South African Local Government Association v Independent Municipal And Allied Trade Union and Others (JA46/2012) [2014] ZALAC 2; (2014) 35 ILJ 2811 (LAC) (4 March 2014)

South African Local Government Association v Independent Municipal And Allied Trade Union and Others (JA46/2012) [2014] ZALAC 2; (2014) 35 ILJ 2811 (LAC) (4 March 2014)

The Labour Appeal Court held that no binding collective agreement was reached on 20 April 2010 because the Bargaining Committee did not reconvene to ratify the drafting team’s decisions, and the agreement was not signed by the parties’ principals as required by established practice and the Constitution. The evidence did not establish a well-entrenched custom that could override the Constitution’s express provisions. The parties did not consider themselves bound until signature, and the amendments made on 21 April 2010 further demonstrated that consensus had not been reached. Rectification was not available because the unions failed to prove that all principals agreed to the disputed terms...

Citation
[2014] ZALAC 2
Parties
Appellant: South African Local Government Association; Respondent: Independent Municipal and Allied Trade Union; Respondent: South African Municipal Workers’ Union; Respondent: South African Local Government Bargaining Council
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
4 March 2014
Case Number
JA46/2012
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment
Outcome
Appeal upheld; Labour Court’s order set aside; application dismissed with no order as to costs.
Judges
Waglay, C J Musi, Mokgoatlheng
Legal Topics
Collective Agreements, Rectification, Constitution of Bargaining Council, Custom and Practice, Decision Making Requirements
Labour Law Civil Procedure Collective Agreements Rectification Constitution of Bargaining Council Custom and Practice Decision Making Requirements

Case Brief

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Parties

South African Local Government Association

Appellant

Independent Municipal and Allied Trade Union

Respondent

South African Municipal Workers’ Union

Respondent

South African Local Government Bargaining Council

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment

Legal Issues

  1. 1 Whether a binding collective agreement was reached on 20 April 2010 without signature.
  2. 2 Whether established practice or custom can override the express terms of the Bargaining Council’s Constitution.
  3. 3 Whether rectification of the signed agreement is permissible when the parties did not reach consensus on the disputed terms.

Ratio Decidendi

The Labour Appeal Court held that no binding collective agreement was reached on 20 April 2010 because the Bargaining Committee did not reconvene to ratify the drafting team’s decisions, and the agreement was not signed by the parties’ principals as required by established practice and the Constitution. The evidence did not establish a well-entrenched custom that could override the Constitution’s express provisions. The parties did not consider themselves bound until signature, and the amendments made on 21 April 2010 further demonstrated that consensus had not been reached. Rectification was not available because the unions failed to prove that all principals agreed to the disputed terms...

Court Disposition

Appeal upheld; Labour Court’s order set aside; application dismissed with no order as to costs.

Orders

  • The appeal is upheld with no order as to costs.
  • The order of the Labour Court is set aside and replaced with: The application is dismissed with no order as to costs.