LLW2602
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO. 555106
DUE DATE: 13 MARCH 2025
, LLW2602
Assignment 1 Semester 1 2025
Unique No. 555106
Due Date: 13 March 2025
Collective Labour Law
Distinction Between Centralised and Decentralised Bargaining
Introduction
Collective bargaining is a key process in labour relations where trade unions and
employers negotiate terms and conditions of employment (Bendix, 2020). In the case of
Unity for Workers Union (UFWU) and Fancy Fabrics (Pty) Ltd (FF), the closed
shop agreement suggests a structured relationship between the employer and the
union, influencing how bargaining occurs. A crucial distinction in collective bargaining is
between centralised bargaining and decentralised bargaining, each with unique
characteristics, advantages, and disadvantages.
This discussion explores these two bargaining structures in detail, highlighting their
relevance in the South African labour relations framework.
1. Centralised Bargaining
Centralised bargaining refers to a system where negotiations occur at an industry-
wide or sectoral level, rather than between a single employer and its workforce. In this
arrangement, trade unions and employer organisations negotiate agreements that apply
to multiple employers and employees within a sector.
1.1 Characteristics of Centralised Bargaining
According to Du Toit et al. (2019), the key features of centralised bargaining include:
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO. 555106
DUE DATE: 13 MARCH 2025
, LLW2602
Assignment 1 Semester 1 2025
Unique No. 555106
Due Date: 13 March 2025
Collective Labour Law
Distinction Between Centralised and Decentralised Bargaining
Introduction
Collective bargaining is a key process in labour relations where trade unions and
employers negotiate terms and conditions of employment (Bendix, 2020). In the case of
Unity for Workers Union (UFWU) and Fancy Fabrics (Pty) Ltd (FF), the closed
shop agreement suggests a structured relationship between the employer and the
union, influencing how bargaining occurs. A crucial distinction in collective bargaining is
between centralised bargaining and decentralised bargaining, each with unique
characteristics, advantages, and disadvantages.
This discussion explores these two bargaining structures in detail, highlighting their
relevance in the South African labour relations framework.
1. Centralised Bargaining
Centralised bargaining refers to a system where negotiations occur at an industry-
wide or sectoral level, rather than between a single employer and its workforce. In this
arrangement, trade unions and employer organisations negotiate agreements that apply
to multiple employers and employees within a sector.
1.1 Characteristics of Centralised Bargaining
According to Du Toit et al. (2019), the key features of centralised bargaining include:
