Vanchem Vanadium Products (Pty) Ltd v National Union of Metalworkers of South Africa obo Members (JA33/16) [2016] ZALAC 62; (2017) 38 ILJ 926 (LAC) (8 December 2016)

Vanchem Vanadium Products (Pty) Ltd v National Union of Metalworkers of South Africa obo Members (JA33/16) [2016] ZALAC 62; (2017) 38 ILJ 926 (LAC) (8 December 2016)

The Labour Appeal Court found that, despite the appellant's exclusion from the Main Agreement by clause 1(3)(e), the parties had by their conduct and through the January 2011 collective agreement incorporated the terms of the Main Agreement into their employment relationship. The purported cancellation of the collective agreement by the respondent was disputed and not validly effected, as the alleged breach was unspecified and contested. Subsequent agreements and the parties' conduct, including reference to the Main Agreement in disputes, payment of benefit fund contributions, and registration with the MEIBC, confirmed the ongoing binding effect of the Main Agreement. The Labour Court...

Citation
[2016] ZALAC 62
Parties
Appellant: Vanchem Vanadium Products (Pty) Ltd; Respondent: National Union of Metalworkers of South Africa obo Members
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
8 December 2016
Case Number
JA33/16
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment
Outcome
Appeal upheld; Labour Court's order set aside and replaced with dismissal of the application.
Judges
Tlaletsi, Coppin, Landman
Legal Topics
Collective Agreements, Main Agreement Binding Effect, Lay Off and Short Time, Contractual Incorporation, Termination of Collective Agreement
Labour Law Civil Procedure Collective Agreements Main Agreement Binding Effect Lay Off and Short Time Contractual Incorporation Termination of Collective Agreement

Case Brief

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Parties

Vanchem Vanadium Products (Pty) Ltd

Appellant

National Union of Metalworkers of South Africa obo Members

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment

Legal Issues

  1. 1 Whether the appellant and respondent's members are bound by the terms of the Main Agreement of the Metal and Engineering Industries Bargaining Council.
  2. 2 Whether the appellant had the right to implement lay-offs and short-time under the Main Agreement.
  3. 3 Whether the January 2011 collective agreement was validly cancelled by the respondent.

Ratio Decidendi

The Labour Appeal Court found that, despite the appellant's exclusion from the Main Agreement by clause 1(3)(e), the parties had by their conduct and through the January 2011 collective agreement incorporated the terms of the Main Agreement into their employment relationship. The purported cancellation of the collective agreement by the respondent was disputed and not validly effected, as the alleged breach was unspecified and contested. Subsequent agreements and the parties' conduct, including reference to the Main Agreement in disputes, payment of benefit fund contributions, and registration with the MEIBC, confirmed the ongoing binding effect of the Main Agreement. The Labour Court...

Court Disposition

Appeal upheld; Labour Court's order set aside and replaced with dismissal of the application.

Orders

  • The appeal is upheld and the order of the Labour Court is set aside and replaced with: 'The application is dismissed.'
  • The respondent is to pay the costs of the appeal, including the costs of employing two counsel.