1. A representative union and an employer or employer organization may enter into a collective agreement, called an agency enterprise contract, which requires the employer to deduct agreed agency fees from the salaries of workers mentioned in the agreement who are not members of the union but who are eligible for membership in the agreement. If, within 90 days, the union expects it to be a representative union, the employer must give 30 days` notice to the union and the workers covered by the agency contract, after which the contract ends. In this appeal, the complainant, as a union, did not challenge the constitutionality of section 25 of the LRA, but argued that a correct interpretation of Section 21 (8C), which provides that the CCMA may grant registered unions certain rights that do not conform to the thresholds of representation set by a collective agreement, resulted in the agency agreement between the employers and the majority union being out of place. Therefore, because the source of agency fees and union fees are different, there is no double payment. An agency office is a form of union security agreement that allows the employer to hire trade unionists or non-union workers and where workers are not obliged to join the union to remain active.  However, the non-unionized worker must pay a fee to cover the costs of collective agreements.  The tax paid by non-union members in the agency shop is called “agency fees.”   In the recent case between the Municipal Trade Union and the allied SA/Central Karoo District Municipality – Others, the Labour Tribunal (LAC) was required to determine whether minority union workers were exempted from paying the Agency-Shop`s contractual costs, in accordance with Section 21 (8C) of Labour Relations Act 66 (LRA) of 1995, which resulted from an agency-boutique agreement between the employer and the majority union within the meaning of Section 25 of the A. The union argues that because of the extension of the LRA`s Section 21 (8C) detention rights, its members should have been excluded from paying agency contract fees (agency fees) because they could not afford to pay both taxes.
Moreover, the benefit of the arrest fees would be illusory if its members still had to pay agency fees. The amount agreed in the agency contract does not exceed the monthly contribution of trade unions and the money must be used to promote the socio-economic interests of all workers. Many companies that fall into an area governed by a collective agreement may be unwittingly bound by an agency store contract. A boutique agency agreement obliges the employer to deduct agency fees from the worker`s remuneration and to pay the amount on an account controlled by the unions. The above definition shows that agency fees are deducted from workers who are not members of the union.