Back to: Introduction to the Labour Relations Act (LRA)
3.4 Extension of Collective Agreements
The Labour Relations Act allows for the extension of collective agreements concluded in a bargaining council to non-parties. This means that the terms of the collective agreement can be made binding on employers and employees who are not members of the organisations that concluded the agreement.
For a collective agreement to be extended, the bargaining council must request the Minister in writing. The Minister will extend the agreement if satisfied that the majority of employees who will fall within the scope of the agreement are members of the trade unions party to the council, and that the majority of employees employed by the members of the employers’ organisations are within the registered scope of the council.
The collective agreement must also make provision for an independent body to hear and decide appeals against the council’s refusal of a non-party’s application for exemption from the agreement’s provisions. This ensures that non-parties have a mechanism to seek relief if the agreement’s terms are unfair or unduly burdensome.
By extending collective agreements, the Labour Relations Act aims to promote collective bargaining at sectoral level and ensure that the benefits of such agreements are widely applied, contributing to labour stability and fairness.
Key Takeaways:
- Organisational rights enable trade unions to effectively represent their members and include access to the workplace and deduction of subscriptions.
- Collective agreements are legally binding and can vary employment contracts to ensure consistent application of employment terms.
- Bargaining councils play a crucial role in collective bargaining and dispute resolution within specific sectors.
- Collective agreements concluded in a bargaining council can be extended to non-parties to ensure wide application and promote sectoral stability.
This concludes Module 3. In the next module, we will explore the provisions of the Labour Relations Act related to strikes and lockouts. Thank you for your attention, and we look forward to continuing this journey with you.