LLW2602 Assignment 1 (COMPLETE ANSWERS) Semester 1 2025
(555106) - DUE 13 March
QUESTION
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. MRL2601 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 LLW2601 agreement.
A closed shop agreement and an agency shop agreement are both collective
agreements in labor law, but they have key differences in terms of membership
requirements and worker rights.
1. Closed Shop Agreement A closed shop agreement is an agreement between
an employer and a majority trade union, where the employer agrees to
only employ workers who are members of that union. This means that
all employees must be union members to be hired and to keep their jobs.
If an employee resigns from the union or refuses to join, they can be
dismissed. Such agreements are allowed under Section 26 of the Labour
Relations Act (LRA) 66 of 1995 but must meet specific conditions: The
union must represent the majority of employees. The agreement must be
democratically voted on by the employees. It cannot discriminate unfairly
against workers.
2. Agency Shop Agreement An agency shop agreement is different because it
does not require employees to be union members. Instead, all employees
must pay a fee (agency fee) to the union, even if they are not members. The
idea behind this is that non-union members still benefit from the union’s
bargaining efforts (e.g., wage negotiations, better working conditions). This
type of agreement is also regulated by the LRA (Section 25) and must be
approved by the majority of employees in a vote. However, the fees collected
cannot be used for political purposes. Key Differences Feature Closed Shop
Agreement Agency Shop Agreement Union Membership Mandatory for all
employees Not required Employment Condition Must be a union member
to be hired/keep job Non-members can work but must pay fees Employee
Choice No choice—must join union Can choose to remain non-union Legal
Basis Section 26 of LRA Section 25 of LRA Purpose Strengthens union
membership Prevents "free riders" (non-members benefiting from union
bargaining) Conclusion In this case, UFWU and Fancy Fabrics (Pty) Ltd
concluded a closed shop agreement. This means that all current and future
employees of FF must be members of UFWU to work at the company.
If an employee refuses to join or resigns from the union, they may face
dismissal. In contrast, under an agency shop agreement, employees would
not be required to join the union but would have to pay an agency fee for
the union’s services.
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(555106) - DUE 13 March
QUESTION
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. MRL2601 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 LLW2601 agreement.
A closed shop agreement and an agency shop agreement are both collective
agreements in labor law, but they have key differences in terms of membership
requirements and worker rights.
1. Closed Shop Agreement A closed shop agreement is an agreement between
an employer and a majority trade union, where the employer agrees to
only employ workers who are members of that union. This means that
all employees must be union members to be hired and to keep their jobs.
If an employee resigns from the union or refuses to join, they can be
dismissed. Such agreements are allowed under Section 26 of the Labour
Relations Act (LRA) 66 of 1995 but must meet specific conditions: The
union must represent the majority of employees. The agreement must be
democratically voted on by the employees. It cannot discriminate unfairly
against workers.
2. Agency Shop Agreement An agency shop agreement is different because it
does not require employees to be union members. Instead, all employees
must pay a fee (agency fee) to the union, even if they are not members. The
idea behind this is that non-union members still benefit from the union’s
bargaining efforts (e.g., wage negotiations, better working conditions). This
type of agreement is also regulated by the LRA (Section 25) and must be
approved by the majority of employees in a vote. However, the fees collected
cannot be used for political purposes. Key Differences Feature Closed Shop
Agreement Agency Shop Agreement Union Membership Mandatory for all
employees Not required Employment Condition Must be a union member
to be hired/keep job Non-members can work but must pay fees Employee
Choice No choice—must join union Can choose to remain non-union Legal
Basis Section 26 of LRA Section 25 of LRA Purpose Strengthens union
membership Prevents "free riders" (non-members benefiting from union
bargaining) Conclusion In this case, UFWU and Fancy Fabrics (Pty) Ltd
concluded a closed shop agreement. This means that all current and future
employees of FF must be members of UFWU to work at the company.
If an employee refuses to join or resigns from the union, they may face
dismissal. In contrast, under an agency shop agreement, employees would
not be required to join the union but would have to pay an agency fee for
the union’s services.
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