We have previously dealt with the use of co-operatives within the compliance framework of the security service industry. The National Bargaining Council for the Private Security Sector has been confronted with the question as to whether co-operatives can exist outside the scope of this compliance universe, as it is widely advertised to do.
Latest court ruling decides
Well-known role player within the co-operative landscape was party to an arbitration during July 2024, where it was argued that the Bargaining Council lacked the required jurisdiction to hear any dispute as a member “of the co-operative” was not an employee as envisioned in the Labour Relations Act.
The respondent in the matter supported its arguments with reference to a decision in the Labour Court in the National Bargaining Council for the Clothing Factory Industry (KZN vs Glamour Fashions Worker Primary Co-operative Ltd and others) where it was found that a member of a worker co-operative cannot be deemed to be an employee within the confines of the Labour framework.
The respondent also referred to a number of other jurisdictional rulings in respect of members of co-operatives in support of his argument. The commissioner, in turn, considered the provisions of Sections 208 and 213 of the Labour Relations Act, Code of Good Practice, and the provisions of the Co-operatives Amendment Act 6 of 2013 which came into effect on 1 April 2019.
Section 71 of this Act provides that “an employee of a worker co-operative is any member or non-member of a co-operative who satisfies the definition of an employee as defined in the Labour Relations Act 66 of 1995”.
Worker co-operatives must comply with Labour legislation
This Act also provides that all worker co-operatives must comply with Labour legislation, the commissioner rejected the respondents’ arguments and references pertaining to the Labour Appeal Court Judgement (as aforementioned) as well as previous jurisdictional rulings from the CCMA and NBCPSS as these judgments and rulings were delivered before the amendments of the Cooperatives Act.
In conclusion
The commissioner, after considering all evidence, submissions, and arguments found that the employee, as a member of the co-operative, was indeed an employee of the respondent and subsequently subject to Labour legislation and Main Collective Agreements and that the Bargaining Council had jurisdiction to further deal with disputes between the parties.
