LUCIO TRENTINI: Extension of bargaining council agreements is key to labour market certainty

A lot has been written about the extension of collective agreements, particularly those covering terms and condition of employment in the metals and engineering industries.

Labour law is derived from our constitution, which is dedicated to the achievement of social justice, and fundamental to this — as Marikana reminded us — is the reduction of inequality. No less contentious is the belief that the extension of bargaining council agreements is a barrier to job creation, and that the millions of unemployed South Africans stand to gain employment if collective bargaining — and, implicitly, the extension of collective agreements — were to be done away with.

According to the latest department of employment & labour determination of the representativeness of the Metals & Engineering Industries Bargaining Council, issued in terms of section 49 of the Labour Relations Act, the following representative determination has been made: Steel & Engineering Industries Federation of Southern Africa -affiliated employer associations alone represent 56.15%, the National Employers Association of SA represents 19.15%, the Plastics Convertors Association of SA represents 10.81%, the SA Engineers & Founders Association represents 6%, the Confederation of Employers Organisation represents 4.6%, the SA United Commercial & Allied Employers Organisation represents 2.

And hence the reason for such large unemployment in the country. Emerging entrepreneurs can not handle the barrier to entry in the industrialization space of the economy

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