2) Labour relations act (LRA)

• Purpose

  • Provides a framework for labour relations.
  • Promotes collective bargaining at workplace.
  • Establishes Labour Courts and Labour Appeal Courts.
• Impact

  Positives

  • Promotes healthy employer - employee relationship.
  • Protects business rights in labour related issues.
  • Labour disputes are settled quicker and are less expensive.
• Impact

  Negatives

  • Legal strikes increase labour costs.
  • Reduced global competitiveness due to lower productivity.
  • Employers may not get a court interdict to stop a strike.
• Discriminatory actions

  • Unfair/ illegal dismissal of employees.
  • Refusing establishment of workplace forums.
  • Preventing employees from joining trade unions.
• Penalties for non-compliance

  • Employers may be forced to enter into dispute resolution process.
  • Non-compliance with dispute resolutions can result in fines.
  • Violating the act may lead to financial costs like legal/ CCMA fees and fines.
• Ways to comply

  • Employees should not be unfairly dismissed.
  • Allow the establishment of workplace forums.
  • Employers should not ignore any collective agreement.
• The rights of employees and employers according to LRA

  Rights for employees

  • Employees may join any trade union.
  • Embark on legal strikes for grievances.
  • Refer unresolved workplace disputes to the CCMA.
• The rights of employees and employers according to LRA

  Rights for employers

  • Form employer organisations.
  • Form bargaining council for collective bargaining purposes.
  • Employers have right to lock out employees who engage in illegal strike action.