SATAWU and Another v MEC: Gauteng for Roads & Transport and Others (J1142/15) [2015] ZALCJHB 204; (2015) 36 ILJ 3155 (LC) (15 July 2015)

SATAWU and Another v MEC: Gauteng for Roads & Transport and Others (J1142/15) [2015] ZALCJHB 204; (2015) 36 ILJ 3155 (LC) (15 July 2015)

The court found that while certain components of Putco's business—such as the contractual right to perform services, a general customer base, the right of use of bus stops and terminals, one depot, and some former drivers—were transferred to Autopax, these were insufficient and too fragmented to constitute a transfer of a business as a going concern. The majority of key assets, including buses, depots, and most employees, remained with Putco. The court emphasised that section 197 requires the transfer of a discrete, autonomous, and identifiable business undertaking, which was not present in this case. The transfer of regulatory permits and contractual rights, without substantial assets or...

Citation
[2015] ZALCJHB 204
Parties
Applicant: SATAWU; Applicant: PUTCO (PTY) LTD; Respondent: MEC: Gauteng for Roads & Transport; Respondent: AUTOPAX PASSENGER SERVICES (SOC) LTD; Respondent: MINISTER OF TRANSPORT; Respondent: TAWUSA
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
15 July 2015
Case Number
J1142/15
Procedural Posture
Urgent Application / Judgment on Application for Declaratory Relief Regarding Section 197 of the LRA
Outcome
Application dismissed. No order as to costs.
Judges
B Whitcher
Legal Topics
Section 197 Transfer, Outsourcing, Going Concern, Change of Service Provider, Employment Protection, Government Subsidy
Labour Law Civil Procedure Section 197 Transfer Outsourcing Going Concern Change of Service Provider Employment Protection Government Subsidy

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Parties

SATAWU

Applicant

PUTCO (PTY) LTD

Applicant

MEC: Gauteng for Roads & Transport

Respondent

AUTOPAX PASSENGER SERVICES (SOC) LTD

Respondent

MINISTER OF TRANSPORT

Respondent

TAWUSA

Respondent

Procedural Posture

Urgent Application / Judgment on Application for Declaratory Relief Regarding Section 197 of the LRA

Legal Issues

  1. 1 Does section 197 of the Labour Relations Act apply to the change in service providers for subsidised bus routes?
  2. 2 Was there a transfer of business as a going concern from Putco to Autopax?
  3. 3 Are the assets, employees, and customer base transferred sufficient to trigger section 197?

Ratio Decidendi

The court found that while certain components of Putco's business—such as the contractual right to perform services, a general customer base, the right of use of bus stops and terminals, one depot, and some former drivers—were transferred to Autopax, these were insufficient and too fragmented to constitute a transfer of a business as a going concern. The majority of key assets, including buses, depots, and most employees, remained with Putco. The court emphasised that section 197 requires the transfer of a discrete, autonomous, and identifiable business undertaking, which was not present in this case. The transfer of regulatory permits and contractual rights, without substantial assets or...

Court Disposition

Application dismissed. No order as to costs.

Orders

  • The application is dismissed.
  • No order as to costs.