10 Nov 2014

Further Amendments to the Labour Relations Act: Statutory Duties Imposed upon Trade Unions - Employment Law Update

Practice Area(s): Employment |

Clients will recall that on 17 August 2014, President Jacob Zuma assented to the Labour Relations Amendment Act (No.6 of 2014).  Although assented to, a commencement date for the Amendment Act has yet to be set.

On 5 November 2014, almost 3 months since our President assented to the Amendment Act, a Member of Parliament, Mr Ian Ollis has called for public comments in response to a Bill in order to further amend the Labour Relations Act, 1995. In light of the fact that the proposed amendments were not introduced by the Minister of Labour but instead introduced by an individual Member of Parliament, the Bill is referred to as a "Private Member's Bill". 

The proposed amendments seek to make provision for trade unions to be held accountable for violence, destruction of property and intimidation by union members during a protected strike.  In other words, to prevent strike-related violence before it occurs. 

The Bill seeks to impose a statutory duty on trade unions to take reasonable steps to prevent harm to persons and property during a strike.  In order to do so, it has been proposed that a new section be inserted into the LRA referred to as section 68A (Duty to limit harm caused by collection action). 

If section 68A as set out in the Bill is in fact passed, the following will apply if a union has facilitated, called for, endorsed or ratified strike action:

  1. The union will have a duty to take reasonable steps to prevent, repair or remedy injury to persons and loss or damage to property.
  2. If a union fails to comply with its statutory duty set out above and there is injury, loss or damage as a consequence of the strike, a person or organ of state may institute civil action against that union.

The Labour Court will, as a consequence of section 68A, be empowered to do the following:

  • order a union to comply with its statutory duty;
  • make an award of damages, including punitive damages for breach of the duty;
  • declare that the strike will cease to be a protected strike; or
  • declare that the issue in dispute must be referred to arbitration as though it is a dispute in an essential service.

There is no doubt that trade unions will vigorously oppose the proposed amendments and that there will be much debate surrounding this topic in the weeks to come.  The call for public comments was gazetted on 5 November 2014 and interested parties have 30 days within which to submit written representations in response to the draft bill.