The recent CCMA ruling in Solidarity obo Members / Sibanye Platinum Mine and Others ([2024] 10 BALR 1126 (CCMA)) reaffirms the critical role threshold agreements play in maintaining stability and fairness within collective bargaining frameworks. From an employer’s perspective, the decision clearly endorses majoritarian principles and highlights the necessity of adherence to collective agreements.
Case Overview
At the heart of the dispute was Solidarity’s attempt to restore organisational rights after its workplace membership fell to a mere 3%. Historically influential in the mining industry, Solidarity argued that it represented a unique constituency of skilled artisans and sought to retain rights under Sections 12 and 13 of the Labour Relations Act (LRA).
The employer, Sibanye Platinum Mine, opposed the claim alongside the majority unions, NUM and AMCU. These parties relied on a collective agreement concluded under Section 18(1) of the LRA, which set a membership threshold of 25% for the acquisition or retention of organisational rights. Solidarity’s failure to meet this threshold, despite being given an opportunity to increase membership, ultimately led to the dismissal of its referral.
Key Takeaways for Employers
- Importance of Threshold Agreements
Threshold agreements, concluded under Section 18(1) of the LRA, are a powerful tool for employers to manage workplace representation effectively. By setting a clear standard for union recognition, these agreements ensure that only unions with significant employee support are granted organisational rights. This promotes a streamlined and efficient collective bargaining process while protecting the employer from the administrative burden of accommodating numerous minority unions.
- Majoritarianism Ensures Stability
The decision highlights the importance of the majoritarian principle, a cornerstone of the LRA. Granting organisational rights to minority unions, particularly those with minimal membership, like Solidarity’s 3%, risks creating fragmentation and instability in the workplace. This precedent ensures that employers can focus on engaging with unions that genuinely represent the workforce.
- Accountability for Membership Growth
The ruling also places responsibility on minority unions to grow their membership if they wish to remain relevant in the workplace. Solidarity had ample opportunity to increase its membership but failed to do so. From an employer’s perspective, this underscores the importance of holding unions accountable to agreed-upon thresholds.
- Administrative Efficiency and Cost Management
Allowing multiple minority unions to operate within a workplace creates an unnecessary administrative burden and increases costs for the employer. This ruling prevents a floodgate scenario where numerous small unions might demand organisational rights, disrupting workplace operations and complicating collective bargaining structures.
A Clear Message for Employers
This decision sends a strong message: Employers who establish and enforce threshold agreements are within their rights to hold unions accountable to those thresholds. It also reassures employers that they can rely on collective agreements to promote stability and protect the integrity of their bargaining processes.
Practical Steps for Employers
- Negotiate Robust Threshold Agreement
Work with majority unions to establish reasonable and enforceable membership thresholds under Section 18(1) of the LRA.
- Monitor Union Membership Levels
Keep track of union membership within the workplace to ensure compliance with agreed thresholds.
- Engage with Majority Unions
Focus resources on engaging with unions that represent the majority of employees to maintain efficient and effective bargaining relationships.
- Seek Expert Guidance
For assistance in drafting, negotiating, or enforcing threshold agreements, employers should seek legal or organisational expertise to ensure compliance with labour laws and best practices.
In this case, the CCMA’s decision reaffirms the employer’s right to rely on threshold agreements to manage organisational rights. It protects the workplace from the risks of fragmentation and inefficiency, ensuring that collective bargaining remains focused, stable, and aligned with the principles of majoritarianism.
Article By Jaundré Kruger
National Manager at Consolidated Employers Organisation (CEO SA)