Case Law[2025] ZALAC 6South Africa
Malepe and Others v Mega Volt Loden Electrical (Pty) Ltd (JA42/23) [2025] ZALAC 6 (4 February 2025)
Labour Appeal Court of South Africa
4 February 2025
Judgment
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## Malepe and Others v Mega Volt Loden Electrical (Pty) Ltd (JA42/23) [2025] ZALAC 6 (4 February 2025)
Malepe and Others v Mega Volt Loden Electrical (Pty) Ltd (JA42/23) [2025] ZALAC 6 (4 February 2025)
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sino date 4 February 2025
THE LABOUR APPEAL
COURT OF SOUTH AFRICA, JOHANNESBURG
Not Reportable
Case No: JA42/2023
In the matter between:
GOODMAN
MALEPE
First Appellant
LAZARUS M.
CHOMA
Second Appellant
JAN
MAKUWA
Third Appellant
THOMAS
MAIMELA
Fourth Appellant
JOHN
SENOSHA
Fifth Appellant
JOHANNES
KGABE
Sixth Appellant
ERNEST
RAHLAGA
Seventh Appellant
PETER L.
MASHEGWANE
Eighth Appellant
EMISSION
THOKWANE
Ninth Appellant
BJALANA DAVID
MOKWANA
Tenth Appellant
THEMBA
ZULU
Eleventh Appellant
THEOPHILUS
MOLALATHOKO
Twelve Appellant
and
MEGA VOLT LODEN
ELECTRICAL (PTY) LTD
Respondent
Heard: 29 August 2024
Delivered: 04 February
2025
Coram: Molahleli AJP,
Musi AJA et Jolwana AJA
JUDGMENT
JOLWANA, AJA
Introduction
[1]
This appeal concerns the exercise of a
court’s discretion in dismissing an application for
condonation. On 24 November 2021,
the appellants filed a statement of
claim, the main relief sought being reinstatement or re-employment.
The statement of claim
was filed together with a condonation
application for the late filing thereof. Condonation for the late
filing of the statement
of claim was refused by the court
a
quo
.
[2]
It is the dismissal of that condonation
application by the Labour Court with which the appellants are
dissatisfied, hence this appeal.
The appeal is with the leave of this
Court.
Factual background
[3]
The
appellants brought an application seeking condonation for the late
referral of their unfair dismissal dispute to the Labour
Court for
adjudication. The appellants’ case was that they were dismissed
consequent upon their refusal to accept a demand
relating to a matter
of mutual interest. Therefore, their dismissal was automatically
unfair.
[1]
The appellants
asserted that the proximate cause of their dismissal was directly or
indirectly related to a transfer in terms of
section 197 of the
Labour Relations Act
[2]
(LRA)
and that such dismissal is automatically unfair in terms of section
187 (1)(g)
[3]
of the LRA.
[4]
The context of the dismissal dispute is
that the appellants were employees of Datelec and through a section
197 transfer, they became
employees of the respondent. They alleged
that on becoming their employer, the respondent required that the
appellants sign new
contracts of employment on new terms and
conditions, which they refused. As a result of their refusal, the
appellants were dismissed.
Their dismissal was subsequent to a
disciplinary process they were subjected to on 10 and 11 December
2019 on charges of leaving
their workplace early and for leaving
without authorisation on 26 November 2019. The appellants alleged
that all of the respondent’s
employees had left early on 26
November 2019 but employees who agreed to the respondent’s
demands were given written
warnings and retained their jobs whereas
they were dismissed.
[5]
The appellants further alleged that while
the disciplinary ruling is dated 12 December 2019, they had only
received it on 13 January
2020 when they returned from the December
holiday period.
[6]
The appellants referred their unfair
dismissal complaint to the National Bargaining Council for Electrical
Industry (NBCEI) for
conciliation on 16 January 2020 after which the
matter was set down for conciliation on 7 February 2020. Conciliation
failed and
a certificate of outcome was issued on 7 February 2020.
The NBCEI commissioner advised the appellants to refer the matter to
the
CCMA for arbitration. On the same day, being 7 February 2020, the
appellants referred the matter to the CCMA as advised. The matter
was
set down for arbitration on 11 March 2020. On 3 March 2020, the
respondent filed submissions raising an issue of the late referral
of
the dismissal complaint.
[7]
On 9 March 2020, two days before the
arbitration, the respondent sent an SMS to the appellants. In that
SMS, the respondent asked
the appellants to sign a contract of
employment. They were also required to withdraw their arbitration
referral. If the appellants
signed the new contract and withdrew the
matter from the CCMA, their dismissal would be reconsidered. The
appellants refused. On
11 March 2020, the arbitrator issued a ruling
upholding the late referral point in
limine
raised by the respondent indicating that the appellants were required
to apply for condonation of the said late referral. They
did so and
on 7 July 2020, the appellants were granted condonation. The matter
again served before a commissioner where the respondent
sought and
was granted a 14-day period within which to apply for the rescission
of the ruling granting the employees condonation.
This was said to be
on the basis that there was no evidence that the respondent was
served with the condonation ruling. The condonation
ruling dated 7
July 2020 was rescinded on 9 November 2020 and it was indicated that
the matter would have to be rescheduled for
a condonation hearing.
[8]
The second condonation hearing served
before another commissioner on 12 December 2020. That commissioner
ruled that the appellants
had provided a reasonable explanation for
the late referral of their dispute to the CCMA and that the CCMA was
at fault in failing
to process the initial condonation application
which increased the degree of lateness. On these bases, the
appellants were granted
condonation. On 18 February 2021, there was
an application for the rescission of the condonation ruling of 12
December 2020. It
appears that the rescission application was made on
the basis that in her ruling dated 12 December 2020, the commissioner
suggested
that the respondent had not opposed the condonation
application whereas the respondent had opposed it. The commissioner
ruled that
that was an error on her part. She further ruled that it
was clear that she had considered the respondent’s submissions
and
therefore the error of suggesting that the condonation
application was not opposed was irrelevant. She thereupon refused the
rescission
application.
[9]
On 29 April 2021, the matter again served
before another commissioner. What was before the CCMA on that day was
another application
for the rescission of the condonation ruling of
12 December 2020. That commissioner ruled that, as the rescission
application was
considered by another commissioner and determined on
12 December 2020, she had no jurisdiction to determine the
application, thus
leaving the ruling dated 12 December 2020 in which
the respondent’s rescission application was dismissed extant.
[10]
The matter was then set down for 25 May
2021 for arbitration. However, it was postponed and the matter was
again set down for 4
June 2021. It had to be postponed again to 17
June 2021 as the respondent’s legal representative took ill. On
17 June 2021,
the parties were directed to conclude a pre-arbitration
minute. In that pre-arbitration minute, the parties were in agreement
that
the CCMA had jurisdiction to determine the matter. As a result,
the arbitration commenced with the respondent calling its first
witness. On 14 July 2021, the arbitration proceedings continued but
had to be postponed to enable the appellants to subpoena certain
documents, which was done. The matter was again set down for hearing
on 5 and 11 August 2021. The subpoenaed documents were only
emailed
to the appellants on 4 August 2021. The arbitration proceeded on 5
August 2021 but had to be adjourned to 11 August 2021
to enable the
appellants to read the documents, which were voluminous.
[11]
On 11 August 2021, the arbitration
proceeded and during the cross-examination of the respondent’s
witness, the commissioner
stopped the proceedings as the line of
questioning by the appellants’ legal representative raised
concerns about the CCMA
jurisdiction on the section 187 issues that
arose during cross-examination. The commissioner requested
submissions to be made on
the jurisdiction of the CCMA to deal with
the matter. The commissioner determined that on 9 November 2020,
commissioner Byrne had
ruled that the nature of the dispute was
misconduct. However, she did not agree with that ruling as
commissioner Byrne had no factual
basis to enable him to make such a
ruling. She accordingly ruled that the CCMA lacked jurisdiction as
the dispute fell within the
ambit of section 187. She thereupon
directed that the matter be referred to the Labour Court for
adjudication. That ruling is dated
15 September 2021.
[12]
Subsequent to this ruling, the appellants
started making arrangements to consult with their attorneys of
record. During that consultation,
they were advised to refer the
matter to the Labour Court. This necessitated consultation amongst
themselves which proved to be
difficult as they lived in different
areas which were far apart. They ultimately agreed to refer the
matter to the Labour Court.
They instructed their attorneys to
prepare a statement of claim referring the matter to the Labour Court
which was issued together
with the condonation application.
In the Labour Court
Parties’
submissions before the Labour Court
[13]
Based on the above, the appellants
contended that they were not dilatory in referring the matter to the
Labour Court. What delayed
their referral were the various delays
encountered at the CCMA. The appellants’ contention that they
were lay persons did
assist them as they had been advised by NBCEI,
in its certificate of outcome to refer their matter to the CCMA. It
was on the basis
of that advice that they referred the matter to the
CCMA. It should also be noted during the CCMA proceedings, they were
assisted
by Kagiso Ragisi Rahuba Attorneys.
[14]
It was in May 2021 that the appellants
realised that it had been over a year and the arbitration had still
not begun. They then
acquired the services of their current attorneys
of record to assist them. At some stage, they were told that their
file could
not be found at the CCMA and they did not have copies of
all the voluminous documents to provide to their new attorneys. This
added
to the delays. The appellants contended that they had shown
good cause and had provided a reasonable explanation for the delay in
referring the matter to the Labour Court. The delay after the ruling
by the CCMA that it had no jurisdiction to entertain the matter
was
about three weeks for which they had provided an explanation.
[15]
The appellants contended that they had good
prospects of success in their automatically unfair dismissal dispute.
They had been
charged with leaving their workplace early and leaving
without authorisation. However, the SMS from the respondent indicated
that
if they were willing to sign the new contracts the respondent
would reconsider the disciplinary issues. As a result, their
colleagues
who signed the contracts were not subjected to
disciplinary processes. They were given written warnings but the
appellants were
considered problematic just because they did not
accede to the respondent’s demand to sign new contracts of
employment. This
was a matter of mutual interests over which the
respondent had other options to try to get them to agree to its
demand. The respondent,
however, decided to subject them to
disciplinary processes which resulted in their dismissals while other
employees, who faced
the same charges, were given final written
warnings. Furthermore, the respondent had agreed in the
pre-arbitration minute that
the CCMA had jurisdiction. It was
contended that it was in the interests of justice that the dispute be
heard on its merits by
the granting of the condonation application.
This would not be prejudicial to the respondent but they would be
extremely prejudiced
by the refusal of the condonation application as
they would be left with no remedy. The appellants remain unemployed
since they
were dismissed.
[16]
The respondent’s case at the Labour
Court was that the appellants’ case was that their cause of
action was based on
an automatically unfair dismissal for their
refusal to sign a new contract of employment and thus the appellants
were claiming
to have been victimized for such refusal. The
respondent contended that for the very reasons the appellants based
their case on,
they should have referred their case to the Labour
Court from the outset and have failed to explain why they did not do
so. Instead,
the appellants relied on having initially referred the
matter to NBCEI and the CCMA due to allegedly being unfamiliar with
the
processes involved and the law. In this regard, the respondent
argued, the appellants failed to take the Labour Court into their
confidence that they were at all material times legally represented.
[17]
It was argued that on the day of the
misconduct hearing that led to their dismissals, the appellants
consulted with a Pretoria attorney
named Barry. On 29 November 2019,
the attorney called the respondent’s deponent requesting a
meeting. That attorney was also
present at the CCMA during one of the
first appearances representing the appellants. During the
disciplinary hearings, the appellants
were supported by their trade
union, UASA and represented by Ms Sethoane, a union official.
[18]
In addition to that, they had legal
representation during the CCMA proceedings as indicated in the
arbitration ruling dated 9 November
2020, which were before
commissioner Byrne. The appellants were represented by an attorney,
Ms Bareki during the CCMA proceedings.
On these bases, the respondent
contended that the appellants could not have been unaware of what
they ought to do as they had access
to legal representation and would
have been informed that it was the Labour Court that had jurisdiction
to adjudicate the dispute.
The respondent further contended that the
employees who were not dismissed had apologized for their misconduct
which was regarded
as a strong mitigating factor and signed their
employment contracts.
[19]
It was ultimately up to the appellants
themselves to decide where the matter should be referred to as they
are
dominus litis
.
They had always said that their dismissals were automatically unfair
even at NBCEI as early as 7 February 2020. Therefore, they
should
have referred their dispute to the Labour Court for adjudication and
could not rely on the NBCEI commissioner mentioning
the CCMA as
having jurisdiction to arbitrate the dispute. It further contended
that the offer made to the dismissed employees was
done as a gesture
of goodwill to give them a second chance and to try to settle the
dispute.
[20]
It was submitted that the CCMA had to deal
with the preliminary points that were raised which were due to the
appellants’
late referral and their unreasonable delay in
applying for condonation at the CCMA. This was because those who
represented the
appellants were tardy in applying for the relief they
sought there. Commissioner Sithole stopped the proceedings on 11
August 2021
after it was put to its deponent that the appellants’
case was that their dismissal was because they refused to sign their
contracts of employment. That issue had formed the basis of a
referral of a dispute relating to a matter of mutual interest. When
that dispute was conciliated, it was settled at that stage on the
basis that it would be negotiated at workplace level. Those
negotiations took place on 26 November 2019 and the dispute of the
employees’ failure to sign the contracts of employment
was
settled.
[21]
There was no reasonable and acceptable
explanation for the 17 or 18 months delay in referring the matter to
the Labour Court. The
delay was excessive. The appellants failed to
explain the entire period of the delay. It was argued that the
appellants were instructed
not to leave work early and they refused
to comply with that instruction and to work according to the
respondent’s rules.
It was this misconduct that resulted in the
disciplinary hearings and appellants’ dismissal. They were not
charged with refusing
to sign their contracts of employment. The
issue of being required to sign contracts of employment related to
health and safety
legislation and regulations which required all
employees to have signed contracts of employment.
[22]
The respondent contended that it would
suffer undue prejudice as a result of the delay as at the time the
matter was referred to
the Labour Court, it was already two years
since the incident which led to the appellants’ dismissal. It
argued that another
two years would have elapsed by the time the
matter was heard by that court. Based on all of this, it argued that
the condonation
application should be dismissed. It was not in the
interests of justice for the appellants to be granted condonation as
their conduct
in delaying the matter was prejudicial to it. They
should have referred the dispute to the Labour Court within the
stipulated time
as their case was throughout one of an automatically
unfair dismissal. Therefore, they have not made a proper case to be
granted
condonation.
[23]
The appellants filed a replying affidavit
in which they said that at the CCMA, the respondent never objected to
the jurisdiction
of the CCMA. Ms Bareki, their attorney, made an
application at the CCMA for the commissioner to make a ruling on the
issue of jurisdiction.
In the proceedings at the CCMA, commissioner
Byrne was requested to make a ruling on the nature of the dispute
which would impact
on jurisdiction. He ruled that the CCMA did in
fact have jurisdiction to determine the dispute. In doing so, he
conferred jurisdiction
on the CCMA. The jurisdiction of the CCMA
prevailed until 15 September 2021 when commissioner Sithole ruled
that the CCMA did not
have jurisdiction. The appellants contended
that both rulings were binding on the parties.
[24]
They also relied on what the commissioners
said when they said that the matter should proceed to arbitration.
They could not raise
the issue of being dismissed for refusing to
agree to changes to their working conditions as they were not charged
with that. They
were low-grade electricians with no formal
qualifications and had no knowledge about the workings of the CCMA
and the Labour Court.
The respondent was equally to blame for the
matter being dealt with at the CCMA initially as it failed to object
to the jurisdiction
of the CCMA. If all along it knew that the CCMA
was a wrong forum, the respondent should have objected to it in line
with its contention
that the appellants’ case has always been
one of an automatically unfair dismissal.
Labour Court judgment
[25]
The Labour Court dealt with the matter on
the basis that the 17 or 18 months delay in referring the dispute for
adjudication calculated
from 7 February 2020, being the date on which
the NBCEI issued the certificate of outcome, was excessive. It said
that not only
was the delay excessive but also the appellants had
provided various explanations for their lateness which were in any
event incomplete
as the whole period had not been accounted for.
There was therefore no reasonable explanation for the delay. Finally,
the Labour
Court felt that the appellants’ explanation for the
delay kept on changing from an unfair dismissal dispute to an
automatically
unfair dismissal dispute. For those reasons, the Labour
Court dismissed the condonation application.
Submissions on appeal
[26]
The grounds of appeal relied upon by the
appellants are mainly that the Labour Court misdirected itself on the
facts. The appellants
relied on the fact that in their founding
affidavit, they had adequately explained the entire period of delay
with reference to
the various hearings and CCMA rulings all of which
accounted for the entire period of the delay. Furthermore, they had
referred
the matter to the Labour Court within three weeks of the
jurisdictional ruling of the CCMA and had provided reasons for the
three-week
delay. Their prospects of success were also not considered
as it was common cause that in the pre-arbitration minute, it was
clear
that their dismissal was for their refusal to agree to changed
working conditions following the section 197 transfer. They also
raise the fact that the court
a quo
was wrong in not finding that the respondent contributed to the
delay. The dispute was clarified to be related to the section 197
transfer. They further raise the fact that the prejudice to them if
condonation was not granted was not weighed against that of
the
respondent if it was granted. The last main ground of appeal was that
the court
a quo
failed to also consider the length of the delay together with the
reasonable explanation and the prospects of success.
[27]
It was submitted that the Labour Court did
not exercise its discretion properly and was influenced by wrong
principles or factual
misdirection. This, so went the submission,
warranted interference by this Court. It was submitted that in the
main, the condonation
application was dismissed on the basis of an
excessive delay; that there was an inadequate explanation for the
delay; and that
the appellants’ case kept on changing. It was
argued that the court
a quo
did not apply the well-established legal principles on condonation
applications. These are that the discretion of the court had
to be
exercised with regard being had to the extent of the delay; the
explanation therefor; the prospects of success and prejudice
to both
parties if condonation was granted or refused. Finally, interests of
justice were in the foreground on the basis of which
these principles
had to be applied. It was argued that the court
a
quo
therefore failed to exercise its
discretion judicially in the circumstances as it also failed to have
regard to the importance
of the matter to the appellants.
[28]
The respondent’s case on appeal is,
principally, that the appellants’ explanation for the delay in
referring their statement
of claim to the Labour Court is not
reasonable and is unacceptable resulting in their condonation
application being unmeritorious.
This submission is based on the
allegation that it has always been the appellants’ case that
they were dismissed because
of their refusal to sign the new
contracts of employment. It was submitted that at all material times,
the appellants were represented
by a trade union official even before
the disciplinary hearing in December 2019 and during the negotiations
relating to the section
197 transfer in November 2019. They were
represented by attorneys since the referral of the dispute in January
2020 and should
have known from 9 March 2020 at the latest that their
claim was based on alleged automatically unfair dismissal. Therefore,
arbitration
was not the correct route to follow after the issuing of
the certificate of outcome at conciliation stage.
[29]
Therefore, the allegation that they only
found out during the cross-examination of Mr De Wet on 11 August 2021
about the real reason
for their dismissal was unfounded. The
respondent further contends that Mr De Wet, in any event, never
testified that the appellants
were dismissed for failing to sign a
new contract of employment. His evidence was that they were dismissed
for misconduct in refusing
to work according to the respondent’s
conditions of employment and for leaving the workplace without
authorisation on 29
November 2019. Commissioner Sithole, who dealt
with the matter on 11 August 2021, intervened due to the line of
questioning of
the appellants’ attorney who suggested to Mr De
Wet that the appellants were dismissed for their refusal to sign the
contracts
of employment, which Mr De Wet denied. It was at this stage
that the commissioner raised concerns about the CCMA’s
jurisdiction
in a matter implicating section 187 (1) (c) of the LRA.
Based on all the above, the respondent contends that absent a
reasonable
and acceptable explanation for the delay, which was not
provided, the appellants’ prospects of success were immaterial.
Therefore,
the court
a quo
exercised its discretion correctly in dismissing the application.
[30]
Lastly, the respondent contends that it is
entitled to finality. The appellants were dismissed in December 2019.
It will frustrate
the broader objects of the LRA if the appellants
succeed and condonation is granted as they will be entitled to
proceed with their
automatically unfair dismissal claim. Since
December 2019, a period in excess of four years has elapsed and a
further period of
18 to 24 months may elapse before the matter goes
to trial. All of this will be immeasurably prejudicial to them. This,
in circumstances
in which the appellants are the authors of their own
misfortune in that they caused the delay throughout. In all the
circumstances,
so contends the respondent, it will not be in the
interests of justice to grant condonation.
Discussion
[31]
Central
to this appeal is whether it is open to this Court to interfere with
the exercise of the discretion by the Labour Court
and the standard
of such interference. This depends on whether the Labour Court was
exercising a discretion in the true sense or
the loose sense. The
explanation of and the distinction between these two types of
discretions and the permissible extent of interference
by an appeal
court has been eloquently explained by the Constitutional Court in
Trencon
Construction (Pty) Ltd v Industrial Development Corporation of South
Africa Ltd and Another
[4]
from which I quote liberally. In that matter, Khampepe J explained
the legal position as follows:
‘
[83]
In order to decipher the standard of interference that an appellate
court is justified in applying, a distinction
between two types of
discretion emerged in our case law. That distinction is now
deeply rooted in the law governing the relationship
between appeal
courts and courts of first instance. Therefore, the proper approach
on appeal is for an appellate court to ascertain
whether the
discretion exercised by the lower court was a discretion in the true
sense or whether it was a discretion in the loose
sense. The
importance of the distinction is that either type of discretion will
dictate the standard of interference that an appellate
court must
apply.
[84] In
Media Workers Association
the court defined a discretion in
the true sense:
“
The
essence of a discretion in [the true] sense is that, if the
repository of the power follows any one of the available courses,
he
would be acting within his powers, and his exercise of power could
not be set aside merely because a Court would have preferred
him to
have followed a different course among those available to him.”
[85] A
discretion in the true sense is found where the lower court has a
wide range of equally permissible options
available to it. This type
of discretion has been found by this court in many instances,
including matters of costs, damages and
in the award of a remedy in
terms of s 35 of the Restitution of Land Rights Act. It is true in
that the lower court has an election
of which option it will apply
and any option can never be said to be wrong as each is entirely
permissible.
[86] In
contrast, where a court has a discretion in the loose sense, it does
not necessarily have a choice between
equally permissible options.
Instead, as described in
Knox
, a discretion in the loose sense
–
“
mean[s]
no more than that the court is entitled to have regard to a number of
disparate and incommensurable features in coming to
a decision.”
…
.
[88]
When a lower court exercises a discretion in the true sense, it would
ordinarily be inappropriate for an
appellate court to interfere
unless it is satisfied that this discretion was not exercised –
‘
judicially,
or that it had been influenced by wrong principles or a misdirection
on the facts, or that it had reached a decision
which in the result
could not reasonably have been made by a court properly directing
itself to all the relevant facts and principles.’
An appellate court ought
to be slow to substitute its own decision solely because it does not
agree with the permissible option
chosen by the lower court.’
[32]
It is so that the court
a
quo
was exercising a discretion in the
true sense when it dismissed the condonation application, as it could
either dismiss it or grant
it, both options being available to it.
Regrettably, however, the Labour Court did not deal with the
explanation for the delay
which was tendered by the appellants. It
merely said, as a matter of conclusion, that the explanation for the
lateness was incomplete
in that the whole period of delay was not
accounted for. What the court did not do is to deal with the
explanation itself –
the period accounted for and the period
that it felt was not accounted for. A close examination of the Labour
Court’s reasons
for dismissing the condonation application
leaves one still wondering which part of the 17 or 18 months delay
period was not accounted
for. The importance of this lies in the fact
that a court is not entitled, in the exercise of its discretion, to
merely pronounce,
as a matter of conclusion, that the condonation
application must fail with not even a scant elaboration on how that
decision was
arrived at. This offends against the principle that
courts must provide reasons for the decisions they make. I do not
understand
how it can be said that the explanation is incomplete or
that some of the period is not accounted for without reference to the
explanation that was given.
[33]
In the founding affidavit, the appellants
say that when the matter was conciliated on 7 February 2020, the
commissioner informed
them that they should refer the matter to the
CCMA for arbitration. They followed that advice, resulting in the
matter being set
down for arbitration on 11 March 2020. In
preparation for the arbitration, the respondent filed submissions on
3 March 2020 relating
to the said arbitration. In those submissions,
the respondent took issue with the late referral for arbitration.
However, and before
the arbitration sat, the respondent sent an SMS
to the appellants on 9 March 2020, two days before the date of
arbitration, indicating
that if the appellant withdrew the matter
from arbitration and signed the new contracts, they should report to
the respondent’s
office by 11:00 on 10 March 2020. In the
period of a little more than one year from 11 March 2020, the matter
became embroiled
in no less than seven hearings and rulings by
various commissioners of the CCMA on one issue or the other.
[34]
Two rulings are of some significance, one
being that of commissioner Byrne on 9 November 2020. What was before
commissioner Byrne
was the issue of legal representation. The second
issue was an application for the rescission of an earlier condonation
ruling.
The last issue which is also very important was that the
appellants wanted to make submissions on the nature of the dispute.
This
ruling was issued some 10 months or so before commissioner
Sithole’s ruling on 15 September 2021 that the CCMA had no
jurisdiction
to arbitrate the matter. Commissioner Sithole’s
reason for that ruling was that in terms of section 187 read with
section
191 of the LRA, the dispute was about an automatically unfair
dismissal which ought to be adjudicated by the Labour Court. The
commissioner Sithole ruling, which was preceded by the commissioner
Byrne ruling of 9 November 2020, was the direct obverse of the
earlier ruling of 9 November 2020. Commissioner Byrne ruled that the
nature of the dispute was that of a dismissal due to misconduct.
[35]
For almost a year from October 2020 to 15
September 2021, confusion reigned as to the nature of the dispute
with different commissioners
arriving at different conclusions on the
same issue. It is therefore fair to say that of the 17 or 18 months
delay that the Labour
Court referred to, almost a year thereof was
mired in controversy with two contradictory rulings on the same
subject matter by
the CCMA commissioners. It was not argued before
the Labour Court or before this Court that commissioner Byrne’s
ruling should
have been ignored by the appellants. In fact, it was
the appellants’ argument that they had to deal with the CCMA
rulings.
A significant portion of the delay period that the Labour
Court referred to is punctuated by CCMA preliminary rulings on
different
issues. It is clear that the appellants were not sitting
idly or being supine. They were actively pursuing their dismissal
dispute
based on what they were advised, rightly or wrongly, was the
correct route to follow by either their union or one or other legal
representative.
[36]
The
argument that, because the appellants were at all material times
represented either by a union official or legal representatives,
while it sounds attractive, ignores the fact that even where a person
has been legally represented, it does not necessarily follow
that
condonation will always be refused. In fact, the interests of justice
may very well point to the granting of a condonation
application
being in the interests of justice even where a litigant was legally
represented and had the benefit of legal counsel.
In
Saloojee
and Another, NNO v Minister of Community Development,
[5]
Steyn CJ said:
‘
This
Court has on a number of occasions demonstrated its reluctance to
penalise a litigant on account of the conduct of his attorney.
A
striking example thereof is to be found in
R
v Chetty
1943 AD 321.
In that case
there was an even longer delay than here, and the excuses offered by
the attorney concerned were clearly unsatisfactory,
but the Court
nevertheless granted condonation. Feetham JA remarked…:
“
So
far, however, as appeared from the papers before us, the applicant
himself was not responsible for the delays which have occurred,
save
in so far as he continued to allow his case to remain in the hands of
an attorney who had shown himself unworthy of his confidence,
and, in
view of the serious nature of the conviction recorded against the
applicant, and of the fact that he was given leave to
appeal by the
Transvaal Provincial Division, the application for condonation is now
granted.”
In
Regal v African
Superslate (Pty) Ltd
1962 (3) SA 18
(AD) at p.23 also, this Court
came to the conclusion that the delay was due entirely to the neglect
of the applicant’s attorney,
and held that the attorney’s
neglect should not, in the circumstances of the case, debar the
applicant, who was himself in
no way to blame, from relief.’
[37]
On the issue of the prospects of success,
the Labour Court again, regrettably, did not express a view on the
appellants’ prospects
of success on the merits. The court
merely made a fleeting reference to prospects of success without any
indication that it evaluated
the appellants’ prospects. How it
evaluated where the interests of justice lay is therefore impossible
to tell. It seems
to have relied on the fact that because in its view
there was no reasonable explanation for the delay, that was the end
of the
matter.
[38]
Some of the history of this matter which
incidentally, is nicely captured in the Labour Court’s
judgment, is that there was
a merger between the appellants’
former employer, Datelec with the respondent in July 2019. That
process led to the appellants’
employment being transferred to
the respondent in terms of section 197 of the LRA. This was followed
by an engagement between the
respondent and the appellants about
proposed changes to working conditions. There was a dispute about
working conditions including
proposed changes to working hours as a
result of which the appellants refused to sign the new employment
contracts. The respondent
then referred that dispute to NBCEI which
was conciliated on 21 November 2019 with the conclusion being that
the parties would
further engage in negotiations and that referral
was withdrawn. On 26 November 2019, the appellants’ union
official, Ms Sethoane,
and the respondent’s representative, Mr
De Wet, held a meeting to discuss the issues. It transpired that the
union shop stewards
and Ms Sethoane had no mandate from the
appellants resulting in the failure of that attempt at resolving the
dispute. The agreement
though was that the first appellant would be
assisted with transport to visit the various sites of the respondent
to seek a mandate.
The respondent did not provide the transport as
promised and therefore no mandate about the proposed changes was
obtained.
[39]
On 29 November 2019, the respondent’s
employees including the appellants left their workplace according to
the usual Datelec
arrangements at 13h00. This led to the suspension
of the appellants and other employees on 4 December 2019. Apparently,
despite
there being no mandate, Ms Sethoane had agreed that the
employees would accept the respondent’s new conditions of
employment.
This led to the employees being charged with misconduct
for refusing to work in accordance with the respondent’s
conditions
of employment by leaving the workplace early and without
authorisation on 29 November 2019. The employees who had also been
charged
but had agreed to the new terms and conditions of employment
and signed the new contracts of employment were not subjected to the
disciplinary process. They were just given final written warnings.
The appellants were subjected to a disciplinary process on 10
and 11
December 2019 and were all found guilty and dismissed.
[40]
It is clear from the above summary that the
appellants were charged with misconduct and dismissed. It is equally
clear that the
misconduct complained of was related directly or
indirectly to their refusal to accept the new terms and conditions of
employment
subsequent to a section 197 merger between Datelec and the
respondent. That is part of the dispute that must be adjudicated by
the Labour Court. The referral form to the NBCEI for conciliation
completed by the first appellant indicates that the nature of
the
dispute was dismissal, misconduct, unknown reason and section 197
transfer. They also summarise the facts as being a refusal
to work
according to the respondent’s conditions of employment. It is
clear that the NBCEI, the CCMA and the attorney/s who
represented the
appellants played some role in the predicament that the appellants
found themselves in, in issuing the statement
of claim and thus
referring the matter to the Labour Court for adjudication as late as
they did.
[41]
In all these circumstances the question is,
what do the interests of justice require? It is trite that the court
has a discretion
which must be exercised judicially upon
consideration of all the facts. The facts to be considered include
the degree of lateness,
the explanation for the delay, the prospects
of success and the importance of the case. These are to be considered
conjunctively
and not disjunctively. The Labour Court does not appear
to have observed these trite principles. Axiomatically, the question
is
whether the court exercised the discretion it enjoyed judiciously
in the circumstances. I do not think so far the reasons already
adumbrated above. It is clear that while the court exercised a
discretion in the true sense, it did so influenced by wrong
principles
and a misdirection on the facts when it concluded baldly
that the explanation for the delay was inadequate. That being the
case,
the Labour Court did not exercise its discretion judicially as
it misdirected itself on facts and the misapplication of the legal
principles involved. This entitles this Court to interfere with the
discretion exercised by the Labour Court.
[42]
In
National
Coalition for Gay and Lesbian Equality and Others v Minister of Home
Affairs and Others
[6]
,
the court expressed the principle of interference by the appeal court
as follows:
‘
A
court of appeal is not entitled to set aside the decision of a lower
court granting or refusing a postponement in the exercise
of its
discretion merely because the Court of appeal would itself, on the
facts of the matter before the lower court, have come
to a different
conclusion; it may interfere only when it appears that the lower
court had not exercised its discretion judicially,
or that it had
been influenced by wrong principles or a misdirection on the facts,
or that it had reached a decision which in the
result could not
reasonably have been made by a court properly directing itself to all
the relevant facts and principles.’
[43]
Finally,
as the court said in
Grootboom
v National Prosecuting Authority and Another
[7]
,
the standard for considering an application for condonation is the
interests of justice. It said:
‘
[The
interests of justice include] the nature of the relief sought; the
extent and cause of the delay; the effect of the delay on
the
administration of justice and other litigants; the reasonableness of
the explanation for the delay; the importance of the issue
to be
raised in the intended appeal; and the prospects of success.’
[44]
It seems to me that the interests of
justice call for the granting of the condonation application. This is
so,
inter alia
,
because, there is such a close nexus between the alleged misconduct
for which the appellants were charged and dismissed and the
issue of
them being allegedly required to abide by newly imposed conditions of
employment subsequent to a section 197 transfer.
Section 197 transfer
process is so fundamental and affects so many employees in different
sectors of the economy and industries
that it should not easily be
allowed, without due consideration, to be a basis for the dismissal
of employees without proper ventilation
of the issues that played
out. The considerations of the issue of the prejudice the respondent
complains of are far outweighed
by the automatically unfair dismissal
issues the appellants intend to raise at the trial. In all these
circumstances, the appeal
must succeed.
[45]
In consideration of the issues involved,
the law and the requirements of fairness, together with the fact that
the costs granted
by the Labour Court have been abandoned by the
respondent (and correctly so), I find that the costs in the appeal
should not be
granted to either party.
[46]
In the result, the following order is
issued:
Order
1.
The appeal is upheld.
2.
The order of the Labour Court is set aside and substituted with the
following order:
‘
1.
The application for condonation is granted with no order as to
costs.’
3.
There is no order as to costs.
M.S. JOLWANA
Molahleli AJP and Musi
AJA concur.
Appearances:
COUNSEL FOR THE
APPELLANT: P. Mthombeni
Instructed by Ditabe &
Wager Attorney
COUNSEL FOR THE
RESPONDENT: H. Gerber SC
Instructed by Clarinda
Kugel Attorneys
[1]
Section
187(1)(c)
of the
Labour Relations Act 66 of 1995
provides that a
dismissal is automatically unfair if the employer, in dismissing the
employee, acts contrary to
section 5
or, if the reason for the
dismissal is due to the employee’s refusal to accept a demand
in respect of any matter of mutual
interest between the employer and
employee.
[2]
Act 66 of 1995, as amended.
[3]
Section
187(1)(g) provides that:
‘
(1)
A dismissal is automatically unfair if the employer, in dismissing
the employee, acts contrary to section 5 or, if the
reason for the
dismissal is –
…
(g) a transfer, or a
reason related to a transfer, contemplated in section 197 or 197A…’
[4]
[2015] ZACC 22
;
2015
(5) SA 245
(CC) at paras 83 – 86 and 88.
[5]
1965
(2) SA 135
(A) at 140 H to 140H-141.
[6]
[1999] ZACC 17
;
2000
(2) SA 1
(CC) at para 11.
[7]
[2013] ZACC 37
;
2014
(2) SA 68
at para 22.
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