The scope of coverage under the Bargaining Council for the Civil Engineering Industry (BCCEI) has accordingly given rise to much uncertainty, particularly in recent years. Employers will be pleased to learn that a demarcation award was recently issued by the Commission for Conciliation, Mediation and Arbitration (CCMA) in Ruwacon Plant and Equipment (Pty) Ltd v Bargaining Council for the Civil Engineering Industry [2024] 3 BALR 314, which now provides the necessary clarity.

Ruwacon (Pty) Ltd (RWE) was required by the BCCEI to register its subsidiary company, Ruwacon Plant & Equipment (Pty) Ltd (RPE), with the BCCEI. The rationale was that RPE was part of a group of companies involved in the civil engineering industry and also hired its equipment and machinery within the group. RWE argued that RPE’s business activities, which involved the letting/hiring of plant, equipment and vehicles along with certified operators, did not fall within the scope of the BCCEI as RPE was not engaged in work in the civil engineering industry. RPE argued that the company’s business model, as well as the breakdown of its revenue, showed that a considerable portion of its business was derived from various construction sites, which further supported the argument that its primary business fell outside of the scope of the industry.

Additionally, the definition of “industry” within the BCCEI clearly outlines the type of activities that fall within the civil engineering industry. These include various construction-related activities, such as the construction of aerodrome runways, bridges, dams, excavation work, the construction of foundations, asphalting and other related activities. Also, the definition outlines exclusions, such as work in connection with the erection of structures, amongst others. A large portion of RPE’s revenue was derived from clients engaged in industries other than civil engineering and RPE’s competitors were other businesses renting out plant, equipment and specialised machinery.

The precedent set by the Labour Court in NUM and Another v Sylco Plant Hire Association and others [2017] 38 ILJ 2346 (LC) further supported the employer’s position, as it demonstrated that similar companies carrying out the same business activities have previously been found not to fall within the scope of the civil engineering industry.

The CCMA found that RPE does not fall within the scope of the BCCEI and, in coming to its conclusion, also took into account that RPE and RWE are both private companies with their own legal standing. The award may be sought to be reviewed in the Labour Court. Time will tell.

For now, plant and equipment companies can breathe a sigh of relief with this demarcation award and be able to work out with a little better certainty within which bargaining council they fall, if any.