Back to: Introduction to the Labour Relations Act (LRA)
3.2 Collective Agreements
Next, we will discuss collective agreements, which are central to the collective bargaining process. A collective agreement is a written contract negotiated between an employer, a group of employers, or an employers’ organisation, and one or more representative trade unions. The agreement covers various aspects of employment, such as wages, working conditions, and other terms of employment.
A collective agreement binds the parties to the agreement, as well as the members of every other party to the agreement. This means that the provisions of the collective agreement apply to the relationship between the employer and the employees, even if not all employees are members of the trade union.
Collective agreements have the legal effect of varying any contract of employment between an employee and an employer who are both bound by the agreement. This ensures consistency in the application of employment terms across the workplace.
Disputes about the interpretation or application of a collective agreement must be resolved through the dispute resolution procedure provided in the agreement. This typically involves attempting to resolve the dispute through conciliation and, if unresolved, proceeding to arbitration. If the collective agreement does not provide for a dispute resolution procedure, or if the procedure is not operative, the dispute may be referred to the Commission for Conciliation, Mediation, and Arbitration (CCMA).
This structured approach ensures that collective agreements are enforced fairly and consistently, promoting labour peace and stability in the workplace.