Case Law[2025] ZALAC 64South Africa
Tsogo Sun Casinos (Proprietary) Limited t/a Emnotweni Casino v South African Commercial Catering and Allied Workers Union obo Mabuso and Others (JA106/24) [2025] ZALAC 64 (27 November 2025)
Labour Appeal Court of South Africa
27 November 2025
Headnotes
that, as it was the evidence of the appellant that the crèche attendant positions were necessary within the appellant’s organisational structure due to regulatory requirements, by retrenching the employees only to later outsource these positions to third parties despite rejecting the individual employee’s earlier proposal to outsource the crèche to them, the appellant’s conduct could only lead to the inference that the retrenchment process was neither genuine nor in good faith.
Judgment
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## Tsogo Sun Casinos (Proprietary) Limited t/a Emnotweni Casino v South African Commercial Catering and Allied Workers Union obo Mabuso and Others (JA106/24) [2025] ZALAC 64 (27 November 2025)
Tsogo Sun Casinos (Proprietary) Limited t/a Emnotweni Casino v South African Commercial Catering and Allied Workers Union obo Mabuso and Others (JA106/24) [2025] ZALAC 64 (27 November 2025)
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sino date 27 November 2025
THE
LABOUR APPEAL COURT OF SOUTH AFRICA, JOHANNESBURG
Not
Reportable
Case
no: JA106/24
In
the matter between:
TSOGO
SUN CASINOS (PROPRIETARY)
LIMITED T/A EMNOTWENI
CASINO
Appellant
and
SOUTH
AFRICAN COMMERCIAL
CATERING
AND ALLIED WORKERS UNION
(SACCAWU)
OBO MAVUSO, NOHLANHLA
AND
2
OTHERS
Respondent
Heard:
11 November 2025
Delivered:
27 November 2025
Coram:
Mahalelo ADJP, Waglay
et
Djaje AJJA
JUDGMENT
WAGLAY,
AJA
Introduction
[1]
This appeal concerns the substantive and procedural fairness of the
dismissal of the three individual employees (individual employees)
following a retrenchment process undertaken by the appellant which
the Labour Court found to be unfair.
[2]
The appellant appeals against the whole judgment and order of the
Labour Court dated 5 April 2024.
[3]
The appeal is opposed by the South African Commercial Catering and
Allied Workers Union (Union), acting on behalf of the individual
employees.
Background
[4]
The individual employees, along with one other employee, were hired
by the appellant to work as crèche attendants responsible
for
the provision of childcare services at the Emnotweni Casino.
[5]
Following the declaration of the national lockdown due to the
COVID-19 pandemic in March 2020, on 26 March 2020, the crèche
was closed, and the employees were placed on layoff. Although the
employees were not remunerated during this period, the appellant
continued to pay towards their contractual benefits, including
medical aid and death and disability insurance benefits.
[6]
While the casino reopened for business in July 2020, the crèche
remained closed, and consequently, the employees remained
on layoff.
[7]
On 27
September 2021, some 18 months after the initial closure of the
crèche, the appellant issued the employees with a notice
in
terms of section 189(3) of the Labour Relations Act
[1]
(LRA). Per the notice, the employees were informed that, as it was
unlikely that the crèche would be reopened at any time
in the
foreseeable future, the appellant proposed the closure of the
facilities and the declaration that the crèche attendant
positions were redundant. The employees were therefore invited to
consult with the appellant on their possible retrenchments and
to
make proposals of alternatives to avoid same.
[8]
The consultations took place over the course of three months, with
four consultation sessions being scheduled, commencing on 27
September 2021 and continuing to around 12 November 2021, during
which the employees were given an opportunity to make representations
and proposals. The consultations proceeded individually with each
employee, although all consultations were scheduled on the same
days.
Minutes were kept by the appellant of each consultation meeting.
[9]
It is common cause that the Union was not involved in the
consultation process, and the individual employees represented
themselves.
[10]
During the consultation process, several alternatives had been
proposed by the individual employees, the implementation of a
rotational
shift system when operating the crèche or the
deployment of the employees to different business units, including
cleaning
or reception services. It was determined by the appellant
that these proposals were not feasible given the impact of the
COVID-19
pandemic on the business of the appellant; consequently,
these proposals were rejected.
[11]
The individual employees also proposed that the creche be outsourced
to them. The employer agreed to revert to them on this issue.
[12]
On or around 18 October 2021, a voluntary retrenchment package (VSP)
was offered to the employees, which offer would lapse on 27
October
2021.
[13]
Only one employee accepted the VSP, while the individual employees
rejected the proposal, and the consultation process continued
with
respect to them.
[14]
Despite consultation meetings being scheduled and/or rescheduled for
29 October, 4 November, and 12 November 2021, none of the
individual
employees attended these sessions. It is not known if the response to
the outsourcing of the crèche was supposed
to have been
communicated at any of these meetings; clearly, the response would
not have been positive, having regard to the further
conduct of the
employer.
[15]
On 17 November 2021, the individual employees were dismissed.
[16]
Following a referral of the dispute to the CCMA, resulting in the
issuing of a certificate of non-resolution, the individual employees,
represented by the Union, approached the Labour Court for relief.
In
the Labour Court
[17]
The respondent Union referred an unfair dismissal claim alleging that
the individual employees’ dismissal on the grounds
of the
appellant’s operational requirements was both procedurally and
substantively unfair in that, on procedural fairness:
17.1
The appellant failed or otherwise refused to consult with the Union
despite a request to
do so and the provisions of s 189(1)(b)(ii) or
(c) of the LRA, which obliges the appellant to involve the Union in
the consultation
process;
17.2
The decision to retrench the individual employees had already been
taken, as an application
to close down the crèche had been
made to the gaming board before the consultation process took place,
i.e. the retrenchment
was a
fait accompli
;
17.3
The appellant failed to make any proposals to avoid retrenchment
during the consultation
process;
17.4
The appellant failed or otherwise refused to disclose information to
the individual employees
during the consultation process; and
17.5
The individual employees’ proposals to avoid retrenchment were
rejected without proper
consideration.
[18]
On substantive fairness, the Union submitted that the appellant
should have absorbed the individual employees into different
positions
within its workplace, implemented short-time with respect
to its employees or, in the alternative, the appellant should have
outsourced
the crèche to the individual employees.
[19]
On the selection criteria, the Union raised two impugns: (i) that
there existed a discrepancy on which criteria would be used;
and (ii)
that there was no consultation on the selection criteria.
[20]
All in all, the Union alleged that the appellant failed to comply
with s189 of the LRA in its dismissal of the individual employees.
[21]
It was the appellant’s case that it did not maintain a
recognition agreement or a relationship with SACCAWU or indeed any
other union within its workplace, and that the consultation process
was preceded by litigation and correspondence between the appellant
and the Union regarding its organisational rights, which culminated
in an understanding that, as the Union’s constitution
did not
extend to the gaming and gambling industry (within which the
appellant is engaged), the Union could not enjoy rights within
the
workplace. Thus, at the time of the consultations, the appellant was
unaware that the individual employees belonged to a union.
Further to
this, and during consultations, the individual employees had not
indicated that they sought to be represented by a union,
nor did they
indicate that they were members of any union. In that respect, the
appellant had continued the consultation process
directly with the
employees.
[22]
On procedural fairness, the court
a quo
found that the
appellant had undertaken a ‘tick box approach’ to the
consultation process, having already decided to
dismiss the employees
and was merely going through the statutory processes to give credence
to its decision to retrench the individual
employees. This, according
to the court
a quo,
was demonstrated by the appellant’s
refusal to allow the individual employees to take copies of the VSP
home to read and
consult over it and the failure to permit union
representation during the course of the consultation process.
[23]
On substantive fairness, the court
a quo
agreed with the
individual employees that the appellant had failed to seriously and
genuinely consider the alternatives to retrenchment
that the
individual employees had proposed. This, coupled with the appellant’s
failure to offer available alternative employment
to the individual
employees, rendered the retrenchment substantively unfair.
[24]
Further, the court
a quo
held that, as it was the evidence of
the appellant that the crèche attendant positions were
necessary within the appellant’s
organisational structure due
to regulatory requirements, by retrenching the employees only to
later outsource these positions to
third parties despite rejecting
the individual employee’s earlier proposal to outsource the
crèche to them, the appellant’s
conduct could only lead
to the inference that the retrenchment process was neither genuine
nor in good faith.
[25]
The court
a quo
thus found in favour of the individual
employees and ordered their reinstatement, curiously though with full
backpay.
On
appeal
[26]
The appellant appeals against the whole of the judgment of the court
a quo
and advances five points in support of its case:
that the court
a quo
:
26.1
reached the wrong conclusion in the context of the evidence in
relation to the genuine
and
bona fide
nature of the
consultation process and possible alternatives;
26.2
reached the wrong conclusion in relation to the appellant’s
involvement of the Union
during the consultation process;
26.3
failed to consider the appellant’s legal argument and failed to
apply the relevant
legal principles in respect of the finding of
substantive unfairness;
26.4
failed to properly consider the evidence relating to the
impracticality of reinstating
the employees; and
26.5
reached the wrong conclusion in the context of the evidence in
relation to the order of
reinstatement.
Appellant’s
submissions
[27]
The appellant argued that it was not the respondent’s pleaded
case that the retrenchment of the individual employees was
a sham or
a foregone conclusion, in that the appellant had already decided to
dismiss the employees and was simply going through
the motions to
complete the s189 process. Furthermore, in concluding that the
appellant did not consider the alternatives proposed
by the
individual employees to avoid retrenchment, including their placement
in alternative positions, the court
a quo
had failed to
consider the evidence of the appellant, which showed a consideration
and response to the alternatives proposed.
[28]
On union representation, the appellant impugned the court
a quo
’s
findings that, as the appellant was deducting monthly subscription
fees or union dues from the salaries of the individual
employees, the
court was unconvinced by the appellant’s argument that it was
unaware of the individual employees’ membership
of SACCAWU. On
this finding, the appellant contends that the deduction of
subscription fees was never evidence led during the hearing,
and it
has remained the evidence of the appellant that it did not maintain
any relationship or recognition agreement with SACCAWU
or any other
union, and thus no subscription fees or union dues were being
deducted from the individual employees’ salaries.
[29]
On substantive fairness, the appellant argues that despite finding
that no challenge was mounted by the respondent with respect
to the
rationale for the proposed retrenchment and that the crèche
services were later outsourced to a third party, the
court
a quo
still found that the individual employees should be reinstated
despite the legal principles concerning the appropriateness of
reinstatement in instances where the substantive fairness of a
retrenchment is unchallenged or otherwise accepted and what remains
is a procedural unfairness claim.
[30]
On the appropriateness of the reinstatement of the individual
employees, the appellant argues that the court
a quo
’s
finding of reinstatement and backpay is at odds with its acceptance
of the appellant’s evidence that the crèche
positions
were no longer a part of the appellant’s organisational
structure as the crèche function had been outsourced
to a
third party and thus the individual employees could not be reinstated
into these positions. Further, despite the finding that
the
individual employees, by failing to attend further consultations, had
frustrated the process and had added to whatever perceived
procedural
unfairness they had suffered during the consultation process, the
court still found an order of reinstatement with full
salaries and
employment benefits to be appropriate. Finally, and in ordering
retrospective backpay in circumstances where, for
nearly two years
after the dismissal, the creche remained closed, this order was at
odds with the facts before the judge a quo.
Finally, the court failed
to take into consideration that the individual employees had been
paid severance pay at the time of their
retrenchment.
Respondent’s
submissions
[31]
On the point that it failed to plead that the consultation process
was a sham, the respondent impugns this contention, referring
back to
the statement of case and the pre-trial minute to demonstrate the
instances in which it had referred to the consultation
process being
merely a tick box exercise.
[32]
The respondent submits that the consultation process was neither
genuine nor
bona fide
due to the appellant’s failure to
propose any alternatives to retrenchments; rather, the appellant had
simply made sweeping
but vague statements around its consideration of
alternatives without explicitly indicating what alternatives it had
considered.
Instead of listing alternatives considered by the
appellant, the s189(3) notice merely states that the appellant was
willing to
consider voluntary retrenchment or mutually agreed
terminations, and these did not qualify as alternatives, or so the
submission
goes.
[33]
Turning to the alternatives proposed by the individual employees, the
respondent contends that the appellant had rejected the otherwise
viable proposals made without proper investigation or consideration,
where some of the reasoning provided in the rejection of the
employee’s proposals was nonsensical (to the employees) and
proposals were rejected outright, with the exception of the proposal
of placing the employees in alternative positions and the outsourcing
of the creche to them. Instead, the respondent contends that
the
appellant was more interested in persuading the individual employees
to accept the VSP.
[34]
The respondent disputes that the appellant was not aware of the
individual employees’ membership with SACCAWU but contends
that
the appellant chose not to consult with the union because it did not
recognise it, despite the provisions of s 189(1)(c) which
required
consultation with a union whose members were likely to be impacted by
the contemplated retrenchment processes. On this
point, the
respondent further contends that the appellant’s submission
that it was not aware that the individual employees
were members of
the Union was at odds with its evidence at the trial, in which the
late Mr Silaule (the appellant’s representative
during the
consultation process) had indicated that (i) he was aware that at
least one of the individual employees was a union
member as she had
previously been represented by SACCAWU during an unfair dismissal
dispute and that this same employee had called
a union
representative, Mr David Teffo, during the consultation process to
consult on the VSP; (ii) that he was aware that SACCAWU
had
previously sought organisational rights within the organisation; and
(iii) that during the consultation process at least one
employee had
indicated that they wished to be assisted by ‘someone’,
which may have been a reference to union assistance
whilst another
employee outright asked for union representation during the first
consultation as she did not understand the contents
of the s189(3)
letter. On these bases, the respondent contends that the appellant
knew that the individual employees were SACCAWU
members and
deliberately did not involve the union in the s189 process taking
place.
[35]
The respondent further argues that despite the reason for the
dismissals being due to the redundancy of the crèche attendant
positions, these positions were not permanently redundant, and
despite the individual employees’ willingness to remain on
layoff until the crèche reopened, they were ultimately
retrenched. On this basis, the dismissals were without a legitimate
reason and substantially unfair.
[36]
Turning to the relief granted by the court
a quo
, the
respondent impugns the appellant’s argument that, as the crèche
services have since been outsourced, the reinstatement
of the
individual employees was not appropriate on the grounds that the
appellant failed to demonstrate how, in accordance with
s193 that the
reinstatement of the employees was reasonably impracticable, and
without evidence that the respondent was dilatory
in pursuing their
case, there is no reason why the employees should not be reinstated
with full salaries and benefits.
[37]
I turn now to consider the grounds of appeal.
Evaluation
Substantive
fairness
[38]
The court
a quo
found that no challenge had been brought with
respect to the substantive fairness of the retrenchment process
insofar as it relates
to the rationale for the retrenchment process,
in that no outright challenge to the reason for retrenchment is
mounted by the respondent
during the Labour Court proceedings. The
respondent now, in its submissions before this Court, seeks to raise
the issue of substantive
fairness, arguing that the dismissal of the
individual employees was without a legitimate reason, as evidenced by
the fact that
the crèche positions were not permanently
redundant, as, about two years after the dismissal, these positions
were outsourced
to a third-party service provider.
[39]
While I agree with the respondent that there is a fair amount of
overlap between the concepts of substantive and procedural fairness
within our law in that, elements pertaining to procedural fairness
may implicate the substantive fairness of the dismissal, with
specific focus on the challenge of there being no legitimate
reason
for the redundancy of the individual employees, and without a
cross-review challenging the court
a quo
’s finding in
this respect, it is not open to this Court to entertain this point.
[40]
The appellant submits that in finding that the retrenchment process
was a sham, despite the respondent’s failure to plead
same, the
court
a quo
had erred. The respondent disputes this, providing
documented instances within its papers in which it had pleaded that
the retrenchment
process was a sham and dismissal was a predetermined
decision. On a reading of the statement of case, it is clear that the
respondent
alleges that, by failing to provide or to consider the
alternatives proposed by the individual employees, the appellant had
conducted
the consultation process as a mere formality or in a tick
box manner, and that the dismissal of the employees was a
predetermined
conclusion. On this point, it cannot be said that the
respondent had not pleaded or otherwise led evidence on this point.
[41]
However, it is simply not enough to allege that a consultation
process was a sham; rather, the evidence must show that the
employees’
dismissals were indeed a foregone conclusion. The
court
a quo
’s finding that the dismissals constituted a
fait accompli
appears to rest on three considerations: (i) the
appellant’s refusal to allow employees to take the VSPs home to
consult
and reflect upon it; (ii) the exclusion of the union from the
process; and (iii) the appellant’s failure to ‘genuinely’
consider the alternatives proposed by the individual employees.
[42]
An
accusation of a disingenuous consultation process strikes at the
heart of s189(2), which requires that consulting parties engage
in a
meaningful joint consensus-seeking process. As held by the
Constitutional Court in
Solidarity
obo Members v Barloworld Equipment Southern Africa and others
[2]
:
‘…
for a
consultation process to be meaningful, in the context of section 189,
the employer must keep an open mind, disclose sufficient
information
to enable consulting parties to make informed representations, and
seriously consider the representations. This entails
that the
employer is under an obligation to furnish reasons for rejecting
representations after it has considered them carefully.
Approaching
the consultation with a predetermined outcome and failure to provide
reasons for rejecting representations will render
the consultation
process not meaningful.’
[43]
Can it be said that by refusing to allow the individual employees to
take home copies of the VSP that the appellant failed to meaningfully
consult? Although the appellant refused to allow the individual
employees to take the document home under the banner of
confidentiality,
it was the evidence of the appellant that during the
consultation, it was open to the employees to discuss and consult
with anyone
regarding the content of the VSP and such an opportunity
was taken up by Ms Mavuso who was allowed to privately,
telephonically
speak to one David of the Union to discuss the
document, resulting in her returning with a decision to not sign it.
Ms Mavuso,
in her evidence, indicated that she had read the VSP to
David Teffo, a union representative from SACCAWU, who advised her not
to
sign the document, and it is based on this advice that she acted.
[44]
For reasons unknown, none of this evidence appears to have been
considered within the judgment of the court
a quo
of whether
the consultation process fell within s189(2), rather the court holds
that, by refusing the employees to take the VSP
home and to consult
on it, the appellant had adopted a ‘take it or leave it’
approach to the consultation process and
‘
deprived the
affected employees of the ability to apply their minds and solicit
advice from their union representatives or any other
third party’
.
This finding is clearly at odds with the evidence presented by both
parties where it was clear that although the VSPs remained
in the
appellant’s possession, the employees were given a period of
approximately 10 days to consider the document and were
given an
opportunity to consult any third party as to its content, and that in
the case of Ms Mavuso, she had used this opportunity
to consult with
her union representative who advised her not to sign the document and
she acted in accordance with this advice.
Procedurally
unfairness
[45]
Turning to the question of whether the appellant genuinely considered
the alternative proposals made by the individual employees,
it was
the evidence of the respondent that during the consultation process,
various alternatives were proposed by the employees,
including their
re-deployment to other departments within the organisation, the
outsourcing of the crèche to the individual
employees, the
implementation of a rotational shift system to stagger crèche
employees or the continued layoff of the employees
until the crèche
reopened, however as all but one of these proposals were immediately
rejected during the consultation meetings,
it was clear, so the
respondent’s submission goes, that the appellant had already
decided on the dismissal of the individual
employees.
[46]
The appellant’s response to the alternatives proposed was
unequivocal: they were simply not viable. Most, if not all, of
the
appellant’s departments were limping, given the impact of the
pandemic on the business’s operations. There was
also
uncertainty as to when or whether the crèche would reopen.
Accordingly, the options of either continued layoff, a shift
system
or outsourcing the crèche operations to the individual
employees made little sense where the future of the crèche
itself was unclear. Moreover, in relation to outsourcing, the
appellant is correct in its submission that this proposal would not
have avoided the retrenchment of the employees, as they would first
need to be dismissed before being re-engaged as service providers
anyway. It also bears noting that the crèche had remained
closed for approximately 18 months prior to the contemplated
retrenchment and for a further two years thereafter. In such
circumstances, it would have made little sense to outsource an
operation
when its reopening was so uncertain. This uncertainty
extended beyond the crèche to other business units of the
appellant,
where similar restructuring processes were under
consideration, leaving no alternative positions into which the
affected employees
could be redeployed, as possible downsizing or
short-time measures were also being contemplated.
[47]
It seems the respondent’s impugn on the appellant’s
treatment of the individual employee’s alternatives to
retrenchment
is centred around the point that all but one of the
alternatives proposed were rejected as soon as they were raised
during the
consultation meetings, thus none of the alternatives were
carefully considered; however, it cannot be said that there is no
meaningful
consultation process undertaken simply because an employer
presents answers to questions as and when they are raised. This is
even
more so where such reasons or responses are directly linked and
based on the rationale for the retrenchment process as communicated
to the employees in the notice and during the consultations (and not
challenged by the respondent during the trial).
[48]
As held by
this Court in
TWK
Agri (Pty) Ltd v Wagner & others
[3]
,
the
consultation process requires that the parties engage with each other
meaningfully to find appropriate solutions and alternatives
where
they exist, and where no alternatives exist, it does not mean the
consultation process was a sham, but rather that retrenchment
had
become unavoidable. It bears repeating that a retrenchment process is
not unfair simply because the proposals of the affected
employees are
rejected, nor is there a statutory requirement for consulting parties
to reach an agreement during the consultation
process.
[4]
[49]
On consultations during retrenchment processes, s189(1) establishes a
strict hierarchy of parties to be consulted with in the event
of
contemplated retrenchment. Where no collective agreement is in place,
and no workplace forum exists, the Act requires an employer,
in terms
of s189(1)(c), to consult with any registered trade union whose
members are likely to be affected by the proposed retrenchments
and
where there is no such trade union, only then can an employer consult
directly with the employees likely to be affected or
their
representatives. Thus, it is not open to an employer to circumvent
this hierarchy when consulting on possible retrenchments.
[50]
It was the evidence of the respondent that all three of the employees
were members of the Union and that they had all requested
union
representation during the consultation process. In contrast, it was
the evidence of the appellant that the individual employees
did not
request union representation and, instead, had made vague utterances
of wishing to consult with or otherwise speak to ‘someone’
regarding the contents of the VSP. On that basis, the appellant
contends that at the time of the consultation (i) it was not aware
that the individual employees wanted to consult a trade union about
the proposed retrenchments; (ii) the individual employees did
not
indicate that they were members of a trade union; and (iii) the
appellant was unaware that the employees belonged to a trade
union.
[51]
Before the
court
a
quo
were two mutually destructive versions concerning what occurred
during the consultation process with respect to whether union
representation was sought and refused, while the appellant asserts
that it was unaware of the employees’ membership, the
respondent assert that not only was the employer aware of this, but
it had prevented the individual employees from obtaining union
representation under the guise that the union was not recognised
within the workplace. Despite this, the court
a
quo
did
not undertake an analysis to test the versions before accepting that
of the respondent.
[5]
Rather,
the court focused its attention on the assumption that, as the
individual employees claimed that their salaries were subjected
to
deductions with respect to union subscriptions or dues, the appellant
was aware that they were SACCAWU members, despite no evidence
being
led in this respect.
[52]
On a proper analysis, the court would have picked up on the
contradictions in the individual employees’ oral evidence
versus
what was contained in the respondent’s statement of case
which states that the issue of union representation was discussed
as
early as the first consultation meeting of 27 September 2021 when the
employees’ requested union representation and were
told that
the consultation process was private, confidential, between employer
and employee and that the union was not recognised
in the gaming
industry.
[53]
It was the evidence of Ms Mavuso that no mention of the union was
made during the first consultation meeting and that her first
mention
of trade union representation was made at a later meeting of November
2021 when she indicated that she was unwilling to
sign the VSP and
that she be given an opportunity to consult with someone called
‘David’, who, as stated earlier, was
her trade union
representative, with regards to the content of the document and
later, following consultation, she continued in
her refusal to sign
the document. This point is corroborated by the minutes of the
consultation meeting of 10 November 2021, where
it is recorded that
‘
[Ms Mavusa] said she consulted SACCAWU union official,
David and advised her not to sign but to take the agreement to him to
read
and refused to give her the document’
.
[54]
Further, it was the evidence of Ms Mdaka that, during the first
consultation meeting, she had requested to have ‘someone’
who could sit with her during the consultation; however, no explicit
reference to a union representative or legal representation
is made
in her request. While in the case of Ms Malatji, she indicates in
testimony that she had outright requested union assistance
at the
first consultation meeting and was told that she was not allowed
assistance as the s189(3) notice and indeed the whole retrenchment
process, was confidential. These exchanges do not appear in the
minutes of the consultation process.
[55]
The probity of Ms Mdaka and Malatji’s evidence is questioned
when consideration is given to the letter from SACCAWU dated
2
February 2021. In the letter, the union, writing to the appellant,
listed the names of 37 of its members within the workplace
as an
indication of their membership and to bolster its claim for
organisational rights. While Ms Mavuso’s name appears on
the
list, both Ms Mdaka's and Malatji’s do not. On
cross-examination, when asked about their omission from this list,
both
employees indicated that they had joined the union on 22
December 2020, Mdaka adding that she did not know why her name had
been
left off the list, while Ms Malatji had indicated that she had
joined the union after the list of 37 members had been compiled and
sent to the union for inclusion in the letter of 2 February 2021. If
I understand her evidence correctly, it is that the letter
of 2
February 2021 contained an outdated list of SACCAWU members. This, I
do not accept.
[56]
The respondent contends, and the court
a quo
agreed, that the
appellant was aware of the individual employees’ membership to
SACCAWU; however, the evidence does not support
this finding, as, at
the start of the consultations, no explicit request or reference to
union representation was made or sought
by the individual employees,
at least with respect to Ms Mavuso and Mdaka. Rather, they make vague
references seeking assistance
during the process by ‘someone’
and only later does Ms Mavuso indicate her intention to discuss the
contents of the
VSP with David from SACCAWU. Ms Malatji testified
that she had requested union assistance at the outset of the
consultation process
and that this was refused, I fail to understand
why, as a SACCAWU member, she had not, like Ms Mavuso, independently
contacted
the union or sought its advice on the process especially if
her colleague was doing the same thing.
[57]
Although it is accepted, on both parties’ evidence, that the
late Mr Silaule had previously dealt with Mr David Teffo of
SACCAWU
during Ms Mavuso’s earlier CCMA proceedings, and that he had
received the letter of 2 February 2021 requesting organisational
rights for SACCAWU, it cannot reasonably be expected of the appellant
to have pieced together, from vague references, earlier
correspondence, and litigation more than 18 months prior, that
all
the individual employees were SACCAWU members. This is particularly
so where no union enjoyed organisational rights within the
workplace
and where, at the commencement of the consultation process, it was
not apparent to the appellant that the contemplated
retrenchments
were likely to affect members of a trade union so as to trigger
s189(1)(c).To my mind, it would be different if,
in the
circumstances, a union were indeed active within the workplace, that
the employer was aware of this, and still chose not
to consult with
the union, flagrantly bypassing the hierarchy imposed by the Act.
[58]
Something is also to be said about SACCAWU’s inaction following
its discovery that its member, in the case of Ms Mavuso,
had been
issued a VSP in a retrenchment process. In my view, s189 does not
place the entire burden of ensuring proper consultation
on the
employer alone. The duty to consult is a shared one, and the Act
contemplates a participatory process in which both parties
bear
responsibility for ensuring that consultation occurs meaningfully and
with the appropriate representatives. If the union was
aware, as the
evidence suggests, that its members were being consulted directly
despite the provisions of s189(1)(c), nothing prevented
it from
approaching the appellant to assert its right to be included. The
fact that Mr Teffo knew of the retrenchment process at
the latest by
10 November 2021, prior to the issuing of the termination letters,
yet took no steps to intervene or engage the appellant,
is
significant. The respondent’s position appears to suggest that
the appellant should have divined the union’s involvement
with
the individual employees, at least with respect to Ms Mdaka and
Malatji, and engaged it in the consultation process without
any
initiative from the union itself. To my mind, this is inconsistent
with the mutual and cooperative consultation framework envisioned
by
s189, and the union’s inaction in this regard cannot be
overlooked.
[59]
What remains when all of the evidence is considered is that: in the
case of Ms Mavuso, not only had she (albeit belatedly) notified
that
appellant that she had consulted with SACCAWU on her signature of the
VSP and acted on this advice by refusing to sign the
document, the
late Mr Silaule was aware that she had previously been represented by
the union during an unfair dismissal dispute
that occurred some 18
months earlier and that on this basis, it would have become necessary
for the appellant to engage the union
with respect to Mavuso as of 10
November 2021, especially as the consultation process had not yet
been concluded. The same, however,
cannot be said with respect to the
remaining individual employees, particularly as there was no other
evidence, outside of bald
statements, to corroborate their union
membership. This, coupled with SACCAWU’s awareness of its
members undergoing a s189
process and its decision not to intervene
can only lead to the inference that Ms Mdaka and Malatji were not
union members at the
time of the s189 process and thus it cannot be
said that the appellant flouted its responsibilities in terms of s
189(1)(c) with
respect to the two employees and on this basis I am
not satisfied that their dismissal as a whole was unfair.
Relief
[60]
What remains then is the question of what relief Ms Mavuso is
entitled to on a finding that her dismissal, though substantively
fair, was procedurally unfair for lack of union consultation, bearing
in mind that the relief can only be one of compensation.
[61]
In considering the nature and degree of the deviation from the
procedural requirement to consult with the union together with the
conduct of the parties during the consultation process, it is
relevant that Ms Mavuso had only raised the issue of union
involvement
in November 2021, and that, at that point, the parties
were already more than a month into the consultation process where
all employees
proposals had been received and considered and the
appellant was now awaiting feedback on the signature of the VSP.
Adding to this
and detailed above, the Union, at least by 10 November
2021, was aware of the consultation process which impacted its
member, Ms
Mavuso, and chose not to intervene despite being aware of
its right to do so.
[62]
It cannot be said that the appellant, in not involving the Union, had
totally failed to meaningfully consult with the employees,
because as
the evidence demonstrates, Ms Mavuso clearly understood the process
that was taking place, had participated in it by
giving her own
proposals and receiving feedback on same and had even gone on her own
to seek union advice on the signing of the
VSP. In that case, it
seems that the procedural deviation, although relevant, was minor in
light of the purpose of s189 still being
served, despite the
procedural failing.
[63]
Thus, taking into account that Ms Mavuso received her statutory
severance pay; that she raised the issue of union consultation
only
at the third consultation meeting, that she failed to attend any
further consultations despite indicating an intention to
do so; and
further, that the union itself made no attempt to approach the
appellant to seek inclusion in the retrenchment process,
I consider
an award of three months’ compensation to be just and equitable
in the circumstances.
[64]
In the premises, the following order is made:
Order
1.
The appeal is upheld, in part, with no order as to costs.
2.
The order of the court
a quo
is set aside and substituted with
an order that:
‘
(1)
the applicant’s application is granted in part, and the
dismissal of the individual affected employees
is found to be
substantively and procedurally fair, save for the dismissal of Ms
Nonhlanhla Mavuso, whose dismissal is found only
to be procedurally
unfair.
(2)
The appellant is to pay Ms Nonhlanhla Mavuso compensation in an
amount equivalent to 3 (three)
months’ remuneration calculated
at her rate of remuneration at the date of dismissal.
(3)
There is no order as to costs.’
WAGLAY
AJA
Mahalelo
ADJP
et
Djaje AJJA concur.
APPEARANCES:
FOR
THE APPELLANT:
V Mndebele
Instructed by Edward
Nathan Sonnenbergs Inc
FOR
THE RESPONDENT: A Roskam of
Haffegee Roskam Savage Attorneys Inc
[1]
Act 66 of 1995, as amended.
[2]
2023 (1) BCLR 51
(CC) (
Barloworld
)
at para 46.
[3]
(2018) 39 ILJ 797 (LAC) at para 24.
[4]
Barloworld
supra.
[5]
Stellenbosch
Farmers' Winery Group Ltd And Another v Martell et Cie and Others
2003 (1) SA 11
(SCA).
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