Case Law[2023] ZAGPPHC 192South Africa
Van Wyk and Others v Minister of Justice and Correctional Services and Others [2023] ZAGPPHC 192; 29038/19 (15 March 2023)
High Court of South Africa (Gauteng Division, Pretoria)
15 March 2023
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Van Wyk and Others v Minister of Justice and Correctional Services and Others [2023] ZAGPPHC 192; 29038/19 (15 March 2023)
Van Wyk and Others v Minister of Justice and Correctional Services and Others [2023] ZAGPPHC 192; 29038/19 (15 March 2023)
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sino date 15 March 2023
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
# NO: 29038/19
NO: 29038/19
# REPORTABLE: No
REPORTABLE: No
# OF INTEREST TO OTHER
JUDGES: No
OF INTEREST TO OTHER
JUDGES: No
# REVISED: No
REVISED: No
# Date: 15 March 2023
Date: 15 March 2023
In
the matter between:
# J K VAN WYK AND 51 OTHERS
BEING THE1ST
TO 52ND PLAINTIFF
J K VAN WYK AND 51 OTHERS
BEING THE
1ST
TO 52ND PLAINTIFF
#
# G P BARNARD AND 94 OTHERS
BEING THE53RD TO 148TH
PLAINTIFF
G P BARNARD AND 94 OTHERS
BEING THE
53RD TO 148TH
PLAINTIFF
#
And
MINISTER
OF JUSTICE AND CORRECTIONAL
SERVICES FIRST
DEFENDANT
MINISTER
OF PUBLIC SERVICES AND
ADMINISTRATION SECOND
DEFENDANT
GOVERNMENT
EMPLOYEES’ PENSIONS FUND THIRD
DEFENDANT
JUDGEMENT
BARIT
AJ
INTRODUCTION
[1.]
In
this application, the relief claimed by the Plaintiffs is in the form
of a declaratory order that either the first Collective
Agreement
[1]
,
or the second Collective Agreement applies to them. And further that
the Department of Correctional Services (“DCS”)
should
act in accordance with their obligation (to the applicable
agreement).
# THE PARTIES
THE PARTIES
[2.]
The first to fifty second Plaintiff are all former employees at the
Department of Commercial Services who resigned from
the service of
the First Defendant in the period 1 April 2010 to 21 November 2016.
[3.]
The fifty third to the one hundred and forty eighth Plaintiff are all
former employees of the Department of Correctional
Services (DCS) who
had retired from the service of the First Defendant in the period 1
April 2010 to 21 November 2016.
[4.]
The First Defendant is the Minister of Justice in Correctional
Service cited in his capacity as the Executive Authority
of the
Department of Correctional Services (“DCS”) in terms of
the provisions of the
State Liability Act, 1957
.
[5.]
The Second Defendant is the Minister of Public Service and
Administration (“PSA”) cited herein in the capacity
as
Executive Authority of Public Service and Administration in terms of
the requirements of the
State Liability Act, 1957
.
[6.]
The Third Defendant is the Government Employees Pension Fund duly
established in terms of
Section 2
of the Government Employment
Pension Law 1996.
# BACKGROUND
BACKGROUND
[7.]
Due to disputes between the parties as to the interpretation of a
clause in the 2009 Agreement (the first Collective
Agreement), the
matter was referred to arbitration. The clause in question reads as
follows:
(Clause 11.1): With
effect from 1 April 2010, the re-calculation of salary notch position
shall be based on DCS experience as at
30 June 2009 based on years of
experience obtained in addition to the experience required for
appointment on that level. The re-calculation
of salary notch will be
limited to officials in the production levels (current salary levels
3 – 8).
# THE
DISPUTE
THE
DISPUTE
[8.]
A summation of what the crisp issue for determination is summed up as
follows:
Whether the first
Collective Agreement, which remained extant until 21 November 2016 in
terms of which the Plaintiffs will be entitled
to a 100% of the
salary back pay applied to the Plaintiffs, or whether the Second
Collective Agreement in terms of which they would
be entitled to 30%
of the salary back pay applies to them.
# NATURE OF CLAIM
NATURE OF CLAIM
[9.]
Plaintiffs, all of whom left the service of the
Defendant prior to 2016, claim declaratory orders together with
orders for payment.
The question the Court has to decide is:
a)
In 2009, Occupations Specific Dispensation
(“OSD”) for Correctional Service Officials, Resolution 2
of 2009, and in
particular whether clause 11.1 thereof should be
applied to the Plaintiffs with a resulting order as
prayed for by the Plaintiffs; or
b)
The terms and in particular the amended
clause 11.1 of the 2016 Departmental Bargaining Chamber Settlement
Agreement of 2016 applies
to the Plaintiffs with a resulting order as
prayed for.
[10.]
The main claim supports the contention that the 2009 resolution
(agreement) applies to the Plaintiffs while the alternative
claim
supports the contention that the 2016 agreement should be applied to
the Plaintiffs.
[11.]
The First Defendant states, for various reasons,
which are of a legal nature that the 2016 agreement applies to the
Plaintiffs.
[12.]
The first Collective Agreement (2009) had to be
implemented in two phases. The first phase was implemented by the DCS
as PSCBS Resolution
1 of 2007, and the second phase was implemented
as GPSSBC Resolution 2 of 2009 (Collective Agreement). It is this
latter agreement
that is at the heart of this matter.
[13.]
The dispute arose with respect to the Plaintiffs salary back pay and
the alleged non-compliance with clause 11.1 of
the 2009 Collective
Agreement by the First Defendant. It was not about the application or
interpretation of the Collective Agreement
but the DCS’s
non-compliance with clause 11.1 of the 2009 agreement. The dispute
was referred to the General Public Service
Sector Bargaining Council
(“GPSSBC”) for dispute resolution.
a)
GPSSBC
did not resolve the dispute at conciliation, and it was referred to
arbitration as required by statute
[2]
.
b)
According
to the First Defendant in its Heads of Argument paragraph 12, the
GPSSBC ruled in favour of the Plaintiffs with respect
to clause 11.2.
of the 2009 Collective Agreement at arbitration, which states as
follows;
“
It
is hereby determined that clause 11.2. of the GPSSBC Resolution 2 of
2009 should be interpreted to read that the notches that
employees of
the first respondent (“the DCS”) are entitled to in terms
of their years of experience must be added to
the individual notch
position of employees after the interpretation of phase 1 of the
OSD”.
c)
The
First Defendant
in casu,
dissatisfied
with the Arbitration Award, applied and was successful in having the
Arbitration Award reviewed and set aside by the
Labour Court. Hence
the dispute being referred back to the GPSSBC for proper ventilation.
But nothing happened in this respect.
d)
In
the interim, the Public Service Association and employees appealed
the judgement of the Labour Court. The Appeal Court dismissed
the
appeal and ordered that the dispute be referred back to the GPSSBC to
be determined afresh at arbitration.
However,
the matter was never referred back to the GPSSBC for further
adjudication.
[14.]
It
is evident from the First Defendant’s contentions in its Heads
of Argument
[3]
, that the Labour
Court ruled on clause 11.2 of the 2009 agreement and not on the
non-compliance by the DCS of clause 11.1 of the
2009 agreement.
Further, in the interests of justice, a determination needs to be
made in respect of the latter. It is clear that
the GPSSBC lacks the
necessary jurisdiction to rule on constitutional matters, hence, this
matter finding its way to this Court.
# JURISDICTION
JURISDICTION
[15.]
The
First Defendant raised the point that this Court does not have
jurisdiction to hear this matter, and that the Labour Court has
exclusive jurisdiction with respect to Collective Agreements. From
the papers before this Court, it is evident that this matter
goes
beyond a mere interpretation or application of a Collective
Agreement. It speaks to the Plaintiffs fundamental right to equal
benefit and protection of the law
[4]
and
the common law of contract.
[16.]
When the Plaintiffs were faced with the DCS’s
non-compliance of clause 11.1
of
the 2009 agreement,
the Plaintiffs had
the right to make an election to hold the DCS to the 2009 agreement.
The specific performance of the 2009 agreement
is the remedy.
Indicating a breach of contract, which this Court has
jurisdiction to entertain.
[17.]
Christie’s
Law
of Contract in South Africa
7
ed at 616
[5]
states:
‘
The
remedies available for a breach or, in some cases, a threatened
breach of contract are five in number. Specific performance,
interdict, declaration of rights, cancellation, damages. The first
three may be regarded as methods of enforcement and the last
two as
recompenses for non-performance. The choice among these remedies
rests primarily with the injured party, the plaintiff,
who may choose
more than one of them, either in the alternative or together, subject
to the overriding principles that the plaintiff
must not claim
inconsistent remedies and must not be overcompensated.”
[18.]
Section
157(2)(a) of the Labour Relations Act (“LRA”)
[6]
provides
that the Labour Court and the High Court have concurrent jurisdiction
in any alleged or threatened violation of any
fundamental right
entrenched in the Constitution and arising from employment and from
labour relations.
[19.]
Further, section 173 of the Constitution provides that the High Court
has the inherent power to protect and regulate
its own process, and
to develop the common law, taking into account the
interests-of-justice.
[20.]
Aside from the interest-of-justice standard, there are times when a
court can exercise some degree of discretion. This
Court is satisfied
that, in the interest- of-justice a decision clearly needs to be made
in casu
.
[21.]
Further, it would be wrong to subordinate the constitutional standard
of interests-of-justice to the provisions of section
24 of the LRA.
The statute must be interpreted in light of the Constitution. When
that exercise is properly conducted, one must
bear in mind that, in
the interests-of-justice, the Court should clarify the correct nature
of the dispute.
[22.]
In casu,
this Court has to decide if it will be in the
interests-of-justice to refer this matter back to the GPSSBC given
the journey this
case has traversed over the last decade. It involves
a value judgment of what is fair to all concerned, taking into
account the
longevity of this matter and the fact that the GPSSBC
lacks jurisdiction to determine an infringement of the Plaintiff’s
fundamental rights. It is trite in law that the Plaintiffs’
have a right to have any dispute that can be resolved by the
application of law decided in a fair public hearing before a court,
and which is constitutionally enshrined.
[23.]
Further,
in the matter of
Chirwa
v Transnet Limited & Others
,
the Constitutional Court held that it was self-evident that the
substantive merits of a claim cannot determine whether a court
has
jurisdiction to hear it
[7]
. The
Plaintiffs pleaded the common law remedy of specific performance of
clause 11.1. of the Collective Agreement of 2009, and
not the
interpretation or application of either the 2009 or 2016 Collective
Agreements. But the non-compliance with the 2009 agreement.
[24.]
In
Makhanya
v University of Zululand
[8]
the
court set out the position when litigants have a choice of fora in
which to bring their claims Nugent JA said:
“
Some
surprise was expressed in Chirwa at the notion that a Plaintiff might
formulate his or her claim in different ways and thereby
bring it
before a forum of his or her choice but that surprise seems to me to
be misplaced. A Plaintiff might indeed formulate
a claim in whatever
way he or she chooses – though it might end up that the claim
is bad. But if a claim, as formulated by
the claimant, is enforceable
in a particular court, then the Plaintiff is entitled to bring it
before that court.
And
if there are two courts before which it might be brought then that
should not evoke surprise, because that is the nature of
concurrent
jurisdiction. It might be that the claim, as formulated, is a bad
claim, and it will be dismissed for that reason, but
that is another
matter.”
[25.]
It is evident from the pleadings, in the
interest-of-justice, and Section 157(2)(a) of the LRA that this Court
has jurisdiction
to entertain this matter.
# RES JUDICATA
RES JUDICATA
[26.]
The
First Defendant contends that the Second Collective Agreement (2016)
brought an end to the dispute regarding the interpretation
of clause
11 of the First Collective Agreement thereby rendering it
res
judicata.
[9]
[27.]
The
matter before this Court has not been heard by any other court.
Therefore, the
res
judicata
principle
cannot apply in this matter as there is no prior final judgement with
respect to the plaintiffs’ claim. In any event,
as detailed in
the Potchefstroom Electronic Law Journal,
[10]
the
Constitutional Court, in the matter of
Molaudzi
v The State,
[11]
created
a new common law precedent with respect to
res
judicata
and
the interest-of-justice exception:
“
In
Molaudzi v S the Constitutional Court developed the common law by
creating an interest-of-justice exception to the principle
of res
judicata and - for the first time in the Constitutional Court's
history - overturned one of its own judgements.”
Hence,
res judicata
does not apply in this matter before this Court.
# THE LAW
THE LAW
The
Labour Relations Act No 66 of 1995
as amended
[28.]
Section 23.
Legal effect of Collective Agreement
(1)
A
Collective Agreement binds-
(a)
the
parties to the Collective Agreement;
(b)
each
party to the Collective Agreement and the members of every other
party to the Collective Agreement, in so far as the provisions
are
applicable between them;
(c)
the
members of a registered trade union and the employers who are members
of a registered employers' organisation that are party
to the
Collective Agreement if the Collective Agreement regulates-
(i)
terms
and conditions of employment; or
(ii)
the conduct of the employers in relation to
their employees or the conduct of the employees in relation to their
employers;
(d)
employees
who are not members of the registered trade union or trade unions
party to the agreement if-
(i)
the
employees are identified in the agreement;
(ii)
the
agreement expressly binds the employees; and
(iii)
that
trade union or those trade unions have as their members the majority
of employees employed by the employer in the workplace.
(2)
A
Collective Agreement binds, for the whole period of the Collective
Agreement, every person bound in terms of subsection (1)(c)
who was a
member at the time it became binding, or who becomes a member after
it became binding, whether or not that person continues
to be a
member of the registered trade union or registered employers'
organisation for the duration of the Collective Agreement.
(3)
Where
applicable, a Collective Agreement varies any contract of employment
between an employee and employer who are both bound by
the Collective
Agreement.
(4)
Unless
the Collective Agreement provides otherwise, any party to a
Collective Agreement that is concluded for an indefinite period
may
terminate the agreement by giving reasonable notice in writing to the
other parties.
[29.]
Section 31.
Binding nature of Collective Agreement
concluded in bargaining
council.
Subject to the provisions
of
section 32
and the constitution of the bargaining council, a
Collective Agreement concluded in a bargaining council binds –
(a)
the parties to the bargaining council who
are also parties to the Collective Agreement;
(b)
each party to the Collective Agreement and
the members of every other party to the Collective Agreement in so
far as the provisions
thereof apply to the relationship between such
a party and the members of such other party; and
(c)
the members of a registered trade union
that is a party to the Collective Agreement and the employers who are
members of a registered
employers’ organisation that is such a
party, if the Collective Agreement regulates:
(i)
terms
and conditions of employment; or
(ii)
the
conduct of the employers in relation to their employees or the
conduct of the employees in relation to their employers.
[30.]
Section 51.
Dispute resolution functions of
council
(1)
In
this
section,
dispute
means
any
dispute
about
a
matter
of
mutual
interest between-
(a)
on
the one side
(i)
one
or more trade unions; one or more employees; or one
or more trade unions and one or more
employees; and
(b)
on
the other side-
(i)
one
or more employers' organisations;
(ii)
one
or more employers; or
(iii)
one
or more employers' organisations and one or more employers.
(2)(a)
(i) The
parties to a council must attempt to resolve any dispute between
themselves in accordance
with the constitution of
the council.
(ii) For the purposes of
subparagraph (i), a party to a council includes the members of any
registered trade union or registered
employers’ organisation
that is a party to the council.
[31.]
Section 78.
Definitions in this Chapter (the
Labour Relations Act 66
of 1995
) In this Chapter-
(a)
"employee"
means any person who is employed in a workplace, except a senior
managerial employee whose contract of employment
or status confers
the authority to do any of the following in the workplace-
(ii)
represent the employer in dealings with the
workplace forum; or
(iii)
determine policy and take decisions on
behalf of the employer that may be in conflict with the
representation of employees in the
workplace; and
(b)
"representative
trade union" means a registered trade union, or two or more
registered trade unions acting jointly, that
have as members the
majority of the employees employed by an employer in a workplace.
[32.]
Section 157
- Jurisdiction of Labour Court
2.
The
Labour Court has concurrent jurisdiction with the High Court in
respect of any alleged or threatened violation of any fundamental
right entrenched in Chapter 2 of the Constitution of the Republic of
South Africa, 1996, and arising from –
(a)
employment and from labour relations.
[33.]
Section 200. - Representation of employees or
employers
(1)
A
registered trade union or registered employers' organisation may act
in any one or more of the following capacities in any dispute
to
which any of its members is a party-
(a)
in
its own interest;
(b)
on behalf of any of its members;
(c)
in the interest of any of its members.
(2)
A
registered trade union or a registered employers' organisation is
entitled to be a party to any proceedings in terms of this Act
if one
or more of its members is a party to those proceedings.
[34.]
Section 213. Definitions "employee"(54) means –
(a)
any person, excluding an independent
contractor, who works for another person or for the State and who
receives, or is entitled
to receive, any remuneration; and
(b)
any other person who in any manner assists
in carrying on or conducting the business of an employer, and
"employed" and
"employment" have meanings
corresponding to that of " employee"; (54) "Employee"
is given a different
and specific meaning in section 78 in Chapter V.
"Collective
Agreement" means a written agreement concerning terms and
conditions of employment or any other matter of
mutual interest
concluded by one or more registered trade unions, on the one hand
and, on the other hand-
(a)
one
or more employers;
(b)
one
or more registered employers' organisations; or
(c)
one
or more employers and one or more registered employers'
organisations; " council" includes a bargaining council and
a statutory council.
The
Constitution of the Republic of South Africa
[12]
[35.]
Section 2 - Supremacy of Constitution
This Constitution is the
supreme law of the Republic; law or conduct inconsistent with it is
invalid, and the obligations imposed
by it must be fulfilled;
[36.]
Section 7 - Rights
(1) This Bill of Rights
is a cornerstone of democracy in South Africa. It enshrines the
rights of all people in our country and
affirms the democratic values
of human dignity, equality and freedom.
[37.]
Section 8 – Application
(1) The Bill of Rights
applies to all law and binds the legislature, the executive, the
judiciary and all organs of state.
[38.]
Section 9 - Equality
(1) Everyone is equal
before the law and has the right to equal protection and benefit of
the law.
a)
Section 10 - Human dignity
Everyone has inherent
dignity and the right to have their dignity respected and protected.
[39.]
Section 33 – Just Administrative Action
(1)
Everyone has the right to administrative action1
that is lawful, reasonable and procedurally fair.
[40.]
Section 34 - Access to courts.
Everyone has the right to
have any dispute that can be resolved. by the application of law
decided in a fair public hearing before
a court or, where
appropriate, another independent and impartial tribunal or forum.
Promotion
of Equality and Prevention of Unfair Discrimination Act No. 4 of 2000
[41.]
Section 1
“Definitions”
‘
equality’
includes the full and equal enjoyment of rights and freedoms as
contemplated in the Constitution and includes
de
jure
and
de
facto
equality and also equality in
terms of outcomes.
# CONTENTIONS
CONTENTIONS
[42.]
With
respect to the Plaintiffs’ contention that they were not
represented in the 2016 agreement, according to the provisions
of
section 200
of the
Labour Relations Act, the
Plaintiffs did not
qualify as a party to the 2016 agreement as they were neither
employees of the DCS nor valid members of the
representative trade
union/s
[13]
that
were parties to the 2016 agreement. Consequently, neither the DCS nor
the representative trade union/s had a legal right
(locus
standi)
to
represent the Plaintiffs, when the 2016 agreement was signed and
legally came into effect.
[43.]
The Plaintiffs contend that the First Defendant is in breach of the
2009 agreement and that the 2016 amendment cannot
be applied to them
as they were not party to this agreement, nor were they represented
in the agreement.
[44.]
Plaintiffs therefore pray for a declaratory order that the 2009
agreement, unamended should apply to them and further
that the DCS
should act in accordance with their obligations in terms of this
agreement by implementing clause 11.1. thereof.
[45.]
The
agreement in question is a “Collective Agreement”,
[14]
which
is a written agreement concerning the terms that regulate the
employment relationship of current and future employees.
An
“employee” is clearly defined in
sections 78
and
213
of
the
Labour Relations Act No. 66
of 1995, as amended, and does not
include employees who are no longer in the employ of the DCS. The
definition of “employee”,
"employed" and
"employment" have meanings corresponding to that of
"employee"
[15]
.
[46.]
Further,
section 200
of the LRA clearly indicates who the parties to
a Collective Agreement are, and it does not include employees who
were no longer
employees at the time of the signing of the Second
Agreement in 2016.
[47.]
This is further reinforced by the provisions of
Section 23
of the
LRA, which specifically refers to an existing employee and valid
member of a representative trade union, of which the Plaintiffs
were
neither at the time of the signing of the 2016 agreement. Which
became binding on all existing employees and valid members
of the
representative trade union of the DCS.
[48.]
Further, subsection 2 supports the Plaintiffs’ contention that
the 2009 agreement is applicable to them as a Collective
Agreement
binds every person in terms of subsection (1)(c), who was a member at
the time it became binding. or who becomes a member
after it became
binding, whether or not that person continues to be a member of the
registered trade union or registered employers'
organisation for the
duration of the Collective Agreement.
[49.]
It is common cause that in 2009, the Plaintiffs were employed by the
DCS. It is further common cause that when the 2016
agreement was
signed, all the Plaintiffs had already exited the DCS and could not
be bound by the provisions of the 2016 agreement.
Nor were the
Plaintiffs represented in this agreement.
[50.]
Hence, the Plaintiffs fell outside the scope of the 2016 agreement
and could not be bound by it. Contrary thereto, the
First Defendant
retroactively applied the provisions of the 2016 agreement to the
Plaintiffs’ basic salary back pay.
[51.]
It is trite in law that a contract in South Africa is classified as
an obligationary agreement, and it creates enforceable
obligations
for all parties to the agreement. Hence, the obligations created in
the 2009 agreement were binding on all parties
thereto and capable of
specific performance for the duration of the 2009 agreement, which
began on June 24, 2009, and ended on
November 21,2016.
[52.]
In
the dictum of
Barkhuizen
v Napier
[16]
the
Constitutional Court held that:
“
All
law, including the common law of contract, is now subject to
constitutional control. The validity of all law depends on their
consistency with the provisions of the Constitution and the values
that underlie our Constitution.”
[53.]
In
the High Court, in the matter of
The
University of The Free State Excipient v Christo Strydom
Nutrition
[17]
the
court stated:
“
On
signing a contract, the parties become servants to the terms thereof
and they acknowledge and concede to the Law of Contracts.
(The
principle of pacta sunt servanda decrees agreements, freely and
voluntarily concluded, must be honoured.) They pledge themselves
to
the Rule of Law
and
an
open
and
democratic
society
based
on
human
dignity,equality,
and
freedom;
constitutional
integrity
within
the
facts
and
circumstances of their case.”
[54.]
Despite the Plaintiffs falling within the scope of the 2009 agreement
and the First Defendant being bound thereto, it
ignored the
obligatory nature of the 2009 agreement and the binding nature of the
provisions created by clause 11.1 thereof when
calculating the
Plaintiffs’ salary back pay. Applying retroactively the
provisions of the 2016 agreement to the Plaintiffs’
salary back
pay.
[55.]
On the papers before this Court, it has become necessary to examine
the principle of non-retroactivity of the law. The
principle of
non-retroactive application of law prohibits the application of law
to events that took place before the law was introduced.
Further,
retroactive laws pose a challenge to the fundamental principles of
equality, certainty, and predictability underlying
the rule of law.
Likewise, this principle is also endorsed as a presumption in
agreement interpretation and raises challenges on
the basis that
individual and fundamental rights may be infringed.
[56.]
In common law, both retroactive and retrospective terms of an
agreement will not be given effect if vested rights are
taken away or
impaired, or new obligations are created, or a new duty is imposed,
or a new disability is attached in regard to
events already past.
[57.]
By
applying the 2016 agreement retroactively to the Plaintiffs’:
the First Defendant
effectively
infringed
the
Plaintiffs’
vested
rights
in
terms
of
clause
11.1.
of
the
2009
agreement,
and
imposed
new
obligations,
duties,
and
disabilities with regard to events already past, infringing the
Plaintiffs’ common law contractual rights, and several
of their
fundamental rights,
inter
alia, the
democratic
values of human dignity, equality
[18]
,
and freedom
.
In the
Promotion of Equality and Prevention of Unfair Discrimination
Act,
[19
]
“equality”
is defined as the full and equal enjoyment of rights and freedoms as
contemplated in the Constitution and
includes
de
jure
and
de
facto
equality,
and also equality in terms of outcomes.
[58.]
The
normative value system of the Constitution imposes a duty on
decision- makers to act fairly towards parties who are affected
by
their decisions, and in this case, there can be no exception.
Further, in the dictum of
Masetlha
v President of the Republic of South Africa and Another,
[20]
the
Constitutional Court stated the following:
“
The
new constitutional order incorporates common law constitutional
principles and gives them greater substance. The rule of law
is
specifically declared to be one of the foundational values of the new
constitutional order. The content of the rule of law principle
under
our new constitutional order cannot be less than what it was under
the common law. It is also clear from section 39(3) of
the
Constitution that “the Constitution was not intended to be an
exhaustive code of all rights that exist under our law.
That they go
beyond those expressly mentioned in the Constitution is patently
clear from section 39(3). The common law constitutional
principles
supplement the provisions of the written constitution but derive
their force from the Constitution. These principles
must now be
developed to fulfil the purposes of the Constitution and the legal
order that it establishes. And these common law
principles must
“evolve within the framework of the Constitution consistently
with the basic norms of the legal order that
[the common law]
establishes”. That is why section 39(2) requires that the
common law must be developed and interpreted to
promote the “spirit,
purport and objects of the Bill of Rights”.
[59.]
The
Plaintiffs had a legitimate right and expectation that the First
Defendant would act in good faith, and honour its binding obligations
with respect to clause 11.1. of the 2009 agreement in terms of the
common law of contracts. In this respect, reliance is placed
on what
was stated by Theron J in the matter of
Beadica
231 CC and Others v Trustees for the time being of the Oregon Trust
and Others
[21]
:
“
According
to the Supreme Court of Appeal, good faith is a fundamental principle
that underlies the law of contract and is reflected
in its particular
rules and doctrines
.
[60.]
The doctrine of legitimate expectation entails that a reasonable
expectation based on a well-established practice or
an express
promise by an administrator acting lawfully gives rise to legal
protection when the practice or promise is clear and
unambiguous.
Clause 11.1. of the 2009 agreement is clear and unambiguous.
[61.]
Further, clause 11.1. was a lawful representation of what the
Plaintiffs as individuals would receive and created a
substantive
legitimate expectation with respect to a particular outcome. Section
194 of the LRA further requires compensation to
be just and equitable
in all the circumstances. The legislature would not have intended
that the amounts due to the Plaintiffs
in terms of clause 11.1. of
the 2009 agreement should be anything other than just and equitable
in the circumstances.
# SUMMING UP
SUMMING UP
[62.]
It is evident that the Plaintiffs, had already exited the DCS by 2016
and were not employees of the DCS. Hence, the
Plaintiffs could not be
bound by the provisions of the 2016 Collective Agreement.
[63.]
It
is further evident from section 23 and 31 of the LRA
[22]
that
the defendants are bound by the provisions of the 2009 Collective
Agreement with respect to the Plaintiffs’ employment
and salary
back pay.
[64.]
For these reasons, the DCS could not retroactively apply the
provisions of the 2016 Collective Agreement to the Plaintiffs’
salary back pay.
[65.]
By retroactively applying the provisions of the 2016 Collective
Agreement to the Plaintiffs’ salary back pay the
defendants
infringed the Plaintiffs’ fundamental and common law
contractual rights.
[66.]
Based on all of the above reasons, I am satisfied that the
Plaintiffs, have established a clear right to the relief
sought.
# JUDGEMENT
JUDGEMENT
[67.]
I therefore issue the following order:
1.
The Plaintiffs’ prayer for a
declaratory order that the 2009 Collective Agreement, unamended,
applies to them is granted.
2.
The First Defendant is ordered to implement
the provisions of clause 11.1 of the 2009 Collective Agreement to all
the Plaintiffs’
salary back pay.
3.
The First Defendant is ordered to
recalculate monies due and owing to all the Plaintiffs’ and
apply the rectification of any
payment, deductions, and/or amounts
owing including in respect to pension contributions and the
recalculation
of
such
pension
benefits
as
the
rules
of
the
Third Defendant may provide for and
applicable to the Third Defendant, or any other applicable rule may
provide for.
4.
The First Defendant
is ordered to pay the costs on a party and party scale with respect
to these proceedings, including the costs
consequent upon the
employment of two counsel.
# L BARIT
L BARIT
Acting
Judge of the High Court
Gauteng
Division, Pretoria
15
March 2023
# Appearances
Appearances
For
the Plaintiff:
Advocate
L Kellerman S.C.
Advocate S J Coetzee S.C.
Instructed
by: Geyser
Coetzee Attorneys
# For
the Defendant:Advocate
H Gerber S.C.
For
the Defendant:
Advocate
H Gerber S.C.
Instructed
by: the
State Attorney, Pretoria
[1]
Section
213
of the
Labour Relations Act No. 66 of 1995
, as amended:
Definitions - "Collective Agreement" means a written
agreement concerning terms and conditions of employment
or any other
matter of mutual interest concluded by one or more registered trade
unions, on the one hand and, on the other hand-
(a)
one or more employers;
(b)
one or more registered employers'
organisations; or
(c)
one or more employers and one or more
registered employers' organisations; " council" includes a
bargaining council
and a statutory council.
(d)
[2]
Section
51
of the
Labour Relations Act No. 66 of 1995
[3]
First
Defendant’s Heads of Argument paragraph 12
[4]
Section
9(1) of the Constitution of the Republic of South Africa Act No. 108
of 1996 as amended.
[5]
G
B Bradfield
Christie’s
Law of Contract in South Africa
7
ed (2016) at 61
[6]
Labour
Relations Act No. 66 of 1995
, as amended
[7]
Langa
CJ in a separate concurring judgment in Chirwa v Transnet Limited &
Others
[2007] ZACC 23
;
2008 (4) SA 367
(CC),
2008 (3) BCLR 251
(CC) at para 155.
[8]
Makhanya
v University of Zululand 2010(1) SA62 (SCA) paragraph [27]
[9]
Res
Judicata
is
the Latin term for “a matter already judged” and in the
broad sense it is generally a plea or defence raised by
a respondent
in a civil trial.
[10]
The
Potchefstroom Electronic Law Journal (PELJ), online version ISSN
1727-3781, PER vol.19
n.1 Potchefstroom 2016,
http://dx.doi.org/10.17159/1727-3781/2016/v19n0a1282
[11]
Molaudzi
v The State
2015 2 SACR 341
(CC)
[12]
The
Constitution of the Republic of South Africa Act No. 108 of 1996
[13]
Section
78
of the
Labour Relations Act No. 66 of 1995
, as amended
[14]
Section
213
of the
Labour Relations Act No. 66 of 1995
, as amended, and
Sections 23
(1)(c),
2
, and
3
of the
Labour Relations Act No.66 of
1995
[15]
Section
213
of the
Labour Relations Act No. 66 of 1995
, as amended
[16]
Barkhuizen
v Napier (CCT72/05)
[2007] ZACC 5
;
2007 (5) SA 323
(CC);
2007 (7)
BCLR 691
(CC) (4 April 2007)
[17]
University
of The Free State v Christo Strydom Nutrition (CSM) In re:
University of The Free State v Christo Strydom Nutrition
(CSM)
(2433/2019)
[2022] ZAFSHC 174
(18 July 2022) par 11
[18]
Promotion
of Equality and Prevention of Unfair Discrimination Act No. 4 of
2000
,
Section 1
“Definitions”, and Section 7 of the
Constitution of the Republic of South Africa Act No. 108 of 1996
[19]
Section
1
of the
Promotion of Equality and Prevention of Unfair
Discrimination Act No. 4 of 2000
[20]
Masetlha
v President of the Republic of South Africa and Another
[2007] ZACC
20
;
2008 (1) SA 566
(CC);
2008 (1) BCLR 1
(CC) (Masetlha) at para
188.
[21]
Beadica
231 CC and Others v Trustees for the time being of the Oregon Trust
and Others (CCT109/19)
[2020] ZACC 13
;
2020 (5) SA 247
(CC);
2020
(9) BCLR 1098
(CC) (17 June 2020)
[22]
Labour
Relations Act No. 66 of 1995
,
Section 31
- Binding nature of
Collective Agreement concluded in bargaining council.
sino noindex
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