Agency Shop and Threshold Agreement

Introduction

Objective To enhance and promote unity among all workers in the postal sector and the communications industry at large.

Scope of the agency fee agreement The parties agree that this agreement will bind all Post Office employees nationwide, who are in the bargaining unit, and who are not members of the Communication Workers Union, and do not belong to any recognised trade union or staff association, which enjoys collective bargaining rights. The scope shall exclude employees employed in any of the company's subsidiaries which are separate legal entities.

Bargaining Unit For the purpose of the agency shop agreement, the bargaining unit means all employees employed in the categories C5 and lower who are not employed in supervisory positions and who are not employed as labour relations officers within the same levels. (See Annexure (A) attached).

Threshold agreement The parties agree that any trade union(s) who represent a majority of employees (50 + 1) in the bargaining unit, where the agreement must apply, may conclude an threshold shop agreement with the employer, which will become binding in every workplace in line with the agreed scope. The parties agree to a 40% threshold of representatives required in respect of one or more of the organisational rights referred to in sections 12,13,15.

Agency fee subscriptions

Agency fee Despite the provisions of any law or conditions of employment, the company will deduct an agency fee from the wages of employees, without such employees' authorisation.

What happens to the money? The amount deducted must be paid into a separate account administered by the Communication Workers Union.

Objectors Conscientious objectors may request the employer to pay the amount deducted from their wages into a fund administered by the Department of Labour.

The Agency fee amount The agreed agency fee must be equivalent to the amount of the subscription payable by the members of the representative trade union as decided from time to time in accordance with the union constitution and resolutions taken by the union from time to time.

What may the money deducted not be used for The parties agree that no part of the amount deducted may be -· paid to a political party as an affiliation fee;· contributed in cash or kind to a political party or a person standing for election to any political office; or· used for any expenditure that does not advance or protect the socio-economic interest of employees.

Accounting for agency fee subscriptions The parties agree that the union will subscribe to the generally accepted standard of accounting practices, principles and procedures and therefore must -· keep book and records of its income, expenditure, assets and liabilities; and· within six months after the end of each financial year, prepare financial statements including:- A statement of income and expenditure for the previous financial year- A balance sheet showing its assets, liabilities and financial position at the end of the previous year

Annual audit of books The trade union must arrange for an annual audit of its books and records of accounts and its financial statements of the agency fee subscriptions by an auditor who must -· conduct the audit in accordance with generally accepted auditing standards;· report in writing to the trade union and in that report express an opinion as to whether or not the trade union has complied with the provisions of -- its constitution relating to its financial matters; and- section 25 of the Labour Relations Act, No 66 of 1995, as amended.

Financial statements and auditor's report It is also agreed that the trade union must -· make the financial statements and auditor's report available to the company for inspection; and· submit those statements and the auditor's report to the relevant meetings of the union, as provided for in its constitution.

Keeping records and documents It is also agreed that the trade union must keep each of its books of account, supporting vouchers, records of subscriptions or levies paid by its members, income and expenditure statements, balance sheets and auditor's reports in an original and reproduced format, for three years from the end of the financial year to which they relate.

Role of the registrar

Providing information to the registrar The parties agree that the union must within 30 days provide the registrar with:· Receipt of its auditor's report· A certified copy of that report· A financial statement And upon written request of the registrar, provide an explanation of anything relating to:· The statement of membership· The auditor's report· The financial statements

Access to auditor's report The registrar must allow any person who has paid the prescribed fee to inspect the auditor's report, in so far as it relates to the account specifically opened for the company.

Implementation of this agreement This agreement shall come into effect from 1 December 2001, to allow the parties to conclude and sign a new recognition agreement and to communicate the effects of this agreement to the affected employees. For the purpose of the threshold agreement, the parties agree to observe the stipulations of the Labour Relations Act in relation to the required notice to the other recognised trade union.

Termination of the agency shop agreement

Notice

If Then
The employer/company alleges that the trade union is no longer the majority union Written notice of the allegation must be given to the trade union and the trade union must be given 90 days from the date of the notice to re-establish itself as a representative trade union.
Within the 90-day period, the trade union fails to establish that it is a representative trade union The employer must give the trade union and the employees covered by the agency shop agreement 30 days' notice of termination, after which the agreement will terminate.

Money in the separate account The parties agree that if this agreement is terminated, any remaining money in the separate account will be spent in line with the provisions of section 5 of the Labour Relations Act, No 66 of 1995, as amended.

Principle However, the parties would like to re-iterate that they still abide by the principle of freedom of association/disassociation and that employees are under no obligation to resign or join a particular union.

Amendments

Amendments to agreement No amendment to this agreement shall be enforced or take effect unless reduced to writing and signed by both parties.

Making amendments Any party requiring to make amendments to this agreement must serve at least 30 days' notice to the other party.

Signatures

Signed on this _____________ day of ______________ 2001.

For CWU For South African Post Office

1 ______________________ 1 _____________________

2 ______________________ 2 _____________________