Builders Warehouse (Pty) Ltd v Commission for Conciliation, Mediation And Arbitration and Others (PA 1/14) [2015] ZALAC 13 (5 May 2015)

Builders Warehouse (Pty) Ltd v Commission for Conciliation, Mediation And Arbitration and Others (PA 1/14) [2015] ZALAC 13 (5 May 2015)

The Labour Appeal Court held that the CCMA has jurisdiction to arbitrate disputes concerning unfair labour practices relating to demotion, even where the employee has consented to the demotion. The existence of an agreement to accept demotion is not a jurisdictional bar to the referral of such disputes. The commissioner erred in finding that the CCMA lacked jurisdiction solely because of the agreement. The Labour Court was correct in reviewing and setting aside the commissioner’s ruling and remitting the matter for arbitration. The fairness of the demotion, including the circumstances and degree thereof, remains to be determined on the merits by the CCMA.

Citation
[2015] ZALAC 13
Parties
Appellant: Builders Warehouse (Pty) Ltd; Respondent: Commission for Conciliation, Mediation And Arbitration; Respondent: Julia Cameron NO; Respondent: Johanna Petronella Benade
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
5 May 2015
Case Number
PA 1/14
Procedural Posture
Civil Appeal / Appeal Against Labour Court Judgment Setting Aside CCMA Jurisdictional Ruling
Outcome
Appeal dismissed.
Judges
Waglay, Ndlovu, Landman
Legal Topics
Unfair Labour Practice, Demotion, Jurisdiction of Ccma, Consent in Employment, Review of Arbitration Award
Labour Law Civil Procedure Unfair Labour Practice Demotion Jurisdiction of Ccma Consent in Employment Review of Arbitration Award

Case Brief

Summary, issues, holding and outcome

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Parties

Builders Warehouse (Pty) Ltd

Appellant

Commission for Conciliation, Mediation And Arbitration

Respondent

Julia Cameron NO

Respondent

Johanna Petronella Benade

Respondent

Procedural Posture

Civil Appeal / Appeal Against Labour Court Judgment Setting Aside CCMA Jurisdictional Ruling

Legal Issues

  1. 1 Whether the CCMA had jurisdiction to arbitrate an unfair labour practice dispute concerning demotion where the employee consented to demotion.
  2. 2 Whether the existence of an agreement to accept demotion precludes referral of an unfair labour practice dispute to the CCMA.
  3. 3 Whether the Labour Court was correct in setting aside the commissioner’s jurisdictional ruling and remitting the matter for arbitration.

Ratio Decidendi

The Labour Appeal Court held that the CCMA has jurisdiction to arbitrate disputes concerning unfair labour practices relating to demotion, even where the employee has consented to the demotion. The existence of an agreement to accept demotion is not a jurisdictional bar to the referral of such disputes. The commissioner erred in finding that the CCMA lacked jurisdiction solely because of the agreement. The Labour Court was correct in reviewing and setting aside the commissioner’s ruling and remitting the matter for arbitration. The fairness of the demotion, including the circumstances and degree thereof, remains to be determined on the merits by the CCMA.

Court Disposition

Appeal dismissed.

Orders

  • The appeal is dismissed.