IMATU and Others v Greater Johannesburg Metropolitan Council and Others (J3150/2000) [2000] ZALC 74 (10 August 2000)

IMATU and Others v Greater Johannesburg Metropolitan Council and Others (J3150/2000) [2000] ZALC 74 (10 August 2000)

The Court held that section 197(1) of the Labour Relations Act governs the transfer of employment contracts when a business is transferred as a going concern, and does not require employee consent. Section 210 of the LRA expressly provides that, in the event of conflict with other laws, the LRA prevails. The consent requirement in section 17E of the Promotion of Local Government Affairs Act is in direct conflict with section 197(1) of the LRA in this context. The Court found that the Legislature did not intend to repeal section 17E by implication, but that the LRA must prevail where its provisions apply. The transfers in question were effected in accordance with section 197(1) of the LRA,...

Citation
[2000] ZALC 74
Parties
Applicant: IMATU; Applicant: Adriaan Pieter Strydom; Applicant: Norman Theo Brown; Applicant: Wade Michael Berning; Applicant: SAMWU; Respondent: Greater Johannesburg Metropolitan Council; Respondent: Johannesburg Fresh Produce Market Co (Pty) Ltd; Respondent: Johannesburg Metropolitan Bus Company (Pty) Ltd; Respondent: Johannesburg Zoo Company (Incorporated Association Not For Gain)
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
10 August 2000
Case Number
J3150/2000
Procedural Posture
Urgent Application / Final Determination After Urgent Application
Outcome
Application dismissed. Costs awarded against the Applicants jointly and severally.
Judges
B M Jammy
Legal Topics
Transfer of Employment, Municipal Restructuring, Statutory Conflict, Consent Requirement, Automatic Transfer, Costs Order
Labour Law Civil Procedure Transfer of Employment Municipal Restructuring Statutory Conflict Consent Requirement Automatic Transfer Costs Order

Case Brief

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Parties

IMATU

Applicant

Adriaan Pieter Strydom

Applicant

Norman Theo Brown

Applicant

Wade Michael Berning

Applicant

SAMWU

Applicant

Greater Johannesburg Metropolitan Council

Respondent

Johannesburg Fresh Produce Market Co (Pty) Ltd

Respondent

Johannesburg Metropolitan Bus Company (Pty) Ltd

Respondent

Johannesburg Zoo Company (Incorporated Association Not For Gain)

Respondent

Procedural Posture

Urgent Application / Final Determination After Urgent Application

Legal Issues

  1. 1 Whether the transfer of employment contracts from the First Respondent to the Second, Third and Fourth Respondents required the consent of the affected employees.
  2. 2 Whether section 197(1) of the Labour Relations Act prevails over section 17E of the Promotion of Local Government Affairs Act regarding the need for employee consent.
  3. 3 Whether the transfers effected on 1 July 2000 were valid and of full effect.

Ratio Decidendi

The Court held that section 197(1) of the Labour Relations Act governs the transfer of employment contracts when a business is transferred as a going concern, and does not require employee consent. Section 210 of the LRA expressly provides that, in the event of conflict with other laws, the LRA prevails. The consent requirement in section 17E of the Promotion of Local Government Affairs Act is in direct conflict with section 197(1) of the LRA in this context. The Court found that the Legislature did not intend to repeal section 17E by implication, but that the LRA must prevail where its provisions apply. The transfers in question were effected in accordance with section 197(1) of the LRA,...

Court Disposition

Application dismissed. Costs awarded against the Applicants jointly and severally.

Orders

  • The application is dismissed.
  • The Applicants are ordered jointly and severally to pay the Respondents' costs.