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South Africa Judgment

Labour Court

TRS Southern African Tours CC v Parvess (C779/01) [2001] ZALC 218 (29 November 2001)

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Research organized from the available case record

Source document

01

Holding and result

The Labour Court held that the Labour Relations Act does not require that a party's representative from a trade union or employers association must have been a member at the time the dispute arose. The Commissioner's refusal to allow the employer representation by SEESA was a gross irregularity and a fundamental denial of the employer's rights. As a result, the arbitration award was reviewed and set aside, and the matter was remitted to the CCMA for a fresh arbitration before a different Commissioner.

Court disposition

Award reviewed and set aside; matter remitted to CCMA for fresh arbitration before a different Commissioner; costs awarded against the third respondent.

Orders

  • The arbitration award is reviewed and set aside.
  • The matter is remitted to the CCMA for arbitration afresh before a Commissioner other than the second respondent.
  • The third respondent is ordered to pay the costs of these proceedings.

02

Material facts

Parties

TRS Southern African Tours CC

Applicant

Craig Parvess

Respondent

03

Procedural history

  1. Posture

    Review Application / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the Commissioner incorrectly refused representation by the Small Enterprise Employers of South Africa (SEESA), an employers association, at the arbitration. The applicant contended that the Labour Relations Act does not require membership at the time the dispute arose and that the precedent relied upon by the Commissioner was misapplied.
Respondent
The respondent maintained that the Commissioner was correct in refusing representation, relying on the principle that representation by a trade union or employers association is only permitted if membership existed when the dispute arose, as interpreted in previous Labour Court decisions.

05

Court’s reasoning

  1. 01

    Labour Relations Act 66 of 1995, s 138(4)

    Section 138(4) of the Labour Relations Act allows parties to arbitration to be represented by a member, office-bearer, or official of a registered trade union or employers organisation, without specifying that membership must exist at the time the dispute arose.

  2. 02

    General Industries Workers Union of South Africa & Others v Elsie van Aard (Tvl) (Pty) Ltd 1991 12 ILJ 122 (LAC)

    A union may litigate on behalf of its members even if they were not members at the time of dismissal.

06

Ratio, limits and disposition

Ratio decidendi

The Labour Court held that the Labour Relations Act does not require that a party's representative from a trade union or employers association must have been a member at the time the dispute arose. The Commissioner's refusal to allow the employer representation by SEESA was a gross irregularity and a fundamental denial of the employer's rights. As a result, the arbitration award was reviewed and set aside, and the matter was remitted to the CCMA for a fresh arbitration before a different Commissioner.

Obiter and limits

  • The position regarding representation may change if pending legislation is enacted, but this does not affect the present case.
  • The outcome of the arbitration might have been different had the employer been properly represented.

Court disposition

Award reviewed and set aside; matter remitted to CCMA for fresh arbitration before a different Commissioner; costs awarded against the third respondent.

  • The arbitration award is reviewed and set aside.
  • The matter is remitted to the CCMA for arbitration afresh before a Commissioner other than the second respondent.
  • The third respondent is ordered to pay the costs of these proceedings.

Source and reliance status

Labour Court

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Judgment reading view

Judgment text

The complete available source text.

Source document

Labour Court

Judgment

[2001] ZALC 218

4

IN THE LABOUR COURT OF SOUTH AFRICA

(HELD AT CAPE TOWN)

CASE NO: C779/01

DATE: 29-11-2001

In the matter between:

TRS SOUTHERN AFRICAN TOURS CC Applicant

and

CRAIG PARVESS Respondent

J U D G M E N T

LANDMAN, J:

1. TRS Southern African Tours CC seeks to review and set aside an award of a Commissioner of the Commission for Conciliation, Mediation and Arbitration ("the CCMA") who delivered an award in favour of its former employee, Craig Parvess, during June 2000 under case number WE28432.

2. The employer raises several points. The first point relates to the denial of representation at the arbitration hearing. It is apparent from the award that the Commissioner considered whether or not the employer could be represented by the Small Enterprise Employers of South Africa ("SEESA"), which is an employer's organisation. The Commissioner says:

"In the case of the corporation I established that it only joined the employer's association some time after the dispute had arisen. The Act allows representation by a

29-11/10:30 member /...

JUDGMENT member of that party's trade union or employer's organisation. However, the Labour Court has ruled that where a trade union seeks to represent an employee, she or he must have been a member when the dispute arose (see NEHAWU v Mtshali N E & Others unreported LC J1696/99) the same principle must therefore apply in the case of an employer's association. I therefore refuse to allow representation in the case of the corporation." The submission has been made that the case on which the Commissioner relies (the Machali case) concerned whether a union should be allowed to charge its members professional and other related fees. The case does not, so it was submitted, canvass the issue with which the Commissioner was confronted.

3. The Machali case refers to General Industries Workers Union of South Africa & Others v Elsie van Aard (Tvl) (Pty) Ltd 1991 12 ILJ 122 (LAC). There the Court found that it was permissible for a union to litigate on behalf of its members even where those members had not been members at the time of their dismissal. That was a case decided under the Labour Relations Act, 28 of 1956. However, the case appears to hold good for the Labour Relations Act of 1995. Section 138(4) provides: "In any arbitration proceedings a party to the dispute may appear in person or be represented only by (c) any member, office-bearer or official of that party's registered trade union or registered employers organisation." 29-11/10:32

JUDGMENT

member of that party's trade union or employer's organisation. However, the Labour Court has ruled that where a trade union seeks to represent an employee, she or he must have been a member when the dispute arose (see NEHAWU v Mtshali N E & Others unreported LC J1696/99) the same principle must therefore apply in the case of an employer's association. I therefore refuse to allow representation in the case of the corporation."

The submission has been made that the case on which the Commissioner relies (the Machali case) concerned whether a union should be allowed to charge its members professional and other related fees. The case does not, so it was submitted, canvass the issue with which the Commissioner was confronted.

3. The Machali case refers to General Industries Workers Union of South Africa & Others v Elsie van Aard (Tvl) (Pty) Ltd 1991 12 ILJ 122 (LAC). There the Court found that it was permissible for a union to litigate on behalf of its members even where those members had not been members at the time of their dismissal. That was a case decided under the Labour Relations Act, 28 of 1956. However, the case appears to hold good for the Labour Relations Act of 1995. Section 138(4) provides:

"In any arbitration proceedings a party to the dispute may appear in person or be represented only by (c) any member, office-bearer or official of that party's registered trade union or registered employers organisation."

29-11/10:32

JUDGMENT The section does not say that the member must have been a member at the date that the dispute arose. It is true that the position might change having regard to a Bill which is pending before Parliament, but that does not affect the situation as it prevailed before the Commissioner when he made his ruling.

4. In the circumstances I am therefore of the opinion that the Commissioner's ruling, that the employer was not entitled to be represented by the employers association, constituted a gross irregularity. I am unable to say what the position would have been had the employer been represented. The outcome might have been entirely different. The failure to permit the employer to be so represented was a fundamental denial of the employer's rights and therefore the award is reviewed and set aside.The matter is remitted back to the CCMA for arbitration afresh before a Commissioner other than the second respondent. The third respondent is ordered to pay the costs of these proceedings. Signed and dated at BRAAMFONTEIN on this __ Day of January 2002 ____ Landman AA Judge of the Labour Court of South Africa

The section does not say that the member must have been a member at the date that the dispute arose. It is true that the position might change having regard to a Bill which is pending before Parliament, but that does not affect the situation as it prevailed before the Commissioner when he made his ruling.

4. In the circumstances I am therefore of the opinion that the Commissioner's ruling, that the employer was not entitled to be represented by the employers association, constituted a gross irregularity. I am unable to say what the position would have been had the employer been represented. The outcome might have been entirely different. The failure to permit the employer to be so represented was a fundamental denial of the employer's rights and therefore the award is reviewed and set aside.The matter is remitted back to the CCMA for arbitration afresh before a Commissioner other than the second respondent. The third respondent is ordered to pay the costs of these proceedings.

Signed and dated at BRAAMFONTEIN on this __ Day of January 2002

____

Landman AA

Judge of the Labour Court of South Africa

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Authorities

Authorities used by the court

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

General Industries Workers Union of South Africa & Others v Elsie van Aard (Tvl) (Pty) Ltd 1991 12 ILJ 122 (LAC)

Case cited

NEHAWU v Mtshali N E & Others unreported LC J1696/99

Case cited

Labour Relations Act 66 of 1995

Legislation

Legislation referenced in the available case record.

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