OUTSPOKEN: Herman Mashaba, chairman of the Free Market Foundation, says it is time for business leaders to speak truth to power.  Picture: ARNOLD PRONTO
Herman Mashaba. Picture: ARNOLD PRONTO

THE Free Market Foundation said on Tuesday its challenge to the constitutionality of the clause in the Labour Relations Act dealing with collective bargaining has suffered yet another delay.

A Constitutional Court challenge to Section 32 of the Labour Relations Act, which compels the Department of Labour to extend agreements reached in bargaining councils, is now likely to be heard in February 2016 instead of November, the lobby group said in a statement.

The Congress of South African Trade Unions (Cosatu) — which is opposing the challenge — had indicated it was not yet ready for the November hearing. This was the latest setback contributing to nearly three years of delays of the challenge to the act, Herman Mashaba, who is leading the foundation’s legal challenge, said in the statement.

The Free Market Foundation launched its challenge in March 2013. The lobby group, which espouses classical liberal principles, is seeking an amendment of the act that would ensure the labour minister is able to exercise discretion in extending bargaining council agreements.

Currently, the minister must be satisfied that agreements reached in bargaining councils for sectors such as metals and engineering have been agreed to by parties that are "sufficiently representative" of their constituencies.

The foundation maintains that it is unconstitutional for agreements, governing among other issues wages, to be extended to non-parties of the council, as this allows the imposition of terms and conditions onto parties not directly involved in negotiating, compelling the minority to comply.

It maintains that the current bargaining council dispensation favours a "tyranny of the majority", and prejudices both unemployed workers and small to medium enterprises. This has created severe economic distortions, as well as stifled entrepreneurship and job creation, the foundation has said.

Cosatu has staunchly resisted the foundation’s challenge, saying previously it would undermine hard fought collective bargaining rights and create a two-tier labour market in which there was a "race to the bottom" in terms of wages and working conditions.

Cosatu has been picketing weekly outside the foundation’s headquarters as part of broader resolutions taken by the federation to resist what it sees as a neo-liberal offensive against organised labour.