Exam (elaborations) LLW2602LLW2602 Assignment 1 Semester 1 & 2 2021

QUESTION 1 Describe an ‘agency shop agreement’ as a form of trade union security arrangement An agency shop agreement is a union security arrangement provided for and recognized by section 23(6) of the Constitution and is regulated in terms of section 25 of the LRA. An agency shop agreement is ‘a written agreement concluded between an employer and a representative trade union in terms of which the employer deducts an agreed agency fee from the wages of employees identified in the agreement who are not members of the trade union, but are eligible for membership thereof’. The purpose of an agency shop agreement is to address the problem of ‘free-riders’ (employees who do not pay union subscriptions, but obtain the benefits of the union’s bargaining). Agency-shop agreements are regulated by section 25 as follows: a) An agency-shop agreement is concluded by a majority union and an employer or an employers’ organisation. b) It is concluded by way of a collective agreement. c) The employer must deduct the agreed agency fee from the employees identified in the agreement, subject to the following:  The employer may only deduct from non-members who are eligible for membership.  Conscientious objectors to the policies of the union (on religious or moral grounds) must pay the fee, which is then paid into a fund administered by the DoL.  The fee of non-members cannot be higher than the subscription fee  payable by members of the majority union.  Agency fees are paid over to a separate account and can be used only for the benefit of all employees at the workplace.  Agency fees may not be used for political affiliation purposes other than advancing or protecting the socio-economic interests of employees.  The employer can deduct agency fees from the wag