Mediterranean Woollen Mills (Pty) Ltd. v South African Clothing and Textile Workers' Union (143/96) [1998] ZASCA 11; 1998 (2) SA 1099 (SCA); 1998] 6 BLLR 549 (A); (1998) 19 ILJ 731 (SCA) (17 March 1998)

Mediterranean Woollen Mills (Pty) Ltd. v South African Clothing and Textile Workers' Union (143/96) [1998] ZASCA 11; 1998 (2) SA 1099 (SCA); 1998] 6 BLLR 549 (A); (1998) 19 ILJ 731 (SCA) (17 March 1998)

The Supreme Court of Appeal held that the appellant's failure to offer further employment to the 40 workers, while re-employing the majority of their co-workers, constituted an unfair labour practice. The court found that the verbal assurances given by the managing director created a legitimate expectation of renewal for those who met management's criteria. The selection process was procedurally unfair because it was conducted without consultation, transparency, or an opportunity for the affected workers to respond to the reasons for their rejection. The use of the fixed-term contract's expiry as a device to terminate employment, in light of the prior assurances, was not consistent with...

Citation
[1998] ZASCA 11
Parties
Appellant: Mediterranean Woollen Mills (Pty) Limited; Respondent: South African Clothing and Textile Workers' Union
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
17 March 1998
Case Number
143/96
Procedural Posture
Civil Appeal / Appeal From Labour Appeal Court
Outcome
Appeal dismissed with costs.
Judges
Mahomed, Eksteen, Zulman, Streicher, Farlam
Legal Topics
Unfair Labour Practice, Fixed Term Contracts, Procedural Fairness, Selection Criteria, Expectation of Renewal
Labour Law Unfair Labour Practice Fixed Term Contracts Procedural Fairness Selection Criteria Expectation of Renewal

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Mediterranean Woollen Mills (Pty) Limited

Appellant

South African Clothing and Textile Workers' Union

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Appeal Court

Legal Issues

  1. 1 Whether the appellant's failure to offer further employment to the 40 workers constituted an unfair labour practice.
  2. 2 Whether the selection process for permanent employment was procedurally fair.
  3. 3 Whether the verbal assurances given by management created a legitimate expectation of renewal.

Ratio Decidendi

The Supreme Court of Appeal held that the appellant's failure to offer further employment to the 40 workers, while re-employing the majority of their co-workers, constituted an unfair labour practice. The court found that the verbal assurances given by the managing director created a legitimate expectation of renewal for those who met management's criteria. The selection process was procedurally unfair because it was conducted without consultation, transparency, or an opportunity for the affected workers to respond to the reasons for their rejection. The use of the fixed-term contract's expiry as a device to terminate employment, in light of the prior assurances, was not consistent with...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.