Khumalo and Others v Medikredit Integrated Healthcare Solutions (Pty) Ltd and Others (J1716/19) [2019] ZALCJHB 230 (29 August 2019)

Parties

Procedural Posture

Urgent Application / Interim Interdict Pending Arbitration or Substantive Application

Legal Issues

1. 1 Whether the applicants have a contractual right to remain members of CAMAF despite the employer's decision to affiliate with a different medical scheme.
2. 2 Whether the employer's conduct amounts to an unfair labour practice under the Labour Relations Act.
3. 3 Whether interim relief should be granted to prevent termination of CAMAF membership pending final determination of the dispute.

Ratio Decidendi

The court found that the applicants failed to establish a clear contractual right to remain members of CAMAF, as the relevant clauses in their contracts permitted the employer to affiliate with schemes of its choice and required employees to accept membership of approved schemes. However, the court recognized that the applicants might have a viable unfair labour practice claim regarding the exercise of the employer's discretion in changing medical scheme benefits. The balance of convenience favored the applicants, as termination of their CAMAF membership would result in irrevocable loss of access to the closed scheme, and any subsequent success in arbitration would not restore their...

Court Disposition

Interim interdict granted preventing termination of applicants' CAMAF membership pending arbitration of the unfair labour practice dispute.

Orders

• The application is dealt with as a matter of urgency and noncompliance with time periods and service provisions is condoned.
• The first and second respondents are interdicted from terminating the applicants' membership of the third respondent pending finalization of the unfair labour practice dispute under case number GA JB 15876-19, provided the applicants request referral to arbitration by 4 September 2019.