Southern Sun Hotels Interests (PTY) LTD v South African Commercial Catering and Allied Workers Union (JA136/2021) [2022] ZALAC 120; (2023) 44 ILJ 505 (LAC) (15 November 2022)

Southern Sun Hotels Interests (PTY) LTD v South African Commercial Catering and Allied Workers Union (JA136/2021) [2022] ZALAC 120; (2023) 44 ILJ 505 (LAC) (15 November 2022)

The Labour Appeal Court held that the lock-out declared by Southern Sun was unprotected because the issue in dispute—the remuneration for the period 1 April 2020 to 31 March 2021—was regulated by a binding collective agreement. Southern Sun's demand that employees forego the 5.5% wage increase was, in substance, an attempt to vary the terms of the collective agreement, which is prohibited by section 65(3)(a)(i) of the Labour Relations Act. The Court rejected Southern Sun's argument that the dispute was about waiving rights rather than remuneration, finding this to be a mischaracterization. Furthermore, the Court found that the issue could be referred to arbitration or adjudication,...

Citation
[2022] ZALAC 120
Parties
Appellant: Southern Sun Hotel Interests (PTY) LTD; Respondent: South African Commercial Catering and Allied Workers Union
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
15 November 2022
Case Number
JA136/2021
Procedural Posture
Labour Appeal / Appeal Against Labour Court Judgment and Order
Outcome
Appeal dismissed with no order as to costs.
Judges
Sutherland, Kathree-Setiloane, Tokota
Legal Topics
Lock Out, Collective Agreement, Remuneration Dispute, Protected Strike, Arbitration Rights, Variation of Contract
Labour Law Lock Out Collective Agreement Remuneration Dispute Protected Strike Arbitration Rights Variation of Contract

Case Brief

Summary, issues, holding and outcome

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Parties

Southern Sun Hotel Interests (PTY) LTD

Appellant

South African Commercial Catering and Allied Workers Union

Respondent

Procedural Posture

Labour Appeal / Appeal Against Labour Court Judgment and Order

Legal Issues

  1. 1 Whether the lock-out declared by Southern Sun was unprotected under section 65(3)(a)(i) of the Labour Relations Act.
  2. 2 Whether the issue in dispute was regulated by a collective agreement for the relevant period.
  3. 3 Whether the lock-out was unprotected because the issue could be referred to arbitration or adjudication under section 65(1)(c) of the Labour Relations Act.

Ratio Decidendi

The Labour Appeal Court held that the lock-out declared by Southern Sun was unprotected because the issue in dispute—the remuneration for the period 1 April 2020 to 31 March 2021—was regulated by a binding collective agreement. Southern Sun's demand that employees forego the 5.5% wage increase was, in substance, an attempt to vary the terms of the collective agreement, which is prohibited by section 65(3)(a)(i) of the Labour Relations Act. The Court rejected Southern Sun's argument that the dispute was about waiving rights rather than remuneration, finding this to be a mischaracterization. Furthermore, the Court found that the issue could be referred to arbitration or adjudication,...

Court Disposition

Appeal dismissed with no order as to costs.

Orders

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