The causes of the Applicant`s financial and operational problems have been detailed. The fundamental problem was that of bus and bus contracts and their chronic underfunding. Contracts that were supposed to be short-term remained in effect more than 20 years later, as the provincial Ministry of Transportation oscillated between two policy options: launching a tender open to bus contracts or negotiating contracts with existing operators. Bus contracts operate with fixed schedules and firm kilometers, and operators are not able to add additional routes if demand is high, without permission from the provincial Ministry of Transportation. Similarly, operators cannot reduce low-demand journeys without authorisation. The Claimant indicated that very few changes to bus schedules had been approved since 2009. In addition, over the past nine years, important cost items such as fuel, labor and inflation have far exceeded increases and subsidies. Since 2009, subsidies have not been increased in accordance with the contract`s escalation formula and the division has not increased subsidies according to the escalation formula contained in the interim contracts. In order to link the issue, the applicant stated that the subsidies it had received between 2009 and the 2017/2018 financial year were approximately R1.3 billion lower than what should have been paid for the climbing formula in bus contracts. In addition, the escalation foreseen by the operating subsidy for public transport was reduced from 4.97% to 3.24% as part of the measures taken by the Ministry of Finance to reduce public spending.  I believe that the Exemption Committee and the second respondent correctly addressed the issue on the basis that the complainant is required to comply with the provisions of the collective agreement.
To qualify for an exemption, the complainant must justify a legitimate reason why the collective agreement should not be respected. It is therefore for the applicant to submit to both courts facts and evidence which constitute particular circumstances justifying the applicant`s exemption from compliance with the collective agreement. This approach is useful because the objective of the Act, as set out in Section 1, is also to promote economic development, social justice, peace at work and the democratization of employment through the achievement of the main objectives of the Act. . . .