Section 32 of the Labour Relations Act 1995 (LRA) authorizes the extension of sectoral collective agreements to those who are not directly involved in collective bargaining and who are not involved in the agreement reached within the Collective Agreements Council. In paragraphs 32, paragraphs 1 and 2 of the LRA, the Minister of Labour “must extend” the agreement if the following parties voted in favour of such an extension: although the case was dismissed on the grounds that the Foundation`s argument was “totally false” and “fundamentally wrong,” the judgment clarifies how an expanded collective agreement can be challenged by non-contracting parties. The Tribunal found that it was possible that the decisions of the bargaining council could be reviewed for the reasons set out in the Administrative Court Promotion Act or for reasons of legality. The court also confirmed that non-members of a bargaining council may apply for a waiver from the expanded agreement. Non-members may also challenge in court a Council`s decision not to exempt them from the extended agreement. Section 32 (5) of the LRA also allows the Minister to extend a collective agreement if bargaining councils have a long history of labour law and labour relations in South Africa. They play an important role in collective bargaining, particularly in issues of mutual agreement, such as wages. B, which affect the vast majority of workers and employers. The extension of collective agreements has been put to the test within the Free Market Foundation/Minister of Labour – Others  ZAGPPHC 266.
The Free Market Foundation sought an order declaring Article 32 of the LRA unconstitutional and was in breach of the Constitution, insofar as it allows private operators, such as bargaining councils, to impose binding obligations on employers and workers who are not members of the Council. The Foundation also challenged the constitutionality of Section 32, on the grounds that it does not give the Minister a material discretion to refrain from seeking the renewal of collective agreements. The Tribunal concluded that Section 32 is not unconstitutional and that the constraints and judicial review set by the LRA, which are read by other legal provisions or the constitutional principle of legality, provide adequate protection to the parties.