Owners of restaurants, fast food outlets and related businesses can breathe a sigh of relief after the Federated Hospitality Association of Southern Africa (FEDHASA) obtained an interdict against the newly formed Bargaining Council for the Fast Food, Restaurant, Catering and Allied Trades (the Bargaining Council). 

The order, granted in the Cape Town Labour Court on 2 March 2021, prevents the Bargaining Council from forcing those who were not party to its Main Collective Agreement to comply with the provisions of the agreement.  

The interdict is an interim measure, pending an application for a review against decisions made by the Minister of Employment and Labour (the Minister) and the Registrar of Labour Relations (the Registrar). 

Where it started

FEDHASA approached the court after the Minister extended the terms of the Main Collective Agreement of the Bargaining Council to all establishments in the restaurant, fast food and related trades country wide, with the exception of establishments in the Johannesburg and Pretoria regions that fall under their own respective bargaining councils. The extension came as a surprise to most when it was gazetted on 8 January 2021, with the implementation date being 18 January 2021. 

Representivity overstated

An Office Bearer of FEDHASA involved with the matter, Leon Traut, says that the court will be asked to review and set aside the Minister’s decision to extend the Main Collective Agreement, as well as to review and set aside the determination by the Registrar regarding the Bargaining Council’s representativeness. 

According to Traut it is patently clear that both the trade unions and the employers’ associations grossly overstated the extent to which they represent employers and employees in the affected geographic areas. Neither the Registrar nor the Minister properly applied their minds to the matter.

The court date for the hearing of the review application has yet to be determined.

We shall keep subscribers informed of developments. 

For an overview of the impact of the extension of the Collective Main Agreement on employers in the industry, see our recent article at https://www.labourwise.co.za/labour-articles/bombshell-for-restaurants-and-related-establishments