The extension of collective agreements to non parties

Abstract

There is a theme of majoritarianism running through the Labour Relations Act 66 of 1995 (LRA). Part of this theme is legislation that provides for the extension of collective agreements reached at sectoral level to non -parties. After due consideration of arguments for and against the extension of collective agreements, the conclusion is reached that the extension of collective agreements can potentially, under certain circumstances, increase unemployment and consequently inhibit the growth of small and medium sized firms. In the light of this possibility and with due regard to the stated objectives of the LRA, it is suggested that the legislation that makes provision for the extension of collective agreements to non –parties in section 32(g) of the LRA should be given a purposive interpretation. It is suggested that in giving effect to this provision the effects on the labour market of any proposed extension of a collective agreement must be considered, before extension by the Minister of Labour.