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South Africa Judgment

Labour Court

Rowans Construction v Commission for Conciliation, Mediation and Arbitration and Others (JR 229/01) [2002] ZALC 161 (3 August 2002)

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01

Holding and result

The court found that the arbitrator's conduct during the arbitration proceedings, specifically the intense discussion with the third respondent during a break and the lack of engagement with the applicant's representatives, constituted gross misconduct and created a reasonable apprehension of bias. The arbitrator's refusal to recuse himself and the factual inaccuracies in the award further supported the applicant's complaint. Consequently, the arbitration award was set aside and the dispute was referred to the CCMA for arbitration before a different commissioner.

Court disposition

Application for review granted; arbitration award set aside and dispute referred for arbitration before a different commissioner.

Orders

  • The award made by the second respondent is set aside.
  • The dispute is referred to the CCMA for arbitration before a different commissioner.

02

Material facts

Parties

Rowans Construction

Applicant

Commission for Conciliation, Mediation and Arbitration

Respondent

Matee D, NO

Respondent

Loggenberg AM

Respondent

03

Procedural history

  1. Posture

    Review Application / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contended that the arbitrator engaged in an inappropriate and intense discussion with the third respondent during a break, without any interaction with the applicant's representatives. This conduct, coupled with statements made in the award, demonstrated perceived bias and gross misconduct. The applicant argued that the arbitrator's refusal to recuse himself and the factual inaccuracies in the award justified setting aside the award.
Respondent
No argument was presented by the respondents as the application was unopposed.

05

Court’s reasoning

  1. 01

    Labour Relations Act, 66 of 1995

    An arbitrator must conduct proceedings impartially and avoid conduct that gives rise to perceived bias or gross misconduct.

  2. 02

    De Lacy v South African Post Office 2001 (3) SA 123 (SCA)

    Where an arbitrator's conduct creates a reasonable apprehension of bias, the award may be set aside on review.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the arbitrator's conduct during the arbitration proceedings, specifically the intense discussion with the third respondent during a break and the lack of engagement with the applicant's representatives, constituted gross misconduct and created a reasonable apprehension of bias. The arbitrator's refusal to recuse himself and the factual inaccuracies in the award further supported the applicant's complaint. Consequently, the arbitration award was set aside and the dispute was referred to the CCMA for arbitration before a different commissioner.

Obiter and limits

  • The court noted that statements made by the arbitrator in the award demonstrated an attitude that supported the applicant's complaint of perceived bias.
  • The court observed that factual inaccuracies in the award undermined the integrity of the arbitration process.

Court disposition

Application for review granted; arbitration award set aside and dispute referred for arbitration before a different commissioner.

  • The award made by the second respondent is set aside.
  • The dispute is referred to the CCMA for arbitration before a different commissioner.

Source and reliance status

Labour Court

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Judgment text

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Source document

Labour Court

Judgment

[2002] ZALC 161

Sneller Verbatim/MLS

IN THE

LABOUR COURT OF SOUTH AFRICA

BRAAMFONTEIN CASE NO: JR 229/01

2002-08-03

In the matter between

ROWANS CONSTRUCTION Applicant

and

COMMISSION

FOR CONCILIATION MEDIATION

AND ARBITRATION 1ST Respondent

MATEE D, NO 2nd Respondent

LOGGENBERG A M 3RD Respondent

________________

J U D G M E

N T

EX

TEMPORE

REVELAS J:

1. This is an unopposed application for review of an arbitration award in terms of which the third respondent was reinstated in the employ of the applicant who had previously dismissed the third respondent for alleged misconduct.

1. 1.

2. A dispute for an alleged unfair dismissal was referred to the Commission for Conciliation, Mediation and Arbitration, (“the CCMA”), where the first respondent, the arbitrator, held the dismissal to be unfair on the basis that the third respondent committed no misconduct whatsoever.

3. The grounds upon which the applicant submits that the award should be interfered with on review is that the arbitrator who conducted the arbitration proceedings under the auspices of the CCMA had made himself guilty of gross misconduct.

4. On the facts before me, which are not in dispute, this submission appears to be correct. The arbitrator, according to the founding affidavit, had an “intense discussion" with the third respondent during a forty minute break taken during the arbitration proceedings.

5. At no time during this break did the arbitrator have any discussion with the applicant's representatives and there was no indication why the second the arbitrator entered into these discussions.

6. An application was brought for his recusal but the first respondent dismissed the application without providing adequate reasons. The arbitrator also made certain statements in his award which tend to support to the applicant's complaint of perceived bias.

7. The following are examples thereof and I quote from the award on page 60 of the record:

"The explanation by the applicant's representative in that the respondent was very rude and even threatened him during ... is to my mind, more probable than not. It came out clear during the arbitration hearing in my presence again, albeit hearsay."

I quote further:

"The charges of insolence and deliberate reduction of production are far-fetched in this instance. Let alone the respondent's failure to state what were the grounds for the dismissal in the in house hearing."

8. This is factually incorrect simply because there is a record of the disciplinary hearing where such allegations were put forward.

9. These and other statements to which I am not inclined to quote in this judgment, demonstrated the second respondent's attitude to the matter.

10. In the circumstances the arbitration award should be set aside and referred to the CCMA to be arbitrated by a different commissioner.

11. I make the following order:

1. The award made by the second respondent is set aside and the dispute is referred to the CCMA for arbitration before a different commissioner.

____

E. Revelas

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Authorities

Authorities used by the court

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

De Lacy v South African Post Office 2001 (3) SA 123 (SCA)

Case cited

Labour Relations Act, 66 of 1995

Legislation

Legislation referenced in the available case record.

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