Hospitality industry blocks new labour rules for restaurants - for now

The hospitality sector has been granted an urgent interdict to halt the implementation of new labour rules amid an ongoing collective agreement fight.

The Federated Hospitality Association of South Africa (Fedhasa) and the Restaurant Collective have successfully stopped the new bargaining council rules from taking effect until the legal matter is heard in court.

Restaurants owners and food outlets were shocked last month when the Labour Department unilaterally extended the bargaining council’s collective agreement to include employers who were not previously part of the council.

The extension of the agreement to non-parties imposes a raft of new laws for hospitality businesses, including various levies, a higher wage bill, December bonuses, and weekly payments for uniform cleaning.

Many restaurants, which have been battling with the devastating impact of the Covid-19 lockdown regulations, have objected to the timing of the collective agreement which was gazetted in January.

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Industry bodies launched a legal bid against the new agreement and were granted an urgent court interdict on Tuesday, pending the outcome of the review application.

In other words, employers who were not part of the bargaining council for Fast Food, Restaurant, Catering and Allied Trades will not be forced to comply with the collective agreement until the legislation is officially set aside by the courts.

Fedhasa chairperson Rosemary Anderson says the interdict is a positive first step in the process to get the legislation set aside.

She says further job losses in the food services sector have been averted for now.

Anderson tells CapeTalk the court has yet to provide a date for the matter to be heard.

If the Bargaining Council extension had gone through, it would have made countless marginal restaurants and other food and beverage establishments... to close down.

Rosemary Anderson, National Chairperson - Fedhasa

This process that Fedhasa has facilitated has saved many restaurants and therefore saved jobs in the short and medium-term too.

Rosemary Anderson, National Chairperson - Fedhasa

The interdict is in place until it goes to court. There is going to be a review application where the whole matter will be heard before the court.

Rosemary Anderson, National Chairperson - Fedhasa

In the meantime, no restaurant or hospitality company that sells food and beverages has to comply with the Bargaining Council rules.

Rosemary Anderson, National Chairperson - Fedhasa

Listen to the brief update on Afternoon Drive with John Maytham:

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