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. The international labour organization agreements do not address the legality of agency fee rules, leaving the issue to each nation.  The legal status of agency-boutique agreements varies considerably from country to country, from prohibitions of the agreement to a comprehensive settlement of the agreement to an unmentioned agreement. 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 Company and the Agent want to enter into an agreement under which the agent will market and sell the product on the terms and conditions. In dismissing the appeal, the LAC found that the source of the agency fee requirement was different from that of members` dues.
The LAC estimates that agency fees are paid by the employer to the majority union activity in section 25 of the LRA agreement. That`s how the statue is needed. These fees are paid for work that is done to promote the interests of workers through collective bargaining, without forcing the parasites to join the majority union. On the contrary, union fees are payable within the meaning of an agreement between the union and its member. If, instead of an introductory agreement, you need an agreement creating an agent-in-principle relationship, you should use one of the agency agreements in the sub-file of agency, sales and franchise agreements instead of one of the agreements in this sub-file. If the agency`s shop is illegal, as is the case in the labour law of U.S. public sector unions, a “fair sharing commission” can be agreed by the union and the employer.   The provision requires non-union workers to pay a “fair proportional fee” to cover the costs of the union`s collective bargaining. The “fair share” is similar to the agency shop, but it is generally more restrictive, which can be charged to the non-member. [Clarification needed]   In Canada, agency fees are generally referred to as a marginal formula.  In the United States, in June 2018, Janus declared unconstitutional the mandatory payment of agency fees for non-unionized public sector employees to Janus against AFSCME. With this conclusion, the LAC upheld the earlier decision of the labour tribunal, which decided that the arrangement agreements involved members of minority unions, even if it meant that they had to pay both their own union fees and agency fees.
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.