L & C Steinmuller (Africa) Ltd v Shepherd (JA40/2002) [2004] ZALAC 11; (2005) 26 ILJ 2359 (LAC) (9 July 2004)

L & C Steinmuller (Africa) Ltd v Shepherd (JA40/2002) [2004] ZALAC 11; (2005) 26 ILJ 2359 (LAC) (9 July 2004)

The Labour Appeal Court found that the appellants had engaged in meaningful consultations with the employee regarding the restructuring and alternative employment. The court held that there is no legal or fairness-based obligation for an employer to make further efforts to convince an employee to accept an alternative position offered to avoid retrenchment. The Industrial Court's finding that the employer acted unfairly was incorrect. On the facts, the dismissal did not constitute an unfair labour practice. The appeal was upheld, and the application was dismissed with costs.

Citation
[2004] ZALAC 11
Parties
Appellant: L & C Steinmuller (Africa) Ltd; Appellant: Klockner-Becorit Corporation SA (Pty) Ltd; Appellant: Steinmuller Mining & Piping Systems (Pty) Ltd; Respondent: Hendrik Shepherd
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
9 July 2004
Case Number
JA40/2002
Procedural Posture
Civil Appeal / Appeal From CCMA Commissioner Decision Regarding Unfair Dismissal Under the Old Labour Relations Act
Outcome
Appeal upheld; Industrial Court order set aside; application dismissed with costs.
Judges
N.P. Willis, R.M.M. Zondo, C.N. Jafta
Legal Topics
Unfair Dismissal, Retrenchment, Consultation Requirements, Alternative Employment Offers
Labour Law Unfair Dismissal Retrenchment Consultation Requirements Alternative Employment Offers

Case Brief

Summary, issues, holding and outcome

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Parties

L & C Steinmuller (Africa) Ltd

Appellant

Klockner-Becorit Corporation SA (Pty) Ltd

Appellant

Steinmuller Mining & Piping Systems (Pty) Ltd

Appellant

Hendrik Shepherd

Respondent

Procedural Posture

Civil Appeal / Appeal From CCMA Commissioner Decision Regarding Unfair Dismissal Under the Old Labour Relations Act

Legal Issues

  1. 1 Whether the dismissal of the employee constituted an unfair labour practice under the old Labour Relations Act.
  2. 2 Whether the employer was obliged to make further efforts to convince the employee to accept alternative employment.
  3. 3 Whether meaningful consultation occurred prior to dismissal.

Ratio Decidendi

The Labour Appeal Court found that the appellants had engaged in meaningful consultations with the employee regarding the restructuring and alternative employment. The court held that there is no legal or fairness-based obligation for an employer to make further efforts to convince an employee to accept an alternative position offered to avoid retrenchment. The Industrial Court's finding that the employer acted unfairly was incorrect. On the facts, the dismissal did not constitute an unfair labour practice. The appeal was upheld, and the application was dismissed with costs.

Court Disposition

Appeal upheld; Industrial Court order set aside; application dismissed with costs.

Orders

  • The appeal is upheld.
  • The order of the Industrial Court is set aside and substituted with: 'The application is dismissed with costs.'