Solidarity obo Members Employed in Motor Industry v Automobile Manufacturers Employers’ Organisation and Others

Solidarity, a minority trade union not admitted to the National Bargaining Forum – Automobile Industry (NBF), challenged the lawfulness of an agency shop agreement contained in a collective agreement concluded between AMEO, several automobile manufacturers, and NUMSA. The agreement provided for the deduction of a bargaining fee from non-union members’ wages. Solidarity contended that the agency shop clause did not comply with section 25(3) of the Labour Relations Act 66 of 1995 (LRA) and was therefore void ab initio, rendering all deductions unlawful. After Solidarity launched proceedings, the parties to the agreement concluded a second collective agreement amending the agency shop provisions, both retrospectively and prospectively, to ensure compliance with section 25(3). Solidarity maintained that an invalid agency shop agreement could not be retrospectively cured and sought repayment of deducted fees.

The appeal was dismissed with costs, and the Labour Court’s judgment dismissing Solidarity’s application was upheld.

The case clarifies the distinction between rectification and amendment of collective agreements and confirms that defective agency shop agreements under section 25 of the LRA may be cured by retrospective amendment. It affirms the capacity of parties to collective agreements to give them retrospective effect, reinforcing flexibility and stability in collective bargaining under South African labour law.