Roll-Up Seranda (Pty) Ltd v Metal And Engineering Industries Bargaining Council and Others (JR3350/2010) [2014] ZALCJHB 450 (17 November 2014)

Roll-Up Seranda (Pty) Ltd v Metal And Engineering Industries Bargaining Council and Others (JR3350/2010) [2014] ZALCJHB 450 (17 November 2014)

The court found that the arbitrator's decision to reinstate the employee with backpay was unreasonable given her own findings of persistent negligence and repeated warnings, which justified dismissal. The evidence did not support the likelihood of improved performance or restoration of the employment relationship. However, the finding of procedural unfairness due to the chairperson's prior involvement was upheld, as no justification was provided for appointing someone with prior knowledge of the incident. The court set aside the arbitrator's finding of substantive unfairness but maintained the finding of procedural unfairness, awarding compensation for the latter.

Citation
[2014] ZALCJHB 450
Parties
Applicant: Roll-Up Seranda (Pty) Ltd; Respondent: Metal And Engineering Industries Bargaining Council; Respondent: Lungile Zwane (N.O.); Respondent: UASA – The Union obo Chiwayi Johnson
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
17 November 2014
Case Number
JR3350/2010
Procedural Posture
Review Application / Judgment on Review of Arbitration Award
Outcome
The arbitrator's finding of substantive unfairness is set aside and replaced with a finding of substantive fairness. The finding of procedural unfairness stands, and compensation is awarded to the third respondent. No order as to costs.
Judges
R Lagrange
Legal Topics
Unfair Dismissal, Procedural Fairness, Gross Negligence, Compensation Award
Labour Law Unfair Dismissal Procedural Fairness Gross Negligence Compensation Award

Case Brief

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Parties

Roll-Up Seranda (Pty) Ltd

Applicant

Metal And Engineering Industries Bargaining Council

Respondent

Lungile Zwane (N.O.)

Respondent

UASA – The Union obo Chiwayi Johnson

Respondent

Procedural Posture

Review Application / Judgment on Review of Arbitration Award

Legal Issues

  1. 1 Whether the arbitrator's finding of substantive unfairness in the dismissal was reasonable.
  2. 2 Whether the procedural fairness of the disciplinary enquiry was compromised by the chairperson's prior involvement.
  3. 3 Whether the sanction of reinstatement with backpay was appropriate given the evidence of persistent negligence.

Ratio Decidendi

The court found that the arbitrator's decision to reinstate the employee with backpay was unreasonable given her own findings of persistent negligence and repeated warnings, which justified dismissal. The evidence did not support the likelihood of improved performance or restoration of the employment relationship. However, the finding of procedural unfairness due to the chairperson's prior involvement was upheld, as no justification was provided for appointing someone with prior knowledge of the incident. The court set aside the arbitrator's finding of substantive unfairness but maintained the finding of procedural unfairness, awarding compensation for the latter.

Court Disposition

The arbitrator's finding of substantive unfairness is set aside and replaced with a finding of substantive fairness. The finding of procedural unfairness stands, and compensation is awarded to the third respondent. No order as to costs.

Orders

  • The second respondent's finding of substantive unfairness in her award dated 15 November 2010 is reviewed and set aside and replaced with a finding of substantive fairness.
  • The applicant is ordered, within 15 days of the date of this judgment, to pay the third respondent compensation equivalent to six weeks' remuneration at the time of his dismissal, being an amount of R5,510.40.