade unions play a vital
function in advocating for employees' interests, mainly in wage negotiations. Yet, the
manner in which exchange unions ought to enhance these desires stays ambiguous,
elevating questions about the balance between adhering to worker mandates and
exercising negotiation autonomy. Moreover, issues occur when trade unions prioritise
political interests over workers' needs, potentially undermining the negotiation process.
In addressing the following we also look at the readings of Grogan J, Labour Litigation

3
Webb History of trade unionism (2ed 1920) 1; Martin Trade unionism. purposes and forms (1989) 8
4
Milbrun at 674
and Dispute Resolution,5 Bendix S, Industrial Relations in South Africa,6 amongst other
readings.

1.2 Problem Statement

How do trade unions navigate the complexities of advocating employees' wants in
wage negotiations, balancing between adhering to mandates and exercising negotiation
autonomy, while making sure political interests do no longer supersede workers' needs?
However, where rates of unemployment are high the risk of exploitation of workers by
the unilateral determination of wage rates by employers is real.7

1.3 Hypothesis
The mandate of trade unions is to advocate for employees' interests in wage
negotiations, and they obatin their mandate to act from the members of the union who
are the employees clearly showing the need for negotiation autonomy. Regulation of
trade unions through various legislation and dispute handling procedures like arbitration
can mitigate potential abuses, ensuring fair and transparent negotiation processes.
Attempts at wage restraint are usually ineffective since works councils frequently
negotiate improved benefits above those negotiated by the industrial level collective
agreements. We also examine the following articles, Myburg JF, ‘100 Years of Strike
Law’ (2004) 25 ILJ 962,8 and Nkoane P, ‘Time for the Tide to Change for Rules of
Engagement in Labour Law: A Proposal for Effective Wage Dispute Resolution’ (2018)
22 Law9, Democracy and Development amongst other journals as well.

1.4 Research Methodology

The researcher shall rely on the qualitative approach as a research methodology. The
research was mainly centered on documents. We begin with an extensive literature
review to understand the legal principles, doctrines, and case law surrounding labour
law and apparent authority. This research will employ a combination of legal analysis,
case studies, and literature review to examine the role of trade unions in wage
negotiations. It will involve studying relevant labour laws, court cases, scholarly articles,
and books on labour relations, particularly focusing on South Africa's legal framework.

5
Grogan J, Labour Litigation and Dispute Resolution (3rd edn, Juta 2019) .
6
Bendix S, Industrial Relations in South Africa (5th edn, Juta 2010) .
7
Anstey “National Bargaining in South Africa’s Clothing Manufacturing Industry”
8
Myburg JF, ‘100 Years of Strike Law’ (2004) 25 ILJ 962.
9
Nkoane P, ‘Time for the Tide to Change for Rules of Engagement in Labour Law: A Proposal for Effective
Wage Dispute Resolution’ (2018) 22 Law.
This research was conducted using various materials and sources such as textbooks,
journals, case law, articles and legislation. Legal research was used to examine
relevant laws and regulations in applicable jurisdictions regarding corporate powers and
contracting and court decisions and precedents looked at which related to cases in
which companies have been held accountable for contracts they did not officially
approve, as well as cases in which apparent authority is at stake.

THE ROLE OF TRADE UNIONS IN WAGE NEGOTIATIONS

Collective bargaining involves the right of freedom of association and protection of the
right to organize. 10Trade unions are organizations formed to represent and protect the
interests of workers in specific industries. Their major aim is to improve the welfare of its
members. They play a critical role in negotiating wages, benefits and working conditions
with employers. The governing principle of trade unions is that unity in numbers will
result in power. This collective strength enables trade unions to negotiate from a
position of greater influence, increasing the likelihood of achieving favorable outcomes
for employees. As a consequence of earning more, it has become profitable for trade
unions to represent the majority of the workers in wage negotiations.11 In their bid to
represent a larger constituency of employees some trade unions have negotiated in bad
faith in order to appease their members. In some cases one trade union seemed to
thrust its political agenda to the fore to show its tripartite alliance partners that, if need
be, it has the muscle to impose its philosophy. 12 Trade unions are closely linked to the
apartheid era whereby the blacks were oppressed by the white minority and thus their
power was derived from improving the living conditions of the indigenous people. They
are therefore closely tied with the political parties. For instance, in Zimbabwe the MDC a
political party had its root stemming from the ZCTU a confederation of Trade unions
which exerted a huge influence labour issues. Most of the support was garnered from
the working class.
The three major trade unions in South Africa are The Congress of South African Trade
Unions (COSATU), Federation of Unions of South Africa (FEDUSA) and the National
Council of Trade Unions (NACTU). Section 23 (1) of the Labour Relations in the
Constitution, 1996 stipulates that “every worker has the right to join a trade union.
2.1 Advocating Employee Interests
Representation: Trade unions serve as the voice of employees during wage
negotiations, representing their collective interests and concerns. They act as

10
Grogan (2014) at 22-36
11
Dhliwayo R ‘The rise or fall of trade unions in South Africa: the Marikana incident’ (2012
12
Ngamlana (accessed 1 April 2024)
intermediaries between employees and employers, ensuring that employee
perspectives are effectively communicated and considered during negotiations.
Collective Bargaining and Negotiation: collective bargaining and negotiations is one
of the mandates of the Trade union which leads to the improvement of the situation of
their members as it concerns their employment. It guarantees adequate earnings,
provides enhanced working environment and secures improved management from
employers. Some employers set out to save costs with the intention of maximizing
profits and therefore prejudicing employees. Reducing employees to the level of slave
workers is indeed incongruent with the labour laws, which are enacted to protect
workers from exploitation of any kind.13 It is crucial for trade unins to equip themselves
with the technical expertise that is crucial for insuring the financial principles involved. A
better comprehension by engaging accountants etc will make the negotiation ptocess
seamless.
Another function performed by trade unions is providing assistance to its members
when there is need as well as enhancing their effectiveness. Trade unions endeavor to
promote a cooperating atmosphere in order to encourage pleasant industrial harmony.
A number of welfare measures are embarked on for the improvement of the employees’
morale and at the same time to boost their self confidence. Trade unions also provide
legal assistance to its members whenever it is required. All these services are tied to
the availability of money which are raised from bonafide members as well as
contributions from outside the union.
Addressing Inequities: Trade unions advocate for the reduction of wage disparities
and the elimination of discriminatory practices within the workplace. They strive to
ensure that wages are equitable and reflective of employees' skills, experience, and
contributions, regardless of demographic factors.
Ensuring Transparency and Accountability: Trade unions promote transparency and
accountability in the negotiation process, ensuring that decisions regarding wages and
benefits are made openly and fairly. They seek to minimize any potential for
favoritism or bias in the distribution of resources.
In summary, trade unions serve as powerful advocates for employees during wage
negotiations, working to secure fair compensation, address inequities, and uphold
transparency and accountability in the negotiation process. Through collective action
and strategic negotiation tactics, trade unions strive to improve the economic well- being
and working conditions of employees across various industries.

2.2 Navigating Negotiating Strategies

13
Motala M ‘Domestic workers in South Africa: It's modern day slavery’ (2010)
In wage negotiations, trade unions must adeptly navigate various negotiating strategies
to effectively represent the interests of employees. Here's how trade unions fulfil this
role:
Assessment of Demands: Trade Unions must examine the financial standing of the
organization and carefully assess the demands and priorities of employees before
entering into negotiations with regards to the standing of the organization. This
involves conducting surveys, meetings, and consultations to understand the
collective needs and aspirations of the workforce.
Analysis of Employer Position: Trade unions analyse the position and capacity of
the employer to meet the demands of employees. This includes evaluating the financial
health of the organization, industry benchmarks, and economic factors that may impact
the negotiation process.
Strategic Planning: Based on the assessment of demands and the employer's
position, trade unions develop strategic negotiation plans. These plans outline the
objectives, priorities, and tactics to be employed during negotiations to achieve
favourable outcomes for employees.
Collective Bargaining: Trade unions engage in collective bargaining with employers to
negotiate wages, benefits, and working conditions on behalf of employees. Collective
bargaining allows trade unions to leverage the collective strength of the workforce
to secure concessions from the employer.
Mediation and Arbitration: In cases where negotiations reach an impasse, trade
unions may resort to mediation or arbitration to resolve disputes. Mediation involves
the intervention of a neutral third party to facilitate negotiations and reach a
mutually acceptable agreement. Arbitration involves submitting the dispute to an
impartial arbitrator, whose decision is legally binding on both parties.
Flexibility and Adaptability: Trade unions remain flexible and adaptable throughout
the negotiation process, adjusting their strategies in response to changing
circumstances or new information. This may involve revising demands, exploring
alternative solutions, or reconsidering negotiation tactics to achieve the best possible
outcomes for employees.
In summary, trade unions navigate negotiating strategies by assessing demands,
analysing employer positions, developing strategic plans, engaging in collective
bargaining, and resorting to mediation or arbitration when necessary. Through strategic
planning and flexibility, trade unions strive to achieve favourable outcomes for
employees in wage negotiations while maintaining transparency and accountability in
the negotiation process.
2.3 Balancing Mandates and Autonomy:
In the realm of wage negotiations, trade unions face the challenge of balancing the
mandates received from employees with their autonomy to negotiate effectively. Here's
how trade unions navigate this delicate balance:
Adherence to Mandates: Trade unions are entrusted with representing the interests
and demands of their members faithfully. This includes adhering to the mandates
received from employees regarding wage demands, working conditions, and other
pertinent issues. By following these mandates, trade unions ensure that employee
voices are heard and respected during negotiations.
Exercise of Negotiation Autonomy: While trade unions must prioritize employee
mandates, they also possess a degree of autonomy in negotiating with employers.
This autonomy allows trade unions to assess the feasibility of demands, consider the
employer's perspective, and adapt their negotiation strategies accordingly. Trade
unions may exercise discretion in determining the timing, approach, and tactics used
during negotiations to maximize the likelihood of achieving favorable outcomes for
employees.
Strategic Decision-Making: Trade unions engage in strategic decision-making to
balance employee mandates with negotiation autonomy. This involves evaluating the
potential impact of different negotiation strategies on achieving desired outcomes for
employees. Trade unions may prioritize certain demands over others, seek
concessions from the employer, or explore alternative solutions to address conflicting
interests while remaining true to employee mandates.
Transparency and Communication: Maintaining transparency and open communication
with employees is crucial for trade unions to balance mandates and autonomy
effectively. Trade unions must keep employees informed about the progress of
negotiations, solicit feedback on proposed strategies, and seek consensus on key
decisions. By fostering a collaborative approach, trade unions can ensure that
employee mandates guide negotiation efforts while allowing for flexibility and
adaptability as needed.
Accountability: Trade unions are accountable to their members for the outcomes of
wage negotiations. This accountability underscores the importance of striking a balance
between adhering to employee mandates and exercising negotiation autonomy
responsibly. Trade unions must justify their actions and decisions to employees,
demonstrating how negotiation strategies align with the collective interests and priorities
of the workforce.
In summary, trade unions navigate the delicate balance between mandates and
autonomy by adhering to employee mandates while exercising strategic decision-
making and negotiation autonomy. Transparency, communication, and accountability
are essential for trade unions to effectively represent employee interests in wage
negotiations while maximizing the potential for achieving favourable outcomes.
3 SIGNIFICANCE OF RESOLVING WAGE ISSUES IN A BALANCED FORUM
Resolving wage disputes in a fair and neutral manner is crucial for ensuring a
peaceful and harmonious labour relations climate, bolstering economic stability, and
advancing social equality. The significance of tackling wage conflicts in an equitable
and impartial way is underscored by the following points: Fair payment: Employee
salaries have a direct influence on the well-being of workers and their families.
Providing compensation commensurate to work done promotes equality in social and
economic aspects, enabling employees to fulfill their basic necessities, such as
provision of shelter and food. Fair wages are a motivator to employees which may
result in high morale which positively contributes to productivity and improves on the
quality of their work output. On the contrary, unresolved wage issues or unfair
compensation may result in poor work out put, hence adversely affecting the quality of
work done and the work output. Promoting social cohesion involves addressing wage
concerns through impartial discussions to lessen social divides and disparities.
Providing fair pay helps decrease animosity and a sense of unfairness among
employees, promoting unity and mutual support within the community and workforce.
A harmonious industrial relations climate is essential in order to prevent industrial unrest
which may result in strikes and other collective job actions that may disrupt productivity.
Industrial action negatively affects the business and the economy of the country.
Addressing wages issues promptly in fair and impartial manner will prevent conflict.
Handling wage issues as prescribed by labour laws and regulations ensures that
employers meet their legal responsibilities and uphold fairness standards. Adhering to
legal obligations promotes trust between employers and workers and lowers the risk of
costly legal conflicts and fines. Mutual respect, open communication, and cooperation,
all of which are necessary for creating a productive and peaceful work atmosphere.
4 Case Law
The issues discussed above are related to some relevant legal cases which will be
discussed below.
4.1 Working on Fire (Pty) Ltd v National Union of Metalworkers of South Africa
(NUMSA) (2022) 43 ILJ 2764 (LAC); [2023] 1 BLLR 39 (LAC)14
In the Working On Fire (Pty) Ltd v National Union of Metalworkers of South Africa
(NUMSA) case, the Labour Appeal Court (LAC) of South Africa discussed important
labour rights and employee rights in a dispute between Working On Fire (Pty) Ltd
(WOF) and the National Union of Metalworkers of South Africa (NUMSA) in the year
2022, as reported in he 43 ILJ 2764 (LAC) and [2023] 1 BLLR 39 (LAC).

14
Working On Fire (Pty) Ltd v National Union of Metalworkers of South Africa (NUMSA) (2022) 43 ILJ 2764
(LAC); [2023] 1 BLLR 39 (LAC)
Working On Fire (Pty) Ltd, a company that offers firefighting services, was involved in a
labour dispute with NUMSA over the understanding and implementation of specific
sections of the Labour Relations Act and the conditions of a collective agreement."
"Legal concerns arose regarding how to interpret and enforce the rules concerning
employee transfers under the Labour Relations Act. One key point of contention was
whether employees who moved from one company to another were entitled to keep
their benefits and seniority."
The LAC carefully reviewed the arguments presented by Working on Fire (Pty) Ltd and
NUMSA, and ultimately sided with NUMSA. According to the court, the employees who
were transferred had the right to maintain their employment benefits and seniority in
accordance with the Labour Relations Act. The court stressed the significance of
safeguarding employee rights during job transfers and ensuring that their employment
conditions remain unchanged.
This case highlights the importance of having legal safeguards in place for
employees when they are transferred from one company to another and ensures that
their employment perks and tenure are protected. It oblidges employers to adhere to
labour laws and collective agreements to uphold fair treatment and safeguard the rights
of their employees. "In South African labour law, the case of Working on Fire (Pty) Ltd
v National Union of Metalworkers of South Africa (NUMSA) (2022) 43 ILJ 2764 (LAC);
[2023] 1 BLLR 39 (LAC) is considered a significant precedent that influences the legal
decisions related to employees' rights during employment transfers and collective
agreements."

.2 The Public Servants Association v National Prosecuting Authority [2012] 8

BLLR 765 (LAC); (2012) 33 ILJ 1831 (LAC) 9
The case is based on an appeal from the Public Servants Association (PSA) against a
ruling by the Labour Court. The National Prosecuting Authority (NPA) had released a
circular about altering the terms of employment for its workers. In 1998, the
government of this country commenced a job evaluation exercise intended for the whole
of the public service. Consultation with treasury was mandatory because a pay
increment could not be awarded if the NPA had not budgeted for the expenditure and if
there were no funds for the upgrade. The government’s interest was ensuring a tight
control regarding fiscal consequences of the activity and stated that the upgrades would
only be approved were funding was available. To curb unwarranted expenditure, the
government promulgated the Public Service regulations in 1999 and 2001 and the
regulations stated that no upgrade would be done if no funds were available.
At the end of the job evaluation a number of posts in the NPA needed to be upgraded
and R140 million was required to effect the upgrades. The NPA had no provisions for
the upgrade in their budget and required additional funding. An approach to the treasury
by the NPA for allocation of additional funding was unsuccessful due to undisclosed
reasons. The NPA decided to implement the upgrade in a phased approach as funds
became available. This approached was rejected by the appellants who stated that the
upgrade must be done across the board for all affected employees despite the limitation
in funds. There was therefore an impasse leading to litigation. The dispute was
characterized as a dispute that arose out of the failure by the National Prosecuting
Authority (NPA) to pay certain categories of departmental employees (principally
prosecutors and special investigators) the extra remuneration to which they were
entitled as incumbents of the re-graded posts with effect from 1 April 2005. The
employees form the NPA could not take collective job action in this dispute of mutual
interest since they are deemed as essential services and therefore the matter was
referred to compulsory arbitration.
The main legal concern revolved around understanding and implementing specific
sections of the Labour Relations Act and the Constitution of South Africa, especially
in regard to the rights of employees when it comes to alterations in their terms of
employment. Two in limine objections were raised the regulation permitted an
executing authority to increase salaries provided that the relevant budget and
departmental Medium Term Expenditure Framework (MTEF) allocation made provision
for sufficient funds to accommodate the increase. It was argued that this was a statutory
requirement which barred implementation of the recommended job upgrades if the
funds required for that purpose were not available. The other in limine objection was to
the effect that the relief sought by the appellants in the arbitration was aimed at
reversing a decision by Parliament and/or Treasury, a legal impossibility, so it was
contended. The arbitrator contended that all parties were ad idem that posts had to be
upgraded as the conditions then were unsatisfactory. He averred that the job evaluation
upgrades must be effected to avoid industrial action by dissatisfied members of the
prosecution service. His award was that the appellants’ members be paid in line with the
job evaluation recommendations and that they be compensated for the failure of the
NPA to implement the job evaluation recommendations with effect from the same date
that it was implemented for the other employees who were identified for prioritised
implementation. This is the award that was taken to the Labour Court for review.
Section 74 (5) states that if the executing authority is unable to comply with the award it
must table it before Parliament. It is only then that Parliament could consider the award
and the job evaluation process as a whole and take a view whether it authorised the
additional funds required to implement the job evaluation recommendations or take a
decision that the award did not bind it. A key consideration for Parliament in this regard
would be the motivation for embarking on the job evaluation process. In the first place,
there was the wide spread threat of industrial action within the NPA's ranks fuelled by
low moral due to low salaries and benefits. It was essential to take the matter to
parliament and seek to augment the budget
 Verdict: the order of the labour court was set aside for erring in rejecting the findings
made by the arbitrator, that he could issue an award regarding unbudgeted funds. They
also contended that the Labour Court failed to appreciate the arbitrator’s reasoning
regarding the applicability of section 74.
The case emphasises the importance of collective bargaining and the responsibility of
employers to have meaningful discussions with employees or their unions before
making important changes to their terms of employment. It also emphasizes the
significance of following fair procedures in employment relationships to protect the rights
and interests of employees effectively."
In general, the case of Public Servants Association v National Prosecuting
Authority [2012] 8 BLLR 765 (LAC); (2012) 33 ILJ 1831 (LAC) is considered a
significant legal ruling in the field of South African labour law, adding to the legal
principles concerning the rights of workers and the responsibilities of employers
regarding changes in working.

Labour Relations Act 66 of 1955

The Labour Relations Act 66 of 1995,10 (from now on the LRA) is a vital piece of
legislation that was proclaimed to govern the rights and obligations of employers and
employees in South Africa. The purpose of this Act is to advance economic
development, social justice, labour peace and the democratization of the work-place by
fulfilling the primary objects of this Act. The primary objective of the act include to give
effect to and regulate the fundamental rights conferred by section 23 of the Constitution
to give effect to obligations incurred by the Republic as a member state of the
International Labour Organization, to provide a framework within which employees and
their trade unions, employers and employers' organizations can collectively bargain to
determine wages, terms and conditions of employment and other matters of mutual
interest and formulate industrial policy. The LRA also intends to promote orderly
collective bargaining, collective bargaining at sectoral level, employee participation in
decision-making in the work-place; and the effective resolution of labour disputes. and It
looks for to do so through four targets which donate impact to the LRA's purposes of
change inside the work relations system.
It is envisaged that in the event that parties dead lock in in collective bargaining, at that
point debate ought to be settled rapidly and genially without having representatives
resort to strikes and bosses to lock-outs. This in turn would guarantee that generation
inside the working environment proceeds without interference. A developing
economy should as far as necessary evade needless strikes, in that such strikes have a
negative impact on both employment and economic growth.15 Prolonged strikes have
an adverse financial effect on the employees’ income but also contribute negatively on
certain sectors of the economy.
Strike activity is respected as shaping portion of the collective haggling system. The
backbone of the LRA is its emphasis on collective bargaining especially at
industrial or sectoral level11
"Unless the matters for consultation are regulated by a collective agreement with the
representative trade union, a workplace forum is entitled to be consulted by the
employer about proposals relating to any of the following matters - (a) restructuring
the workplace, including the introduction of new technology and new work methods; (b)
changes in the organisation of work; (c) partial or total plant closures.”16

6 Conclusion
Regulating trade unions during wage negotiations is important in order to ensure that
these discussions are held in good faith in a honest, transparent, and accountable
manner with a mutual respect towards the rights of both employers and employees.
This regulation serves to prevent any misconduct and ensures that the negotiations are
centered on achieving fair and just results for all involved parties. Essentially, having a
fair platform for discussing and resolving conflicts is crucial for encouraging positive
communication, enhancing mutual comprehension, and ultimately, reaching favorable
results for both employers and employees. These types of forums are where the needs
of everyone involved can be protected, and sustainable labor relationships can be
upheld over time.

15
http://www.nda.agric.za/docs/economic_analysis/estimated_impact.pdf (accessed 20 June 2013) at10
16
S 84(1) of the LRA.
 BIBLIOGRAPHY
Books
1. Blanpain et al, Comparative Labour Law and Industrial Relations in Industrialised
Market Economies (2001).
2. Van Jaarsveld, Fourie and Olivier, Principles and Practice of Labour Law (2004).
3. Grogan J, Labour Litigation and Dispute Resolution (3rd edn, Juta 2019) .
4. Bendix S, Industrial Relations in South Africa (5th edn, Juta 2010).
Cases
1. Public Servants Association v National Prosecuting Authority [2012] 8 BLLR 765
(LAC); (2012) 33 ILJ 1831 (LAC)
2. Working On Fire (Pty) Ltd v National Union of Metalworkers of South Africa (NUMSA)
(2022) 43 ILJ 2764 (LAC); [2023] 1 BLLR 39 (LAC)
Legislation
1. Labour Relations Act 66 of 1955
2. Constitution of South Africa, 1996
Journal articles:
1. Du Toit “Workplace Forums from a Comparative Perspective” 1995 ILJ 1544 1548.
2. Anstey “National Bargaining in South Africa’s Clothing
Manufacturing Industry” 2004 ILJ 1829, 1862.
3. Myburg JF, ‘100 Years of Strike Law’ (2004) 25 ILJ 962
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1. Public Sector Coordinating Bargaining Council (PSCBS). (2005). Background.
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2. Statistics South Africa. Available at: http://www.statssa.gov.za (accessed 19 March
2024.).