Under a company agreement, non-unionized workers must join the union or rely on workers linked to the dismissal. Where a trade union appoints a member or refuses to allow a new worker to become a member of the union and such exclusion or refusal is in accordance with the constitution of the union or for a just reason, the employer must dismiss the worker. This termination is not considered abusive. In short, a company agreement concluded is a collective agreement in which a majority union and an employer agree that it is a condition of employment that all workers must be members of the majority union. A closed shop agreement is only legally binding if – closed shop agreements are provided for in section 26 of the Employment Relations Act („LRA“) and are perhaps one of the most sensitive provisions of the LRA and are the most controversial with regard to the constitutionality of such agreements. Closed Shop Agreements &the Majority Union Principle: Opening the Door of the Closed Store, page 1 of 1 The LRA`s provisions regarding store agreements, however, provide, at best, for certain safeguards when an employer and a majority union are considering entering into a closure agreement. The only reason, and to some extent imperative, why an employer can accept and perhaps welcome a closed trade agreement is to limit the rivalry between local unions, given that the established union essentially monopolizes the employer`s union membership through the closed shop agreement. On the other hand, they do have virtues. That is why we have recently seen a kind of revival of the store agreements concluded on the ground. Why are you wondering that? It is quite clear why an employer would choose not to enter into such an agreement. Most employers consider, perhaps rightly, that in-store agreements are reprehensible. Why give a union the right to have all our employees become members who ask for it? Also, why should we agree with what is becoming more of a condition of employment? Membership of the union with which they signed the closed shop agreement. Such agreements attract attention for a wide range of reasons and are considered in some quarters to be a violation of the LRA`s freedom of association provisions and Section 18 of the Constitution, which deals with the right to join or leave groups of their own choosing.
It is precisely for this reason that closed shop agreements are so rare in South Africa and elsewhere. For example, a closure agreement can only be concluded with a majority union….