Eskom Holdings Ltd v National Union of Mineworkers and Others (840/2010) [2011] ZASCA 229; 2012 (2) SA 197 (SCA); [2012] 1 All SA 278 (SCA); [2012] 3 BLLR 254 (SCA); (2011) 32 ILJ 2904 (SCA) (30 November 2011)

Eskom Holdings Ltd v National Union of Mineworkers and Others (840/2010) [2011] ZASCA 229; 2012 (2) SA 197 (SCA); [2012] 1 All SA 278 (SCA); [2012] 3 BLLR 254 (SCA); (2011) 32 ILJ 2904 (SCA) (30 November 2011)

The Supreme Court of Appeal held that disputes over the terms of a minimum services agreement in an essential service are not disputes that may be referred to the CCMA for conciliation and arbitration under section 74 of the Labour Relations Act. The determination of essential services and the terms of minimum...

Source-derived case information.

Citation
[2011] ZASCA 229
Parties
Appellant: Eskom Holdings Limited; Respondent: National Union of Mineworkers; Respondent: National Union of Metalworkers of South Africa; Respondent: Commission for Conciliation Mediation and Arbitration; Respondent: Commissioner M D Ally NO; Respondent: Solidarity Union of South Africa; Respondent: Essential Services Committee
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Case Number
840/2010
Procedural Posture
Civil Appeal / Appeal From Labour Appeal Court
Outcome
Appeal upheld. The order of the Labour Appeal Court is set aside and replaced with an order dismissing the review of the CCMA's decision, with costs awarded to the appellant.
Judges
Brand, Van Heerden, Cachalia, Leach, Seriti
Legal Topics
Essential Services, Minimum Services Agreement, Jurisdiction of Ccma, Collective Agreements, Right to Strike, Statutory Interpretation
Labour Law Civil Procedure Essential Services Minimum Services Agreement Jurisdiction of Ccma Collective Agreements Right to Strike Statutory Interpretation

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Summary, issues, holding and outcome

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Parties

Eskom Holdings Limited

Appellant

National Union of Mineworkers

Respondent

National Union of Metalworkers of South Africa

Respondent

Commission for Conciliation Mediation and Arbitration

Respondent

Commissioner M D Ally NO

Respondent

Solidarity Union of South Africa

Respondent

Essential Services Committee

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Appeal Court

  1. 1 Whether a dispute over the terms of a minimum services agreement in an essential service may be referred to the CCMA for conciliation and arbitration under section 74 of the Labour Relations Act.
  2. 2 Whether such a dispute is instead to be determined by the Essential Services Committee under section 73 of the Labour Relations Act.
  3. 3 Whether an arbitration award under section 74 can be ratified as a collective agreement under section 72 of the Labour Relations Act.

Ratio Decidendi

The Supreme Court of Appeal held that disputes over the terms of a minimum services agreement in an essential service are not disputes that may be referred to the CCMA for conciliation and arbitration under section 74 of the Labour Relations Act. The determination of essential services and the terms of minimum services agreements is a function entrusted exclusively to the Essential Services Committee (ESC) under sections 70, 71, 72, and 73 of the Act. An arbitration award under section 74 cannot be ratified as a collective agreement under section 72, as a collective agreement requires consensus between the parties, not an imposed award. The court found that the Labour Appeal Court erred...

Court Disposition

Appeal upheld. The order of the Labour Appeal Court is set aside and replaced with an order dismissing the review of the CCMA's decision, with costs awarded to the appellant.

Orders

  • The appeal succeeds with costs, including costs of two counsel where employed.
  • The order of the Labour Appeal Court is set aside and substituted with: 'The appeal is dismissed, with costs.'