1. The Future of Collective Bargaining
RFA Convention 2016

2. Introduction Introduction Current realities International
South African
iii. Future scenarios
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3. Policy framework for centralised bargaining
Commitment to sector level bargaining
Coherent, sector level bargaining arrangements with NEDLAC playing a role in demarcating sectors and industries
Bargaining councils to set minimum conditions with possibility of supplementary bargaining at plant level
Extension of collective agreements with provision for exemption
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4. Policy framework cont.
The interests of small business to be represented in bargaining councils
Bargaining councils to be able to straddle the public and private sectors
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5. Number of BC’s and coverage, 1992 to 2014
Year
No. of Bargaining Councils
No. of employees covered by BC agreements
1992 87
1998 76
2004 48
2010 47
2014 44

6. Coverage of Bargaining Councils, 2015
Private sector bargaining councils
Public sector bargaining councils
Total coverage (employees)

7. Economic sector and bargaining council coverage
Employment
Bargaining Councils
BC Coverage
Agriculture 2
(0.2%)
Mining
Manufacturing 17
(36%)
Utilities 1
(5%)
Construction 7
(5.2)
Trade
(5.9%)
Transport 3
(22%)
Finance
Community & social services 6
(40.6%)
Total: 36
(17.8%)
Employment based on QLFS, 2nd quarter 2015.
Private households excluded.

8. Bargaining Councils & collective agreements
Extended collective agreements by BC’s = 23
Councils without extended collective agreements = 12
Collective agreements extended on basis of Ministerial discretion (sufficiently representative & supporting collective bargaining) in past 4 years = 5 (metal, motor, road passenger, clothing, road freight, building (Cape))

9. Representativeness of councils (% coverage)
Bargaining Council TU
Employer
Building SE Cape 28
59.7
Building Cape of Good Hope 42 56
Building East London
33.9
57.5
MEIBC
36.9
43.2
Laundry
27.3
28.5
Road Freight 45 43
Canvas Goods 26
Wood & Paper 41 69
MIBCO 36 61

10. Registered Trade Unions and union membership
Year Numbers Collective Membership , ,
* , , , , , ,
*Highest no of TU

11. BC Settlements in 2015 Bargaining Council Settlement (%) Duration
Building (Bloemfontein) 9%
12 months
Furniture (Gauteng)
6.4% (10 for less skilled)
4 months
Furniture (KZN) 8%
9 months
Leather
7.5%
8 months
Meat Trade (Gauteng)
2 years
Restaurant (Jhb)
6% (8 for less skilled)
2.5 years
SARPBAC
8.8%
18 months
Textile
4 years

12. Bargaining Council minimum wages
Lowest minima:
Hairdressing (unskilled), Free State R6.11ph R275pw R1192pm
Highest:
New Tyre (skilled) R73.71ph R3243pw R12974pm
Average minimum monthly wage: R
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13. Impact of different NMW levels on collective agreements
Wage level
Collective Agreements affected
Bargaining Councils
R1258 2
Textile (carpets), Hairdressing (FS & Kim.)
R1886 3
Furniture, Hairdressing, Textile
R3189 19
Restaurant, Fishing Meat, Building, Laundry, Contract Cleaning, Furniture, Hairdressing, Textile, Clothing
R4303 21
Restaurant, Fishing Meat, Building, Laundry, Contract Cleaning, Furniture, Hairdressing, Textile, Motor, Electrical, Clothing
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14. Thank You…
20 September 2018