FMF Media Release - Free Market Foundation withdraws COSATU consent #justletmework The Free Market Foundation (FMF) has withdrawn its consent to Cosatu becoming a party to the Foundation’s challenge to the constitutionality of section 32 of the Labour Relations Act (LRA). The FMF does not know whether prolonged failure by Cosatu and other parties to file court papers is because of not taking the case seriously, deliberate subversion, disrespect for court process, or incompetence. Whatever the case might be, the FMF has decided to proceed with the case and oppose applications for condonation of late service or for additional parties to intervene as Respondents. “It is over seven months since we instituted action,” said FMF Chairman, Herman Mashaba, “and none of the parties filed court papers timeously despite solemn commitments and three extensions.” When the FMF filed its constitutional challenge in the Gauteng North High Court on 4 March 2013 it cited 50 Respondents. The Minister of Labour and 27 Bargaining Councils responded, but none met extended deadlines to file Answering Affidavits. According to Mr Mashaba, “Our country faces an extreme crisis. We have the world’s highest sustained unemployment rate which is due, in part, to our labour law. We can neither stand by and do nothing, nor allow the urgency of the matter to be sabotaged by delays. To be inclusive, we cited all Bargaining Councils as Respondents although we were not obliged to do so.” After Cosatu asked to be admitted, the FMF agreed on 9 September 2013 not to oppose Cosatu’s application and to accept its Answering Affidavit despite not yet having been admitted. Cosatu undertook to serve its Affidavit by 30 September 2013. A month later and two months after the agreement, Cosatu has done nothing to further its application to intervene. In the absence of any known reason for the delay, the FMF has withdrawn its consent and will oppose Cosatu if it proceeds belatedly. Ends ============================================= Notes for Editors 1. The Legal Challenge On 4 March 2013, the FMF filed a constitutional challenge in the Gauteng North High Court to Section 32 of the Labour Relations Act 1995. This clause allows bargaining councils to force the Minister of Labour to extend agreements on wages and working conditions to non-parties, including small business and job seekers. This harms on non-parties and is a significant factor in preventing stifling entrepreneurship and job creation. By reducing demand for and increasing the supply of labour elsewhere, wages and working conditions are depressed, especially in the small and medium enterprises sector. 50 respondents were cited including the Minister of Labour, Minster of Justice and Constitutional Development and the 48 bargaining councils in South Africa. By the deadline of 31 July 2013, the Minister of Labour and 27 bargaining councils filed notices of opposition and the Minister of Justice and Constitutional Development had advised that he will not be opposing the application. Although not obliged to do so, the FMF granted three month-long extensions beyond the 31 July deadline to allow respondents to file their Answering Affidavits. The Foundation’s indulgence was to allow all respondents to have their views properly represented in the interests of fairness and the country.
Posted on: Mon, 04 Nov 2013 08:28:05 +0000
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