Communications Workers Union v Telkom SA Limited and Another (J1333/00) [2000] ZALC 24 (31 March 2000)

Communications Workers Union v Telkom SA Limited and Another (J1333/00) [2000] ZALC 24 (31 March 2000)

The court found that the offers made to employees were voluntary retirement packages and not retrenchment packages. There was no evidence that either Telkom SA Limited or Molapo (Pty) Limited contemplated dismissing employees as required by section 189 of the LRA. The transfer of the business was properly consulted upon, and all rights and obligations would transfer to the new employer under section 197 of the LRA. The applicant failed to show any infringement of employees' rights to consultation or any prima facie harm. The application for urgent interim relief was therefore dismissed.

Citation
[2000] ZALC 24
Parties
Applicant: Communications Workers Union; Respondent: Telkom SA Limited; Respondent: Molapo (Pty) Limited
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
31 March 2000
Case Number
J1333/00
Procedural Posture
Urgent Application / Interim Relief
Outcome
Application dismissed with costs.
Judges
Basson
Legal Topics
Retrenchment Consultation, Transfer of Business, Voluntary Retirement Packages, Section 189 Lra, Section 197 Lra
Labour Law Retrenchment Consultation Transfer of Business Voluntary Retirement Packages Section 189 Lra Section 197 Lra

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Parties

Communications Workers Union

Applicant

Telkom SA Limited

Respondent

Molapo (Pty) Limited

Respondent

Procedural Posture

Urgent Application / Interim Relief

Legal Issues

  1. 1 Whether the first respondent was required to consult in terms of section 189 of the LRA before offering voluntary retrenchment and severance packages.
  2. 2 Whether the transfer of the Iuvatech Electronics business as a going concern triggered obligations under sections 189 and 197 of the LRA.
  3. 3 Whether the rights of the employees to be consulted during dismissal exercises were infringed.

Ratio Decidendi

The court found that the offers made to employees were voluntary retirement packages and not retrenchment packages. There was no evidence that either Telkom SA Limited or Molapo (Pty) Limited contemplated dismissing employees as required by section 189 of the LRA. The transfer of the business was properly consulted upon, and all rights and obligations would transfer to the new employer under section 197 of the LRA. The applicant failed to show any infringement of employees' rights to consultation or any prima facie harm. The application for urgent interim relief was therefore dismissed.

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.