Labour Relations Act, 1995 (Act No. 66 of 1995)

Codes of Good Practice

Collective Bargaining, Industrial Action and Picketing

Part B : Collective Bargaining

9. Preparing for negotiations
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(1)Subject to the democratic procedures contained in the coUective agreement or the constitutions of trade unions and employers' organisations, their respective leaderships should in preparation for the union's or employer or employers' organisations' demands or responses to the extent that it is necessary—
(a)to conduct proper research into the state of the economy, sector, and ability of individual employers, particularly small, medium and micro-enterprises and new enterprises, the cost of living, the alleviation of poverty and reduction of wage differentials and inequality, and the likely impact of any proposal or response on employment and health, safety or welfare of employees;
(b)to determine whether there is a need for disclosure of information in order to prepare a demand or response;
(c)to take advice from labour market experts on employment effects of a proposed demand or response;
(d)to take advice on settlement rates generally and specific to the sector;
(e)to consider whether any demand or response reduces  inequality  of treatment; and
(f)to consider whether the demand or response or the extent of the demand or response cannot be obtained differently through a reconfiguration of the demand or response by linking increases to productivity or eliminating vertical inequality by agreeing to longer term agreements.

 

(2)If a trade union considers it necessary for an employer to disclose information for the purpose of formulating its demands, it should request the employer in writing to disclose the lhformation at the earliest opportunity and in accordance with guidelines set out in clause 12 of this Code.

 

(3)In order deal with expectations and introduce a sense of realism on the part of members, the information acquired in the preparation of the demands or responses must be conveyed to members in order that in securing a mandate for negotiations members are fully informed.

 

(4)The parties should formally appoint negotiators for specific negotiations and ensure that they participate in the preparation for negotiations including the formulation of demands or responses and the mandating process.

 

(5)A party should in writing advise other parties to the negotiations of the names of their appointed negotiators.

 

(6)Each party should in preparation for negotiations consider the manner in which the negotiations are to be conducted, including whether to appoint and use a facilitator given the history of prior negotiations or the nature of the demands or responses and a timetable for the negotiations.