Date: 27/05/2003
Source: Ministry of Labour
Title: Mdladlana: Deregistration of trade unions & employers' organisations


THE MINISTER OF LABOUR, MMS MDLADLANA's, STATEMENT ON THE DEREGISTRATION OF TRADE UNIONS AND EMPLOYERS' ORGANISATIONS, 27 MAY 2003

Colleagues, comrades and members of the media

One of the key objectives of the new Labour Law Amendments was the promotion of labour market efficiencies coupled with the development and protection of decent labour standards. The amendments to the Labour Relations Act (LRA) and the Basic Conditions of Employment Act are extremely significant for workers and employers and are testament to the success of constructive social dialogue engaged in by these sectors. The Labour Law Amendments that were promulgated last year sought to achieve among others, to:

* Enable the Registrar of Labour Relations to act against bogus unions and employer organisations.

Enabling the registrar to deal with bogus unions will play a significant role in promoting labour market efficiencies, but more importantly it will offer both employers and employees protection from fly-by-nights and those organisations which claim to be interested in people's rights, but are merely interested in their rands.

If people wish to operate in the labour market on a commercial basis they are welcome to do so, but not under the cover of being a trade union or employer organisation as defined by the Act.

Another key element regarding organisation registration is that the amendments give teeth to the provisions that these organisations have to provide the registrar with audited financial statements. This provides genuine protection to workers and employers and probably also focuses union officials to day-to-day financial management.

On 28 January 2003, I announced steps taken by the Department of Labour to identify and weed out trade unions and employers' organisations that have ceased to be genuine. Eighteen (18) trade unions and eleven (11) employers' organisations were named.

I also announced the names of 158 trade unions and 41 employers' organisations that have failed to meet with the requirement in the LRA, to annually submit audited financial statements. On 30 January 2003, the required legal notices were published in the Government Gazette. The Government Gazette provided for an opportunity for interested parties to make representations on the possible cancellations.

The response to the announcement by both the media and various role-players in the labour relations environment were very positive and supportive.

Today I wish to announce that the Registrar of Labour Relations has taken decisive action since the expiry grace period of 60 days.

I can announce that with effect from 12 May 2003 the Registrar has approved of the following:

* The cancellation of registration of 128 of the 158 trade unions listed in the Government Gazette of 30 January 2003 for their failure to comply with the financial statement requirement
*The cancellation of registration of 21 of the 41 listed employers' organisations for the same reason
* The cancellation of registration of 13 of the 18 trade unions and 7 of the 11 employers' organisations listed on 30 January 2003 as they have ceased to function as genuine organisations.

As representations made are still under consideration, decisions on the remaining listed organisations would be made in due course.

I must also point out that the cancellation of registration of the South African Clothing and Textile Workers' Union (K) with registration number LR 2/6/2/436 should not be confused with the Southern African Clothing and Textile Workers' Union (SACTWU) that remains a registered union within the RSA. Although the two unions have the same name, the former was registered in terms of the legislation of the former self-governing area of KwaZulu-Natal. Prior to 1994 unions had to register in the homelands and self-governing areas to permit them to function in those areas. SACTWU has jurisdiction in the whole of the RSA and this cancellation does not affect them at all.

The names of the organisations that have been de-registered will appear in the Government Gazette on 30 May 2003.

Any person aggrieved by the decision now has the right to lodge an appeal with the Labour Court against the Registrar's decision. The procedure and time frames in section 111 of the Act must be followed.

This is a drastic step. However, a very necessary one that will help to ensure that collective bargaining is conducted by those who function within the confines of the LRA.

It is also a first step to weed out bogus organisations that have lead to the proliferation of trade unions and employers' organisations. It should put the brakes on those that gained access to the various dispute resolution forums of the LRA merely to exploit the workers or circumvent the provisions regulating representation at these disputes.

Also in the Government Gazette on Friday, 30 May 2003, will be notices with the names of a further 3 employers' organisations and 1 trade union. There is prima facie evidence that they have ceased to be genuine. They will be afforded 60 days to make representations on their possible deregistration.

At present there remains 362 trade unions and 240 registered employers' organisations. This compared well with the 282 trade unions and 192 employers' organisations that were registered on 11 November 1996 when the LRA, 1995, came into effect.

As bargaining councils are still the preferred forums for collective bargaining by Government. These steps taken by the Department should also greatly contribute to the strengthening of councils.

Dealing effectively with organisations that through omission and commission give workers a raw deal was one of the stated objectives of the Labour Law Amendments and today's announcement is a significant step in achieving this. As I have indicated we have not completed the task and will remain vigilant.

Issued by the Ministry of Labour, 27 May 2003