Bargaining Council Agreements to Non-Parties

Bargaining Council Agreements to Non-Parties: What You Should Know

Bargaining council agreements are legally binding agreements between employers and employees in a specific industry or sector, negotiated and enforced by a bargaining council. These agreements cover a wide range of issues, such as wages, working conditions, and benefits.

However, what happens when an employer or employee is not a member of the bargaining council? Can they still be bound by the terms of the agreement?

The short answer is yes. In terms of Section 32 of the Labour Relations Act, bargaining council agreements can be extended to non-parties through a process called extension of the collective agreement.

Extension of a collective agreement can happen in two ways:

1. Application by a party to the council: Any party to the council, whether it`s the employer or the employees, can apply to the Minister of Labour for the collective agreement to be extended to non-parties. The minister will consider the application based on various factors, such as the nature and size of the industry or sector, the level of representation of the parties, and the public interest.

2. Sufficient representativeness: If the parties to the council represent the majority of the employees in the industry or sector, the agreement can be extended to non-parties if they are sufficiently representative. This means that they must have a similar level of representation as the bargaining council parties.

Once an agreement is extended to non-parties, they are legally bound by its terms as if they were a party to the council. This means that non-parties are subject to the same obligations and entitlements as the members of the council. Failure to comply with the agreement can result in legal action, such as arbitration or court proceedings.

It`s important to note that extension of the collective agreement can have significant effects on non-parties, especially small businesses. They may face additional costs and administrative burdens, such as complying with new wage and benefit obligations. On the other hand, non-parties may also benefit from the collective agreement`s protections and benefits, such as improved working conditions and dispute resolution mechanisms.

If you are a non-party to a bargaining council agreement, it`s important to understand your rights and obligations under the agreement. You should also consult with a legal professional or industry association for guidance on compliance and dispute resolution.

In conclusion, bargaining council agreements can be extended to non-parties through a process called extension of the collective agreement. Non-parties are legally bound by the agreement`s terms and must comply with its obligations and entitlements. It`s crucial for non-parties to understand their rights and obligations to ensure compliance and avoid legal action.