African Explosives Limited v Panelist M S Raffee N.O and Others (JA 88/2014) [2016] ZALAC 103 (4 March 2016)

African Explosives Limited v Panelist M S Raffee N.O and Others (JA 88/2014) [2016] ZALAC 103 (4 March 2016)

The Labour Appeal Court found that the arbitrator's award was reviewable as it fell outside the bounds of reasonableness. The appellant was entitled by collective agreement and the 2009 arbitration award to implement the new shift system after consultation, even in the absence of agreement. The respondents' refusal to work the new shifts and their disruptive conduct constituted misconduct. The arbitrator erred in finding substantive unfairness, as the appellant had complied with its obligations and acted consistently in disciplining those identified as having committed misconduct. However, the procedural defects at the disciplinary hearing, including the chairperson's premature comments...

Citation
[2016] ZALAC 103
Parties
Appellant: African Explosives Limited; Respondent: Panelist M S Raffee N.O.; Respondent: National Bargaining Council for the Chemical Industry; Respondent: CEPPWAWU; Respondent: L Luzipho & 9 Others
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
4 March 2016
Case Number
JA 88/2014
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment Dismissing Review of Arbitration Award
Outcome
Appeal upheld. Arbitration award set aside. Dismissals found substantively fair but procedurally unfair. Compensation awarded for procedural unfairness. No order as to costs.
Judges
Waglay JP, CJ Musi JA, Savage AJA
Legal Topics
Unfair Dismissal, Collective Agreements, Procedural Fairness, Substantive Fairness, Consistency in Discipline
Labour Law Civil Procedure Unfair Dismissal Collective Agreements Procedural Fairness Substantive Fairness Consistency in Discipline

Case Brief

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Parties

African Explosives Limited

Appellant

Panelist M S Raffee N.O.

Respondent

National Bargaining Council for the Chemical Industry

Respondent

CEPPWAWU

Respondent

L Luzipho & 9 Others

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment Dismissing Review of Arbitration Award

Legal Issues

  1. 1 Whether the arbitrator's award finding the dismissals substantively and procedurally unfair was reviewable for unreasonableness.
  2. 2 Whether the appellant was entitled to implement a new shift system without agreement from the union or employees.
  3. 3 Whether the disciplinary action taken against the respondents was consistent with workplace standards.

Ratio Decidendi

The Labour Appeal Court found that the arbitrator's award was reviewable as it fell outside the bounds of reasonableness. The appellant was entitled by collective agreement and the 2009 arbitration award to implement the new shift system after consultation, even in the absence of agreement. The respondents' refusal to work the new shifts and their disruptive conduct constituted misconduct. The arbitrator erred in finding substantive unfairness, as the appellant had complied with its obligations and acted consistently in disciplining those identified as having committed misconduct. However, the procedural defects at the disciplinary hearing, including the chairperson's premature comments...

Court Disposition

Appeal upheld. Arbitration award set aside. Dismissals found substantively fair but procedurally unfair. Compensation awarded for procedural unfairness. No order as to costs.

Orders

  • The appeal is upheld with no order as to costs.
  • The order of the Labour Court is set aside and replaced with: (1) The arbitration award is reviewed and set aside; dismissals of the fourth and further respondents were substantively fair but procedurally unfair. (2) The appellant is to pay R18,900.00 (three months' wages) to each of the fourth and further...