LABOUR RELATIONS ACT, 1995

Agreement on the bill

One of the most crucial pieces of legislation to be passed in post-apartheid South Africa, the Labour Relations Act (LRA), was tabled in Nedlac on 4 May 1995 as a discussion document in the form of a bill. Ten weeks later, after 149 hours of formal negotiations, the Nedlac Executive Council on 17 July 1995 concluded agreement on the bill, and recommended its adoption by Cabinet. The negotiating process included consideration of over 200 submissions from the public.

A process of drafting the agreement into legal format ensued and the labour relations bill was presented in Parliament in August 1995. In September 1995 Parliament passed into law the Labour Relations Act, No. 66 of 1995.

The new Act was developed for a variety of reasons, central among these being the need for greater simplicity, certainty and coherence in the laws governing labour relations and collective bargaining in South Africa. New legislation was also needed to give effect to the country's new Constitution and to government policy as reflected in the reconstruction and development programme (RDP). Legislation also had to be brought in line with South Africa's public international law obligations.

The new Act, among others, provides for a more structured collective-bargaining system, greater certainty of rights and obligations, and the inclusion of new rights. It endeavours to provide a smoother and more efficient process for dispute resolution, and establishes several new institutions that will play a profound role in South African labour relations in future years. These include a new Labour Court and the Commission for Conciliation, Mediation and Arbitration (CCMA). The Act also provides for the establishment of statutory councils at industry level for purposes of seeking agreements on dispute resolution, on training and education schemes, and on pension, provident and similar funds. Bargaining councils will replace existing industrial councils, and will provide the locus for the conclusion of collective agreements on a range of issues including wages and conditions of employment, and policy proposals on industrial policy.

The Act also creates a totally new concept -workplace forums - to run side by side with collective bargaining. The function of these forums is to give employees and employers a structure through which to agree or attempt to agree on decisions affecting employees and the enterprise which employs them. Issues for consultation in workplace forums would include the introduction of new work methods and new technology, restructuring, retrenchments, job grading, and education and training.

Responsibilities placed on Nedlac in terms of the Labour Relations Act

In terms of the new LRA, certain responsibilities are placed on Nedlac on an ongoing basis, and Nedlac has so far reached decisions on four such areas:

• The governing body of the CCMA

  Nedlac has ratified nominations from business, labour and government for representation on the governing body of the CCMA. The nominees, who have been appointed by the Minister of Labour, are as follows: Mr R. Zondo (chairperson), Mr J.W. Botha, Mr R. Gouws, Advocate N. Gozo, Mr E. Patel, Mr S. Manene, Ms M. Malete, Ms O. Shisana, Dr P. Ncholo, and Mr S. Pityana.

• Nominations for the positions of Judge President and deputy Judge President of the Labour Court

  After a joint process between Nedlac and the Judicial Service Commission, Nedlac recommended the appointment of Judge Myburgh and Judge Froneman as Judge President and deputy Judge President respectively. These appointments have been made by President Mandela.

• Seat of the Labour Court

  Nedlac agreed that Johannesburg should be the primary seat of the court, with additional seats in Cape Town, Durban and Port Elizabeth.

• Nominees to serve on the Essential Services Committee

  Nedlac has recommended the appointment of certain nominees to the Essential Services Committee. The nominations are under consideration by the leaderships of the constituencies.