, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
Please also note that the author of this document will not be responsible for any plagiarism you
commit.
1. Unity for Workers Union (‘UFWU’) is a majority trade union with members in Fancy Fabrics
(Pty) Ltd (‘FF’), a company which manufactures and sells clothing in all South African
Provinces. At the beginning of May 2024, UFWU and FF concluded a closed shop agreement.
Draw a distinction between a closed shop agreement and an agency shop agreement.
A closed shop agreement and an agency shop agreement are two types of collective agreements
between an employer and a trade union that determine the conditions under which employees are
required to either join a union or contribute financially to its activities. While both agreements
regulate union membership and financial contributions in a workplace, they differ in terms of their
impact on employees' rights, obligations, and the degree of compulsion involved.
A closed shop agreement is one of the most restrictive forms of union agreements in terms of
employee freedom of association. It requires all employees covered by the agreement to become
members of the majority trade union. This means that workers are compelled to join the union as a
condition of their employment. Consequently, an employer has the legal authority to dismiss an
employee who refuses to join the union, provided that the refusal or expulsion is based on fair and
constitutionally compliant grounds as stipulated by the union’s constitution. However, there are
certain exceptions to this rule. For instance, employees who were already employed before the
closed shop agreement came into effect cannot be dismissed for failing to join the union.
Additionally, conscientious objectors, or employees who refuse union membership on deeply held
personal or religious beliefs, are also protected from dismissal.
For a closed shop agreement to be valid and enforceable, certain legal requirements must be met.
One of the most crucial conditions is that a ballot must be conducted among employees who will be
covered by the agreement. At least two-thirds of these employees must vote in favor of the
agreement for it to take effect. This requirement ensures that the decision to implement a closed shop
agreement is supported by a significant majority of the workforce, thereby legitimizing its adoption.
Union subscription fees collected under a closed shop agreement cannot be used to support political
parties. The law mandates that such funds must be used exclusively to promote the socio-economic
interests of employees within the workplace. This restriction prevents unions from coercing workers
into indirectly funding political movements they may not personally support. Instead, the primary
focus of these funds should be on improving working conditions, advocating for fair wages, and
enhancing employee benefits.
An agency shop agreement, on the other hand, operates differently from a closed shop agreement in
that it does not require employees to become members of a trade union. Instead, it mandates that
employees who are eligible for union membership but choose not to join must pay an agency fee to
the union. This fee is intended to ensure that all employees contribute to the cost of collective
bargaining and other union activities from which they benefit, even if they are not union members
themselves. This arrangement is based on the principle that non-union employees should not receive
the benefits of union negotiations without making a financial contribution.
Please also note that the author of this document will not be responsible for any plagiarism you
commit.
1. Unity for Workers Union (‘UFWU’) is a majority trade union with members in Fancy Fabrics
(Pty) Ltd (‘FF’), a company which manufactures and sells clothing in all South African
Provinces. At the beginning of May 2024, UFWU and FF concluded a closed shop agreement.
Draw a distinction between a closed shop agreement and an agency shop agreement.
A closed shop agreement and an agency shop agreement are two types of collective agreements
between an employer and a trade union that determine the conditions under which employees are
required to either join a union or contribute financially to its activities. While both agreements
regulate union membership and financial contributions in a workplace, they differ in terms of their
impact on employees' rights, obligations, and the degree of compulsion involved.
A closed shop agreement is one of the most restrictive forms of union agreements in terms of
employee freedom of association. It requires all employees covered by the agreement to become
members of the majority trade union. This means that workers are compelled to join the union as a
condition of their employment. Consequently, an employer has the legal authority to dismiss an
employee who refuses to join the union, provided that the refusal or expulsion is based on fair and
constitutionally compliant grounds as stipulated by the union’s constitution. However, there are
certain exceptions to this rule. For instance, employees who were already employed before the
closed shop agreement came into effect cannot be dismissed for failing to join the union.
Additionally, conscientious objectors, or employees who refuse union membership on deeply held
personal or religious beliefs, are also protected from dismissal.
For a closed shop agreement to be valid and enforceable, certain legal requirements must be met.
One of the most crucial conditions is that a ballot must be conducted among employees who will be
covered by the agreement. At least two-thirds of these employees must vote in favor of the
agreement for it to take effect. This requirement ensures that the decision to implement a closed shop
agreement is supported by a significant majority of the workforce, thereby legitimizing its adoption.
Union subscription fees collected under a closed shop agreement cannot be used to support political
parties. The law mandates that such funds must be used exclusively to promote the socio-economic
interests of employees within the workplace. This restriction prevents unions from coercing workers
into indirectly funding political movements they may not personally support. Instead, the primary
focus of these funds should be on improving working conditions, advocating for fair wages, and
enhancing employee benefits.
An agency shop agreement, on the other hand, operates differently from a closed shop agreement in
that it does not require employees to become members of a trade union. Instead, it mandates that
employees who are eligible for union membership but choose not to join must pay an agency fee to
the union. This fee is intended to ensure that all employees contribute to the cost of collective
bargaining and other union activities from which they benefit, even if they are not union members
themselves. This arrangement is based on the principle that non-union employees should not receive
the benefits of union negotiations without making a financial contribution.
