National Construction Building and Allied Workers Union and Others v Natural Stone Processors (Pty) Ltd (J 116/97) [2000] ZALC 2 (3 February 2000)

National Construction Building and Allied Workers Union and Others v Natural Stone Processors (Pty) Ltd (J 116/97) [2000] ZALC 2 (3 February 2000)

The court found that the respondent failed to give serious, open-minded consideration to the union's proposals regarding 'bumping' and the application of the LIFO principle across both plants. Evidence showed that longer-serving employees could have been transferred to the slabbing plant with manageable training requirements, and that the respondent's concerns about operational disruption were overstated. The respondent's refusal to provide financial information further undermined the consultation process. As a result, the retrenchments were procedurally unfair under section 189 of the Labour Relations Act. The applicants, having been re-employed at lower categories, were entitled to...

Citation
[2000] ZALC 2
Parties
Applicant: National Construction Building and Allied Workers Union and Five Others; Respondent: Natural Stone Processors (Pty) Ltd
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
3 February 2000
Case Number
J 116/97
Procedural Posture
Labour Litigation / Trial Judgment
Outcome
The dismissal of the individual applicants for operational requirements was procedurally unfair. Compensation is awarded for the period between dismissal and re-employment. Costs are apportioned as specified.
Judges
Mpofu
Legal Topics
Retrenchment, Selection Criteria, Last in First Out, Bumping, Procedural Fairness, Severance Pay
Labour Law Retrenchment Selection Criteria Last in First Out Bumping Procedural Fairness Severance Pay

Case Brief

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Parties

National Construction Building and Allied Workers Union and Five Others

Applicant

Natural Stone Processors (Pty) Ltd

Respondent

Procedural Posture

Labour Litigation / Trial Judgment

Legal Issues

  1. 1 Whether the respondent's retrenchment of the applicants was procedurally fair under section 189 of the Labour Relations Act.
  2. 2 Whether the respondent was obliged to consider the 'bumping' alternative and apply the LIFO principle across both plants.
  3. 3 Whether the refusal to provide financial information affected the fairness of the retrenchment process.

Ratio Decidendi

The court found that the respondent failed to give serious, open-minded consideration to the union's proposals regarding 'bumping' and the application of the LIFO principle across both plants. Evidence showed that longer-serving employees could have been transferred to the slabbing plant with manageable training requirements, and that the respondent's concerns about operational disruption were overstated. The respondent's refusal to provide financial information further undermined the consultation process. As a result, the retrenchments were procedurally unfair under section 189 of the Labour Relations Act. The applicants, having been re-employed at lower categories, were entitled to...

Court Disposition

The dismissal of the individual applicants for operational requirements was procedurally unfair. Compensation is awarded for the period between dismissal and re-employment. Costs are apportioned as specified.

Orders

  • The dismissal of the individual applicants for operational requirements was procedurally unfair.
  • The respondent is ordered to pay the individual applicants compensation equal to the remuneration that each would have been paid between the date of their dismissal and the date(s) of their respective re-employment.