Gwebu v Dimension Data (JS1399/01) [2003] ZALC 169 (27 May 2003)
- Citation
- [2003] ZALC 169
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Labour Court
- Panel
- A A Landman
- Case number
- JS1399/01
More details
- Court
- Labour Court
- Panel
- A A Landman
- Case number
- JS1399/01
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that Dimension Data followed a fair procedure in consulting both union and non-union staff, including Mr Gwebu, regarding the impending retrenchments. The selection criteria, which included last-in-first-out and skills-based considerations, were discussed during consultations and were not disputed in principle. The application of these criteria was found to be fair, as employees retained possessed skills relevant to ongoing contracts, while Mr Gwebu's skills were limited to data cabling and mine safety training, which was no longer required due to the loss of mine contracts. There was no evidence of racial discrimination or that the retrenchment could have been avoided by restricting bonuses. The court concluded that the retrenchment was fair in terms of section 189 of the Labour Relations Act, and dismissed the application for reinstatement.
Court disposition
Application dismissed.
Orders
- The application for reinstatement is dismissed.
- No order as to costs.
02
Material facts
Parties
Sipho Gwebu
Applicant Counsel: Mr S GwebuDimension Data
Respondent Counsel: Mr Ramsay03
Procedural history
Posture
Unfair Dismissal Application / Judgment
04
Questions and positions
Legal issues
- 01
Whether the retrenchment of Mr Gwebu was procedurally and substantively fair under section 189 of the Labour Relations Act.
- 02
Whether the selection criteria applied by Dimension Data were fair and properly implemented.
- 03
Whether Mr Gwebu's position was genuinely redundant.
- 04
Whether there was any racial discrimination in the retrenchment process.
Party arguments
- Applicant
- Mr Gwebu argued that his dismissal was unfair because the last-in-first-out (LIFO) principle was not properly applied, his position was not truly redundant, and there was no genuine need for retrenchment. He contended that the selection criteria were unfair and that other employees with less service or fewer skills should have been selected instead. He also raised concerns about possible racial discrimination and claimed his unique skills, such as mine safety training, distinguished his position.
- Respondent
- Dimension Data maintained that the retrenchment was necessitated by restructuring and the loss of ad hoc contracts, particularly those relating to mine work. The company argued that the selection criteria, including LIFO and skills-based considerations, were fair and consistently applied. It was explained that other employees retained had skills relevant to ongoing contracts, and there was no evidence of racial discrimination. The company asserted that all statutory requirements under section 189 of the Labour Relations Act were met.
05
Court’s reasoning
Legal principles
- 01
Labour Relations Act 66 of 1995, section 189
The employer bears the onus of proving that a dismissal for operational requirements is both procedurally and substantively fair.
- 02
Labour Relations Act 66 of 1995, section 189
Selection criteria for retrenchment must be fair and may include last-in-first-out, provided skills requirements are considered.
- 03
Labour Relations Act 66 of 1995, section 189
Consultation with affected employees or their representatives is required before retrenchment decisions are made.
06
Ratio, limits and disposition
Ratio decidendi
The court found that Dimension Data followed a fair procedure in consulting both union and non-union staff, including Mr Gwebu, regarding the impending retrenchments. The selection criteria, which included last-in-first-out and skills-based considerations, were discussed during consultations and were not disputed in principle. The application of these criteria was found to be fair, as employees retained possessed skills relevant to ongoing contracts, while Mr Gwebu's skills were limited to data cabling and mine safety training, which was no longer required due to the loss of mine contracts. There was no evidence of racial discrimination or that the retrenchment could have been avoided by restricting bonuses. The court concluded that the retrenchment was fair in terms of section 189 of the Labour Relations Act, and dismissed the application for reinstatement.
Obiter and limits
- Retrenchments, while procedurally fair, are seldom fair from the employee's perspective, especially when the employee is reliable and hardworking.
- Personal attributes or fault are not the basis for retrenchment decisions; operational requirements and fair criteria are determinative.
Court disposition
Application dismissed.
- The application for reinstatement is dismissed.
- No order as to costs.
Source and reliance status
Labour Court
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Labour Court
Judgment
Sneller Verbatim/HVR
IN THE LABOUR COURT OF SOUTH
AFRICA
BRAAMFONTEIN CASE NO: JS1399/01
2003-
In the matter between
SIPHO GWEBU Applicant
and
DIMENSION DATA Respondent
______________
J U D G M E N T
_______________
LANDMAN J: Mr Sipho Israel Gwebu was employed by Dimension Data on 1 October 1999 as an assistant technician. He worked in a division called the Advanced Infrastructure Division. This division was part of a larger unit known as the Collectivity Service.
Mr Gwebu was retrenched on 30 November 2001. He seeks an order reinstating him in his employment with effect from the date of his dismissal.
On 24 September 2001, Advanced Infrastructure, to which I shall refer as AI, informed its staff that it was contemplating retrenching its personnel.
Management convened a meeting with SAEWA(a union). The parties met on 8 October in order to discuss the proposed retrenchment.
On 12 October, Ms Tracy Arendse, the HR Manager, convened a meeting of AI's non-union staff. The purpose of this meeting was to inform them of the statutory information regarding the impending retrenchments.
She also conducted individual interviews and handed the letter regarding the proposed retrenchment to Mr Gwebu. Mr Gwebu is not a member of a union.
The letter handed to Mr Gwebu informs him about
1. the reasons for the restructuring and rationalisation of the business;
2. that his position might become redundant;
3. the alternatives that AI had considered to avoid retrenchment;
4. the areas in Dimension Data which could be affected by the restructuring;
5. the proposed selection criteria;
6. an invitation to make representations and to take part in the process of seeking consensus on statutory issues;
7. the proposed date of retrenchment; and
8. other matters.
The non-union staff elected Mr Gwebu to represent them during the consultations with the company. They also agreed that Mr Gwebu would attend the consultations which were held between the company and the union. This would be in lieu of separate consultations between the company and non-union members.
Mr Gwebu attended the management/union meetings on 15, 17, 23, 29 and 30 October. On 30 October consultations came to an end.
Mr Gwebu was given a letter dated 30 October informing him of his retrenchment. He received this letter on 31 October.
Mr Gwebu complains about his dismissal. He says that he has been unfairly dismissed and his specific complaints that appears from his statement of case, the pre-trial minute and his evidence, includes the following:
(1) LIFO was not applied in a proper manner.
(2) His position did not become redundant.
(3) There was no need for Dimension Data to retrench its staff.
(4) The selection criteria used by Dimension Data was unfair.
(5) Someone else should have been selected in his place namely Samuel Ngumela and Morné Marais.
(6) The managing director said that there would be no retrenchments in the AI division.
(7) Dimension Data discriminated on racial grounds in affecting the retrenchments.
(8) He had skills, e.g. mine safety training, which would have distinguished his position.
I took turn to consider these aspects bearing in mind that the onus of proving that the dismissal was fair lies upon the employer, in this case Dimension Data.
(a) It appears that Mr Gwebu was unaware that AI, in which he worked, fell under the larger unit, Collectivity Services. This mislead him into thinking that the AI division would not experience retrenchments. However, Ms Arendse personally informed him that he could be retrenched.
(b) Mr Gwebu is of the opinion that his position was not made redundant. He points out that he did work on the mines for Dimension Data and that this work is still done from time to time. Mr Stenekamp, the director operations of Dimension Data, explained that AI's work was based on fixed long-term contracts, (SLA) and various ad hoc contracts. The retrenchment affected the ad hoc contracts as the long-term clients preferred stable teams to operate in their business. They preferred AI personnel with whom they were familiar. The work done on the mines was done in terms of various ad hoc contracts and the retrenchments were to be made from this group. Moreover, AI lost the contract which it had on the mines.
(c) Mr Gwebu did not have other skills. He was an assistant technician. He assisted as a team leader but he had not been appointed as a team leader. His mine safety training was required for work on the mines. It was offered in the course of half a day.
(d) Mr Gwebu had the advantage of sitting in on the consultations between management and the union. The selection criteria were not disputed, rather the application of the criteria was in issue. This was discussed on many occasions. No agreement was arrived at. The result was that Dimension Data was entitled to use a criteria which were fair and this would include LIFO with the retrenching of skills. This criteria is a long established criteria that is regarded as fair.
(e) Samuel, who was held up as a worker with lesser service than Mr Gwebu, had other skills. Notably those in relation to casinos. Mr Gwebu did not have these skills. Marais had special skills. He was able to do electrical and Data cabling. Mr Gwebu's skills were restricted to Data cabling.
(f) Mr Gwebo did not raise the issue of racial discrimination in his statement of case. Nevertheless there is no evidence that this was a consideration taking into account by Dimension Data in making its selection of retrenchees.
I have considered other aspects in addition to those mentioned above. For instance, I have given attention to the question whether the retrenchments could have been avoided by restricting bonuses which were payable to staff members in AI. But I am satisfied that the retrenchment of Mr Gwebu was fair in the sense contemplated by section 189 of the Labour Relations Act, Act 66 of 1995.
In reality, of course, retrenchments are not fair from the point of view from the employee. In this case, Mr Gwebo was a good worker. He was reliable.He was a person who was prepared to go the second mile. But retrenchment is not based on the personal attributes of employees, it is also not based on any fault.
In the result the application is dismissed.
Mr Ramsay, who appeared on behalf of Dimension Data, did not seek an order for costs.
SIGNED AND DATED AT BRAAMFONTEIN ON 27 MAY 2003
______
A A LANDMAN
JUDGE OF THE LABOUR COURT OF
SOUTH AFRICA
FOR APPLICANT: MR S GWEBU
FOR RESPONDENT: MR RAMSAY
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