National Union of Mineworkers v Petra Diamond Mine Pty Ltd (Finsch Mine) (C145/14) [2019] ZALCCT 24 (23 April 2019)

National Union of Mineworkers v Petra Diamond Mine Pty Ltd (Finsch Mine) (C145/14) [2019] ZALCCT 24 (23 April 2019)

The court found that section 197(3)(b) of the LRA excludes the requirement for the new employer to maintain terms and conditions that are on the whole not less favourable where a collective agreement is binding on both the old and new employer at the time of transfer. Since such a collective agreement was in place, the applicant's claim under section 197 was not sustainable. The appropriate route for the applicant was collective bargaining or referral for interpretation of the collective agreement, not litigation under section 197. The court further held that it did not have jurisdiction to hear the matter as the dispute was not one contemplated by section 197 but rather one concerning...

Citation
[2019] ZALCCT 24
Parties
Applicant: National Union of Mineworkers; Respondent: Petra Diamond Mine Pty Ltd (Finsch Mine)
Court
Labour Court Cape Town
Jurisdiction
South Africa
Judgment Date
23 April 2019
Case Number
C145/14
Procedural Posture
Trial Judgment / Judgment After Trial and Argument
Outcome
Claim dismissed for lack of jurisdiction; no order as to costs.
Judges
Rabkin-Naicker
Legal Topics
Section 197 Transfer, Collective Agreement Binding, Jurisdiction of Labour Court, Interpretation of Collective Agreement
Labour Law Section 197 Transfer Collective Agreement Binding Jurisdiction of Labour Court Interpretation of Collective Agreement

Case Brief

Summary, issues, holding and outcome

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Parties

National Union of Mineworkers

Applicant

Petra Diamond Mine Pty Ltd (Finsch Mine)

Respondent

Procedural Posture

Trial Judgment / Judgment After Trial and Argument

Legal Issues

  1. 1 Whether the dispute is governed by section 197 of the LRA, i.e., whether the transfer of a business as a going concern has taken place.
  2. 2 Whether the respondent changed the conditions of service of the applicant's members, particularly those listed in Annexure 'A'.
  3. 3 Whether such changes, if effected, comply with section 197(3) of the LRA, i.e., whether the terms and conditions of service were on the whole no less favourable after the changes.

Ratio Decidendi

The court found that section 197(3)(b) of the LRA excludes the requirement for the new employer to maintain terms and conditions that are on the whole not less favourable where a collective agreement is binding on both the old and new employer at the time of transfer. Since such a collective agreement was in place, the applicant's claim under section 197 was not sustainable. The appropriate route for the applicant was collective bargaining or referral for interpretation of the collective agreement, not litigation under section 197. The court further held that it did not have jurisdiction to hear the matter as the dispute was not one contemplated by section 197 but rather one concerning...

Court Disposition

Claim dismissed for lack of jurisdiction; no order as to costs.

Orders

  • The claim is dismissed.
  • There is no order as to costs.