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Exemptions
Exemptions
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In accordance with the Labour Relations Act (LRA) 1995/66 - Section 31, the parties to the MEIBC are bound by the collective agreements concluded in a bargaining council.  Once a collective agreement has been concluded in a bargaining council, the parties to the bargaining council may apply to the Minister of Labour, in terms of the Labour Relations Act 95/66 - Section 32, to extend the agreement to non-parties, namely employers and employees who work in the sector or industry in the Bargaining Council but who are not party to the agreement. The Minister will only extend the agreement to non-parties if the parties to the bargaining council represent the majority of employees in the industry and these parties vote in favour of extending the agreement.
 
However, the LRA further provides that the Minister may extend a collective agreement even if the parties to the bargaining council are only sufficiently representative in the sector or industry if failure to do so could undermine collective bargaining at sectoral level.

The Minister of Labour, when considering whether or not to extend a collective agreement concluded in a bargaining council to non-parties, must be satisfied that the parties meet the requirements of the Labour Relations Act 66 of 1995, which include:-

  • Adequate provision must be made for an exemption procedure in respect of non-parties to the Bargaining Council;
  • Provision in the collective agreement for an independent body to hear and decide any appeal brought against the Council's refusal of an application for exemption or the withdrawal of an exemption by the Council;
  • The criteria for granting exemptions must be set out in a collective agreement;
  • The collective agreement does not discriminate against non-parties;

Once a Bargaining Council agreement has been extended to cover non-parties, the provisions of the collective agreement bind all employers and employees falling within the registered scope of the bargaining council. These employers and employees may apply for exemption from certain provisions of the collective agreement.

Fundamental Principles

  1. All applications must be in writing and fully motivated, and sent to the MEIBC's regional office in the area in which the applicant is located. Application forms are available from the employer's nearest regional office.
  1. In scrutinising the application, the MEIBC will consider the views expressed by the employer and the workforce, together with any other representations received in relation to that application.
  1. The employer must consult with the workforce, through a trade union representative or, where no trade union is involved, with the workforce itself, and must include the views expressed by the workforce in the application:-
    • Where the views of the workforce differ from that of the employer, the reasons for the views expressed must be submitted with the application;
    • Where an agreement between the employer and the workforce is reached, the signed written agreement must accompany the application.
  1. In the event of an appeal against a decision of the Council, the Council will upon receipt of the appeal by an employer/workforce/union, submit it to the Independent Exemptions Appeal Board for consideration and finalisation.
  1. Applications for exemptions involving monetary issues may not be granted retrospectively and is only granted for the duration of the agreement, which is normally for a period of one year, ie from 1 July to 30 June of the next year.

    Important:
    Employers are notified that any wage exemption applications for the period July 2005 - 30 June 2006 must be lodged with the Council by no later than the 15th August 2005 and by no later than 30 June 2006 for increases for the period 1 July 2006 to 30 June 2007.

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