Commision for Conciliation Mediation Arbitration and Another v Gauteng Building Bargaining Council and Others (J1529/04) [2006] ZALC 105; (2006) 27 ILJ 1117 (LC) (16 January 2006)

Commision for Conciliation Mediation Arbitration and Another v Gauteng Building Bargaining Council and Others (J1529/04) [2006] ZALC 105; (2006) 27 ILJ 1117 (LC) (16 January 2006)

The Labour Court found that it had jurisdiction to oversee the winding up of the Bargaining Council and the distribution of surplus funds. The Department of Labour had locus standi to bring the application, but the constitution of the Bargaining Council provided for equal distribution of surplus funds between employer and union parties. The withdrawal of the employer party did not result in forfeiture of its contributions, and there was no statutory or constitutional provision for such forfeiture. Section 59(5) of the Labour Relations Act only applies where the constitution fails to deal with the surplus funds or the parties cannot be determined. In this case, the surplus funds were...

Citation
[2006] ZALC 105
Parties
Applicant: Commission for Conciliation Mediation & Arbitration; Applicant: Department of Labour; Respondent: Gauteng Building Bargaining Council (In Liquidation); Respondent: Legae Trust (Pty) Ltd N.O.; Respondent: Gauteng Master Builders’ Association; Respondent: Building, Construction & Allied Workers Union; Respondent: Amalgamated Union of Building Trade Workers of South Africa; Respondent: National Union of Mineworkers (Construction & Allied Workers Union); Respondent: Northern Building Workers Union
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
16 January 2006
Case Number
J1529/04
Procedural Posture
Urgent Application / Application for Distribution of Surplus Funds After Liquidation of Bargaining Council
Outcome
Application dismissed with costs awarded against the second applicant.
Judges
Ngcamu
Legal Topics
Winding Up of Bargaining Council, Distribution of Surplus Funds, Locus Standi, Interpretation of Section 59 5 Lra, Constitution of Bargaining Council
Labour Law Civil Procedure Winding Up of Bargaining Council Distribution of Surplus Funds Locus Standi Interpretation of Section 59 5 Lra Constitution of Bargaining Council

Case Brief

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Parties

Commission for Conciliation Mediation & Arbitration

Applicant

Department of Labour

Applicant

Gauteng Building Bargaining Council (In Liquidation)

Respondent

Legae Trust (Pty) Ltd N.O.

Respondent

Gauteng Master Builders’ Association

Respondent

Building, Construction & Allied Workers Union

Respondent

Amalgamated Union of Building Trade Workers of South Africa

Respondent

National Union of Mineworkers (Construction & Allied Workers Union)

Respondent

Northern Building Workers Union

Respondent

Procedural Posture

Urgent Application / Application for Distribution of Surplus Funds After Liquidation of Bargaining Council

Legal Issues

  1. 1 Does the Labour Court have jurisdiction to determine the distribution of surplus funds after the winding up of a Bargaining Council?
  2. 2 Who has locus standi to bring the application for distribution of surplus funds?
  3. 3 What is the correct interpretation of Section 59(5) of the Labour Relations Act?

Ratio Decidendi

The Labour Court found that it had jurisdiction to oversee the winding up of the Bargaining Council and the distribution of surplus funds. The Department of Labour had locus standi to bring the application, but the constitution of the Bargaining Council provided for equal distribution of surplus funds between employer and union parties. The withdrawal of the employer party did not result in forfeiture of its contributions, and there was no statutory or constitutional provision for such forfeiture. Section 59(5) of the Labour Relations Act only applies where the constitution fails to deal with the surplus funds or the parties cannot be determined. In this case, the surplus funds were...

Court Disposition

Application dismissed with costs awarded against the second applicant.

Orders

  • The application is dismissed.
  • The second applicant is ordered to pay the costs.