Fidelity Guards Holdings (Pty) Ltd v National Union of Security Officers and Guards (NUSOG) obo Lomax (CA16/ 98) [1999] ZALAC 37 (28 September 1999)

Fidelity Guards Holdings (Pty) Ltd v National Union of Security Officers and Guards (NUSOG) obo Lomax (CA16/ 98) [1999] ZALAC 37 (28 September 1999)

The Labour Court did not have jurisdiction to adjudicate a dispute concerning the interpretation or application of a collective agreement, as such jurisdiction is vested in the CCMA by section 24 of the Labour Relations Act. The order granted by the Labour Court, which allowed referral of the dispute to the CCMA, was not supported by the pleadings and effectively rendered the binding arbitration clause nugatory. The appellant was denied the opportunity to address the possibility of such an order. The appeal was upheld, and the Labour Court's order was set aside and replaced with a dismissal of the application.

Citation
[1999] ZALAC 37
Parties
Appellant: Fidelity Guards Holdings (Pty) Ltd; Respondent: National Union of Security Officers and Guards (NUSOG) obo Berner Emil Lomax
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
28 September 1999
Case Number
CA16/98
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment
Outcome
Appeal upheld; Labour Court order set aside and replaced with dismissal of application.
Judges
Mogoeng, Conradie, Nicholson
Legal Topics
Collective Agreement Arbitration, Jurisdiction of Ccma, Interpretation of Collective Agreement, Private Arbitration Clauses
Labour Law Civil Procedure Collective Agreement Arbitration Jurisdiction of Ccma Interpretation of Collective Agreement Private Arbitration Clauses

Case Brief

Summary, issues, holding and outcome

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Parties

Fidelity Guards Holdings (Pty) Ltd

Appellant

National Union of Security Officers and Guards (NUSOG) obo Berner Emil Lomax

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment

Legal Issues

  1. 1 Whether the Labour Court had jurisdiction to order referral of the dispute to the CCMA despite a binding arbitration clause in a collective agreement.
  2. 2 Whether the order granted by the Labour Court was supported by the facts and pleadings.
  3. 3 Whether the arbitration clause in the recognition agreement ousted the jurisdiction of the CCMA.

Ratio Decidendi

The Labour Court did not have jurisdiction to adjudicate a dispute concerning the interpretation or application of a collective agreement, as such jurisdiction is vested in the CCMA by section 24 of the Labour Relations Act. The order granted by the Labour Court, which allowed referral of the dispute to the CCMA, was not supported by the pleadings and effectively rendered the binding arbitration clause nugatory. The appellant was denied the opportunity to address the possibility of such an order. The appeal was upheld, and the Labour Court's order was set aside and replaced with a dismissal of the application.

Court Disposition

Appeal upheld; Labour Court order set aside and replaced with dismissal of application.

Orders

  • The appeal is upheld with costs.
  • The order of the Labour Court is set aside.