You will all recollect that in January this year, the Department of Employment and Labour gazetted an extension to the Bargaining Council to non-parties. What this meant was that anyone in hospitality (excluding accommodation), would have to comply with the existing legislation of the Bargaining Council. The Bargaining Council only had jurisdiction over food and beverage businesses in Johannesburg and Pretoria and surroundings – but this would mean this would be extended to the rest of the majority of South Africa.
This would have entailed an approximate 20% additional cost to the company regarding employee costs. At a time when many businesses in hospitality were struggling to pay rentals and salaries, let alone having to have such a dramatic additional cost to company. This would have resulted in many more struggling and marginal businesses closing, as well as the associated further loss of jobs and loss of livelihoods.
FEDHASA with the support of the Restaurant Alliance applied for an Urgent Interdict against the implementation of this extension and this was granted on the 4th March 2021.
The next step in this process is for this extension to be permanently set aside. As such, FEDHASA has applied to the courts to do so. The matter should be heard in the second half of 2022. However, in the meantime, the successful FEDHASA urgent interdict halting the extension of the Bargaining Council to non-parties is still in force. We will keep you updated when we receive a court date or any new developments in this regard.
