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)