Langa and Others v Active Packaging (Pty) Limited (JA76/99) [2000] ZALAC 23; [2001] 1 BLLR 37 (LAC); (2001) 22 ILJ 397 (LAC) (3 November 2000)

Langa and Others v Active Packaging (Pty) Limited (JA76/99) [2000] ZALAC 23; [2001] 1 BLLR 37 (LAC); (2001) 22 ILJ 397 (LAC) (3 November 2000)

The Labour Appeal Court held that the consultative process commenced in September 1997 when the respondent first contemplated retrenchments due to financial difficulties. The negotiations and information sharing with the union were ongoing and not limited to the period after 20 April 1998. The respondent provided sufficient financial information to enable effective consultation, including the opportunity for the union to appoint its own auditor and to review financial statements after publication. The respondent's refusal to disclose confidential financial statements prior to publication was justified under section 16(5)(c) of the Labour Relations Act. The court found that the...

Citation
[2000] ZALAC 23
Parties
Appellant: Michael Langa; Appellant: Solomon Ndlangamandla; Appellant: 32 Others; Respondent: Active Packaging (Pty) Limited
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
3 November 2000
Case Number
JA76/99
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment
Outcome
Appeal dismissed with costs.
Judges
JHM Traverso, RMM Zondo, MM Joffe
Legal Topics
Retrenchment, Consultation Process, Disclosure of Confidential Information, Section 189 Compliance, Costs De Bonis Propriis
Labour Law Retrenchment Consultation Process Disclosure of Confidential Information Section 189 Compliance Costs De Bonis Propriis

Case Brief

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Parties

Michael Langa

Appellant

Solomon Ndlangamandla

Appellant

32 Others

Appellant

Active Packaging (Pty) Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment

Legal Issues

  1. 1 Whether the consultative process under section 189 of the Labour Relations Act was properly conducted prior to the appellants' retrenchment.
  2. 2 Whether the respondent disclosed sufficient financial information to enable effective consultation.
  3. 3 Whether the costs of postponement should be borne by the appellants' counsel personally.

Ratio Decidendi

The Labour Appeal Court held that the consultative process commenced in September 1997 when the respondent first contemplated retrenchments due to financial difficulties. The negotiations and information sharing with the union were ongoing and not limited to the period after 20 April 1998. The respondent provided sufficient financial information to enable effective consultation, including the opportunity for the union to appoint its own auditor and to review financial statements after publication. The respondent's refusal to disclose confidential financial statements prior to publication was justified under section 16(5)(c) of the Labour Relations Act. The court found that the...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.
  • The costs of the postponement on 27 June 2000 are to be paid by Mr. Memani de bonis propriis.