2001 Annual Report

SECTION 77 NOTICES

Section 77 of the Labour Relations Act allows registered trade unions or federations of trade unions to undertake protest action to promote or defend the socio-economic interests of workers.

Before embarking on protest action, the Act requires the trade union concerned to serve notice on Nedlac stating the reasons for the protest action and the intended nature of the protest action. The Nedlac parties then meet with the trade union and other interested parties in an attempt to resolve the dispute. Should Nedlac be unable to resolve the dispute, workers are entitled to participate in protected protest action.

Section 77 notices dealt with in the year under review:

EU NEGOTIATIONS AND QUOTA APPLICATIONS AND ALLOCATIONS

APPLICANT: FAWU (FOOD AND ALLIED WORKERS UNION)
RESPONDENT: GOVERNMENT (DEAT AND DTI)
DATE NOTICE TABLED: 24 AUGUST 2000
ISSUES: Fawu was concerned that DTI and the Coastal and Marine Management were entering into a fisheries agreement with the EU in September 2000 without consulting stakeholders (Fawu). It argued that there could be serious implications such as job losses. Fawu further expressed concern at the lack of transformation within the Coastal and Marine Management. Fawu proposed that a sectoral Jobs Summit should be held to involve the entire fishing industry.
OUTCOME:

EU Negotiations: Government said that although DTI was responsible for overall co-ordination of the EU trade negotiations, there was a lack of communication and understanding between itself and Fawu and committed itself to be more transparent and accessible in future dealings with the Union in order to avoid misunderstandings.

Quota applications and allocations

: Coastal and Marine Management said that in its discussions with the EU it had been mandated by Cabinet to discuss training, monitoring, and research. It was not mandated to discuss fishing rights. It said that it supported Fawu's proposal of convening a sectoral Jobs Summit in the fishing industry.

THE VIOLENCE EXPERIENCED IN THE PUBLIC TRANSPORT INDUSTRY IN THE WESTERN CAPE

APPLICANT: COSATU WESTERN CAPE
RESPONDENTS: WESTERN CAPE GOVERNMENT, NATIONAL DEPARTMENT OF TRANSPORT
DATE NOTICE TABLED: 14 JUNE 2000
ISSUES: Cosatu argued that the "war" between the bus and taxi industries was having a negative impact on workers. It contended that it was within the Western Cape Government's power to halt the violence.
OUTCOME: After a number of meetings, the parties agreed that a high level of agreement between Cosatu and the Western Cape Government as to the nature of the problems in the transport industry and the solutions needed to address these.

THE PROPOSED INTERNAL RESTRUCTURING OF INGWE COALCORPORATION

APPLICANT: NUM
RESPONDENT: INGWE COAL CORPORATION
DATE NOTICE TABLED: 25 OCTOBER 2000
ISSUES: The proposed restructuring of Ingwe coal Corp and the possible retrenchment of employees.
OUTCOME: The standing committee mandated the Executive Director to meet the Union to seek clarity on the issues raised. It appeared that this was a matter of mutual interest between the NUM and Ingwe and not a socio-economic issue. It therefore did not fall within the ambit of Section 77 of the LRA.

PROPOSED AMENDMENTS TO LRA, BCEA AND INSOLVENCY ACT

APPLICANT: COSATU
RESPONDENT: BSA AND GOVERNMENT
DATE NOTICE TABLED: 22 DECEMBER 2000
ISSUES: Length of working week, overtime, variation of basic conditions of employment by Minister of Labour, Sunday work and payment for Sunday work, disclosure of information, the presumption as to who is an employee and atypical forms of work, extension of collective agreements, retrenchments (including the right to strike over retrenchments), compensation for procedurally unfair dismissals, transfer of business as going concerns and in insolvent circumstances, notices of sequestration and liquidation to trade unions and workers, ranking of workers claims and voluntary liquidation and sequestration applications.
OUTCOME: The Standing Committee recommended that since there had been ongoing bilateral and trilateral negotiations on the proposed labour law amendments including a negotiating committee under Nedlac's Labour Market Chamber, the parties should continue to negotiate in these fora.

MUNICIPAL SYSTEMS ACT (LOCAL GOVERNMENT RESTRUCTURING)

APPLICANT: FEDUSA
RESPONDENT: SARS, LOCAL AND PROVINCIAL GOVERNMENT
DATE NOTICE TABLED: 16 NOVEMBER 2000
ISSUES: Among other issues, Fedusa intended to protest against the selling off and outsourcing of Government services. The concern was that if local authority employees were transferred, they would lose a tax-free benefit on their pension fund.
OUTCOME: It was agreed that Fedusa would submit recommendations to SARS on how the Income Tax Act could be amended to address the municipal pension fund problem brought about by the transfer of employees to utilities. It was further agreed that the provisions of the Local Government Municipal Systems Act, 2000 would guide the process of the restructuring of local government and that all parties must take steps to ensure adherence to those principles.

THE COMPETITION COMMISSION RULING ON THE PROPOSED MERGER OF THE STELLENBOSCH FARMERS WINERY AND DISTILLERS CORPORATION

APPLICANT: NUFBWSAW (National Union of Food, Beverage, Wine Spirits and Allied Workers Union /FAWU (Food and Allied Workers' Union)
RESPONDENT: COMPETITION COMMISSION THROUGH THE DEPARMENT OF TRADE AND INDUSTRY
STELLENBOSCH FARMERS WINERY AND DISTILLERS CORPORATION
DATE NOTICE TABLED: 30 OCTOBER 2000
ISSUES: Possible job losses caused by the ruling by the Competition Commission that the unification of the two companies amounted to a consolidation, not a merger. The Union wanted the Minister of Trade and Industry to exercise his powers in terms of section 18 of the Competition Act to protect the public interest which would be jeopardised by the unification.
OUTCOME: The Standing Committee felt that the unions had two avenues to explore to resolve their concerns. Firstly, they were advised to seek representation in the hearing of the Competition Tribunal which would be held to decide whether or not the unification amounted to a merger and, in case it amounted to a merger, if it amounted to a notifiable merger. Secondly, it was advised to approach the Minister of Trade and Industry and ask him to intervene in terms of his powers as per section 18 of the Competition Act.

THE JUDICIAL MANAGEMENT & RESTRUCTURING OF NORTHWEST TRANSPORT INVESTMENT (OWNED BY THE NORTH WEST GOVERNMENT)

APPLICANT: SATAWU/ COSATU
RESPONDENT: NORTH WEST PROVINCIAL GOVERNMENT, NATIONAL GOVERNMENT, AND JUDICIAL MANAGERS OF NORTHWEST TRANSPORT INVESTMENTS
DATE NOTICE TABLED: 15 NOVEMBER 2000
ISSUES: The judicial management of the company, which the union claimed had resulted in retrenchments and the public being denied an important service. Furthermore, ongoing restructuring was not inclusive of Labour.
OUTCOME: The parties agreed on the formation of a restructuring committee comprising of both parties. They agreed that the restructuring process would remain under the jurisdiction of Nedlac, with reports being forwarded to Chair, until the process was finalised.

SECTION 77 STANDING COMMITTEE (Twelve meetings)

Business

Elize Strydom

Labour

Bengeza Mthombeni

Community

Godfrey Jack

Government

Thembinkosi Mkhalipi

 

 

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