The Free Market Foundation launched a court challenge against a section of the Labour Relations Act, which allows collective agreements on wages and conditions to be extended to employers who are not party to negotiations. In terms of section 32 of the LRA the minister of labour extends bargaining council agreements to non-parties. It is argued that the section has numerous economic consequences such as distorting the labour market. Smaller companies that are more labour intensive can be squeezed out of the market by such agreements. The Free Market Foundation is seeking to alter the wording of the LRA from “must” to “may”, to allow certain sectors to be exempted.
Read the full report Collective bargaining out on its feet compiled by Karl Gernetsky and first published in BD Live on 14 July 2015. See also the letter that appears in the Comment.