Trade Union Membership and Collective Bargaining

1. Trade Union Membership and Collective Bargaining FEDUSA Collective Bargaining Conference 27/28 January 2011 DEPARTMENT OF LABOUR

2. 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 • Trade unions • Employers Organizations • Barging Councils

3. Primary Objectives Of LRA • 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.

4. 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.

5. Department of Labour Strategic Objectives • 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.

6. 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

7. Key Role Players in the Labour Market (1)RegisteredTrade Unions YearNumbersCollective Membership 1990 209 2,810 712 1996 334 3,016 933 2000 464 * 3,552 113 2005 341 3,134 865 2007 261 2008 216 2009 205 3,294 913 2010 200 3,057 772 *Highest no of TU

8. Key Role players cont. (2) Employers Organizations YearNumbers 1990237 1996 196 2000 252* 2005 229 2007 201 2008 180 2009 174 2010 165 *Highest no of EO

9. Labour Relations Amendment Act 2002 • As a result of the dramatic increase in new applications for registration. • Brought about by bogus organizations / unions. • Non-compliant organizations / unions. • Guidelines for registration. • Brought more sense to the role-players in the collective bargaining system. • Dissatisfaction from individuals who had to turn to something else for a living.

10. Effects of LRA Amendments1 January to 31 December

11. Trends in Labour Organization Registrations1 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 (2008/2009 = 84) Employers’ Organizations = 22 (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.

12. Labour Court Developments • 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

13. Legal Compliance of Trade Unions • 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

14. 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

15. Comments on Registration • 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

16. Overview of Bargaining Councils YearNumbersEmployees under Agreements 1990 91 1996 99 810 589 2000 73 2005 58 2009 47 2010 47 +-700 000

17. 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.

18. 41 Private Sector Bargaining Councils 25 Certificates of representivity issued 5 Refused 11 not submitted. Bargaining Councils Representivity1 April 2009 – 31 March 2010

19. Federations • 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

20. 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?

21. THANK YOU DEPARTMENT OF LABOUR