Scheme Data Services (Pty) Ltd v Myhill NO and Others (JR1456/06) [2008] ZALC 149; [2009] 4 BLLR 381 (LC) ; (2009) 30 ILJ 399 (LC) (5 December 2008)

Scheme Data Services (Pty) Ltd v Myhill NO and Others (JR1456/06) [2008] ZALC 149; [2009] 4 BLLR 381 (LC) ; (2009) 30 ILJ 399 (LC) (5 December 2008)

The Labour Court found that the Rand Water judgment was incorrect and that section 191(12) of the LRA clearly conferred jurisdiction on the CCMA to arbitrate both substantive and procedural fairness disputes in single employee retrenchments. The court held that the first respondent's award was reasonable, as the applicant failed to consult with the third respondent on alternatives to retrenchment, a requirement under section 189(3) of the LRA. The applicant's assertion that no alternatives existed and that the third respondent was not interested was found to be conjecture. The court concluded that the failure to consult on alternatives was fatal to the applicant's case, and there was no...

Citation
[2008] ZALC 149
Parties
Applicant: Scheme Data Services (Pty) Ltd; Respondent: Myhill N.O, E; Respondent: The Commission for Conciliation, Mediation and Arbitration; Respondent: Simpson, G
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
5 December 2008
Case Number
JR1456/06
Procedural Posture
Review Application / Judgment on Review of CCMA Arbitration Award
Outcome
Application for review and setting aside of arbitration award dismissed with costs.
Judges
Ngalwana AJ
Legal Topics
Unfair Dismissal, Retrenchment, Procedural Fairness, Jurisdiction of Ccma, Section 189 Consultation, Review of Arbitration Award
Labour Law Unfair Dismissal Retrenchment Procedural Fairness Jurisdiction of Ccma Section 189 Consultation Review of Arbitration Award

Case Brief

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Parties

Scheme Data Services (Pty) Ltd

Applicant

Myhill N.O, E

Respondent

The Commission for Conciliation, Mediation and Arbitration

Respondent

Simpson, G

Respondent

Procedural Posture

Review Application / Judgment on Review of CCMA Arbitration Award

Legal Issues

  1. 1 Whether the CCMA had jurisdiction to arbitrate a dispute concerning procedural fairness in a single employee retrenchment.
  2. 2 Whether the first respondent's arbitration award was reasonable and should be set aside on review.
  3. 3 Whether the applicant consulted with the third respondent on alternatives to retrenchment as required by section 189 of the LRA.

Ratio Decidendi

The Labour Court found that the Rand Water judgment was incorrect and that section 191(12) of the LRA clearly conferred jurisdiction on the CCMA to arbitrate both substantive and procedural fairness disputes in single employee retrenchments. The court held that the first respondent's award was reasonable, as the applicant failed to consult with the third respondent on alternatives to retrenchment, a requirement under section 189(3) of the LRA. The applicant's assertion that no alternatives existed and that the third respondent was not interested was found to be conjecture. The court concluded that the failure to consult on alternatives was fatal to the applicant's case, and there was no...

Court Disposition

Application for review and setting aside of arbitration award dismissed with costs.

Orders

  • The application is dismissed with costs.