Communication Workers Union and Others v Mobile Telephone Networks (Pty) Ltd and Another (JA 107/16) [2020] ZALAC 25; (2020) 41 ILJ 2072 (LAC) ; [2020] 11 BLLR 1096 (LAC) (18 May 2020)

Communication Workers Union and Others v Mobile Telephone Networks (Pty) Ltd and Another (JA 107/16) [2020] ZALAC 25; (2020) 41 ILJ 2072 (LAC) ; [2020] 11 BLLR 1096 (LAC) (18 May 2020)

The costs ruling issued by Commissioner Nowosenetz was an administrative decision binding on the parties and the CCMA. No application was made to rescind or vary the ruling under section 144 of the LRA, nor did Commissioner Tsabadi act on his own accord to do so. As a result, the CCMA lacked jurisdiction to arbitrate the dispute in the absence of compliance with the costs ruling. Commissioner Tsabadi committed a gross irregularity by proceeding with the arbitration, and the Labour Court erred in failing to set aside the award on this basis. The appeal is dismissed and the cross-appeal upheld; the arbitration award is set aside.

Citation
[2020] ZALAC 25
Parties
Appellant: Communication Workers Union; Appellant: Lulama Mkalipi; Appellant: Sibusiso Banda; Appellant: Fikelephi Mthembu; Appellant: Nceba Loni; Appellant: John Seemela; Appellant: Fanyana Mkwanazi; Appellant: Xolelwa Mbakazi; Appellant: Sifiso Nombika; Appellant: Enoch Phaala; Respondent: Mobile Telephone Networks (Pty) Ltd; Respondent: Commission for Conciliation, Mediation and Arbitration; Respondent: Commissioner Joseph Tshabadi NO
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
18 May 2020
Case Number
JA 107/16
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment and Cross Appeal
Outcome
Appeal dismissed; cross-appeal upheld; Labour Court order set aside; CCMA lacked jurisdiction; arbitration award set aside; no order as to costs.
Judges
Waglay, Sutherland, Kathree-Setiloane
Legal Topics
Ccma Jurisdiction, Administrative Action, Costs Ruling, Unfair Dismissal, Arbitration Review
Labour Law Administrative Law Ccma Jurisdiction Administrative Action Costs Ruling Unfair Dismissal Arbitration Review

Case Brief

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Parties

Communication Workers Union

Appellant

Lulama Mkalipi

Appellant

Sibusiso Banda

Appellant

Fikelephi Mthembu

Appellant

Nceba Loni

Appellant

John Seemela

Appellant

Fanyana Mkwanazi

Appellant

Xolelwa Mbakazi

Appellant

Sifiso Nombika

Appellant

Enoch Phaala

Appellant

Mobile Telephone Networks (Pty) Ltd

Respondent

Commission for Conciliation, Mediation and Arbitration

Respondent

Commissioner Joseph Tshabadi NO

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment and Cross Appeal

Legal Issues

  1. 1 Whether the CCMA had jurisdiction to arbitrate the dispute in the absence of compliance with a prior costs ruling.
  2. 2 Whether Commissioner Tsabadi committed a gross irregularity by proceeding with arbitration despite non-compliance with the costs ruling.
  3. 3 Whether the Labour Court erred in failing to set aside the arbitration award on jurisdictional grounds.

Ratio Decidendi

The costs ruling issued by Commissioner Nowosenetz was an administrative decision binding on the parties and the CCMA. No application was made to rescind or vary the ruling under section 144 of the LRA, nor did Commissioner Tsabadi act on his own accord to do so. As a result, the CCMA lacked jurisdiction to arbitrate the dispute in the absence of compliance with the costs ruling. Commissioner Tsabadi committed a gross irregularity by proceeding with the arbitration, and the Labour Court erred in failing to set aside the award on this basis. The appeal is dismissed and the cross-appeal upheld; the arbitration award is set aside.

Court Disposition

Appeal dismissed; cross-appeal upheld; Labour Court order set aside; CCMA lacked jurisdiction; arbitration award set aside; no order as to costs.

Orders

  • The appeal is dismissed.
  • The cross-appeal is upheld.