In 2013 and 2015, Pioneer Food's long serving employees complained to their majority union FAWU, that new employees were getting paid the same as them.
So FAWU entered into a collective agreement with Pioneer Foods that all new employees from outside the company would be paid at a rate of 80% of the current remuneration for two years. This was to show differentiation and appreciation for long serving employees.
But some of the new employees weren't happy about only getting 80%. They'd previously been working for Pioneer Foods under the services of a labour broker, before they were made permanent. So they knew the pay rates. They complained to their union WAR. And WAR took Pioneer Foods to Labour Court on their behalf.
Read on to find out the courts findings…
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One of the seven arguments Pioneer Foods put forward is they paid different salaries because there were differences in employees' seniority and length of service.
The Court agreed! It said paying newer employees at a lower rate for a two year period isn't unfair discrimination. In fact, it's a fair and rational justification for wage discrimination under The Code of Good Practice on Equal Pay/Remuneration for Work of Equal Value.
It was obvious WAR didn't understand what unfair discrimination was when it came to equal pay for work of equal value. So the Court went on to explain all the provisions in the law about this.
Attend the Labour Case Law Update Breakfast and get all the details on:
All seven legal arguments Pioneer Foods put forward to the Labour Court – pay attention, one of these could save you a costly lawsuit;
What the Pioneer Foods' judgement means for you when it comes to long-term or senior employees who earn more than entry level employees;
How the Courts interpret the provisions of regulation 7 of the EEA; and
Which of your operational requirements can justify the different terms and conditions of employment.
I've invited Lizle Llouw, Labour Law Expert and Editor-in-Chief of the Labour Law Handbook to give you all the details of the Pioneer Foods case. Plus, she'll also discuss five more labour cases that affect your company. Book your seat now for the Labour Case Law Update Breakfast.
P.S. These labour cases have seen employers fork out thousands of Rands in lawsuits. And I want to make sure you don't make the same mistake. Attend the Labour Case Law Update Breakfast and safeguard yourself now.