Tertiary Education National Union and Another v Durban University of Technology (796/2018) [2019] ZASCA 151 (22 November 2019)

Tertiary Education National Union and Another v Durban University of Technology (796/2018) [2019] ZASCA 151 (22 November 2019)

The Supreme Court of Appeal found that clause 3.7 of Version 7 did not constitute a binding agreement to extend the post-retirement medical aid subsidy to former ML Sultan employees. The language of the clause indicated that the issue was still subject to further negotiation as part of the harmonisation process, and did not impose a definite obligation on DUT. The Council's approval of the Conditions of Service document was expressly qualified to exclude medical aid and PRMA subsidy, which were unresolved and not incorporated into the approved conditions. The unions failed to prove that the Council approved any agreement to extend the PRMA subsidy, and subsequent conduct of the parties...

Citation
[2019] ZASCA 151
Parties
Appellant: Tertiary Education National Union of South Africa (TENUSA); Appellant: National Education Health and Allied Workers Union (NEHAWU); Respondent: Durban University of Technology (DUT)
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
22 November 2019
Case Number
796/2018
Procedural Posture
Civil Appeal / Appeal From Kwa Zulu Natal Division of the High Court, Durban
Outcome
Appeal dismissed with costs.
Judges
Leach, Wallis, Saldulker, Nicholls, Dolamo
Legal Topics
Conditions of Service, Post Retirement Medical Aid, Collective Bargaining, Contractual Interpretation
Labour Law Civil Procedure Conditions of Service Post Retirement Medical Aid Collective Bargaining Contractual Interpretation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 4 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Tertiary Education National Union of South Africa (TENUSA)

Appellant

National Education Health and Allied Workers Union (NEHAWU)

Appellant

Durban University of Technology (DUT)

Respondent

Procedural Posture

Civil Appeal / Appeal From Kwa Zulu Natal Division of the High Court, Durban

Legal Issues

  1. 1 Whether the Council of the merged institution approved the payment of a post-retirement medical aid subsidy to employees of one former technikon who had not previously enjoyed such a subsidy.
  2. 2 Whether clause 3.7 of Version 7 of the Conditions of Service document constituted a binding agreement to provide a post-retirement medical aid subsidy to certain former employees.
  3. 3 Whether the Council's approval of the Conditions of Service document was qualified to exclude any obligation to provide the subsidy.

Ratio Decidendi

The Supreme Court of Appeal found that clause 3.7 of Version 7 did not constitute a binding agreement to extend the post-retirement medical aid subsidy to former ML Sultan employees. The language of the clause indicated that the issue was still subject to further negotiation as part of the harmonisation process, and did not impose a definite obligation on DUT. The Council's approval of the Conditions of Service document was expressly qualified to exclude medical aid and PRMA subsidy, which were unresolved and not incorporated into the approved conditions. The unions failed to prove that the Council approved any agreement to extend the PRMA subsidy, and subsequent conduct of the parties...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.