Khawula and Others v Crossmore Carries CC (D47/97) [1998] ZALC 34 (15 June 1998)

Khawula and Others v Crossmore Carries CC (D47/97) [1998] ZALC 34 (15 June 1998)

The court found that the respondent had complied with the procedural requirements of section 189 of the Labour Relations Act. Meetings were held with the union and shop stewards to discuss alternatives to retrenchment, including short time and relocation. The applicants' evidence denying such consultations was found to be untruthful. The respondent made genuine efforts to avoid retrenchment, and the closure of the fabrics division was accepted by the union. The only procedural defect was the failure to pay severance pay, which was admitted by the respondent and ordered by the court. The application was dismissed, but the respondent was ordered to pay severance pay with interest.

Citation
[1998] ZALC 34
Parties
Applicant: E Khawula & Eleven Others; Respondent: Crossmore Carries CC
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
15 June 1998
Case Number
D47/97
Procedural Posture
Labour Court Application / Final Judgment
Outcome
Application dismissed. Respondent ordered to pay severance pay and interest.
Judges
E Revelas
Legal Topics
Retrenchment Procedure, Section 189 Consultation, Severance Pay, Procedural Fairness, Union Involvement
Labour Law Retrenchment Procedure Section 189 Consultation Severance Pay Procedural Fairness Union Involvement

Case Brief

Summary, issues, holding and outcome

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Parties

E Khawula & Eleven Others

Applicant

Crossmore Carries CC

Respondent

Procedural Posture

Labour Court Application / Final Judgment

Legal Issues

  1. 1 Whether the respondent followed the correct procedure under section 189 of the Labour Relations Act in retrenching the applicants.
  2. 2 Whether the applicants were consulted regarding alternatives to retrenchment.
  3. 3 Whether severance pay was properly paid to the applicants.

Ratio Decidendi

The court found that the respondent had complied with the procedural requirements of section 189 of the Labour Relations Act. Meetings were held with the union and shop stewards to discuss alternatives to retrenchment, including short time and relocation. The applicants' evidence denying such consultations was found to be untruthful. The respondent made genuine efforts to avoid retrenchment, and the closure of the fabrics division was accepted by the union. The only procedural defect was the failure to pay severance pay, which was admitted by the respondent and ordered by the court. The application was dismissed, but the respondent was ordered to pay severance pay with interest.

Court Disposition

Application dismissed. Respondent ordered to pay severance pay and interest.

Orders

  • The application is dismissed.
  • The respondent is required to pay the applicants one week's wages for every year of service worked, as specified.