Wednesday, 01 October 2014 16:00

Overstrand employers’ court case against bargaining council dismissed

A court case, initiated by a group of building contractors in the Overstrand, against the Minister of Labour and the Building Industry Bargaining Council (Cape of Good Hope) has finally been concluded with the dismissal of the case. "The case has been dismissed with costs awarded to the Minister and the BIBC," explained Arnold Williams, Secretary for Building Industry Bargaining Council (Cape of Good Hope).

The case caused upheaval in the building industry, with the contractors contesting the issue of jurisdiction and the extension of the Collective Agreement to non-parties. This related to the Minister of Labour's decision to extend the BIBC's jurisdiction, as from 1 April 2011, to include Gansbaai, Hangklip, Hermanus, Kleinmond and Stanford. The Minister later extended the BIBC's Collective Agreement to non-parties.

"Employers within the Overstrand Municipality are in breach of the law if they choose not to comply with the current Building Industry Bargaining Council's employment conditions as laid out in the Industry's Collective Agreement," added Williams.

During the proceedings, which dragged on for 2 years, the Court order stated that the BIBC had the right to take non-compliant contractors to arbitration to enforce compliance; the Council will thus continue to enforce the Collective Agreement in the area.

Williams concluded saying, "As much as we usually try to avoid litigation, we are pleased that the case has been concluded and that we can continue to ensure that the compliance agreement that has the Department of Labour's approval, is enforced".