DEMARCATION DISPUTE

Nedlac was consulted by CMMA Commissioner, Professor Alan Rycroft, on the demarcation dispute regarding whether the employees of Feltex Automotive Trim are employed in the Motor industry or the Textile Industry.

In essence, the Applicants' (The Southern African Clothing and Textile Workers Union, Sactwu, and the Bargaining Council for the Textile Manufacturing Industry of South Africa) argued that the definition of the textile industry includes the processes and products of the company. They said that historically the enterprise had fallen within the textile industry, that many of the products and processes involved in the enterprise are those associated with and classified as the textile industry; and that Sactwu enjoys majority support at the Durban branch of the company. They argued that to demarcate the company as falling within the textile industry would promote meaningful collective bargaining.

The respondents, Feltex Limited and the Motor Industry Bargaining Council, argued that the definition of the motor industry includes the processes and products of the company; secondly that the determining factor in a demarcation is not union membership or specific processes or products used, but the overall purpose of the enterprise; thirdly that the wishes of the company and the way it positions itself in the market must be taken into account and finally that the industry into which competitors fall is an important indicator.

Professor Rycroft felt that although there was no doubt that the company's processes combine aspects of both the textile and motor industry, the nature of the business is the production of components for the automotive industry, and that Feltex Automotive Trim and its employees fall within the jurisdiction of the Motor Industry Bargaining Council.

Nedlac is to finalise its recommendation to the registrar shortly.