Impact of Labour Relations Amendment and Basic Conditions of Employment Amendment Bills

1. Presentation on Labour Relations Amendment Bill and Basic Conditions of Employment Amendment Bill Presented by: Dianne Robinson on behalf of The Federated Hospitality Association of Southern Africa

2. Labour Relations Amendment Bill • S21 – Organisational Rights • Inclusion of S21(8)(b)(v) – By including TES, employer may be obliged to afford rights even if majority of it’s employees not members. • Non-standard forms of employment must be defined • Inclusion of S21 (8A) and (8B) – Undermines majoritarianism, leads to proliferation of unions, likely to increase inter-union tensions and makes thresholds meaningless (increases uncertainty) • Inclusion of S21 (8C) and (8D) – same concerns as raised for (8A) and (8B)

3. Labour Relations Amendment Bill • S64 – Strikes and Lock-outs • Inclusion of S64(1)(a)(iv) refers to a majority of members who ‘voted’ in favour rather than a majority of members • Inclusion ofS64(6)– what constitutes a ‘properly conducted ballot’? Needs clarification in order to avoid uncertainty and unnecessary litigation • Inclusion of S69(6)(a) – Unreasonable to bind a third party to an agreement between two parties

4. Labour Relations Amendment Bill • Dispute Resolution • Inclusion of S115(2)(d)– Administrative assistance should apply equally to all users • Inclusion of S145(8) – prejudicial to small employers and in cases of mass dismissals. Discretion to remain with the LC instead • Inclusion of S158 (1B) – If CCMA does not have jurisdiction, all time and resources still expended unnecessarily until the end of arbitration. Contrary to accepted legal principles

5. Labour Relations Amendment Bill • Unfair Dismissals • Amendment to S187(1)(c)– Makes it near impossible for employers to change working conditions based on workplace realities. Lack of flexibility makes it extremely difficult to be competitive. • Fry’s Metal principles should remain

6. Labour Relations Amendment Bill • Unfair Dismissals • Inclusion of S188(B) – Unfair and open to constitutional challenge.

7. Labour Relations Amendment Bill • A-typical Employment • Insertion of S198A – In effect ‘bans’ TES as Companies will not use them due to increased risk. Unlikely that TES employees will be fully absorbed into client workforce – resultant significant job losses. • Proper policing of TES and Labour Brokers should rectify the matter. • Impact study done by Paul Benjamin should be seriously considered

8. Labour Relations Amendment Bill • A-typical employment • Insertion S198C–Part-time employment provides opportunities for unemployed and first time job seekers to gain experience • Proposed amendment will lead to job losses • Significant importance to employees as well • Part-time employment plays an extremely legitimate role in modern economy and should be encouraged rather than discouraged in a country where unemployment is at dangerous levels

9. Basic Conditions of Employment Amendment Bill • Amendment to S55(4)(b) – probable unintended consequence of employers paying only the minimum prescribed wages as it would lead to escalating salary bill and ever widening gap between minimum and non minimum wage earners • Insertion of S55(4)(g),(o) and (p) – proposed unilateral decisions by the Minister in this regard can have enormous implications for employers and employees. Nedlac should be consulted first