Free Market Foundation loses collective bargaining case

Johannesburg – The Free Market Foundation has lost its court challenge seeking to force the Labour Minister to alter some aspects of the collective bargaining system in South Africa.

On Wednesday, the High Court in Pretoria dismissed the Foundation’s costly litigation which was challenged by government, 47 collective bargaining councils, Cosatu, National Union of Metalworkers and the SA Clothing and Textile Union.

The foundation wanted the court to amend section 32 of the Labour Relations Act which gives the labour minister powers to extend collective barging agreements to non-parties.

The organisation argued that the law threatened small business and caused unemployment as it stifled businesses which could not afford wage agreements reached in councils they are not affiliated with.

The foundation had also indicated it would be going after many of the country’s labour laws as it found them restrictive to growth and employment opportunities.

DA Gauteng Mayoral Candidate, Herman Mashaba was one of the champions of the court challenge. He launched the case while still Chairman of the Free Market Foundation.

All parties involved in the case said they would study the judgement before commenting on the outcome.

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