QUESTION $4$

Transport Workers Union $($TWU$)$ and Metrorail $($Pty$)$ Ltd entered into a collective agreement which entails the following: $10\%$ salary increase, a $5\%$ house and vehicle allowance. Further, the parties agreed that this dispensation was effective for three years and applied across the board. Two months later, a group of the highest paid employees in Metrorail lodged a complaint that, the increase should not apply across the board because, for them the benefits were all taken away by the South African Revenue Services $($SARS$).$ The $10\%$ salary increase, the group explained further, put them in a bit higher tax bracket, and increased their liability towards SARS which effectively takes away all the benefits. They argued that although the employer gave them an increase, SARS took it away from them. They, therefore, demanded a $15\%$ increase to remedy the unfair situation.

ANSWER THE FOLLOWING QUESTIONS WITH RELEVANT AUTHORITY:

$($i$)$ Discuss the effect of the collective agreement and whether it can be changed as per the group's demand.

$($ii$)$ Assume that Moshishi and Mvala are not members of TWU. Can the abovementioned collective agreement apply to them as well?

$(10)$

$25$

TOTAL: $[100]$