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South Africa Judgment

Labour Court Johannesburg

NUM obo Mlotshwa and 57 Others v Reitspruit Crushers and Construction (PTY) Ltd and Others (J 820/22) [2022] ZALCJHB 194 (26 July 2022)

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Source document

01

Holding and result

The Labour Court dismissed the urgent application on the basis that it lacked jurisdiction to entertain the matter. The applicants sought to challenge the fairness of their dismissal by way of motion before the dispute had been subjected to the mandatory conciliation process. The notice of motion was found to be poorly drafted and conflated statutory provisions applicable to different types of dismissals. The court held that the applicants should have challenged the CCMA's jurisdictional ruling on review, rather than approaching the Labour Court directly. The application was deemed frivolous and vexatious, and costs were awarded against the applicants.

Court disposition

Application dismissed for want of jurisdiction; costs awarded against the applicants.

Orders

  • The urgent application is dismissed.
  • The applicants are ordered to pay the costs of the application.

02

Material facts

Parties

NUM obo Sandile Mlotshwa and 57 Others

Applicant Counsel: Mr R C Mathevula together with Ms JR Rakhadani

Reitspruit Crushers and Construction (PTY) Ltd and Others

Respondent Counsel: Mr A P Brandmuller

03

Procedural history

  1. Posture

    Urgent Application / Application to Set Aside Dismissal as Unlawful; Heard on Urgent Roll

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that the Labour Court has jurisdiction in terms of section 157(2) of the Labour Relations Act to adjudicate the fairness of their dismissal, which arose from participation in an alleged unprotected strike. They sought declaratory relief, reinstatement, and an order compelling the respondent to comply with fair procedures before dismissing employees. The applicants contended that the CCMA's refusal to entertain the dispute due to ongoing business rescue proceedings was incorrect and that urgent intervention by the Labour Court was warranted.
Respondent
The respondents opposed the application, challenging the Labour Court's jurisdiction on the basis that the dispute had not been subjected to conciliation as required by law. They argued that the application was ill-advised, frivolous, and vexatious, and that the applicants should have pursued a review of the CCMA ruling instead. The respondents maintained that the Labour Court could not entertain the matter until the statutory conciliation process had been completed.

05

Court’s reasoning

  1. 01

    Labour Relations Act, section 191

    The Labour Court lacks jurisdiction to adjudicate unfair dismissal disputes where the dispute has not first been subjected to conciliation.

  2. 02

    Labour Relations Act, section 189A(13)

    Section 189A(13) applies only to mass dismissals based on operational requirements, not to dismissals for participation in unprotected strike action.

  3. 03

    Companies Act, section 133(1); MEC for the Department of Co-operative Governance and Traditional Affairs v Maphanga (2020) 1 All SA 52 (SCA)

    Proceedings in the CCMA do not constitute legal proceedings for the purposes of section 133(1) of the Companies Act; thus, referral to the CCMA does not require leave of court or consent.

  4. 04

    R v Sheppard 2002 SCC

    A party affected by a court order is generally entitled to reasons for the order, especially if adversely affected.

06

Ratio, limits and disposition

Ratio decidendi

The Labour Court dismissed the urgent application on the basis that it lacked jurisdiction to entertain the matter. The applicants sought to challenge the fairness of their dismissal by way of motion before the dispute had been subjected to the mandatory conciliation process. The notice of motion was found to be poorly drafted and conflated statutory provisions applicable to different types of dismissals. The court held that the applicants should have challenged the CCMA's jurisdictional ruling on review, rather than approaching the Labour Court directly. The application was deemed frivolous and vexatious, and costs were awarded against the applicants.

Obiter and limits

  • The application was ill-advised and appeared to have been brought to harass the respondent.
  • NUM, as a legally represented party, should have known better than to persist with a hopeless application.
  • The conduct of the applicants in pursuing the matter despite clear jurisdictional objections justified an award of costs against them.

Court disposition

Application dismissed for want of jurisdiction; costs awarded against the applicants.

  • The urgent application is dismissed.
  • The applicants are ordered to pay the costs of the application.

Source and reliance status

Labour Court Johannesburg

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Judgment reading view

Judgment text

The complete available source text.

Source document

Labour Court Johannesburg

Judgment

[2022] ZALCJHB 194

THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG

Not Reportable

CASE NO: J 820/22

In the matter between:

NUM OBO SANDILE

MLOTSHWA

AND 57

OTHERS

Applicant

and

REITSPRUIT CRUSHERS

AND

CONSTRUCTION (PTY) LTD

and others

Respondents

Heard: 22 July 2022

Reasons: 26 July 2022

Summary: Urgent application – set aside a dismissal as being unlawful. Jurisdiction of the Labour Court. The Labour Court lacks jurisdiction to entertain the application.

REASONS

MOSHOANA, J

Introduction

[1] On 22 July 2022, in the urgent Court, this Court made an order dismissing the urgent application and ordered the applicant to pay the costs. What follows hereunder are the reasons for the order. Where a Court of law makes an order parties affected by that order, be it adversely or favourably are generally entitled to be given reasons, more particularly the party who lost[1].

Pertinent facts

[2] Reitspruit Crushers and Construction (Pty) Ltd (Reitspruit) voluntarily applied to be placed under business rescue. On 7 February 2022, Reitspruit was duly placed under business rescue. On 12 to 14 April 2022, the employees of Reitspruit engaged in an industrial action. On 19 April 2022, Reitspruit dismissed employees who engaged

in what it termed unprotected strike action.

[3] Aggrieved by the dismissal, the National Union of Mineworkers (NUM) referred a dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA) and alleged unfair dismissal. On 23 June 2022, Commissioner Sifiso Ngala (Ngala) issued a ruling declining jurisdiction. In a written ruling, the learned commissioner concluded that the CCMA lacked jurisdiction until the conclusion of business rescue proceedings. The applicants chose not to challenge that ruling on review. Instead on or about 7 July 2022, the applicants elected to launch the present application to be heard on the urgent roll.

[4] In the notice of motion, the applicants sought a declarator that this Court has jurisdiction to adjudicate in terms of section 157 (2) of the Labour Relations Act[2] (LRA). As a sequel, the applicants sought an order declaring the dismissal to be unfair. Additionally sought an order compelling Reitspruit to comply with fair procedure before dismissing the employees. An order was sought that until compliance with a fair procedure a dismissal ought to be interdicted and restrained. Ultimately, the applicants sought a reinstatement order.

[5] The respondents duly opposed the application. They challenged the jurisdictional powers of this Court. After hearing submissions, this Court issued the order outlined above.

Evaluation

[6] This is one of those hopeless and ill-advised urgent applications. The notice of motion is badly drafted and contradictory in many respects. Whoever drafted it conflated the provisions of section 189A

(13) with the provisions of section 191 of the LRA. Section 189A (13) is reserved for a dismissal based on operational reasons in respect of mass dismissals. The employees in the present application were dismissed for reasons that they participated in an unprotected strike action.

[7] Based on the wrong ruling by the commissioner, it is apparent that the dispute was not conciliated upon. This Court lacks jurisdiction where a dispute has not been subjected to a conciliation process[3]. It was open and it is still open for the applicants to challenge the ruling of Ngala on review. It does seem that the commissioner

misunderstood the provisions of section 133 (1) of the Companies Act[4]. Proceedings in the CCMA do not amount to legal proceedings[5]. Thus before making a referral, an employee does not require consent or leave of a Court.

[8] In view of the fact that the applicants are seeking to challenge the fairness of a dismissal by way of motion before the conciliation processes occurs, this Court is bereft of jurisdiction. It was on this basis that this Court dismissed the application for want of jurisdiction.

Costs

[9] With regard to costs, it is the view of this Court that the application was ill advised and was launched simply to harass Reitspruit. NUM should have known better, particular in an instance where it is legally represented. The application was frivolous and vexatious in nature. It would be unfair to mulct the respondents with

the costs of such a hopeless application. The conduct of persisting with such a hopeless application drove the Court to making an award of costs. The respondents made it abundantly clear in their answering papers that this Court lacked jurisdiction. In Court it was highlighted that the Labour Court lacked jurisdiction but counsel for the applicants forged ahead with the application.

[10] It was for the above stated reasons that this Court dismissed the application with costs.

G. N. Moshoana

Judge of the Labour Court of South Africa

Appearances:

For the Applicant:

Mr R C Mathevula together with Ms JR Rakhadani.

Instructed by:

Mohale Inc, Pretoria

For the Respondents:

Mr A P Brandmuller of Brandmullers Inc.

[1] See R v Sheppard 2002 SCC.

[2] No. 66 of 1995, as amended.

[3] See September and others v CMI Business Enterprise CC [2018] 5 BLLR 431 (CC).

[4] No. 71 of 2008

[5] See MEC for the Department of Co-operative Governance and Traditional Affairs v Maphanga (2020) 1 All SA 52 (SCA).

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

R v Sheppard 2002 SCC

Case cited

September and others v CMI Business Enterprise CC [2018] 5 BLLR 431 (CC)

Case cited

MEC for the Department of Co-operative Governance and Traditional Affairs v Maphanga (2020) 1 All SA 52 (SCA)

Case cited

Labour Relations Act 66 of 1995

Legislation

Legislation referenced in the available case record.

Companies Act 71 of 2008

Legislation

Legislation referenced in the available case record.

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