Case Law[2024] ZALAC 23South Africa
Sibanye Rustenburg Platinum Mine v Association of Mineworkers and Construction Union obo Sono and Others (JA32/2022) [2024] ZALAC 23; (2024) 45 ILJ 1623 (LAC) (2 May 2024)
Labour Appeal Court of South Africa
2 May 2024
Headnotes
a pre-arbitration conference with the purpose of inter alia, setting out the issues in dispute that the commissioner was required to arbitrate. Subsequent thereto a pre-arbitration minute was signed and filed by the parties. The parties recorded in the pre-arbitration minute the facts in dispute as:
Judgment
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# South Africa: Labour Appeal Court
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## Sibanye Rustenburg Platinum Mine v Association of Mineworkers and Construction Union obo Sono and Others (JA32/2022) [2024] ZALAC 23; (2024) 45 ILJ 1623 (LAC) (2 May 2024)
Sibanye Rustenburg Platinum Mine v Association of Mineworkers and Construction Union obo Sono and Others (JA32/2022) [2024] ZALAC 23; (2024) 45 ILJ 1623 (LAC) (2 May 2024)
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sino date 2 May 2024
N THE LABOUR APPEAL
COURT OF SOUTH AFRICA, JOHANNESBURG
NOT REPORTABLE
CASE NO: JA32/2022
In
the matter between:
SIBANYE
RUSTENBURG PLATINUM MINE
Appellant
and
AMCU
obo D SONO AND OTHERS
First
Respondent
COMMISSION
FOR CONCILIATION MEDITATION
AND
ARBITRATION
Second
Respondent
FOSTER
MALULEKE N.O.
Third
Respondent
Heard:
11 May 2023
Delivered
:
02 May 2024
Coram:
Waglay JP, Savage
et
Gqamana AJJA
JUDGMENT
GQAMANA, AJA
Introduction
[1]
In this matter, Sibanye Rustenburg Platinum Mine,
the appellant, appeals against the judgment and order of the Labour
Court (per
Mangena AJ) which reviewed and set aside the arbitration
award issued by the third respondent under case no: NWRB 1225-19 and
remitted
the matter back to the Commission for Conciliation,
Mediation and Arbitration (CCMA) for arbitration
de
novo
by another commissioner other than
the third respondent. This appeal is with the leave of the Labour
Court
.
Background
[2]
The facts on which this appeal turns are as
follows. The Association of Mineworkers and Construction Union
(AMCU), acts on behalf
of 59 of its members (employees) who were
dismissed by the appellant for submitting false sick notes. The
employees were found
guilty at a disciplinary enquiry and dismissed.
After their internal appeal was unsuccessful, AMCU referred an unfair
dismissal
dispute to the CCMA on behalf of the employees.
[3]
In preparation for the arbitration hearing, the
appellant and AMCU held a pre-arbitration conference with the purpose
of
inter alia,
setting
out the issues in dispute that the commissioner was required to
arbitrate. Subsequent thereto a pre-arbitration minute was
signed and
filed by the parties. The parties recorded in the pre-arbitration
minute the facts in dispute as:
‘
4.1
Substantive fairness in that:
4.2
The applicants did not contravene the offences for
which they were charged, found guilty of and dismissed
for as they
consulted a Professional Nurse/Sister/Medical Practitioner who
provided them sick notes. The sick notes were submitted
to the HR
Department processed and they were granted sick leave.’
[4]
Again, under issues that the arbitrator was
required to decide, it was recorded that, in issue was whether they
had committed the
offences for which they were charged and dismissed.
[5]
At arbitration, two witnesses testified for the
appellant and only one witness was called and testified for all the
employees. The
commissioner in his award found the dismissal of the
employees to have been substantively fair.
[6]
Disenchanted with the award, AMCU launched a
review application in the Labour Court and challenged the award on
the basis that the
commissioner failed to consider mitigation and
aggravation factors, the inconsistency of discipline and the severity
of the dismissal
sanction.
Judgment of the Labour
Court
[7]
Although AMCU took issue with the delay in the
institution of the disciplinary proceedings against the employees,
the Labour Court
found the delay justified because it was caused by
an investigation having been undertaken which had revealed that the
sick notes
submitted by the employees were fraudulent. Once that
information came to the fore, disciplinary proceedings were
instituted without
any delay.
[8]
On sanction, AMCU argued that the commissioner
adopted a “one size fits all” approach and failed to
consider the individual
circumstances of each of its members. The
Labour Court was persuaded by such submissions and took issue with
the approach by the
commissioner to the issue of sanction. The
commissioner’s findings on sanction were found to have been
based on the seriousness
of the misconduct and lack of remorse,
without evidence led in mitigation. The failure of the commissioner
to consider mitigating
factors was found to constitute an
irregularity sufficient to vitiate the arbitration proceedings. On
that basis, the court
a quo
reviewed
the matter and remitted it to the CCMA for a hearing on the issue of
sanction.
Issues in this appeal
[9]
In issue in this appeal is whether the court
a
quo
misdirected itself in relation to
the issue of sanction and in its remittal of the matter to the CCMA.
Evaluation
[10]
The parties delineated the issues in dispute at
arbitration in their signed pre-arbitration minute. The commissioner
was therefore
confined to determine only whether AMCU members were
guilty of the misconduct charges against them. The appellant
submitted that
the issue of sanction therefore fell outside the scope
of the dispute before the commissioner, with the import of the
pre-arbitration
minute being that, were it to be found that the
misconduct had been committed, there was no dispute that dismissal
was a fair sanction
to be imposed. AMCU disagreed.
[11]
Parties
are bound by an agreement reached in pre-trial minute and it is not
open to the courts to adjudicate on the issues that
fall outside the
scope of issues agreed upon by the parties. In
MEC
for Economic Affairs, Environment and Tourism, Eastern Cape v
Kruizenga and another
[1]
,
the Supreme Court of Appeal made it clear in relation to
pre-arbitration agreements that in the absence of any special
circumstances
a party is not entitled to resile from such an
agreement. In
National
Union of Metalworkers of South Africa v Driveline Technologies (Pty)
Ltd and Another
[2]
(
Driveline
),
this
Court held
that
“
a
pre-trial agreement is a consensual document which binds the parties
thereto and obliges the court (in the same way as the parties’
pleadings do) to decide only the issues set out therein
.”
[3]
Again,
in
South
African Breweries (Pty) Ltd v Louw
[4]
,
this
Court confirmed the decision in
Driveline
and
found that a court is bound to the narrowing of issues in the
pre-trial minute and cannot adjudicate on an issue that was not
raised for determination in the pre-trial minute. Furthermore, a
pre-arbitration minute is to be read holistically and not in a
restrictive fashion in relation to the headings used therein.
[5]
[12]
From the pre-arbitration minute concluded
by the parties, it is apparent that the only issue in dispute between
the parties in relation
to the substantive fairness of the employees’
dismissals to be considered by the commissioner was whether the
misconduct
had been committed or not. The commissioner, having found
that serious misconduct had been committed by the employees, cannot
therefore
be faulted for focusing his enquiry on this limited issue,
which the parties had agreed was to be determined at arbitration. It
follows that his finding that the dismissal of the employees was
fair, having been found to have committed serious misconduct,
fell
within the ambit of reasonableness required.
[13]
This was so in that the facts showed that the
employees had submitted fraudulent sick notes and received pay for
days they did not
work as a result. Their sick notes were purportedly
issued by Platinum Health but stamped at the RPM Hospital. The
investigation
revealed that the employees did not visit Platinum
Health as recorded in the medical certificates. The certificates were
signed
by the same unknown person without her/his initials or surname
and none of them had a serial number. The employees submitted the
certificates with one motive, namely to deceive the appellant in
circumstances in which the appellant has a zero-tolerance approach
in
as far as dishonesty and fraud. The misconduct committed by the
employees was of a serious nature and was grossly dishonest.
Such
conduct patently undermined the trust relationship between the
parties.
[14]
In light of the pre-arbitration minute agreed upon
and given the finding that serious misconduct had been committed, the
commissioner
reached a decision which fell within the bounds of
reasonableness required. The Labour Court erred in finding
differently.
[15]
The appeal against the judgment and orders of the
Labour Court must therefore succeed. With regard to costs, the
requirements of
law and fairness dictate that each party pay its own
costs.
[16]
In the result, the following order is made:
Order
1.
The appeal is upheld with no order as to costs.
2.
Paragraphs 2 and 3 of the order of the court
a
quo
are set aside and replaced with the
following order;
“
The
review application is dismissed”.
GQAMANA
AJA
WAGLAY JP and SAVAGE
AJA agree.
APPEARANCES
For
the Appellant:
Advocate
A. Redding SC (together with Advocate R. Itzkin)
Instructed
by Solomon Holmes Attorneys
For
the Respondent:
Advocate
A. Cook
Instructed
by LDA Inc.
[1]
[2010]
ZASCA 58; 2010 (4) SA 122 (SCA).
[2]
[2000] 1 BLLR 20 (LAC).
[3]
At
para 16.
[4]
[2018] 1 BLLR 26 (LAC).
[5]
Elliot
International (Pty) Ltd v Veloo and Another
(2015)
36 ILJ 422 (LAC) para 44.
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