IMATU v Drankenstein Municipality and Others (CA01/2014) [2015] ZALAC 56 (15 April 2015)

IMATU v Drankenstein Municipality and Others (CA01/2014) [2015] ZALAC 56 (15 April 2015)

The court found that no binding agreement was concluded between IMATU and the municipality regarding the payment of scarce skills allowances. The evidence showed that the meeting and the municipal manager's statement focused on compiling a list of eligible employees, not on committing to payment. The scarce skills policy established a discretionary regime, requiring recommendations and available funding, and did not confer automatic rights to payment. The arbitrator misconstrued the facts and rendered an unreasonable award by ordering implementation of the policy and payment of allowances without a contractual basis. The Labour Court was correct to set aside the award but erred in...

Citation
[2015] ZALAC 56
Parties
Appellant: IMATU; Respondent: Drakenstein Municipality; Respondent: SALGBC; Respondent: C De Kock N.O.
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
15 April 2015
Case Number
CA01/2014
Procedural Posture
Labour Appeal / Appeal From Labour Court Judgment Reviewing and Setting Aside Arbitration Award
Outcome
Appeal dismissed with costs; Labour Court's remittal order set aside and substituted with an order dismissing the review.
Judges
Tlaletsi, Davis, Sutherland
Legal Topics
Collective Agreements, Specific Performance, Arbitration Review, Discretionary Benefits, Scarce Skills Policy
Labour Law Civil Procedure Collective Agreements Specific Performance Arbitration Review Discretionary Benefits Scarce Skills Policy

Case Brief

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Parties

IMATU

Appellant

Drakenstein Municipality

Respondent

SALGBC

Respondent

C De Kock N.O.

Respondent

Procedural Posture

Labour Appeal / Appeal From Labour Court Judgment Reviewing and Setting Aside Arbitration Award

Legal Issues

  1. 1 Whether a binding agreement was concluded between IMATU and the municipality regarding payment of scarce skills allowances.
  2. 2 Whether the arbitrator misconstrued the facts and rendered an unreasonable award.
  3. 3 Whether the Labour Court was correct to remit the matter for fresh adjudication on grounds not pleaded by the union.

Ratio Decidendi

The court found that no binding agreement was concluded between IMATU and the municipality regarding the payment of scarce skills allowances. The evidence showed that the meeting and the municipal manager's statement focused on compiling a list of eligible employees, not on committing to payment. The scarce skills policy established a discretionary regime, requiring recommendations and available funding, and did not confer automatic rights to payment. The arbitrator misconstrued the facts and rendered an unreasonable award by ordering implementation of the policy and payment of allowances without a contractual basis. The Labour Court was correct to set aside the award but erred in...

Court Disposition

Appeal dismissed with costs; Labour Court's remittal order set aside and substituted with an order dismissing the review.

Orders

  • The appeal is dismissed.
  • The order of the Labour Court is set aside and substituted with an order dismissing the review.