The LBC is currently one of only ±44 Bargaining Councils that exist in the entire country. The law provides that employer and employee representative organizations within an industry or area can enter into collective agreements covering “any areas of mutual interest” and if they are sufficiently representative of the industry, the parties can approach the Minister of Labour to gazette these agreements and extend them to bind non-parties as well. The collective agreement is negotiated between the parties and once signed, is normally gazetted by the Minister and applies for a stipulated period. Thereafter, all persons engaged in the industry within the demarcated area of the Bargaining Council are required to comply with the terms of the collective agreement, whether they were signatories to the agreement or not. Although the LBC is a creature of statute, it is not sponsored by the State and it is funded by levies paid equally by employers and employees. Currently, the levy is less than 42c per employee per day contributed by the employee and the same amount by the employer - i.e. a total of R25pm.
Today, the LBC has four essential functions. These are:
The area of jurisdiction covers an area of approximately 200sq km extending from Gordon’s Bay along the Hottentots Holland mountains to Paarl, Stellenbosch, Somerset West and including the entire Peninsula, to Cape Point. In this area, any person engaged in laundry, cleaning or dyeing activities is required to be registered with the LBC and to comply with the collective agreement. Currently, there are approximately 2,000 people active in our industry in this area.
The Council itself consists of 7 honorary councilors, including a Chairman who meet on a regular basis. Employer and employee organizations have equal representation on the Council. The council employs an executive Secretary who as General Manager of the Council and manages the Council accounting and administration staff as well as all day to day activities.