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South Africa Judgment

Labour Court Johannesburg

Hotelicca obo Molete and Others v van der Merwe NO and Others (JR 1853/17) [2020] ZALCJHB 157 (18 August 2020)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The court found that the delay in filing the review application was not excessive and the explanation, though lacking detail, was reasonable. However, the prospects of success on review were minimal, as the commissioner had properly considered the evidence, applied the correct legal test, and reached a reasonable conclusion. The applicants failed to demonstrate that the arbitration award was so unreasonable that no reasonable decision-maker could have reached it. Consequently, condonation for the late filing was refused, and the application was dismissed. The court declined to award costs, adhering to the convention in labour disputes.

Court disposition

Application dismissed; condonation for late filing refused; no order as to costs.

Orders

  • The application is dismissed.

02

Material facts

Parties

Hotelicca obo Abram Molete and 22 Others

Applicant

Minette van der Merwe N.O.

Respondent

Commission for Conciliation Mediation & Arbitration

Respondent

Premier Foods (Pty) Ltd

Respondent

Amounts and remedies

  • Financial Loss Occasioned by Incident: ZAR 2,700,000

03

Procedural history

  1. Posture

    Review Application / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that the delay in filing the review application was due to internal union procedures and slow authorisation from the union's head office. They contended that the prospects of success on review were excellent, asserting that the commissioner erred in her assessment of the evidence and that they had been granted permission to leave work on the day in question.
Respondent
The respondents maintained that the applicants' explanation for the delay was insufficient and lacked supporting affidavits. They argued that the commissioner correctly found the applicants guilty of serious misconduct and that the arbitration award was reasonable and not susceptible to review. The third respondent sought costs but acknowledged the convention against cost orders in collective bargaining disputes.

05

Court’s reasoning

  1. 01

    Sidumo and Another v Rustenburg Platinum Mines Ltd and Others [2007] 12 BLLR 1097 (CC)

    A review court may only intervene if the arbitrator's decision was so unreasonable that no reasonable decision-maker could have reached it.

  2. 02

    Herholdt v Nedbank Ltd (701/2012) [2013] ZASCA 97

    The distinction between appeal and review must be maintained; review is not an opportunity to re-evaluate evidence unless the decision is unreasonable.

  3. 03

    Section 162 of the Labour Relations Act 66 of 1995

    In labour matters, costs are generally not awarded unless the requirements of law and fairness dictate otherwise.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the delay in filing the review application was not excessive and the explanation, though lacking detail, was reasonable. However, the prospects of success on review were minimal, as the commissioner had properly considered the evidence, applied the correct legal test, and reached a reasonable conclusion. The applicants failed to demonstrate that the arbitration award was so unreasonable that no reasonable decision-maker could have reached it. Consequently, condonation for the late filing was refused, and the application was dismissed. The court declined to award costs, adhering to the convention in labour disputes.

Obiter and limits

  • The court noted that the applicants' broad explanation for the delay, namely that the union's general secretary was 'constantly not in his office', was unsupported by confirmatory affidavit and lacked detail.
  • Despite the misguided nature of the application, the court reiterated its reluctance to award costs in disputes involving unions and employers engaged in collective bargaining relationships.

Court disposition

Application dismissed; condonation for late filing refused; no order as to costs.

  • The application is dismissed.

Source and reliance status

Labour Court Johannesburg

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Judgment reading view

Judgment text

The complete available source text.

Source document

Labour Court Johannesburg

Judgment

[2020] ZALCJHB 157

The Labour Court of South Africa

(Held at Johannesburg)

(Judgment)

Not Reportable

CASE NO: JR 1853/17

In the matter between:

HOTELICCA obo ABRAM MOLETE AND 22 OTHERS Applicant

and

MINETTE VAN DER MERWE N.O.

First Respondent

COMMISSION

FOR CONCILIATION

MEDIASTION & ARBITRATION

Second Respondent

PREMIER FOODS (PTY) LTD

Third Respondent

Date enrolled: 30 July 2020 (in Chambers)

Date of judgment: 18 August 2020. Judgment distributed by email at 16:00

JUDGMENT

VAN

NIEKERK J

[1] The applicant seeks to review and set aside an arbitration award issued by the first respondent (the commissioner). In her award, the commissioner dismissed a claim of unfair dismissal referred by the applicants.

[2] The material facts are not in dispute. The applicants were all employed by the third respondent. They were dismissed after having been found guilty on three charges – the first being that they failed to report for work on 6 April 2017, the second that on the same date, they disrupted the third respondent’s operations, and the third being gross insubordination in that they refused to obey their manager’s instructions to stay at work on 6 April

2017.

[3] The award under review summarises the evidence of the third respondent’s witnesses and that of two of the individual applicants who testified at the hearing. In respect of the first charge, the commissioner found that the applicants were not guilty of the charge as it was common cause that the applicants had indeed reported for duty albeit late. In regard to the second charge (that of disrupting the third respondent’s operations) the commissioner found that the charge had been proved on a balance of probabilities. The commissioner rejected the applicant’s version that the entire shift had been granted permission to go home on the basis that this was simply not probable, given that the financial loss occasioned was some R 2.7 million. Further, the applicants did not dispute evidence that some employees in the packing department had finished their shift, and contradictions were identified in the evidence proffered on behalf of the applicants. In regard to the third charge, that of gross insubordination, the arbitrator found that the misconduct alleged had been proved on a balance of probabilities. The arbitrator had regard to the evidence by the manager of the packing department, Albertus Marx, who had given evidence of the events that led to him giving an instruction that the applicants had to start up the production lines. The commissioner rejected the applicant’s denial that the instruction was ever given. The commissioner went on to find that the applicants had committed acts of serious misconduct and that dismissal was an appropriate sanction in respect of the two charges on which the applicants were found guilty.

[4] The present application was filed outside of the six-week time limit prescribed by the LRA. The applicant has applied for condonation. The award under review was issued on 11 August 2017. The present application was filed on 13 October 2017. The explanation for the delay after some 14 days is one that is concerned with internal union procedures to obtain approval for the filing of the application. The applicants made submission to the union’s head office within the prescribed time period, but authorisation was slow in forthcoming. When the applicants instructed their erstwhile attorneys of record, the review was already late. The delay was not excessive, and the explanation for the delay is reasonable, even if it lacks

detail. In essence, the applicants contend that the general secretary of the union was ‘constantly not in his office’. This is a broad statement to make and no confirmatory affidavit from the general secretary has been attached to the application for condonation. Be that as it may, it seems to me that the outcome of the application for condonation is dependent on the applicant’s

prospects of success. That must necessarily involve an assessment of the merits of the review application.

[5] The starting point is the threshold for review. This court may intervene by way of review if and only if the applicant establishes that the decision to which the arbitrator came was so unreasonable that no reasonable decision-maker could come to it. As the courts have often observed, this presents a considerable hurdle to an applicant in a review application. The principle serves to reinforce the distinction between an appeal and a review, and recognises that decision-makers, all acting reasonably, may reach different conclusions on the same facts.

[6] The applicant’s grounds for review are based primarily on the commissioner’s assessment of the evidence. The grounds of this nature require a review court to be particularly cautious not to treat the matter as an appeal. The common cause facts before the commissioner were that on 6 April 2017, the date of the incident that gave rise to the applicant’s dismissal, it was raining. The applicants had arrived late for work on account of the rainy conditions. The applicants attempted to pass a photograph of one of their number whose residence was flooding as being the situation at all of their homes. The employee concerned was given permission to leave early but none of the other applicants were able to produce

proof of similar conditions at their homes. The applicants simply left work without authority and were subsequently disciplined and dismissed. The evidence discloses that other employees, who did not leave work, resided in the same areas as the applicants. In effect, the commissioner found that the applicants had taken advantage of an unfortunate situation and piggybacked on the misfortune of a single employee who had been excused to attend to flood damage to his home. In so far as the applicants had submitted that they were granted permission to leave, the arbitrator had regard to the conflicting evidence in this regard and for the reasons that she recorded, preferred the version proffered by the third respondent’s witness Sewe.

[7] In short, the arbitrator appreciated the nature of the enquiry that she was required to undertake, she had regard to the evidence before her, she applied the correct test to evaluate the evidence, and she came to a conclusion that is reasonable. In the circumstances, I fail to appreciate how it can be said that the applicants’ prospects

of success are ‘excellent’ as they suggest – it appears to me that their prospects of success are minimal, if they exist at all.

[8] For these reasons, in my view, condonation for the late filing of the review application stands to be refused.

[9] Finally, in relation to costs, although the third respondent sought an order for costs, this court is ordinarily reluctant to make orders for costs in matters that involve employers and unions engaged in a collective bargaining relationship. Despite the fact that the present application was misguided, there is no reason to depart from that convention and for the purposes of s 162 of the LRA, the requirements of the law and fairness are best served by each party bearing its own

costs. In any event, the third respondent was represented by an employer organisation and thus incurred no legal costs.

I make the following order:

1. The application is dismissed.

André van Niekerk

Judge of the Labour Court of South Africa

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Sidumo and Another v Rustenburg Platinum Mines Ltd and Others [2007] 12 BLLR 1097 (CC)

Case cited

Herholdt v Nedbank Ltd (701/2012) [2013] ZASCA 97

Case cited

Labour Relations Act 66 of 1995

Legislation

Legislation referenced in the available case record.

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