Waverly Blankets v Commission for Conciliation Mediation and Arbitration and Others (PA7/01) [2002] ZALAC 33; (2003) 24 ILJ 388 (LAC); [2003] 3 BLLR 236 (LAC) (11 December 2002)

Waverly Blankets v Commission for Conciliation Mediation and Arbitration and Others (PA7/01) [2002] ZALAC 33; (2003) 24 ILJ 388 (LAC); [2003] 3 BLLR 236 (LAC) (11 December 2002)

The court held that the rights of the dismissed employees to bring reinstatement proceedings for their dismissal fell within the definition of a 'claim' under the scheme of arrangement sanctioned by the High Court. As such, their claims were to be dealt with in terms of the scheme, and their right to arbitrate those claims under the collective agreement was extinguished. The scheme provided for the High Court as the forum for resolving disputes about claims, and the CCMA lacked jurisdiction to arbitrate the matter. The revival of the recognition agreement did not resurrect the dismissed employees' claims, which were compromised by the scheme. The commissioner erred in finding otherwise,...

Citation
[2002] ZALAC 33
Parties
Appellant: Waverly Blankets Ltd; Respondent: Commission for Conciliation, Mediation and Arbitration; Respondent: Brand F. N.O.; Respondent: South African Clothing and Textile Workers' Union
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
11 December 2002
Case Number
PA7/01
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment Dismissing Review Application
Outcome
Appeal upheld; Labour Court judgment set aside; CCMA award set aside; costs awarded to appellant, including costs of two counsel.
Judges
Nicholson, Zondo, Comrie
Legal Topics
Collective Agreements, Scheme of Arrangement, Jurisdiction of Ccma, Creditor Definition, Arbitration Clauses
Labour Law Civil Procedure Collective Agreements Scheme of Arrangement Jurisdiction of Ccma Creditor Definition Arbitration Clauses

Case Brief

Summary, issues, holding and outcome

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Parties

Waverly Blankets Ltd

Appellant

Commission for Conciliation, Mediation and Arbitration

Respondent

Brand F. N.O.

Respondent

South African Clothing and Textile Workers' Union

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment Dismissing Review Application

Legal Issues

  1. 1 Whether the scheme of arrangement under section 311 of the Companies Act extinguished the dismissed employees' rights to arbitrate their dismissal claims under the collective agreement.
  2. 2 Whether the dismissed employees qualify as creditors under the scheme of arrangement.
  3. 3 Whether the CCMA had jurisdiction to arbitrate the dispute given the scheme of arrangement.

Ratio Decidendi

The court held that the rights of the dismissed employees to bring reinstatement proceedings for their dismissal fell within the definition of a 'claim' under the scheme of arrangement sanctioned by the High Court. As such, their claims were to be dealt with in terms of the scheme, and their right to arbitrate those claims under the collective agreement was extinguished. The scheme provided for the High Court as the forum for resolving disputes about claims, and the CCMA lacked jurisdiction to arbitrate the matter. The revival of the recognition agreement did not resurrect the dismissed employees' claims, which were compromised by the scheme. The commissioner erred in finding otherwise,...

Court Disposition

Appeal upheld; Labour Court judgment set aside; CCMA award set aside; costs awarded to appellant, including costs of two counsel.

Orders

  • The appeal is upheld with costs, including those consequent upon the employment of two counsel.
  • The judgment of the Labour Court is set aside and replaced with the following order: (i) The award of the second respondent is hereby set aside. (ii) The third respondent is ordered to pay the costs of this application.