MTN (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration and Others (JR803/18) [2019] ZALCJHB 152 (14 June 2019)

MTN (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration and Others (JR803/18) [2019] ZALCJHB 152 (14 June 2019)

The Labour Court found that the transfer of the third respondent from Morningside to Rosebank constituted a demotion due to the reduction in status, importance, prestige, and responsibility, notwithstanding the retention of title and conditions of employment. The evidence of diminished commission earnings and the smaller size of the Rosebank store supported this finding. The Court held that the failure to consult with the third respondent prior to the transfer rendered the process procedurally unfair. The applicant's contractual entitlement to transfer employees did not absolve it from the duty to consult, especially where the transfer amounted to a demotion. The arbitration award was...

Citation
[2019] ZALCJHB 152
Parties
Applicant: MTN (Pty) Ltd; Respondent: Commission for Conciliation, Mediation and Arbitration; Respondent: Commissioner: Eric Myhill N.O; Respondent: Dhireshen Dushen Naidoo
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
14 June 2019
Case Number
JR803/18
Procedural Posture
Review Application / Judgment
Outcome
Application for review dismissed.
Judges
Nieuwoudt
Legal Topics
Unfair Labour Practice, Demotion, Procedural Fairness, Constructive Dismissal
Labour Law Civil Procedure Unfair Labour Practice Demotion Procedural Fairness Constructive Dismissal

Case Brief

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Parties

MTN (Pty) Ltd

Applicant

Commission for Conciliation, Mediation and Arbitration

Respondent

Commissioner: Eric Myhill N.O

Respondent

Dhireshen Dushen Naidoo

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the transfer of the third respondent constituted a demotion despite retention of title and conditions of employment.
  2. 2 Whether the failure to consult with the third respondent prior to transfer rendered the process procedurally unfair.
  3. 3 Whether the arbitration award was one that a reasonable commissioner could reach under section 145 of the Labour Relations Act.

Ratio Decidendi

The Labour Court found that the transfer of the third respondent from Morningside to Rosebank constituted a demotion due to the reduction in status, importance, prestige, and responsibility, notwithstanding the retention of title and conditions of employment. The evidence of diminished commission earnings and the smaller size of the Rosebank store supported this finding. The Court held that the failure to consult with the third respondent prior to the transfer rendered the process procedurally unfair. The applicant's contractual entitlement to transfer employees did not absolve it from the duty to consult, especially where the transfer amounted to a demotion. The arbitration award was...

Court Disposition

Application for review dismissed.

Orders

  • The application is dismissed.