One of SA's big bus companies has hauled the minister of labour and employment to court to challenge being tied by collective agreements reached in the bargaining council which it's not part of.
Golden Arrow, which operates in the Western Cape, is challenging the constitutionality of a section of the Labour Relations Act, which empowers minister Thulas Nxesi to extend collective agreement to non-party employers.
The bus company, which is not part of the sector's bargaining council, filed papers in the Labour Court on Friday in which they argue that Nxesi should afford non-parties an ear before extending salary increase agreements to those not part of the council.
Denzil Watson, Golden Arrow's human resources manager who filed the founding affidavit in the application, said they wanted to set aside Nxesi's decision to extend the 2021 wage increase agreement to non-parties including their company.
“Only in so far as necessary, the applicants seek an order striking down sections 32 (2) and (3) of the Labour Relations Act as unconstitutional, insofar as they do not require the minister to afford non-parties any form of hearing before extending the terms of a collective agreement to them,” stated Watson.
Watson argued that there were disparities between what their company paid in terms of wages and salaries in comparison to other employers in the sector with their long-term employees allegedly earning way higher than their counterparts in other bus companies.
“Over the years, the disparity has become unattainable, not least because of the emerging competitive threats which now confront the applicants,” argued Watson.
He said the across the board increases as per the agreement reached in collective agreement affected on their company differently and negatively as it already paid higher salaries in comparison to their competitors.
The purpose of collective bargaining is to help industries consolidate negotiations so that they aren’t conducted at shop floors with each and every employer across the country. The collective agreements also help by identifying and managing common issues, interests and expectations of all parties within a specific sector.
Golden Arrow is also refusing to comply with the 4% wage increase agreement signed at the South African Road Passenger Bargaining Council (SARPBAC) early this year as it has asked the court to review and set aside its extension to non-party members.
The agreement reached in the council was, according to all parties, involved in the negotiations reached to protect the sector and jobs.
Nxesi's spokesperson Musa Zondi said they were yet to receive the court papers.
SARPBAC general secretary Gary Wilson said the council would only formulate its position once that process of going through the court papers had been completed.
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