What is the Council

Sections 1(c) and (d) of the Labour Relations Act, 1995 (Act 66 of 1995), as amended, state the following. The purpose of the Act is to advance economic development, social justice, labour peace and the democratisation of the workplace by fulfilling its primary objects. These include collective bargaining to determine wages, terms and conditions of employment and other matters of mutual interest, as well as the formulation of industrial policy. The Act also seeks to promote orderly collective bargaining, collective bargaining at sectoral level, employee participation in decision-making in the workplace, and the effective resolution of labour disputes.

By careful consideration of the wording used by the legislature, it is safe to state that collective bargaining is the core of collective labour law. Collective labour law regulates situations where employees act collectively through structures such as trade unions while maintaining a relationship with their employer counterparts through employer organisations, which also exist because of collective action. It is clear that Government strongly supports collective bargaining as the preferred means of securing labour peace, social justice, economic development and employment equity.

The relationship between labour and employers is the main driver behind the creation and amendment of terms and conditions of employment and other matters of mutual interest. It is within this relationship that bargaining and negotiations take place. However, there is only a very slim chance of any bona fide, proactive and proper negotiations or bargaining unless these take place within a formal structure. In order to achieve these objectives, the legislature adopted an innovative approach. The old Industrial Councils were renamed Bargaining Councils. These were no longer limited to traditional industrial sectors but were also extended into the public sector. A bargaining structure was also established for the public service, known as the Public Service Co-ordinating Bargaining Council (PSCBC), which has the power to designate sectors in the public service so that those sectors may establish their own bargaining councils.

Our History

Our Bargaining Council made its leap into history as the Industrial Council for the Furniture Manufacturing Industry. This was achieved when the then Minister of Labour, the late Thomas Boydell, signed the first Industrial Agreement, which consisted of five and a half pages. It became effective on 16 August 1926.

In 1996, this Council was renamed the Furniture, Bedding and Upholstery Industry Bargaining Council, Greater Northern Region. In August 2006, the Council celebrated 80 years of existence and underwent another name change during its amalgamation with the Free State Province’s Furniture Bargaining Council on 26 April 2006, after which it became known as the Furniture Bargaining Council.

Collective Agreements

All conditions of employment that are negotiated and agreed to between labour and employers each year are reflected in a collective agreement. This collective agreement becomes effective between the parties who signed it on the date agreed to by those parties. In order to make the collective agreement applicable to non-parties, the Bargaining Council must request the Minister of Labour in writing to extend the collective agreement to non-parties in terms of section 32 of the Labour Relations Act, 1995 (Act 66 of 1995).

The Minister must extend the collective agreement to non-parties by publishing a notice in the Government Gazette declaring the collective agreement binding on non-parties for a specified period. The Minister will not extend the collective agreement to non-parties unless satisfied, among other things, that the majority of all employees who will fall within the scope of the agreement are members of trade unions that are parties to the Bargaining Council, and that members of the employers’ organisations that are parties to the Council employ the majority of employees falling within that scope.

Since the Council was representative again during July 2006 in terms of the above criteria, the current collective agreement was extended to non-parties by the Minister of Labour, and that extension became effective on 18 August 2006.

During June 2006, the Council successfully applied in the Witwatersrand Local Division of the High Court of South Africa for an urgent interdict against an unregistered employers’ association that was inciting non-parties subject to the jurisdiction of the Council. The Independent Employers Association, acting through its chairman, unlawfully incited the non-payment of employer and employee contributions payable to the Council in terms of the Industry’s Collective Agreement by its non-party members. On 22 June 2006 the urgent interdict was granted with costs, and the association’s application for leave to appeal was also dismissed with costs. This clearly indicated that the rights and obligations reflected in the Collective Agreement would be protected by the courts and the laws of this country for the benefit of both employers and employees in the industry.

Powers and Functions of a Bargaining Council

The powers and functions of a bargaining council within its registered scope include the following:

• To conclude collective agreements.
• To enforce those collective agreements.
• To prevent and resolve labour disputes.
• To perform the dispute resolution functions referred to in section 51 of the Act.
• To establish and administer a fund to be used for resolving disputes.
• To promote and establish training and education schemes.
• To establish and administer pension, provident fund, medical aid, sick pay, holiday, unemployment and training schemes or funds, or any similar schemes or funds, for the benefit of one or more of the parties to the bargaining council or their members.
• To develop proposals for submission to NEDLAC or any other appropriate forum on policy and legislation that may affect the sector and area.
• To determine by collective agreement the matters which may not be an issue in dispute for the purposes of a strike or lock-out at the workplace.
• To confer on workplace forums additional matters for consultation.
• To provide industrial support services within the sector.
• To extend the services and functions of the bargaining council to workers in the informal sector and home workers.

Who a Collective Agreement Binds

A collective agreement concluded in a bargaining council binds:

• The parties to the bargaining council who are also parties to the collective agreement.
• Each party to the collective agreement and the members of every other party to the collective agreement, in so far as the provisions apply to the relationship between them.
• The members of a registered trade union that is party to the collective agreement and the employers who are members of a registered employers’ organisation that is also a party, if the collective agreement regulates terms and conditions of employment or the conduct of employers in relation to their employees, or employees in relation to their employers.

Our Collective Agreement is a written agreement and contains all the employment conditions to which it applies. It also deals with matters of mutual interest. The Collective Agreement can vary basic conditions set out by the Basic Conditions of Employment Act, 1997 (Act 75 of 1997), unless the condition is a core condition in terms of that Act. It can also vary an employment contract, provided that the matters concerned are not core conditions in terms of the Basic Conditions of Employment Act. The Collective Agreement must also make provision for a dispute resolution process. In addition, it binds non-parties in the industry once the Minister of Labour has extended the agreement in terms of section 32 of the Labour Relations Act.

Designated Agents and Enforcement

To enforce the Collective Agreement, the Council uses staff members appointed by the Minister of Labour as Designated Agents. Without limiting their powers, these agents may secure compliance with the Council’s collective agreements by publicising the contents of the agreements, conducting inspections, investigating complaints, using any other lawful means the Council may adopt, and performing any other functions conferred or imposed on them by the Council.

Within the registered scope of a bargaining council, a designated agent has all the powers set out in Schedule 10 of the Labour Relations Act. These powers include entering any workplace or other place where an employer carries on business or keeps employment records, provided it is not a home, in order to monitor or enforce compliance with a collective agreement concluded in the bargaining council.

In order to monitor or enforce compliance, a designated agent may:

• Require a person to disclose information verbally or in writing, alone or in the presence of witnesses, and if necessary under oath or affirmation.
• Inspect and question a person about any record or document to which a collective agreement relates.
• Copy or remove records or documents for the purpose of making copies or extracts.
• Require a person to produce or deliver records or documents to a specified place for inspection.
• Inspect, question and, if necessary, remove an article, substance or machinery present at the workplace.
• Question a person about any work performed.
• Perform any other prescribed function necessary for monitoring or enforcing compliance.

A designated agent may be accompanied by an interpreter and any other person reasonably required to assist in conducting an inspection, such as a member of the South African Police Service. Any person questioned by a designated agent must answer all questions lawfully put to that person truthfully and to the best of that person’s ability. Every employer and/or employee must provide any facility and assistance at a workplace that is reasonably required by a designated agent to perform the agent’s functions effectively.

The bargaining council may apply to the Labour Court for an appropriate order against any person who refuses or fails to answer lawful questions truthfully, refuses or fails to comply with any requirement of the designated agent, or hinders the designated agent in the performance of the agent’s functions.

Dispute Resolution Process

If any role-player fails to comply fully with the Collective Agreement, the Council may secure compliance by way of the dispute resolution process. In terms of this process, failures to comply with the Industry’s Collective Agreement are resolved in the following sequence:

1. An attempt verbally to resolve the matter.
2. Written compliance order.
3. Conciliation.
4. Arbitration.
5. Labour Court.

The nature of the dispute will determine which steps are used. The most important fact about our Bargaining Council is that all Council staff members are neutral, independent and objective in the execution of their duties.

Please feel free to contact any of the Designated Agents for further information at our offices in Johannesburg on (011) 242-9200, Pretoria on (012) 323-2700 and Bloemfontein on (051) 447-1807.