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Article 19/2026

How are both plant level, as well as sectoral level, collective agreements to be interpreted?

This is an important issue, because collective agreements require a different approach when compared to agreements that are not collective agreements.

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Natal Joint Municipal Pension Fund v Endumeni Municipality 2012 (4) SA 593 (SCA) (Endumeni Municipality)

  • Consideration must be given to:
    • the language used in the light of the ordinary rules of grammar and syntax
    • the context in which the provision that needs interpretation appears
    • the apparent purpose to which the provision is directed
    • the material known to those responsible for the production of the collective agreement
  • If more than one meaning is possible, each possibility must be weighed in the light of the above factors.
  • The process is objective, not subjective.
  • A sensible meaning is preferred to one that leads to impractical, unbusinesslike or oppressive consequences, or that will stultify (render ineffective, or useless) the broader operation of the legislation or contract under consideration.

SAMWU v SA Local Government Bargaining Council and Others (2012) JOL 28284 (LAC) (SAMWU)

  • The labour appeal court approved and applied the principles set out in North East Cape Forest v SA Agricultural Plantation and Allied Workers Union and Others (1997) 18 ILJ 971 (LAC); [1997] 6 BLLR 711 (LAC), to the following effect:
    • a collective agreement is unlike other ordinary contracts
    • the primary objects of the LRA are better served by an approach that is practical to the interpretation and application of such agreements
    • this approach is better suited to promote the ‘effective, fair and speedy resolution of labour disputes’

Herbert v Head of Education: Western Cape Education Department and Others (2022) 43 ILJ 1618 (LAC) (Herbert)

  • The labour appeal court, in Herbert, had the following to say as to the application of, firstly, the Endumeni Municipality principles and, secondly, the principles applicable specifically to collective agreements:
    • the constitutional court, in University of Johannesburg v Auckland Park Theological Seminary and Another 2021 (6) SA 1 (CC), made it clear that the approach adopted in Endumeni ‘updated the previous approach’ that context should only be resorted to if there was an ambiguity or lack of clarity in the text
    • in the cases subsequent to Endumeni, the constitutional court noted that the supreme court of appeal had specifically pointed out that context and purpose must be taken into account as a matter of course, right up-front in the interpretation exercise, irrespective of whether or not the words used in the contract (and other instruments) are ambiguous or not clear
    • words and sentences are understood as to how they fit into the larger structure of the agreement, its context and purpose
  • In Herbert, the arbitrator was required to have regard to, inter alia:
    • the aim and purpose of the collective agreement
    • the words and language used in the collective agreement
    • the ordinary rules of grammar and syntax
    • the context in which the disputed terms appear in the agreement

Concluding remarks

  • From the above, the following suggested approach can be extracted:
    • in line with Endumeni Municipality, the context, syntax and ordinary rules of grammar must be taken into account to determine the meaning of the relevant words and sentences
    • such approach must be adopted upfront when the interpretation exercise commences, irrespective as to whether or not such words and sentences are ambiguous or lack clarity
    • obviously, all the other elements identified in Endumeni Municipality, such as the purpose of the words and the sentences and the material known to those responsible for its production must also be taken into account
    • in the end, a sensible meaning is preferred to one that leads to impractical, unbusinesslike or oppressive consequences, or will render the broad operation of the collective agreement ineffective or useless
    • what has been stated above is specifically, and in all circumstances, subject to adopting an approach to promote the ‘effective, fair and speedy resolution of labour disputes’
July 20, 2026

Precautionary suspensions

In the public sector, the Senior Management Service Handbook (SMS Handbook) directly addresses precautionary suspensions and the 60-day time limit.

Clause 2.7(2)(c) of the SMS Handbook provides that ‘If a member is suspended or transferred as a precautionary measure, the employer must hold a disciplinary hearing within 60 days. The chair of the hearing must then decide on any further postponement.’

Regulation 6 of the Local Government: Disciplinary Regulations Senior Managers, 2010 (Regulations) provides for the precautionary suspension of senior municipal employees and Regulation 6(6)(a) provides: ‘If a senior is suspended, a disciplinary hearing must commence within three months after the date of suspension, failing which the suspension will automatically lapse.’

What are the principles governing a determination of the question as to whether or not a senior municipal employee’s suspension automatically lapses in terms of the aforesaid Regulation 6(6)(a)?

Obviously, the answers to the aforesaid question are very relevant in the private sector where, firstly, a collective agreement regulates a similar process or, alternatively, such contractual rights have been created between the parties, to be enforced in terms of s77(3) of the BCEA.

July 13, 2026

In the previous article, we dealt with the consequences of a plant level collective agreement with a definite beginning and end date. We indicated to you that, in line with s23(2) of the LRA, and an analysis of the relevant case law, that, once such a collective agreement reaches its expiry date, it expires and is no longer of any force or effect. In this article, we deal with the scenario where a plant level collective agreement is concluded for an indefinite period and the employer gave notice to terminate same.

What are the consequences when a party to a plant level collective agreement, concluded for an indefinite time period, gives notice to terminate such collective agreement?

July 6, 2026

In terms of s23(2), a collective agreement binds, for the whole period of the collective agreement, every person so bound in terms of s23(1)(c) (the members of a registered trade union and the employers who are members of a registered employers’ organisation who are a party to the collective agreement, if the collective agreement regulates the terms and conditions of employment, or the conduct of the employers and employees) who was a member at the time it became binding, or who becomes a member after it became binding (irrespective of whether or not that person continues to be a member of such trade union or employers’ organisation for the duration of the collective agreement).

What is the relevant case law development as to a plant level collective agreement that has an expiry date, i e does such collective agreement continue to be of force and effect after such expiry date?