Case Law[2025] ZALAC 31South Africa
Shave and Gibson Packaging (Pty) Ltd v African Meat Industry and Allied Trade Union and Another (DA21/23) [2025] ZALAC 31; [2025] 8 BLLR 819 (LAC); (2025) 46 ILJ 1923 (LAC) (28 May 2025)
Labour Appeal Court of South Africa
28 May 2025
Headnotes
strictly in the area defined in the attached map. At no time will the picketers obstruct any entrance to the Company’s plants.’[2] Barring a few minor insertions, the draft picketing rules referred to in the order were confirmed and the area referred to as the
Judgment
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## Shave and Gibson Packaging (Pty) Ltd v African Meat Industry and Allied Trade Union and Another (DA21/23) [2025] ZALAC 31; [2025] 8 BLLR 819 (LAC); (2025) 46 ILJ 1923 (LAC) (28 May 2025)
Shave and Gibson Packaging (Pty) Ltd v African Meat Industry and Allied Trade Union and Another (DA21/23) [2025] ZALAC 31; [2025] 8 BLLR 819 (LAC); (2025) 46 ILJ 1923 (LAC) (28 May 2025)
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FLYNOTES:
LABOUR – Dismissal –
Picketing
rules
–
Interdict
restricting picketing to a demarcated area – Employees
continued picketing outside designated area –
CCMA later
established formal picketing rules but non-compliance persisted –
Dismissals of identified employees were
substantively fair due to
deliberate and prolonged breach of picketing rules and court order
– Justified dismissal
for gross insubordination –
Dismissals of unidentified employees were unfair – Appeal
partially upheld.
THE LABOUR APPEAL
COURT OF SOUTH AFRICA, DURBAN
Not Reportable
case
No:
DA21/23
In
the matter between:
SHAVE AND GIBSON
PACKAGING (PTY) LTD
Appellant
and
AFRICAN MEAT INDUSTRY
AND ALLIED
TRADE UNION
(AMITU)
First Respondent
DISMISSED EMPLOYEES OF
THE APPELLANT
Second Respondents
Heard
:
13 November 2024
Delivered
:
28 May 2025
Coram:
Savage ADJP, Van Niekerk JA, Govindjee AJA
JUDGMENT
GOVINDJEE, AJA
Background
[1]
This appeal concerns events that occurred almost seven years ago. On
18 June 2018, members of the first respondent (AMITU)
embarked on a
protected strike demanding a wage increase. The strike continued
until 6 August 2018 and was marred by acts of violence
and
intimidation.
[2]
The appellant (the company) approached both the Labour Court and the
CCMA on various occasions during the strike in an
attempt to protect
its rights. It successfully applied for an interdict on 22 June 2018
(the order). Pending the finalisation of
picketing rules by the
Commission for Conciliation, Mediation and Arbitration (CCMA), the
relief obtained was wide-ranging. AMITU
was ordered to ensure that
its striking members complied with the order and its officials and
office bearers were directed to make
the contents of the order known.
Those on strike were interdicted and restrained from harassing,
intimidating and interfering with
non-striking employees, and from
unlawfully obstructing access and egress at the main gate by
disrupting traffic. The employees
were also restrained from
approaching or being within 10 metres of the workplace. In addition,
the employees were ordered ‘
to comply with the draft
Picketing Rules agreement in that the individual Respondents must
picket in the demarcated area as identified
by the Applicant, pending
the outcome of the CCMA hearing on Picketing Rules
’.
[3]
On 3 July 2018 the CCMA
established picketing rules (the picketing rules), in terms of
section 69(5) of the Labour Relations Act,
[1]
(LRA) as worded at the time, and provided that ‘
[t]he
picket will be held strictly in the area defined in the attached map.
At no time will the picketers obstruct any entrance
to the Company’s
plants
.’
[2]
Barring a few minor insertions, the draft picketing rules referred to
in the order were confirmed and the area referred to as the
appropriate place for picketing was the same demarcated area. A
number of employees nonetheless continued to picket in their
preferred
area, rather than within the demarcated area.
[4]
The position only changed
a week later. On 10 July 2018, Lagrange J heard an application to
institute contempt proceedings on an
urgent basis and issued a rule
nisi
,
returnable on 7 August 2018, calling upon the respondents to show
cause why they should not be found guilty of contempt and punished
for non-compliance with the order (the rule
nisi
).
Employees were now interdicted from conducting any picketing
activities within one kilometre of the company’s premises.
As a
result, the picketing employees moved away from the space they had
been occupying.
[3]
[5]
More than 160 employees
were subsequently charged, found guilty and dismissed for the
following four forms of misconduct: participation
in unprotected
industrial action which was not functional to collective bargaining
in
the form of violence and intimidation, unreasonable demands and the
protracted duration of the industrial action
;
derivative misconduct;
[4]
contempt of the order;
intimidation,
harassment and threatening fellow employees by carrying sticks,
knobkerries, sjamboks and other weapons, also threatening
and
intimidating the appellant’s customers and suppliers. The
charge sheet included the following alternatives to the charge
of
contempt:
‘
Being … in
breach of the picketing rules in that you did not remain in the
designated picketing area as provided in the picketing
rules and that
you are within the 10m perimeter area, further you were gathered at
the gate of the applicants’ premises interfering
and hindering
access and egress to Shave & Gibson’s premises.’
The
Labour Court decision
[6]
Only 126 employees challenged the fairness of their dismissals before
the Labour Court. On the first charge, the court
found that these
employees were part of the strike called by AMITU. The strike was
protected and never lost that status, despite
being marred by various
instances of violence and intimidation linked to the strike. The
company never approached the court for
an order to interdict or
suspend the strike given the extent of violence and intimidation
arising from it, and there was
no ultimatum. On the second
charge, dismissal due to derivative misconduct was rejected absent
evidence of actual knowledge, on
the part of the employees, of the
identity of those responsible for the primary misconduct. The
appellant had also failed to comply
with its reciprocal duty to
guarantee the safety of those employees who may have been able to
provide the necessary information.
Furthermore, the appellant had the
means to obtain the information without burdening the employees, for
example through the use
of photographs. The Labour Court also held
that there was no evidence that the employees were complicit in the
various acts of
misconduct referred to in the charge.
[7]
In respect of the contempt charge, the Labour Court held that its own
order was contradictory, so that the employees ought
not to have been
dismissed on this basis. Alternatively, the conduct of the employees
was ‘
not that serious
’ absent a ‘
code or
regulation that pickets must be out of sight of non-strikers or in a
place where the picketers are not in a position to
see who enters the
workplace
’, so that the sanction of dismissal was
unjustified. In addition, the employees had ‘
substantially
complied with the order of 10 July in that there was consensus
that they moved to a field 700 metres away from
the [company]
premises
’.
[8]
On the charge of
intimidation, harassment and threatening behaviour, barring two
employees, the Labour Court held that there
was no evidence to link
the employees to any acts of intimidation, harassment or assault of
specific individuals, or to the prevention
of access or egress to the
premises. The dismissal of those two employees was found to be fair,
as was the dismissal of 16 individuals
identified as carrying weapons
subsequent to the interdict, and contrary to the Code of Good
Practice on Picketing which was applicable
at the time.
[5]
[9]
It must be noted that
these 18 employees formed part of a group of 90 employees who were
actually identified, mainly by way of photographs,
during the course
of the picket.
[6]
The other 72
members of that group, together with 36 employees who could not be
identified as having committed any misconduct during
the strike, were
reinstated with effect from 14 June 2019.
[7]
The
appeal
[10]
There is no dispute that the case of the 18 employees found by the
Labour Court to have been fairly dismissed for misconduct
falls
outside the scope of this appeal. The appeal is directed at the
Court’s finding that the dismissal of the remaining
108
employees (the 72 remaining ‘identified’ employees on
list ‘SG 4’ and the 36 ‘unidentified’
employees on list ‘SG 2’) was substantively unfair. Two
grounds of appeal were pursued and require consideration. Firstly,
it
is argued that the Labour Court erred in drawing an arbitrary
distinction between individuals who were armed before and after
the
order. Secondly, the company contends that on the evidence, the
dismissal of all 126 employees was substantively fair because
they
persistently contravened the picketing rules by picketing outside the
demarcated area. This calls into question the correctness
of the
Labour Court’s findings that the terms of the order were
contradictory, that the employees had not committed an act
of
misconduct by continuing to picket outside of the designated area and
that, even if they had, dismissal was too harsh a sanction
in the
circumstances.
Breach
of the demarcated area
The
demarcated area
[11]
In terms of the
recognition agreement concluded between the company and AMITU during
2017, picketing was prohibited ‘
within
ten metres from the entire front façade of all premises
occupied by the company’
.
[8]
The front façade of the company’s premises on
South Coast Road was only slightly more than ten metres from this
road, and ran parallel to the road. As a result, strict adherence to
the terms of the recognition agreement would effectively have
precluded any picketing in the area between South Coast Road and the
company premises. This accorded with the company’s original
intention. When the parties were unable to reach agreement on
picketing rules prior to the commencement of the strike, the company
proposed a rectangular space between the front façade and
South Coast Road, approximately 150 metres from a boom situated
at
the only entrance to be used during the strike, as its preferred
location for the picket (the demarcated area).
[9]
The location of the demarcated area was both a deviation from the
recognition agreement and a concession on the part of the company,
given that it was almost entirely within ten metres from the
company’s front façade. Draft picketing rules made
reference
to this area and this information was posted on company
notice boards and reiterated by senior company personnel on the
morning
the strike commenced. The demarcated area was known to AMITU
and the employees who participated in the strike. It was marked and
cordoned off with red tape prior to the commencement of the strike,
before being removed by those employees who were determined
to picket
closer to the entrance to the company’s premises.
Unidentified
employees
[12]
The company argued that
even those employees who were unidentified during the picket were
fairly dismissed. This was on the basis
that each of the 126
employees before the Labour Court had participated in the strike.
Indeed, in its judgment, the Labour Court
recorded a concession to
this effect, a finding not challenged on appeal. But it does not
necessarily follow that participation
in the strike equated to a
breach of the picketing rules or amounted to contempt of the order.
There is a fundamental distinction
to be drawn between those
employees identified as having picketed outside of the demarcated
area, namely those employees listed
in SG 4, and those not so
identified (and listed in SG 2). Bearing in mind that the strike
remained a protected strike, the argument
that employees not
identified by the company as having acted in breach of the picketing
rules should be treated similarly to those
who were specifically
identified is untenable. This is tantamount to dismissing the
employees listed in SG 2 purely for their participation
in a
protected strike.
[10]
Absent
any evidence that these employees actually picketed outside the
demarcated area, or a proper basis for drawing an inference
to that
effect, they could not have been guilty of contravening the order by
assimilation.
[11]
The evidence
that these employees were ‘
part
of the process
’
and
associated themselves with that unruliness, which spoke to their
‘
attitude’
,
is wholly insufficient.
[13]
Any misconduct on the part of those identified as having breached the
picketing rules cannot simply be attributed to
those employees who
were not so identified. The refusal or failure to remain in the
designated picketing area extended over a period
of days after the
granting of the order, and the company clearly had the means to
record the acts of individual employees and identify
them. In the
absence of the identification of those employees listed in SG 2,
their dismissals cannot be sustained. The Labour
Court’s
finding that the dismissal of the employees listed in SG 2 was
substantively unfair must accordingly be upheld. There
is no reason
to interfere with the Labour Court’s reasoning in ordering the
reinstatement of the unidentified employees listed
in SG 2, on the
terms that it was granted.
Identified
employees
[14]
The real issue in dispute pertains to the employees whose names
appear on SG 4, those employees who, after the order
was granted,
were identified during picketing but not proven to have committed
misconduct in the form of carrying weapons, intimidation,
harassment
or assault. In effect, the company seeks to justify their dismissals
on the basis of their non-adherence to the order
and the picketing
rules, which both stipulated the demarcated area as the appropriate
place for picketing. For convenience, the
reference to ‘the
employees’ in the paragraphs that follow refers to this group.
[15]
It was AMITU’s
prerogative to authorise a picket by its members for purposes of
peaceful demonstration in support of the protected
strike.
[12]
The LRA provides that an authorised picket may be held, even without
the permission of the employer, in any place to which the
public has
access but outside the premises of an employer.
[13]
Despite the engagement between the parties prior to the commencement
of the strike, no formal agreement regarding picketing rules
was
reached by them. As such, the employees were free to picket in their
preferred area outside the company’s premises.
[16]
The position changed
after the company approached the Labour Court and obtained the order.
As described above, in addition to regulating
the conduct of the
employees, the order restrained the employees from approaching or
being within 10 metres of the workplace, and
restricted picketing to
the demarcated area until a commissioner established picketing
rules.
[14]
In effect, the
company’s insistence as to the appropriate place for picketing
now received the Labour Court’s imprimatur.
[17]
The evidence supports the
conclusion that the employees were fully aware of the location of the
demarcated area. This much is evident
from the interactions between
the company and AMITU prior to the commencement of the strike,
including the manner in which the
space was cordoned off with tape
prior to this being removed by the employees. According to Mr Downes,
the company’s chairman,
fresh tape used to cordon off the area
again was also removed, and the employees continued to occupy the
space they preferred.
The employees neither misinterpreted the order
nor mistook the location of the demarcated area and the decision not
to remain in
that space was considered and deliberate. This is
evident from the interaction between Messrs Mkhwanazi, AMITU’s
general
secretary, and Staats, the company’s group financial
director, at the time the order was served.
[15]
When Staats made the point that the order had referenced the
demarcated area, and that employees would be in contempt, Mkhwanazi’s
response was as follows:
‘
I’m not
agreeing with that. That is why I’m saying that you can proceed
with the contempt, we will defend. We reserve
our rights …
Proceed with your legality, but I’m going to, as I say to you,
we reserve our right to defend.’
[18]
Video footage captured their interaction. Mkhwanazi repeated his
willingness to stand in contempt of the order more than
once. He
maintained that the employees were ‘
in dispute
’
about the demarcation area, so that he had effectively advised the
employees to ignore the demarcated area on the understanding
that
they would nevertheless be in compliance with the order. As another
witness called on behalf of AMITU testified, the outcome
was that the
employees simply continued to occupy the space that they were in,
without moving to the demarcated area, despite the
proper service of
the order and the clear implications of its content.
[19]
Interpretation is the process of attributing meaning to the words
used in the order having regard to the context provided
by reading
the contested provision in the light of the document as a whole and
the circumstances attendant upon its coming into
existence.
Consideration must be given to the language used in the order in the
light of the ordinary rules of grammar and syntax;
the context in
which the provision appears; the apparent purpose to which it is
directed and material known to those responsible
for its production.
Where more than one meaning is possible, each possibility must be
weighed objectively in the light of all these
factors. A sensible
meaning, as opposed to one that is unbusinesslike or undermines the
apparent purpose of the document, is to
be preferred.
[20]
Properly construed, the order was unequivocal and peremptory. The
Labour Court restricted its focus to the language used,
erroneously
ignoring the evidence regarding the circumstances that resulted in
the granting of the order and the importance of
the demarcated area
to the company. It also ignored the manner in which AMITU had
contrived to feign confusion regarding the location
of the demarcated
area, when in fact this had always been readily apparent. Considering
the purpose of the provision in context,
the order clearly required
picketing to be restricted to the demarcated area pending the CCMA’s
determination of picketing
rules. That the order also restricted the
employees from approaching or being within 10 metres of the workplace
could not negate
the location of the demarcated area. There was no
contradiction between these provisions and the Labour Court’s
approach
resulted in the negation of its own earlier order pertaining
to the appropriate place for picketing. This was unjustified. In
addition,
after the picketing rules were established by the CCMA on 3
July 2018, there could be no basis whatsoever for the employees to
continue to ignore the existence and location of the demarcated area.
The Labour Court erred in its failure to appreciate the importance
of
this development.
[21]
The consequence is that
the company succeeded in proving the existence of a workplace rule
pertaining to the place for picketing,
[16]
one that the company had consistently sought to enforce through its
approaches to the Labour Court and CCMA. From the time the
order was
served, the employees contravened that rule by picketing at the
entrance boom and in the space between the boom and the
demarcated
area, instead of restricting the picket to the demarcated area as
ordered. The rule was reasonable and, considering
the evidence,
particularly the various ways in which the contents of the order was
communicated, the employees were aware, or could
reasonably be
expected to have been aware of the rule. There is no suggestion to
the contrary, or that the rule was applied inconsistently.
In any
event, the importance of complying with a court order, also in a
workplace context, is so well established and widely known
that it
would be superfluous to require further forms of communication. In
effect, the employees acted insubordinately in continuing
to picket
where they did and the company succeeded in proving its alternative
charge to contempt of court. There is no merit to
the suggestions
that the rule was ‘in dispute’, that the court had been
misled in granting the order, or that there
had been due compliance
with the order. The demarcated area was contravened without
justification. The remaining question is whether
dismissal was an
appropriate sanction.
Was
dismissal an appropriate sanction for breach of the designated area?
[22]
In the circumstances, it
is open to this court to draw its own conclusion as to whether
dismissal was appropriate for the proven
misconduct.
[17]
Determining a fair sanction entails a value judgment following
consideration of all relevant factors.
[18]
The importance of the rule and flagrancy of the breach are indicators
of the gravity of the misconduct. In addition, the employees’
circumstances (including length of service, previous disciplinary
record and personal circumstances), the nature of the job and
the
circumstances of the infringement itself are relevant.
[19]
The factors are open-ended and may, for example, include remorse
shown by employees for non-compliance with the rules.
[20]
The totality of the circumstances must be taken into account.
[21]
[23]
The point of departure is that the designated area in which picketing
was to be conducted was a serious matter for the
company, so much so
that it approached the Labour Court, which duly restricted picketing
to the demarcated area in peremptory terms.
Mkhwanazi read the order
to the employees on the afternoon of 22 June 2018 and the order was
duly communicated and served. Thereafter,
as explained above, there
could have been no confusion as to the obligation to picket only in
the designated area. After 3 July
2018, when picketing rules were
agreed at the CCMA, there could equally have been no doubt that
picketing was to take place only
within the designated area. In
picketing as they did, the employees’ conduct amounted to both
a breach of the order and,
after 3 July 2018, the breach of picketing
rules determined by the CCMA.
[24]
The rule of law, a founding value of the Constitution, requires that
the dignity and authority of the courts (and in
the case of labour
disputes, the CCMA and bargaining councils clothed with the
jurisdiction to arbitrate disputes) be maintained,
as must their
capacity to carry out their functions. Any act of misconduct that
constitutes a breach of a court order or a determination
made by the
CCMA must necessarily be viewed in that context.
[25]
This is not to suggest that every breach of a picketing rule
established or confirmed by court order or the CCMA will
necessarily
warrant dismissal. Various circumstances may render dismissal
inappropriate. For example, employees may picket marginally
outside
the prescribed area, even for an extended period of time, or picket
well outside the place prescribed but only for a short
period of
time. Each case must be determined on its own facts.
[26]
The employees have all
been treated as first offenders for purposes of determining the
appropriate sanction and it has been assumed
in their favour that
there is little risk of a repeat occurrence should they be
reinstated. It is also to the employees’
advantage, when
considering the context, that the misconduct occurred during the
course of picketing in furtherance of a protected
strike.
[22]
Trade union members enjoy the right to participate in the lawful
activities of the trade union, subject to the union’s
constitution
and, as the judgment of my colleague Savage ADJP rightly
emphasises, everyone has the right, peacefully and unarmed, to
assemble,
to demonstrate and to picket.
[23]
As the Supreme Court of Appeal has explained, a picket, by its
nature, serves to broaden the impact that the withdrawal of labour
of
striking workers has upon the employer by seeking to disrupt
operations which would otherwise continue despite the strike.
[24]
[27]
Such sentiments cannot
undermine the importance of employees’ compliance with
reasonable workplace rules or the dictates of
courts and tribunals
such as the CCMA. While trade unions are at liberty to select their
own tactics, including the adoption of
a confrontational stance,
unions and their members are not permitted to act unlawfully when
striving towards the desired end.
[25]
When dismissal is the result, courts are obliged to scrutinise the
circumstances surrounding the exercise of these rights, particularly
when it is alleged that there has been significant harm to the
employer, fellow employees or to the public.
[26]
[28]
In the present
circumstances, it is accepted that the employees were guilty of
serious misconduct due to their wilful failure to
obey the order and,
later, the picketing rules in respect of the place for picketing.
[27]
Obedience to court orders are a foundational feature of a state based
on the rule of law so that failure to comply with the order
is
accepted as having constituted an aggravating feature of the
misconduct.
[28]
The breach was
not of a technical nature or one that could be described as minimal
or inconsequential. The evidence reveals that
this was neither a case
of employees standing marginally outside the prescribed area for an
extensive period of time, nor was it
a gross violation of the
prescribed place for picketing for only a short period. Instead,
considering the duration of the violation
together with its spatial
extent, the misconduct must be assessed as being both flagrant and
protracted.
[29]
The order, in so far as
the place for picketing was concerned, was disregarded without
justification and this violation continued
day after day for more
than a week in a manner that was tantamount to gross insubordination.
The misconduct was made more egregious
by the fact that the employees
failed to alter their stance for a further week after the
establishment of picketing rules by the
CCMA on 3 July 2018. As
indicated, the picketing rules imposed by the CCMA reflected that the
picket must be held ‘
strictly
in the area defined in
the attached map’.
[29]
The CCMA ruling included the picketing rules as an annexure. Attached
thereto was a single, separate, page clearly depicting and
highlighting the demarcated area in relation to the company’s
premises and South Coast Road.
[30]
Borrowing from cases
involving gross insubordination, the gravity of the offence is
apparent when considering factors such as the
prior steps taken by
the company to ensure that picketing occurred within the demarcated
area, the reasonableness of the company’s
attempts to ensure
strict adherence thereto, and the wilfulness of the employees’
sustained defiance.
[30]
Considered in context, the employees’ conduct led to a
breakdown in the trust relationship, as confirmed by the company’s
witnesses. As Staats put it:
‘
Well, these are
not people that we can, that we can trust again, that we can have in
the factory, that we can afford to have around
our machinery and so
the breakdown of our relationship, the breakdown of the process, the
elongated nature of the process, the
fact that they were so far off
side - off site, just made this whole process facile towards the
end.’
[31]
It may be added that the employees showed no remorse for their
misconduct. Even when called to place a version before
the chair of
the disciplinary enquiry, a respected senior CCMA commissioner, AMITU
elected to disrupt the proceedings and maintained
a confrontational
attitude. None of the employees sought to explain their circumstances
to the company or to explain why they had
persistently stood well
outside the demarcated area, often near the company’s only
entrance, alongside colleagues who carried
weapons and created an
intimidating and hostile environment. One of the results of the
breach of the designated area was that the
employees, including those
carrying weapons, placed themselves day after day in close proximity
to the only entrance to the company
that remained open. The evidence
of Mr Downes confirmed what followed:
‘…
I
witnessed that they continued to rush up to every vehicle [that
approached the entrance], up to the boom, which was then broken,
and
they would rush up and charge up and they would try and intimidate
them, and then march back and then rush up again and then
re-gather.
That’s what happened during the day … despite the court
order.’
[32]
In the circumstances, the
company cannot be criticised for attempting to deter misconduct of
the kind that was proved, as part of
a sensible operational response
to risk management.
[31]
Having
regard to all of the relevant factors, including the examples cited
in the Code of Good Practice: Dismissal as warranting
dismissal for a
first offence, the misconduct perpetrated was sufficiently serious to
warrant the penalty of dismissal. The Labour
Court‘s finding
that their dismissal was substantively unfair stands to be set
aside.
[32]
Given this outcome,
it is unnecessary for present purposes to determine whether the
company had also succeeded in proving a fair
dismissal based on
contempt of court.
Reinstatement
of the unidentified employees
[33]
Finally, it cannot escape
notice that the strike leading to the present proceedings commenced
on 18 June 2018. The Labour Court’s
judgment was delivered on
17 October 2023, the trial having commenced more than a year
previously. More than a year has elapsed
since leave to appeal was
granted so that it is difficult not to experience a sense of unease
as to the ramifications of reinstating
the unidentified employees for
the company. In
Billiton
Aluminium SA Ltd t/a Hillside Aluminium v Khanyile and Others
,
Froneman J expressed the views of the Constitutional Court in respect
of the effect of systemic delay on remedies, as follows:
[33]
‘
Any appeal process
carries its own risk. In
Performing
Arts Council of the Transvaal v Paper Printing Wood and Allied
Workers Union and Others
,
[34]
Goldstein JA stated, in relation to the previous Labour Relations
Act,
[35]
that:
“
Whether or not
reinstatement is the appropriate relief, in my opinion, must be
judged as at the time the matter came before the
industrial court. If
at that time it was appropriate, it would be unjust and illogical to
allow delays caused by unsuccessful appeals
to the Labour Appeal
Court and to this Court to render reinstatement inappropriate. Where
an order for reinstatement has been granted
by the industrial court,
an employer who appeals from such an order knowingly runs the risk of
any prejudice which may be the consequence
of delaying the
implementation of the order.”
[34]
This court is
constitutionally empowered to make any order that is just and
equitable in the circumstances, including the power
to confirm, amend
or set aside the judgment or order that is the subject of the
appeal.
[36]
The Labour Court
reduced the effect of its order of reinstatement by a period of nine
months, given the delay in prosecuting the
matter, and also did not
award costs in favour of AMITU or the employees. There is no basis
for interfering with those decisions
in respect of the employees to
be reinstated. Fairness demands that there be no order of costs in
respect of this appeal.
[35]
Consequently, the following order is made:
Order
1. The appeal is
upheld to the extent set out below.
2. The order of the
court
a
quo
is set aside and replaced with the
following order:
‘
(a) The
dismissal of each of the 90 applicants whose names appear on annexure
SG 4 was substantively and procedurally fair.
b) The dismissal
of each of the 36 applicants who are listed in annexure SG 2
was substantively unfair.
c ) The respondent
is ordered to reinstate each of the 36 applicants listed in annexure
SG 2 in its employ on terms and conditions
of employment not less
favourable than the terms and conditions that governed their
employment at the date of dismissal.
d) The order of
reinstatement will operate with retrospective effect to 14 June 2019.
e) There is no
order as to costs.’
3. No order is made
as to costs of the appeal.
Govindjee AJA
Van Niekerk JA concurs.
SAVAGE ADJP
[36]
I have had the benefit of reading the judgment of my colleague,
Govindjee AJA, with which I agree in part, save for the order
made in
respect of the 90 employees whose names appear on annexure SG 4 (the
SG4 employees).
In relation to the SG 4 employees,
I would dismiss the appeal but vary the order of the Labour Court to
order their reinstatement
retrospective to 14 June 2019 with a final
written warning valid for 12 months for the breach of the picketing
rules.
[37]
The SG4 employees were dismissed for
contempt
of the order of the Labour Court on 22 June 2018 and the breach of
picketing rules. There is no dispute that the SG4 employees
moved
outside of the picket area demarcated in the court order and
picketing rules
.
[38]
Although the SG4 employees were dismissed for contempt of court as
well as a breach of the picketing rules, it bears
noting that no
application was made to the Labour Court to have the employees found
to have been in contempt of that Court order.
While framing the
misconduct as “contempt” is unfortunate, this Court has
repeatedly emphasised that it is the substance
of the alleged
misconduct which must be determined and not the name given to it.
There is no dispute on the facts that the SG4
employees did not
remain within the confines of the demarcated picketing area. I am
satisfied that by so doing they committed misconduct.
Importantly,
however, no acts of violence or intimidation in the course of the
picket was attributed to them.
[39]
The right to picket is
given constitutional protection. Section 17 of the Bill of Rights
provides that “(e)
veryone
has the right the right, peacefully and unarmed, to assemble, to
demonstrate, to picket and to present petitions
”
.
This is echoed in section 69 of the Labour Relations Act,
[37]
which
allows employees to picket in support of a strike.
[40]
In
South
African Transport and Allied Workers Union and others v Garvas and
others
[38]
it was
recognised that:
‘
The right to
freedom of assembly is central to our constitutional democracy. It
exists primarily to give a voice to the powerless.
This includes
groups that do not have political or economic power, and other
vulnerable persons. It provides an outlet for their
frustrations.
This right will, in many cases, be the only mechanism available to
them to express their legitimate concerns. Indeed,
it is one of the
principal means by which ordinary people can meaningfully contribute
to the constitutional objective of advancing
human rights and
freedoms.
The
right to picket must be
exercised
peacefully.’
[39]
[41]
The court noted that:
‘
Freedom of
assembly is no doubt a very important right in any democratic
society. Its exercise may not, therefore, be limited without
good
reason. The purpose sought to be achieved through the limitation must
be sufficiently important to warrant the limitation.’
[40]
[42]
The collective bargaining process reflects, often starkly, the
different interests of the employer and employees, with
the exercise
of the constitutionally protected right to strike used by employees
to exert pressure on the employer, usually in
relation to collective
workplace demands. A strike picket aims to
encourage non-striking employees, and even members of the public, to
support strikers and to put pressure on the employer to meet
strike
demands. The demarcation of the picket line is therefore often not
simply a mechanical task but can reflect
the deeply different needs and interests of the parties. The facts of
this appeal indicate
as much in that despite the demarcation of the
picketing area by order of the court and the picketing rules, the
trade union continued
to make it clear that it was dissatisfied with
the ambit of the picketing area, although it did not seek a variation
of the court
order.
[43]
In
Garvas
the European Court of
Human Rights decision of
Ziliberberg
v Moldova
[41]
was
cited with approval, in which it was made clear that:
‘
[A]n
individual does not cease to enjoy the
right
to peaceful assembly as a
result
of sporadic violence or other punishable
acts
committed by others in the
course
of the demonstration, if the
individual
in question remains peaceful in
his
or her own intentions or behaviour.’
[42]
[44]
D
etermining
whether a dismissal was fair or not involves a value judgment reached
following a consideration of all relevant factors.
[43]
The
mere breach of a picket line cannot in my mind warrant dismissal
without more, for if this were to be so a one-metre breach
of the
line would justify termination of employment. I accept that the
strike was marred by incidents of violence and intimidation
but this
did not have the effect that the striking SG4 employees were not
permitted peacefully in the exercise of their
constitutionally-protected
right either to strike or to picket.
[45]
The unlawful conduct of other strikers is not
to colour a determination as to the fairness of the dismissal of SG 4
employees. The
breach of the picket line by
SG 4 employees
occurred within the context of an extended and difficult strike, and
in circumstances in which there had been a clear
dispute about the
location of the picket line, with no violence or intimidation proved
on the part of SG 4 employees.
[46]
I am unable to agree that the breach of the
picket line by SG4 employees was conduct of such gravity, magnitude
and seriousness
that it justified the imposition of dismissal as the
ultimate and most severe of workplace penalties on the first
occasion. I am
also not satisfied that the conduct of the SG4
employees was shown to have
led to a breakdown in the trust
relationship with the appellant. The evidence of Staats to the
contrary fails, in my mind, to reflect
an appreciation of the
inevitable strain that a protracted strike places on workplace
relationships or the capacity for such relationships
to improve over
time following the conclusion of a strike. T
he
fact that the SG4 employees showed n
o remorse for their
misconduct for standing outside of the demarcated area near to the
only entrance to the company that remained
open, also does not lead
me to a conclusion that this warranted their dismissal.
[47]
The
principle of progressive discipline seeks to ensure
a
structured and graduated approach to employee misconduct, granting an
employee the opportunity to improve their conduct or performance
through imposing less severe corrective actions, escalating these as
necessary. The Code of Good Practice
[44]
recognises that dismissal for a first offence is reserved for cases
in which the misconduct committed is serious and of such gravity
that
it makes continued employment intolerable. Having regard to all
relevant considerations, I agree with the Labour Court that
the
dismissal of SG 4 employees was not fair. I find no reason not to
reinstate such employees with retrospective effect subject
to the
imposition of a final written warning when their continued employment
is neither intolerable nor am I satisfied that their
dismissal was “
a
sensible operational response to risk management”
.
[45]
[48]
For these reasons, in relation to the SG 4
employees, I would dismiss the appeal but vary the order of the
Labour Court to reinstatement
of the employees retrospectively to 14
June 2019, but with a final written warning valid for 12 months for
the breach of the picketing
rules.
Savage ADJP
APPEARANCES:
FOR THE
APPELLANT:
Adv A Myburgh SC
(Heads of argument
prepared by J Dickson SC) Instructed by Farrell Inc
FOR THE
RESPONDENT:
Adv MN Xulu
Instructed
by M Dlamini Attorneys
[1]
Act
66 of 1995, as amended.
[2]
S
69 of the Labour Relations Act, 1995 (Act 66 of 1995) (LRA) has been
amended by the Labour Relations Amendment Act, 2018 (Act
8 of 2018)
with effect from 1 January 2019.
[3]
The
rule was discharged on 7 August 2018. Save for one employee, Mr
Phumlani Mkhize, the remaining employees were not held to
be in
contempt of court. The Labour Court made a ruling prior to the
commencement of the trial indicating that the company was
nonetheless entitled to charge the employees with misconduct
pertaining to non-compliance with the order.
[4]
The
basis of this charge was the failure of employees to provide details
as to those involved in various acts of misconduct, including:
the
stoning of a vehicle belonging to the appellant and the stoning of a
Baker’s Transport vehicle; the firebombing of
a vehicle
belonging to the appellant on 29 June 2018 outside the company
premises in Mobeni; the shooting at a vehicle belonging
to the
appellant and driver of the vehicle on 24 July 2018 outside the same
company premise.
[5]
Code
of Good Practice on Picketing
(GN
765 of 15 May 1998), repealed by GNR.279 published under
GG
442260
of 1 March 2019.
[6]
It
may be that the actual number was 17, the name ‘Blessing
Mkhize’ appearing twice in the order of the Labour Court.
[7]
The
Labour Court decision has been reported as
African
Meat Industry and Allied Trade Union (AMITU) and Others v Shave and
Gibson Packaging (Pty) Ltd
[2023]
ZALCD 17;
[2024] 1 BLLR 54
(LC); (2024) 45 ILJ 79 (LC).
[8]
On
the meaning of the term ‘picket’, see
National
Union of Metal Workers of South Africa and Others v Dunlop Mixing
and Technical Services (Pty) Ltd and Others
(
Dunlop
)
[2020] ZASCA 161
;
[2021] 3 BLLR 221
(SCA); (2021) 42 ILJ 475 (SCA);
2021 (4) SA 144
(SCA) para 33.
[9]
In
terms of measurements accepted by the Labour Court, the demarcated
area was 10,68m x 37,81m, and was in the area between the
company’s
front façade and South Coast Road, approximately 150 metres
from a boom situated at the only entrance
used by the company during
the strike.
[10]
See
Commercial
Stevedoring Agricultural and Allied Workers’ Union and Others
v Oak Valley
Estates
(Pty) Ltd and Another
[2022]
ZACC 7
;
[2022] 6 BLLR 487
(CC);
2022 (7) BCLR 787
(CC);
2022 (5) SA
18
(CC) at para 42.
[11]
National
Union of Metalworkers of South Africa obo Nganezi and Others v
Dunlop Mixing and Technical Services (Pty) Limited and
Others
[2019]
ZACC 25
;
2019 (8) BCLR 966
(CC); (2019) 40 ILJ 1957 (CC);
[2019] 9
BLLR 865
(CC);
2019 (5) SA 354
(CC) at para 81. Also see the
discussion in B Ramji, S Sibiya and H Ramji ‘Tracing the
historical development of employers’
legal remedies against
strike action: Derivative misconduct, interdicts and dismissal by
common purpose’
CCR
(2024)
(vol 14) 207 at 223 and following.
[12]
Section
69(1)(
a
)
of the LRA.
[13]
Section
69(2) of the LRA.
[14]
See
para 2, above. Absent agreement on picketing rules following the
intervention of the CCMA, the CCMA ‘
must
establish picketing rules
’
:
s 69(4) and s 69(5) prior to amendment by the Labour Relations
Amendment Act, No. 8 of 2018 (Government Gazette 42061 dated
27
November 2018), with effect from 1 January 2019.
[15]
Various
attempts were made to communicate the contents of the order to the
employees. The employees were individually advised,
by bulk short
message service (SMS), that ‘
the
judge ruled that AMITU can only stand in the demarcated area
’
.
Mkhwanazi also read the contents of the order to the employees, and
the order was served by the sheriff on 25 June 2018. The
return of
service reflects that AMITU’s shop stewards refused to listen
to the sheriff and carried on singing.
[16]
Cf
Panorama
Park Retirement Village v Commission for Conciliation, Mediation and
Arbitration and Others
(2020)
41 ILJ 1200 (LC) at para 32, holding that it is only the court that
could pronounce on whether there was contempt of its
orders or not,
and that an order cannot ‘
automatically
morph into a workplace rule for the purposes of a charge of
insubordination
’
.
Also see, in general,
Lencoane
and Others v Vector Logistics (Pty) Ltd
(JS
958/09)
[2010] ZALC 149
(20 October 2010).
[17]
Transport
and Allied Workers Union of South Africa obo MW Ngedle and 93 Others
v Unitrans Fuel and Chemical (Pty) Limited
[2016]
ZACC 28
;
2016 (11) BCLR 1440
(CC);
[2016] 11 BLLR 1059
(CC); (2016)
37 ILJ 2485 at para 195.
[18]
See
Sidumo
and Another v Rustenburg Platinum Mines Ltd and Others
[2007]
ZACC 22
;
[2007] 12 BLLR 1097
(CC);
2008 (2) SA 24
(CC); (2007) 28
ILJ 2405 (CC)
[2007] ZACC 22
; ;
2008 (2) BCLR 158
(CC) (
Sidumo
)
at para 79: relevant factors to be considered include the importance
of the rule that had been breached; the reason the employer
imposed
the sanction of dismissal; the basis of the employees’
challenge to the dismissal; the harm caused by the employees’
conduct; whether additional training and instruction may result in
the employee not repeating the misconduct; the effect of dismissal
on the employees and their long-service record. Such considerations
have been labelled as ‘objective extras’: see
R Le Roux
and A Adam ‘The many shades of intolerability in the
workplace’ (2024) 141
SALJ
323
at 336. Also see J Grogan
Dismissal
(4
th
Ed)
(2022) 181: the choice of sanction is not a matter of logic or law
and there are situations in which adjudicators may reasonably
disagree that dismissal was appropriate.
[19]
Item
3(5) of the Code.
[20]
See
Grogan above n 18 at 241.
[21]
Sidumo
above
n 18 at para 78.
[22]
See
DM Davis and NM Arendse ‘Picketing’ (1988) 9
ILJ
26.
Also see Ramji
et
al
above
n 11 at 235 on the ‘reconstruction of the striking worker’.
[23]
Section
17 of the Constitution.
[24]
Dunlop
above
n 8 para 33. Also see
Pepsi-Cola
Canada Beverages (West) Ltd v Retail, Wholesale and Department Store
Union, Local 558, Burkart and Reiber personally
and as
representatives of all members of Retail, Wholesale and Department
Store Union Local
558
(2002) 90 CRR (2d) 189 at paras 26 and 27, indexed as
RWDSU,
Local 558 v Pepsi-Cola Canada Beverages (West) Ltd
as
cited in
Growthpoint
Properties Ltd v SA Commercial Catering and Allied Workers Union and
others
(2010)
31 ILJ 2539 (KZD) at para 48.
[25]
National
Union of Public Service and Allied Workers on behalf of Mani and
Others v National Lotteries Board
2014
(35) ILJ 1885 (CC) (
Mani
)
at para 194. Also see
SATAWU
v Garvas and Others
2012
(33) ILJ 1593 (CC) (
Garvas
)
at para 26: the right to protest, picket and assemble is directly
linked to it being exercised peacefully.
[26]
Impala
Platinum Ltd v Jansen and others
[2017]
4 BLLR 325
(LAC) at para 17.
[27]
See
the minority judgment of Dambuza AJ in
Mani
above
n 25 at paras 213, 214.
[28]
Modise
and others v Steve’s Spar Blackheath
[2000]
ZALAC 1
;
2001 (2) SA 406
(LAC) at paras 119, 120. Also see
Pheko
and others v Ekurhuleni City
[2015]
ZACC 10
;
2015 (5) SA 600
(CC);
2015 (6) BCLR 711
(CC) at paras 28
and 30.
[29]
Own
emphasis.
[30]
Mani
above
n 25 at para 214.
[31]
See
Le Roux and Adam above n 18 at 334–335; A van Niekerk
‘Dismissal for misconduct – Ghosts of justice past,
present and future’ in R le Roux and A Rycroft (eds)
Reinventing
Labour Law
(2012)
102 at 117.
[32]
It
may be added that 18 of these individuals were reinstated by the
Labour Court despite admittedly carrying weapons prior to
the date
of the order. Considering the Code of Good Practice on Picketing
applicable at the time, there was no basis for differentiating
between employees who carried weapons after the order, and those who
had done so before. This is a further basis for upholding
the appeal
in respect of these 18 employees.
[33]
Billiton
Aluminium SA Ltd t/a Hillside Aluminium v Khanyile and others
(2010)
31 ILJ 273 (CC) at para 51.
[34]
[1993] ZASCA 201
;
1994
(2) SA 204
(A) at 219H–I.
[35]
28
of 1956.
[36]
Section
174 of the LRA read with s 172 of the Constitution.
[37]
Act
66 of 1995.
[38]
2013
(1) SA 83
(CC) at para 61.
[39]
Garvas
above
n 25
at
para 53.
[40]
Garvas
above
n 25 at para 66.
[41]
ECHR
(Application No 61821/00) (4 May 2004) at para 2.
[42]
Garvas
above
n 25
at
para 53.
Ziliberberg
v Moldova
ECHR
(Application No 61821/00) (4 May 2004) at para 2. See also
Cisse
v France
ECHR
(Application No 51346/99) (9 April 2002) at para 50 and
Christians
Against Racism and Fascism v United Kingdom
(1980)
21 DR 138 (Application No 8440/78) at para 4.
[43]
Sidumo
above
n 18 para 79.
[44]
Item
3(4).
[45]
De
Beers Consolidated Mines Ltd v CCMA and Others
[2000]
9 BLLR 995
(LAC)
at para 22.
sino noindex
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