Case Law[2024] ZALAC 20South Africa
South African Clothing and Textile Workers Union v Bargaining Council for the Furniture Manufacturing Industry - KwaZulu-Natal and Others (DA9/22) [2024] ZALAC 20; (2024) 45 ILJ 1596 (LAC); [2024] 9 BLLR 976 (LAC) (2 May 2024)
Labour Appeal Court of South Africa
2 May 2024
Headnotes
in a separate account to be administered by the [first respondent] pending admission of [the appellant] to the bargaining council;
Judgment
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## South African Clothing and Textile Workers Union v Bargaining Council for the Furniture Manufacturing Industry - KwaZulu-Natal and Others (DA9/22) [2024] ZALAC 20; (2024) 45 ILJ 1596 (LAC); [2024] 9 BLLR 976 (LAC) (2 May 2024)
South African Clothing and Textile Workers Union v Bargaining Council for the Furniture Manufacturing Industry - KwaZulu-Natal and Others (DA9/22) [2024] ZALAC 20; (2024) 45 ILJ 1596 (LAC); [2024] 9 BLLR 976 (LAC) (2 May 2024)
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sino date 2 May 2024
IN THE LABOUR APPEAL
COURT OF SOUTH AFRICA, DURBAN
Reportable
Case no: DA 9/2022
In the matter between:
SOUTH AFRICAN CLOTHING
AND TEXTILE WORKERS UNION
Appellant
and
BARGAINING COUNCIL FOR
THE FURNITURE MANUFACTURING
INDUSTRY
- KWAZULU-NATAL
First
Respondent
THE FURNITURE
KING
Second Respondent
HENWOOD
BEDDING
Third Respondent
eSPEC
Fourth Respondent
KITCHEN
CLASSICS
Fifth Respondent
GRANITE KITCHEN
STUDIO
Sixth Respondent
SUTHERLAND HOME
FURNITURE
Seventh Respondent
NATFURN
Eighth Respondent
COMFY
LOUNGE
Ninth Respondent
SMITH &
DOORS
Tenth Respondent
AFRIGRAN
Eleventh Respondent
GOMMA
GOMMA
Twelfth Respondent
MJ BEDDING
Thirteenth Respondent
YOUR
ADVANTAGE
Fourteenth Respondent
BAWAS
FURNITURE
Fifteenth Respondent
SIMUNYE
FURNITURE
Sixteenth Respondent
HDS CUT AND EDGE/SOUTH
COAST BOARD
AND
TIMBER
Seventeenth Respondent
Heard:
28 February 2023
Delivered:
02 May 2024
Coram:
Waglay JP, Coppin JA
et
Savage AJA
JUDGMENT
COPPIN JA
[1]
This
is an appeal with the necessary leave against the judgment of the
Labour Court (Hiralall AJ) in which that court granted an
order
(except the costs’ aspect) to the following effect in an
application brought by the first respondent against the appellant
and
a counter-application by the latter against the former:
‘
a)
[The appellant] is not entitled to organize and recruit in the
industry covered by the [first respondent];
b) The actions of
[the appellant] in recruiting in the industry covered by the [first
respondent] are found to be
ultra vires
its constitution and
accordingly invalid, this to the extent that the extension of scope
has not been registered with the [R]egistrar
of [L]abour;
c) The members so
recruited by [the appellant] are accordingly not members of [the
appellant];
d) The operation of
this order is not retrospective in relation to union levies already
collected from such members;
e) Further
deduction of union levies in respect of such members is suspended
pending the admission of [the appellant] to the
[first respondent]
bargaining council;
f) Alternatively to
(e) above, any further levies deducted in respect of such members is
to be held in a separate account
to be administered by the [first
respondent] pending admission of [the appellant] to the bargaining
council;
g) The [first
respondent] is to pay the costs of [the appellant] in respect of [the
application and the counter-application].’
[2]
The
first respondent has delivered a written notice indicating that it
will abide by this court’s decision in respect of the
appeal.
None of the other respondents, which are principally affected
employers in the furniture industry, participated in the
hearing,
either in this court or in the court
a
quo
.
In addition, the Registrar of Labour had not been cited as a party at
all, that is in neither the application nor the counter-application.
Thus, this court on appeal did not have the benefit of argument
countering that of the appellant.
[3]
The
issue at the heart of the merits of this case is a legal,
interpretational one, and in particular, whether the appellant is
required to comply with section 101 of the Labour Relations Act
[1]
(LRA), which regulates the change of the constitution or name of
registered trade unions and employers’ organisations, when
the
appellant, on the strength of a provision in its constitution, by
resolution extended the scope of its membership to include
employees
in the furniture industry.
[4]
The
first respondent, refusing to admit the appellant as a party to that
council (as contemplated in section 56 of the LRA) contended
that the
appellant was obliged to comply with section 101 before recruiting
members in the furniture industry and the appellant,
which had
recruited members in that industry and had levies deducted by their
employers, disagreed with that contention. This ultimately
led to the
first respondent seeking a declaratory order in the Labour Court, on
an urgent basis, to that effect.
[5]
The
application was in two parts, A and B. In terms of the former, the
first respondent sought urgently, in the interim, to suspend
the
deduction by the second to the seventeenth respondent of union levies
in favour of the appellant, and essentially to administer
those
levies that had already been deducted by the said respondents in
favour of the appellant. In terms of Part B, the first respondent
sought, essentially, as a first main alternative, an order declaring,
firstly, that the appellant was not entitled to organise
and recruit
members in the industry covered by it; secondly, that the appellant’s
actions of recruitment in that industry
are
ultra
vires
its constitution, and accordingly, invalid; thirdly, that the members
so recruited by the applicant are therefore not its members.
It also
sought an order that the appellant return the levies collected from
those members and some sub-alternative relief, more
or less to the
same effect.
[6]
The
application sought, however also, rather oddly, under the heading
“Alternative 2”, a declaratory order, to the opposite
effect, in the following terms: “
[t]hat
the [appellant] is entitled to organize, and recruit in the industry
covered by the [first respondent] and that such action
is accordingly
not ultra vires its constitution
…”
[7]
In
its counter-application, which was also brought on an urgent basis,
the appellant asked the Labour Court to issue a declaratory
order in
terms of Alternative 2 of Part B of the first respondent’s
application, as well as costs.
[8]
By
the time the applications were first heard by the Labour Court, the
urgency relied on had dissipated and the parties addressed
that court
in respect of final, as opposed to interim, relief. The court
a
quo
(curiously), and presumably with the parties’ concurrence,
considered the relief claimed in both Part A and B, and its order,
which is being appealed against, contains elements of both.
Material Provisions
[9]
Section
101 of the LRA is framed as follows:
‘
101
Changing constitution or name of registered trade unions or
employers’ organisations –
(1)
A
registered trade union or a registered employers’ organisation
may resolve to change or replace its constitution.
(2)
The
registered trade union or the registered employers’
organisation must send the registrar a copy of the resolution and
a
certificate signed by its secretary stating that the resolution
complies with its constitution.
(3)
The
registrar must –
(a)
register
the changed or new constitution if it meets the requirements for
registration; and
(b)
send
the registered trade union or registered employers’
organisation a copy of the resolution endorsed by the registrar,
certifying that the change or replacement has been registered.
(4)
The
changed or new constitution takes effect from the date of the
registrar’s certification.’
[10]
Clause
3 of the appellant’s existing registered constitution deals
with its scope. Sub-clause 3.1 reads as follows:
‘
The
union shall be open to all workers employed in the following
industries and trades:
3.1.1. Garment
Industry;
3.1.2. Textile
Industry;
3.1.3. Wool/Mohair
Processing Industry;
3.1.4. Wool/mohair,
Hides and Skins Trade;
3.1.5. Leather and
Footwear Industry;
3.1.6. Tanning,
Woolpulling and Fellmongering Industry;
3.1.7
Knitting Industry;
3.1.8. Canvas and
Ropeworking Industry;
3.1.9. Retail,
Commercial and Distributive Trade;
3.1.10. Laundry,
Dyeing and Dry-cleaning Industry;
3.1.11. Farming and
Agricultural Industry and includes workers engaged in operations
incidental to or consequential on such
operations or manufacture and
the workers engaged in the sale, delivery, distribution, retailing,
storage and/or administration
of such goods;
3.1.12. Other.’
[11]
In
clause 3.2, each of the aforesaid categories listed are defined and
it is specifically stated that the definitions shall not
limit the
ordinary meaning of the designations. Of relevance for the purpose of
this matter is the definition of “
other
”
as listed in clause 3.1.12. It is defined as “
any
other activity, industry, or interest group as defined by the
National Executive Committee or the National Office Bearers from
time
to time
”
.
[12]
Clause
26 of the said constitution deals with amendments. It reads as
follows:
‘
26.1
The National Congress may repeal, amend or add to the
provisions of this Constitution by any quorate meeting of Congress
provided due notice of such resolution is given to all in terms of
clause 16.3.1 of the Constitution.
26.2 The National
Executive Committee may subject to decisions of the National Congress
under clause 26.1 further repeal,
amend or add to the provisions of
this Constitution by resolution of any quorate meeting of the
National Executive Committee carried
by two thirds (2/3) majority
provided that at least fourteen (14) days’ notice of any
proposed alteration shall have first
been given by notice addressed
to each Branch and Provincial Secretary. If during this period not
less than two (2) Branches request
that a ballot of all members be
held on the proposed alteration such ballot shall be taken.
26.3
Notwithstanding anything to the contrary contained in clauses 26.1 or
26.2 in the event of the union being registered
under the Act no
amendment or addition or repeal shall have any force or effect until
such amendment, addition or repeal has been
certified in terms of
section 101(3)(b) of the Act.’
[13]
On
1 October 2019, the National Office Bearers of the first respondent,
by formal resolution (purported to) extend its scope of
operations to
include “
the
furniture industry
”.
The resolution which purports to be signed by the president, the
first president, the second president and the treasurer
of the
appellant reads as follows:
‘
Resolution
on the Demarcation of:
The Furniture Industry
The SACTWU National
Office Bearers having considered the membership applications of
employees in the furniture industry hereby resolves
that the industry
is covered by the scope of the appellant union, in terms of Section C
3.1.12 of our constitution.
The furniture industry
[is] accordingly demarcated as an “other” interest group
in terms of subclause 3.2.12 of SACTWU’s
constitution as
amended.
Date: 1 October 2019
[Signatures as stated]’
The judgment of the court
a quo
[14]
Having
referred,
inter
alia
,
to passages from the academic writings of
Woolman
and the Constitutional Court’s judgment in
National
Union of Metal Workers of SA v Lufil Packaging (Isithebe) (A division
of Bidvest Paperplus (Pty) Ltd) and others
[2]
(
Lufil
),
the judge
a
quo
held
essentially the following: that the purpose for the registration of a
trade union’s constitution, including any amendments
or
additions thereto, was to make it available to interested parties and
the public at large; the word “other” in the
appellant’s
constitution merely created a convenient mechanism for the extension
of the appellant’s scope, but it did
not serve to exempt the
appellant from complying with section 101 of the LRA, which entailed
registering the amendment or extension
with the Registrar of Labour
and certification by that official; the appellant was labouring under
a misconception that this addition
of a specific category to its
scope did not require registration; by not complying with the
requirement of the purpose of registration,
namely publication, and
therefore universal access, was undermined or defeated; since the
addition was not registered or certified,
it lacked efficacy, because
the change only takes effect from the date of the Registrar’s
certification; insofar as the appellant
has not complied with the
requirements of registration and certification by the Registrar “
it
has acted ultra vires its constitution
”(i.e.
it has exceeded the powers it has in terms of its constitution); and
that the appellant is not entitled in those circumstances
to organise
and recruit members in the furniture industry which is covered by the
first respondent.
[15]
What
the court
a
quo
effectively did was to, firstly, interpret the constitution of the
appellant, in particular clause 3 which deals with its scope
of
membership and pointedly, with the designation of “other”
as defined in clause 3.2.12, and, secondly, to effectively
determine
that the resolution by the National Office Bearers constituted a
“change” or “amendment” as is
contemplated in
section 101 of the LRA.
[16]
Relying
on
dicta
in the Constitutional Court’s judgment in
Lufil
,
the court
a
quo
concluded that, while in terms of clause 3.2.12, the National
Executive Committee and National Office Bearers of the appellant
could from time to time define “
any
other activity, industry or interest group
”
by which the appellant’s scope was extended, this something in
the exercise of a power that the appellant would have
any. It could,
in any event, extend its scope to any other activity, industry or
interest group, even in the absence of a clause
such as clause
3.2.12.
[17]
But
significantly and effectively, what the court
a
quo
held was that this “definition” contemplated in clause
3.2.12 constituted a change or amendment as is envisaged in
section
101 of the LRA, which required registration with the Registrar of
Labour Relations because it required publication, which
could only be
achieved through such registration and that the rationale for such
publication was explained in
Lufil
.
[18]
While
the facts in
Lufil
are
not on all fours with those of the present matter, the court a
quo’
s
reliance on the relevant
dicta
in that matter was justified. In
Lufil,
the
issue was whether a trade union could ignore its own constitution and
demand organisational rights from an employer with respect
to members
not expressly forming part of the scope of its constitution in which
eligibility for membership is defined. NUMSA’s
constitution
provided that its scope was the metal industry and that all workers
who are and were working in the metal and related
industries are
eligible for membership of NUMSA. Notwithstanding, it recruited
members in the paper and packaging industry. In
response to a
contention that it was acting outside of the scope of its
constitution, NUMSA contended,
inter
alia
,
that its members in the paper and packaging industry had a
contractual relationship with it and that that was enough and, of
significance, that its constitution did not preclude it from
recruiting members in another industry because its constitution does
not contain any express reference to any obligation regarding
eligibility being limited to the scope of the union.
[19]
The
Constitutional Court held in
Lufil
that NUMSA had chosen to define its scope of membership and
eligibility for membership in its constitution and it was bound
thereby.
Its constitution,
inter
alia
,
provided that it could amend its scope of membership without
limitation, provided it followed prescribed amendment procedures.
The
Constitutional Court rejected NUMSA’s argument that its
constitution did not limit its scope to employees in the metal
and
related industries; and described that argument as lacking logical
and legal persuasion. It held further that NUMSA’s
refusal to
amend its constitution to include the paper and packaging industry
was “cavalier” and unsustainable and
that NUMSA was in
fact obliged to do so, and that until it had done so it was not
eligible to demand organisational rights at the
employer.
[3]
[20]
In
arriving at those conclusions, the Constitutional Court dealt with,
inter
alia
,
the rationale for the registration of constitutions of trade unions
and the amendment to such constitutions. The NUMSA constitution
provided for at least two ways of amending, adding or repealing it –
one was through its National Congress, if two-thirds
of members
agreed, and the other was, significantly, by complying with a
provision in its constitution, which in describing the
character of
that union, provided that the central committee (consisting of
national office bearers and others) may amend the scope
of the trade
unions membership from time to time. The constitutional court held
that such amendment could have been done simply.
[21]
What
Lufil
did not deal with is whether the amendment (dealt with there)
required registration in terms of section 101 of the LRA. It was
not
necessary for the Constitutional Court to deal with that issue.
However, in this matter, the issue is different from that in
Lufil
.
The essential questions here are whether the actual definition of a
specific industry activity or interest group by the National
Executive Committee or the National Office Bearers, from time to
time, constitutes an amendment of the appellant’s extant,
registered, constitution, i.e. extending the trade union scope
membership, and whether that definition (i.e. by way of resolution)
required registration in terms of section 101 of the LRA.
[22]
Notwithstanding
the factual differences, the rationale for the registration of
constitutions, and amendments to such constitutions,
as expounded in
Lufil,
is vital in the interpretation of both the appellant’s
constitution and section 101 of the LRA.
[23]
The
principles governing the interpretation of documents, such as the
constitution of a trade union, are trite. They are the same
principles that apply to the interpretation of contracts generally.
Essentially, effect must be given to the ordinary language
of the
document, objectively looked at within its context, and preference
must be given to a sensible meaning rather than a meaning
“
that
leads to insensible and un-businessmanlike results or undermines the
appellant purpose of that document
”.
[4]
[24]
A
trade union and its members are bound by its constitution. And
although the law rightly does not require a trade union to limit
the
scope of its membership to a specific activity, industry or interest
group, a trade union itself may choose to do so in its
constitution.
In other words, it may in its constitution impose limitations upon
the extent of its scope of membership.
[25]
The
appellant’s argument seemingly suggests that by adding this
“other” category and by defining it as it was,
namely
that by specifying any other “activity, industry or interest
group” from time to time, the National Executive
Committee (or
National Office Bearers) would not be changing or amending its
constitution, or even be the extending the scope of
its membership.
But this argument is not supported by a proper interpretation of its
constitution, including the relevant clauses,
objectively and within
the proper context.
[26]
It
is clear from a plain reading of clause 3 that the appellant chose to
define its scope and to limit it to specifically defined
activities,
industries and interest groups. Significantly, it then also chose to
include an additional “other” category.
But this category
on a plain reading of its definition in clause 3.2.12, is limited to
such activity, industry or interest as the
National Executive
Committee or National Office Bearers may define from time to time. By
its very definition, it does not include
all activities, industries
or interests and is limited only to those activities, industries and
interests that those bodies may
decide to include from time to time.
Thus, the appellant’s scope, even in respect of this “other”
category, is
limited.
[27]
The
designation “other” is otherwise amorphous and clause
3.2.12 is effectively nothing other than a clause which authorises
the bodies envisaged there to add to or not to add specific
activities, industries or interest groups to the appellant’s
scope, as and when they consider it necessary and resolve
accordingly. As mentioned above, a trade union is in any event not
prohibited
from extending its scope of membership.
[28]
The
essential question that arose for decision in this matter is thus
whether this definition from time to time, which has the effect
of
adding (and by default not adding) to the scope of the appellant, is
a “change” or “amendment” to its
scope as
expressed in its extant constitution. It most certainly is, because
the definition by any of those bodies of an activity,
industry or
interest group, as and when it happens, most certainly adds something
to the appellant’s scope that was not there
before. In this
instance, there is no mention of the furniture industry at all in the
extant, registered constitution of the appellant.
The designation
“other” does not include the furniture industry and it
would only be included once the bodies envisaged
in clause 3.2.12
define it as an activity, industry or interest group which falls
within the scope of the appellant.
[29]
An
outsider and the public only have access to the extant, registered
constitution of the appellant and have no knowledge of the
resolution
adopted by the National Office Bearers and would not know, unless
they specifically enquired from the trade union, whether
the scope of
its membership does in fact include the furniture industry. The
appellant is otherwise privy to that information.
[30]
The
rationale for the registration of the constitution of a trade union,
including changes and amendments thereto, is dealt with
by the
Constitutional Court in
Lufil
.
The function of the Registrar of Labour Relations in relation to the
registration of such constitutions (including amendments
and changes
thereto) is to ensure that the applicable statutory requirements are
complied with (including those specified in sections
95(5) and (6) of
the LRA) and then to register them.
[31]
Section
95(5)(b) provides that the constitution of a trade union must
“
prescribe
qualifications for, and admission to, membership
”
and section 95(6),
inter
alia
,
provides that the constitution of a trade union may not include any
provision that discriminates directly or indirectly against
any
person on the grounds of race or sex.
[32]
The
rationale for the registration of the Constitution of the trade union
is exactly the same as for the registration of a change
or amendment
to the extant registered constitution and as envisaged in section 101
of the LRA.
[33]
In
Lufil
,
the Constitutional Court held that upon registration of the
constitution of a trade union, that document becomes a public
document
and is available for inspection by outsiders.
[5]
Registration also promotes public access to the constitution,
[6]
and further,
inter
alia
,
the registration of the constitution gives effect to the legitimate
government policy of orderly collective bargaining at a sectoral
level.
[7]
The very same reasons
underlie the registration of changes and amendments to the
constitutions of trade unions.
[34]
It
is also so that even though every worker has the constitutional right
to,
inter
alia
,
“
join
a trade union
”
[8]
and that every trade union has the right,
inter
alia
,
to “
determine
its own administration, programs and activities
”,
and to “organise”
[9]
those rights are not unlimited and may be limited in terms of section
36(1) of the Constitution of the Republic of South Africa.
[35]
Thus,
in terms of section 4(1)(b) of the LRA, an employee’s right to
join a trade union is made subject to the trade union’s
constitution (i.e. as registered) and the LRA seeks to regulate a
trade union’s rights. The LRA spells out in the clearest
terms
what ought essentially to be contained in the trade union’s
constitution and requires such constitution and any change
or
amendment thereto to be subjected to the scrutiny of the registrar
and to be registered.
[36]
An
interpretation, namely, that the action of the bodies envisaged in
clause 3.2.12 of the appellant’s constitution, and in
terms of
which they are effectively adding to the scope of the appellant’s
membership, is not a change to its extant constitution
that requires
registration as envisaged in section 1 of one of the LRA, is clearly
not sensible. It loses sight of the position
of the public and
outsiders and the core constitutional values of transparency and
openness.
[37]
Accordingly,
the court
a
quo
has correctly concluded that the appellant was required to register
the resolution of the National Office Bearers with the Registrar
of
Labour Relations before it became effective. In clause 26.3 of its
extant constitution, the appellant envisages that any amendment
or
addition to that document shall only have force and effect once
certified in terms of section 101(3)(b) of the LRA. Thus, in
attempting to accord effectiveness to a resolution by which the
appellant effectively added to its extant constitution without
such
registration or certification, would indeed not only be not in
compliance with its own constitution but also in breach of
section
101 of the LRA. There is also otherwise nothing untoward in the order
which the court
a
quo
made.
[38]
For
those reasons, I would dismiss the appeal. The appellant did not seek
any costs order on appeal and it is therefore not necessary
to make
an order in that regard.
[39]
In
the result, I would propose the following order be made:
Order
1.
The
appeal is dismissed.
2.
There
is no order as to costs.
P Coppin
SAVAGE AJA
[40]
I
have had the opportunity to consider the judgment of my colleague
with which I am respectfully unable to agree.
[41]
Section
4(1)(b) of the Labour Relations Act
[10]
(LRA)
provides that every employee has the right to join a trade union
“subject to its constitution”. The appellant
union’s
constitution has been registered by the Registrar of Labour Relations
(registrar) under section 93(3)(b) of the LRA.
Clause C of the
union’s registered constitution, headed “Scope”,
provides at clause C 3.1 that:
‘
The
union shall be open to all workers employed in the following
industries and trades:
3.1.1.
Garment Industry;
3.1.2.
Textile Industry;
3.1.3.
Wool/Mohair Processing Industry;
3.1.4.
Wool/Mohair, Hides and Skins Trade;
3.1.5.
Leather and Footwear Industry;
3.1.6.
Tanning, Woolpulling and Fellmongering Industry;
3.1.7.
Knitting Industry;
3.1.8.
Canvas and Ropeworking Industry;
3.1.9.
Retail, Commercial and Distributive Trade;
3.1.10.
Laundry, Dyeing & Dry-Cleaning Industry;
3.1.11.Farming
& Agricultural Industry and includes workers engaged in
operations incidental to or consequential on such operations
or
manufacture and the workers engaged in the sale, delivery,
distribution, retailing, storage and /or administration of such
goods;
3.1.12.
Other.’
[42]
Clause
C 3.2.12 states that “Other”:
‘…
means
any other activity, industry, or interest group as defined by the
National Executive Committee or the National Office Bearers
from time
to time.’
[43]
On
1 October 2019, the National Officer Bearers passed a “
Resolution
on the Demarcation of…The Furniture Industry
”,
under clause C 3.1.12 of the union’s constitution. This
resolution recorded that it had been resolved that the furniture
industry was demarcated as an “other” interest group in
terms of subclause C 3.2.12
and
that the industry was therefore covered by the scope of the union
.
[44]
Section
95(1) provides that any trade union may apply to the registrar for
registration provided that it has adopted a name that
meets the
requirements of subsection 4,
[11]
it has adopted a constitution that meets the requirements of
subsections
(5)
[12]
and
(6),
[13]
it has an address in South Africa and it is independent.
[45]
Section
95(5) requires that the constitution of any trade union or employers’
organisation that intends to register must
inter
alia
“
prescribe
qualifications for, and admission to, membership
”.
Section 96(3) provides that the registrar must consider an
application for registration made by a trade union or employers’
organisation and, in terms of section 96(3)(b) that the registrar –
‘
(b)
if satisfied that the applicant meets the requirements for
registration, must register the applicant by entering the applicant’s
name in the register of trade unions or the register
of employers’ organisations.’
[46]
For
the union’s constitution to have been registered, the registrar
would have had to have been satisfied that the requirements
for
registration had been met. This included that the constitution
provided the “
qualifications
for, and admission to, membership
”.
The
registered constitution not only set out in C 3.1.1 to C 3.1.11
specified industries which fell within the union’s scope
of
operation, but included, in clause C 3.1.12, that other industries
may fall into the union’s scope where, in terms of
clause C
3.2.12, either the National Executive Committee or the National
Office Bearers from time to time defined “
any
other activity, industry, or interest group”
as falling within the scope of the union. In providing as much, the
registrar was clearly satisfied that the constitution provided
the
“
qualifications
for, and admission to, membership”.
[47]
The
resolution taken by the National Office Bearers under clause C 3.2.12
of the appellant’s constitution did not amount to
a change to
or replacement of the appellant’s constitution as contemplated
in section 101(1).
[14]
This is
so since the National Office Bearers acted in accordance with the
terms of the union’s registered constitution in
that clause C
3.2.12 expressly provided that either the National Executive
Committee or the National Office Bearers from time to
time were
entitled to define “
any
other activity, industry, or interest group
”
as falling within the scope of the union. In resolving that the
furniture industry fell within the union’s scope,
the National
Office Bearers did not change the union’s constitution but
acted, as they were permitted, in accordance with
the express terms
of clause C 3.2.12.
[48]
Section
101(3) requires that where a trade union or employers’
organisation seeks registration of a changed or new constitution:
‘
(3)
The registrar must—
(a)
register the changed or new constitution if it meets the requirements
for registration; and
(b)
send the registered trade union or registered employers’
organisation a copy of the resolution endorsed by the registrar,
certifying that the change or replacement has been registered.’
[49]
The
resolution demarcating the furniture industry as falling within the
scope of the industries in which the union functioned was
a
resolution made in terms of the constitution, as registered, and did
not result in an amendment to the constitution. While it
had the
effect of altering the scope of the sectors in which the union
functioned, the constitution did not provide for a closed
list of
sectors. It expressly contemplated that by resolution other
industries could be included within the union’s scope.
This did
not amount to an amendment of the constitution. The constitution, in
the form it had previously been registered, remained
in force and
there was therefore no obligation on the registrar to register any
change to the union’s constitution.
[50]
Once
adopted, a union’s constitution is legally binding on its
members, governs the relationship between them and on registration
becomes public and available for inspection by outsiders.
[15]
The constitution of a union, as a voluntary association, forms the
agreement entered into with its members and must be interpreted
in
accordance with the ordinary rules of construction applying to
contracts in general.
[16]
Our
courts have recognised that the eligibility requirement to join a
trade union is defined by a union’s constitution.
[17]
In
Lufil
,
unlike in the current matter, the National Union of Metalworkers of
South Africa (NUMSA) had chosen to limit the scope of its
membership
to categories of industries defined in an annexure attached to its
constitution.
[18]
In
the current matter, the union’s decision to expand its scope to
the furniture industry was
one taken in terms of and pursuant to an express term of its
constitution which permitted this to be done by resolution. Given
that the exercise of such a power was expressly provided for in
clause
3.2.12
of
the union’s constitution, the Labour Court erred in finding
that the resolution taken
constituted
a change envisaged in section 101 of the LRA, which required
registration with the registrar in order to ensure publication.
[51]
Undue
limitations are not to be placed on an employee’s
right
to join a trade union
“
subject
to
its
constitution
”
or on
a
trade union’s right to determine its own “
administration,
programmes and activities
”
and organise.
[19]
Had there
been a change to the union’s constitution, section 96(3)(b)
requires that the registrar “
if
satisfied that the applicant meets the requirements for registration,
must register the applicant by entering the applicant’s
name in
the register of trade unions or the register of employers’
organisations
”.
Given that there was no change to the terms of the union’s
constitution, the Act requires no action to be taken by
the
registrar. Further, where a union by resolution has expanded its
scope in accordance with the terms of its registered constitution,
the Act does not require such expanded scope to be either registered
or published by the registrar. The inclusion of any such requirement
in the Act is a matter reserved for the legislature and there exists
no basis on which to find that any such requirement should
be read
into the law as it currently stands.
[52]
For
these reasons, the appeal must succeed and the order of the Labour
Court set aside. Since the matter was unopposed, there is
no reason
why a costs order should be made.
[53]
The
following order is therefore made:
Order
1.
The
appeal succeeds with no order as to costs.
2.
The
order of the Labour Court is set aside and substituted as follows:
“
1.
The application is dismissed with no order as to costs”.
SAVAGE
AJA
Waglay JP concurs in the
judgment of Savage AJA.
APPEARANCES:
FOR THE
APPELLANT:
M Pillemer SC and P Schumann
Instructed by
Purdon & Munsamy Attorneys
FOR THE RESPONDENTS:
No appearance for any of the Respondents
[1]
Act
66 of 1995, as amended.
[2]
National
Union of Metal Workers of SA v Lufil Packaging (Isithebe) (A
division of Bidvesr Paperplus (Pty) Ltd) and others
[2020] ZACC 7
; (2020) 41 ILJ 1846 (CC) (Lufil).
[3]
See
Lufil
at
para 52.
[4]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
2012 (4) SA 593
(SCA) at para 18. Confirmed, inter alia, in
Lufil
supra
at para 53.
[5]
See
Lufil
at paras 34,64 and 65.
[6]
See
Lufil
at para 64.
[7]
See
Lufil
at
para 31.
[8]
Constitution
of the Republic of South Africa, 1996 (Constitution) at section
23(2)(a).
[9]
Constitution
at section 23(4)(a) and (b).
[10]
Act
66 of 1995, as amended.
[11]
Section
95(4) provides that a
union
or
employers’
organisation
may
not have a name or shortened form of the name that so closely
resembles the name or shortened form of the name of another
trade
union
or
employers’
organisation
that
it is likely to mislead or cause confusion.
[12]
Section 95(5) requires that the constitution of any trade union or
employers’ organisation that intends to register
must –
‘
(a)
state that the trade union or employers’ organisation is an
association not for
gain;
(b)
prescribe qualifications for, and admission to, membership;
(c)
establish the circumstances in which a member will no longer be
entitled to the
benefits of membership;
(d)
provide for the termination of membership;
(e)
provide for appeals against loss of the benefits of membership or
against termination
of membership, prescribe a procedure for those
appeals and determine the body to which those appeals may be made;
(f)
provide for membership
fees and the method for determining membership fees and
other
payments by members;
(g)
prescribe rules for the convening and conducting of meetings of
members and meetings
of representatives of members, including the
quorum required for, and the minutes to be kept of, those meetings;
(h)
establish the manner in which decisions are to be made;
(i)
establish the office of secretary and define its functions;
(j)
provide for other office-bearers, officials and, in
the case
of a trade union, trade union representatives, and define
their respective functions;
(k)
prescribe a procedure for nominating or electing office-bearers and,
in the case
of a trade union, trade union representatives;
(l)
prescribe a procedure for appointing, or nominating and electing,
officials;
(m)
establish the circumstances and manner in which office-bearers,
officials and, in the
case of a trade union, trade union
representatives, may be removed from office;
(n)
provide for appeals against
removal from office of office-bearers, officials and, in
the case of
a trade union, trade union representatives, prescribe a procedure
for those appeals and determine the body to which
those appeals may
be made;
(o)
establish the circumstances and manner in which a ballot must be
conducted;
(p)
provide that the trade union or employers’ organisation before
calling a strike
or lock-out, must conduct a ballot of those of its
members in respect of whom it intends to call the strike or
lock-out;
(q)
provide that members of the trade union or employers’
organisation may not
be disciplined or have their membership
terminated for failure or refusal to participate in a strike or
lock-out if –
(i)
no ballot was held about the strike or lock-out; or
(ii)
a ballot was held but a majority of the members who voted did not
vote in favour
of the strike or lock-out;
(r)
provide for banking and investing its money;
(s)
establish the purposes for which its money may be used;
(t)
provide for acquiring and controlling property;
(u)
determine a date for the end of its financial year;
(v)
prescribe a procedure for changing its constitution; and
(w)
prescribe a procedure by which it may resolve to wind up.’
[13]
Section 95(6) requires that the constitution of any trade
union or employers’ organisation may
not
include any provision that discriminates directly or indirectly
against any person on the grounds of race or sex.
[14]
Section
101
(1) states
that: ‘A registered
trade
union
or
a registered
employers’
organisation
may
resolve to change or replace its constitution.’
[15]
National
Union of Metal Workers of South Africa v Lufil Packaging
(Isithebe) and others supra fn 2 a
t
para 37.
[16]
Id
at para 53 with reference to
Wilken
v Brebner
1935 AD 175
at 187 and
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2012]
ZASCA 13
;
2012 (4) SA 593
(SCA) at para 18.
[17]
Id
at para 69.
[18]
Id
at para 41.
[19]
Section
23(4) of the Constitution.
sino noindex
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