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Section 77 Notices - Related Documents

FEDUSA REQUESTS ITS SECTION 77 NOTICE ON THE LRA BE RE-INSTATED

Issued by Nedlac

5 December 2001

The Federation of Unions of South Africa, Fedusa, has submitted a letter to Nedlac requesting that the Standing Committee on section 77 consider a notice first tabled by Fedusa in July this year, pertaining to section 197 of the Labour Relations Act, 1995. The notice argued that the proposed amendments to section 197(4) and (5) of the LRA, which deal with the transfer of a contract of employment, would have a negative socio-economic impact on workers.

When the notice was originally tabled, the Standing Committee felt that, since the negotiations on the Labour Law Amendments were still under way, it would be premature to consider the notice.

Fedusa has now indicated that its National Executive Committee believes that the amendments to section 197 as adopted in Parliament recently, do not address the concerns detailed in its July notice.

In the July notice, Fedusa argued that under the circumstances envisaged by the amendments to section 197:

  • Persons transferred from local government to the private sector would lose their tax-free status in relation to accrued pension benefits under the Income Tax Act in terms of the dispensation up to 28 February 1998
  • Employees belonging to a defined benefit fund, where certain benefits are guaranteed, would lose or receive a lesser benefit should they be transferred to a defined contribution fund or to an organisation where no fund is in existence.
  • A loss of benefits in relation to housing and/or medical and/or subsidised group life.

Nedlac has referred the letter to its Standing Committee, which will indicate whether it feels the application meets the criteria of section 77. If so, a meeting of the parties will be called at the earliest available date.

Background

The notice was tabled in terms of Section 77 of the Labour Relations Act, which allows registered trade unions or federations of trade unions to undertake protest action to promote and protect the social and economic interests of workers, if they follow certain procedures. Before embarking on protest action, the trade union concerned is required to serve notice on Nedlac stating the reasons for the protest action and the intended nature of the protest action. The Act requires the Nedlac parties to meet with the trade union and the parties at whom the notice is directed, to consider the issues raised. Should the issues remain unresolved after thorough consideration, workers are entitled to participate in protected protest action 14 days after serving a second notice on Nedlac of their intention to proceed with the action.

Jennifer Wilson
Communications Coordinator
Nedlac
(011) 482-2511
fax: 482 4650
083 652 8524 (note new number)

 

 

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