Case Law[2024] ZALAC 33South Africa
AJ Charnaud and Company v SACTWU obo Members and Others (DA 9/23) [2024] ZALAC 33; [2024] 10 BLLR 1016 (LAC); (2024) 45 ILJ 2257 (LAC) (17 July 2024)
Labour Appeal Court of South Africa
17 July 2024
Judgment
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## AJ Charnaud and Company v SACTWU obo Members and Others (DA 9/23) [2024] ZALAC 33; [2024] 10 BLLR 1016 (LAC); (2024) 45 ILJ 2257 (LAC) (17 July 2024)
AJ Charnaud and Company v SACTWU obo Members and Others (DA 9/23) [2024] ZALAC 33; [2024] 10 BLLR 1016 (LAC); (2024) 45 ILJ 2257 (LAC) (17 July 2024)
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sino date 17 July 2024
THE LABOUR APPEAL
COURT OF SOUTH AFRICA, DURBAN
Not Reportable
Case
no:
DA
9/2023
In
the matter between:
A J CHARNAUD &
COMPANY
Appellant
and
sactwu
obo members and 90
others
First
Respondent
NATIONAL
BARGAINING COUNCIL FOR THE
CLOTHING
AND MANUFACTURING INDUSTRY
(KZN)
Second Respondent
COMMISSIONER
BHEKI KHUMALO
N.O.
Third Respondent
Heard
:
23 May 2024
Delivered
:
17 July 2024
Coram:
Van Niekerk, Nkutha-Nkontwana JJA
et
Govindjee AJA
JUDGMENT
VAN NIEKERK, JA
Introduction
[1]
On 18 June 2020, the 90 individual respondents (employees) were
dismissed by the appellant on a charge of threatening the well-being
and safety of two directors of the appellant, the late Mr Charnaud
and his wife Mrs Fiona Charnaud (Charnauds), by taking them
and other
employees hostage. The charge arose out of an incident on 26 March
2020 in which the Charnauds were forced to remain
in their vehicle
and denied exit from the appellant’s Ladysmith factory premises
for some four hours, in circumstances where
the gates had been locked
and barricaded, and rocks placed between the vehicle and the factory
gate.
[2]
The union, acting on behalf of the employees, disputed the fairness
of their dismissal, a matter that was referred ultimately to
an
arbitration hearing before the third respondent (arbitrator). In an
award issued on 2 April 2020, the arbitrator found that
the dismissal
of the employees was substantively and procedurally fair.
[3]
The union sought to review the arbitrator’s award. In a
judgment delivered on 25 January 2023, for reasons discussed more
fully below, the Labour Court reviewed and set aside the award and
remitted the matter to the second respondent (bargaining council)
for
a hearing
de novo
.
[4]
This is an appeal, with the leave of this Court, against the judgment
and order of the Labour Court.
Factual
background
[5]
The dispute between the parties has its roots in the events that took
place at the appellant’s premises in Ladysmith on 26
March
2020, soon after the announcement on 23 March 2020 of the
country-wide lockdown occasioned by the Covid-19 pandemic. The
announcement caused some uncertainty as to the payment of
remuneration during the lockdown. What transpired at the appellant’s
factory on 25 and 26 March 2020 is a matter of common cause.
Monthly-paid employees were advised that they would be paid on the
25
th
, as per normal practice. On 25 March 2020, the
appellant’s manager, Richard Kinvig, addressed a letter headed
‘To whom
it may concern’ for the benefit of the
‘monthly-paid’ employees. The letter advised that a
policy of ‘no
work, no pay’ would be applied for the
period of the lockdown. Kinvig testified that the monthly-paid
employees had sought
a letter in these terms, on the advice of their
banks, to enable them to make arrangements with their creditors for a
payment holiday.
The employees engaged in the present dispute are all
weekly-paid employees. Unbeknown to the appellant, at the time that
the letter
regarding the ‘no work, no pay’ letter was
prepared for the benefit of the monthly-paid employees, the letter
intended
only for monthly-paid employees was forwarded to the union’s
office. The union wrote a letter to the appellant, advising the
appellant of an agreement concluded between employer and union
representatives at the bargaining council regarding payment during
the lockdown. The letter was addressed to and received by Kinvig, who
was not present at the factory at the time. On 25 March 2020,
Mrs
Charnaud became aware of the letter written by Kinvig when she met
with the monthly-paid employees. She advised the monthly-paid
employees that they had been paid, in terms of the appellant’s
usual practice, on the 25
th
of March, and that she
anticipated that the lockdown would end before the next payday. She
was not well and left the factory for
home.
[6]
On 26 March 2020, the appellant’s operations manager, Mr Bertus
Watkins, met with union shop stewards who wanted to know
whether the
appellant would be paying staff three weeks’ salary in advance,
as had occurred at Durban Overall (Pty) Ltd,
another company in the
area. Watkins replied that payslips were being printed as Thursday
was the normal payday, but that he did
not know about any advance
payments. Watkins was then asked about the monthly-paid employees and
the letter that they had received.
Watkins replied that the letter
applied only to monthly-paid employees and did not relate to weekly
staff. The shop stewards then
advised Watkins that they would not
continue work until they were paid three weeks’ wages in
advance. The shop stewards were
told to wait for his feedback and to
return to work. Mrs Charnaud testified that on 26 March 2020, she
arrived at the factory and
attended to the payments of creditors. She
was advised that the staff had ‘downed tools’. Mr and Mrs
Charnaud met with
the monthly staff and advised them to ignore
Kinvig’s letter, that matters remained as they were after the
meeting the previous
day, and that UIF forms were being completed for
each employee. Charnaud stated that she was still feeling unwell and
left in her
car to go to her doctor.
[7]
At that stage, at about 10:00, certain of the appellant’s
employees rushed out of the factory, locked the gates and surrounded
the vehicle. Rocks were placed in the road, the gate was locked, and
the vehicle was prevented from leaving. Mrs Charnaud telephoned
Watkins and asked him to call the SAPS and the appellant’s
labour consultant, Vorster. Mrs Charnaud’s evidence, not
seriously disputed under cross-examination, was that she and her
husband were trapped in their vehicle for four hours, in the sun,
with no ventilation, surrounded by employees who were aggressive,
violent, rocking the car, chanting, pointing fingers and singing.
It
was not possible to leave the vehicle. Specifically, she stated;
‘
Well we were very
afraid because they were extremely violent and aggressive and they
had these rocks and they were chanting, pointing
fingers and they
were rocking the car. They were picking it up, trying to turn it over
and you know, there were so many people
around there. It was very
nerve racking, we were very nervous and concerned for our lives.’
[8]
Mrs Charnaud stated further that Mr Themba from the union had phoned
her to say that he was completely shocked and dismayed at
the illegal
behaviour of his members and that her labour consultant was dealing
with the police. She asked Themba to liaise with
Vorster and Mabaso,
the local union official. Eventually, at about 14:00, the employees
left and the Charnauds were able to leave.
[9]
Mr Ernest Arndt, the appellant’s cost accountant and raw
material store manager, gave evidence regarding a statement that
he
had made on the day of the incident. In the statement, Arndt records
that on 26 March 2020, he was inside the factory when he
heard a “
big
commotion and noise
”. He saw people running out of the
factory screaming and shouting, while some employees remained at
their workstations. He
followed the group outside and saw a large
group of people gathered at the gate, preventing Mr and Mrs
Charnaud’s car from
leaving the premises. One of the employees
told him that he would be “
sleeping here tonight
”.
As he approached the gate, he was subjected to verbal and physical
abuse, and felt physically threatened. Arndt states
further that he
took photos and a video, and was “
shouted at
” to
delete them immediately. He observed employees going in and out of
the gate – they had control of the gate. Arndt
testified that
the experience had been traumatic and that it had impacted his
personal relationships with employees. Arndt’s
evidence was the
basis on which the employees were identified as having participated
in the misconduct. He stated that the employees
were “
positively
identified and who positively took part in the hostage taking
”.
Arndt testified further that a list of weekly-paid employees who had
been identified in photographs and videos taken during
the incident
on 26 March was compiled. The list identifies the employees by
photograph number, employee number, employee first
name, and employee
surname. Arndt testified that different persons took different
photographs and that he was part of a team comprising
the factory
managers and the production manager, persons who work with the
appellant’s employees on a daily basis, who identified
individual employees in the photographs. Under cross-examination,
Arndt stated that: “
You can say for the first time in my
working career, I was actually fearing for my life
”. Arndt
further testified that he regarded himself as having been taken
hostage since he had been prevented from leaving
the premises by
employees who had the keys to the gate and were not allowing any
member of management or the monthly-paid staff
to leave the premises.
Arbitration
award
[10]
The pre-arbitration minute concluded by the parties’ records
that it was a matter of common cause that the employees were
dismissed on 19 June 2020. The minute further records agreement on
that fact that “
some employees converged at the gate which
was closed
” and that the “
respondent’s
directors were left in the car inside the factory behind locked
gate
”. Further, the parties acknowledged that the employees
were charged with threatening the employer and other employees by
taking them hostage and the outcome of the disciplinary hearing was
the dismissal of the employees.
[11]
The arbitrator concluded that the dismissals were procedurally fair,
primarily because the union had been notified of the collective
hearings, and because its officials and shop stewards attended and
represented the employees at the hearings. The list of all employees
who were disciplined served before the hearing and no procedural
issues had been raised during the course of the hearings. The
arbitrator concluded that in these circumstances, there was no
procedural impropriety and that the appellant had substantially
complied with the requirements of fair procedure.
[12]
Among the issues the arbitrator was required, in terms of the
pre-arbitration minute, to determine were the following:
‘
11.
The applicants are challenging the substantive fairness of their
dismissal for the following reasons: some of the Applicant (sic)
did
not commit any misconduct. None of the Applicants committed the
misconduct described in the charge sheet. The allegations for
which
the Applicants were dismissed are disputed.’
[13]
In regard to substantive fairness, the arbitrator concluded:
‘
[46]
In this case, the material facts are common cause. Briefly, that on
26 March 2020 some employee stopped working and rushed to and
converged at the gate which was locked and stood in front of the
directors car as it was proceeding to exist (sic) the workplace.
The
Respondent’s directors’ car was stopped inside the
factory behind locked gate. The employees prevented the directors
from exiting that gate and placed stones and bricks. They sang,
danced and uttered various statements to the directors and some
management personnel who tried to intervene. The foregoing being
common cause, the Applicants did not deny it and in fact confirmed
the behaviour. But they advanced explanations and reasons by which
they sought to justify and mitigate the implications of their
conducts. Specifically, in the contention of the Applicants, their
dismissal is unfair firstly on the grounds that the respondent
acted
inconsistently as it did not dismiss for similar conduct which it
occurred in 2017 and 12019 (sic).
[47]
The fact of the two previous similar incidents relied on by the
Applicants is common cause. However, no further evidence was led
by
the Applicants as to the similarities of the previous incidents to
this case. The Respondent averred that specifically because
of the
previous incidents, it fears for the lives of its managers and that
the same misconduct will be resorted to each time the
Applicants have
an issue.’
[14]
To the extent that the union had contended that the employees had
been provoked by the letter written by Kinvig, the arbitrator
found
that it was common cause that the letter had been issued to
monthly-paid employees, who had in fact requested the letter.
The
employees, being weekly-paid employees, were covered by the
collective agreement concluded in the bargaining council regarding
payment during the lockdown period. The employees knew about the
agreement and in fact, had been told about it on 23 March 2020.
In
the meeting with monthly-paid employees on 26 March 2020, Mrs
Charnaud had advised the employees to ignore the letter and that
it
was not supposed to have been issued. The arbitrator concluded:
“
Consideration of these valid facts, it baffles one’s
mind as to why the Applicants “demanded answers” from the
Respondent and not their union regarding the lockdown payment”
.
The arbitrator continued:
‘
[50]
Why did the applicant involve themselves in debating a letter not
directed to them and which they had obtained wrongly or indirectly
in
the first place. Even if one gives them a benefit of doubt or of
confusion, still for the Applicants to escalate their anxiety
or
anger regarding the letter to the violent protest of the nature
described in the evidence was unreasonable, mischievous and
grossly
unfair.’
[15]
The third element of the arbitrator’s decision on substantive
fairness, the primary issue pursued during the course of the
appeal,
related to the identification of those employees who had participated
in the misconduct. The arbitrator came to the following
conclusion:
‘
[52]
Thirdly, according to the Applicants, the Respondent failed to
distinguish the offenders and thereby unfairly
dismissed the
Applicants. I accept the version of the Respondent regarding the
identification of the culprits and find that it
reasonably identified
the offenders in a mass collective misconduct of a violent nature. I
find that the Respondent successfully
proved that the Applicants
either primarily or derivatively committed a gross misconduct which
in my view is dismissible. In the
National Union of Metalworkers
of South Africa obo Khanyile Nganezi and Others v Dunlop Mixing and
Technical Services (Pty) Ltd
and Others
[2019] ZACC 25
,
the Con-Court analyzed the applicability of the derivative misconduct
within the context of misconducts committed during a protected
strike. It found that the dismissal of all employees present at the
scene of violence in the absence of individual identification
would
not be justified. As stated above, this case involves an unprotected
strike action, the Respondent reasonably identified
the offenders and
their misconduct was uncalled for in my finding. These grounds lend
credence to my finding that the Applicants
were either primarily or
derivatively guilty.’
[16]
For all of these reasons, the arbitrator found that the employees’
dismissals were substantively and procedurally fair and
dismissed the
union’s claim of unfair dismissal, with no order as to costs.
Proceedings
in the Labour Court
[17]
The primary
ground for review raised by the union is that the arbitrator failed
to properly apply his mind and assess the evidence
that served before
him, and that he reached a decision that no reasonable decision-maker
could have reached. In particular, the
union raised 13 instances in
which it contended that the arbitrator had failed to properly apply
his mind. For present purposes,
what is relevant is the union’s
contention that the arbitrator had failed to take into account that
the appellant had failed
to demonstrate the identity of the
employees, their degree of participation in the events that occurred
on 26 March 2020 and the
“
consideration
of the Constitutional Court’s jurisprudence
”,
more particularly in the matter of
National
Union of Metalworkers of SA on behalf of Dludhlu and others v Marley
Pipe Systems SA (Pty) Ltd
[1]
(
Marley
Pipes
).
[18]
The Labour Court was particularly alive to this ground for review.
After recording a lengthy extract from that judgment, the Labour
Court noted:
‘
It is apparent
that the parties and the third respondent did not have the benefit of
the decision of NUMSA obo AUBREY DLUDLU and
147 Others vs MARLEY PIPE
SYSTEMS as it was delivered more than a year after the arbitration
award was issued.’
The
Labour Court observed that in
Marley Pipes
, the Constitutional
Court had found that the 41 employees who were the subject of the
appeal were found not guilty of assault and
that their cases were
referred back to the Labour Court to consider the matter of sanction
afresh on the charge of participation
in an unprotected strike.
Drawing inspiration from the terms of this order, the Labour Court
distinguished ‘two apparent
features’ in the form of
‘violence’ and ‘unprotected strike action’
and considered that it was “
conceivable that the ‘violence’
factor deemed to be part of the unprotected industrial action had an
influence on the
sanction
”. The Court went on to find that
the ‘common denominator’ was that the protest by the
employees on 26 March 2020
was indeed an unprotected strike. The
Court continued:
‘
[22]
… Now that there is a recent Constitutional Court judgment
discussed hereinabove, prudence dictates that the matter should
be
remitted to the second respondent for a hearing de novo before
another arbitrator for consideration of,
inter alia
, an
appropriate sanction.
[23]
Moreover, I have also had due regard to the trite principles
pertaining to the applications such as in casu and I am unable to
find with conviction that the third respondent committed an
irregularity in adjudicating the arbitration without him and or the
parties having had the benefit and or consideration of the recent
Constitutional Court judgment.’
[19]
On this basis, the Labour Court ordered that the award be reviewed
and set aside and the dispute be remitted to the bargaining
council
for a
de novo
hearing.
Grounds
for appeal
[20]
The appellants submit that the Labour Court failed to apply the
established test for review. Specifically, the appellant submits
that
the Court erred by proceeding to review and set aside the award in
the absence of any finding of any reviewable irregularity
on the part
of the arbitrator, or any finding that the award was unreasonable.
Once the Labour Court accepted, as it did, that
the arbitrator would
not have had access to the
Marley Pipes
judgment he relied on
because it was delivered more than a year after the arbitration award
was issued, it was a gross misdirection
to rely on that judgment to
remit the matter to the bargaining council for rehearing. The
appellants seek to have the Labour Court’s
order set aside and
substituted by an order dismissing the review application.
Discussion
[21]
Counsel were agreed that the Labour Court’s reasoning left much
to be desired. What is remarkable about the Labour Court’s
judgment is the fact that the arbitrator’s award was reviewed
and set side on a ground that was never pleaded, and without
any
finding that that the arbitrator had either committed any misconduct
or other reviewable irregularity in the conduct of the
proceedings,
or that his decision failed to meet the applicable reasonableness
threshold. That aside, the Labour Court’s
use of the order
granted by the Constitutional Court in
Marley Pipes
as a
template for the present dispute was wholly misplaced.
Marley
Pipes
concerned a dismissal on charges of both assault and
participation in an unprotected strike. But it was only in respect of
the
sanction for participation in the unprotected strike that the
Labour Court was ordered to consider the matter afresh, the employees
having been found by the Court not guilty of the charge of assault.
In the present instance, the employees were not charged with
participation in an unprotected strike, nor had they been dismissed
for that reason. The charge against them related only to the
threatening of the employer’s well-being and safety by taking
the employer and other employees hostage. The arbitrator had
upheld
their dismissal on that charge. Unlike
Marley Pipes
, there was
thus no unresolved second charge of misconduct that might have
warranted the attention of a decision-maker in any
de novo
hearing. The ‘common denominator’ identified by the
Labour Court simply does not exist.
[22]
The inescapable conclusion is that the Labour Court considered the
fact that a judgment by the apex court, delivered 16 months
after the
award under review was issued, and setting out the basis on which the
doctrine of common purpose applies in an employment
context, was a
sufficient basis, without more, to set aside the arbitration award.
That conclusion has only to be stated to appreciate
its manifest
absurdity. What the Labour Court did was to neglect its primary
obligation – to ascertain whether the arbitrator’s
award
met the applicable threshold of review. This required an evaluation
of the evidence on record, an assessment of the reasonableness
of the
arbitrator’s factual findings, and a finding on the
reasonableness of the outcome. Instead, the Labour Court sought
to
pass the proverbial buck back to the bargaining council, at great
cost to the parties, and with a protracted but avoidable delay
in the
finalisation of the dispute.
[23]
In these
circumstances, the issue before us is whether, on the basis of the
record that served before it, the Labour Court’s
decision to
review and set aside the arbitrator’s award was correct. This
is because appeals lie against orders, not reasons
for orders.
[2]
Specifically, the question before this Court is whether the
arbitrator’s decision to accept the appellant’s version
regarding the identification of the employees in what the arbitrator
described as an act of ‘mass collective misconduct of
a violent
nature’, meets the threshold of reasonableness.
[24]
Where an
arbitrator undertakes a factual enquiry into the issue of guilt on a
balance of probabilities, the reasonableness threshold
requires that
in any assessment of fact, arbitrators must necessarily be accorded a
margin for error, at least where all of the
material facts have been
placed in the balance and a proper assessment of the facts
undertaken. Material errors of fact, as well
as the weight and
relevance to be attached to particular facts, are not in and of
themselves sufficient for an award to be set
aside.
[3]
The applicable test was recently restated by this Court in
Makuleni
v Standard Bank of South Africa
[4]
where
Sutherland JA said the following:
[5]
‘…
The court
asked to review a decision of commissioner must not yield to the
seductive power of a lucid argument that the result could
be
different. The luxury of indulging in that temptation is reserved for
the court of appeal. At the heart of the exercise is a
fair reading
of the award, in the context of the body of evidence adduced and an
even-handed assessment of whether such conclusions
are untenable.
Only if the conclusion is untenable is a review and setting aside
warranted.’
And
further:
‘
To meet the review
test, the result of the award has to be so egregious that, as the
test requires, no reasonable person could reach
such a result.’
[6]
[25]
As I have
indicated, the only issue of any substance that was debated before us
relates to the identification of those employees
who had participated
in the misconduct.
[7]
But for
some nine employees identified in their heads of argument with
respect to whom they concede that there is direct evidence
of
misconduct, the respondents contend that the appellant’s
witnesses failed to discharge the burden of identifying employees
to
whom specific acts of misconduct were attributed. Mr Nxusani SC, who
appeared for the respondents, sought to draw a distinction
between
those employees who were participants to misconduct and those who
were mere spectators. He submitted that on the available
evidence, a
large number of the employees were not identified as having performed
any acts of misconduct and that they were dismissed
solely on account
of their presence at the scene. Specifically, and relying on
Marley
Pipes
,
it was submitted that the arbitrator imputed acts to employees who
were merely present on the scene and who had manifested no
intention
to commit violence or to intimidate. On this basis, the respondents
submit that the appeal ought to be dismissed and
the order of the
Labour Court should stand, subject to the application of an
appropriate sanction in respect of the employees acknowledged
as
having committed misconduct.
[26]
Mr Pillemer SC, for the appellants, submitted that the arbitrator’s
factual finding that all of the employees on the list
had
participated in the misconduct was a finding to which a reasonable
decision-maker could come on the available evidence. In
particular,
the photographs produced and referred to by Arndt were not intended
to prove participation in the misconduct –
they were intended
for identification purposes only.
[27]
What the
evidence suggests is that despite the arbitrator’s reference to
‘derivative misconduct’, the present
case is not one that
concerns derivative misconduct, at least not in the sense that term
was employed
in
National Union of Metalworkers of SA on behalf of Nganezi and others
v Dunlop Mixing and Technical Services (Pty) Ltd and others
(Casual
Workers Advice Office as amicus curiae)
,
[8]
where employees were dismissed not for participating in the primary
misconduct but for failing to disclose to the employer information
regarding that misconduct.
[9]
The charge brought against the employees in the present instance is
one of direct participation in misconduct. The arbitrator’s
award does not apply the principle of common purpose, at least not in
the sense that the term and its application were discussed
by the
Constitutional Court in
Marley
Pipe
.
Put another way, the appellant does not rely on the employees’
presence at the scene and any failure to intervene or disassociate
themselves with an act of misconduct to justify the employees’
dismissal. The appellant relies on the direct observation
by its
witnesses of participation in the act of holding the Charnauds
captive in their vehicle and preventing other members of
management
and monthly-paid employees from leaving the premises. The references
to
Marley
Pipe
and
Dunlop
Mixing
in the Labour Court’s judgment are thus red herrings.
[28]
What the evidence discloses is that on 26 March 2020, a group of
employees left their workstations and congregated outside the
factory. The evidence also discloses that a second group of employees
elected to remain at their workplaces. It follows that it
is more
probable than not that those employees who elected to leave their
workplaces and join the crowd outside the factory were
those who had
elected to participate in the events that occurred over the next four
hours. The evidence also discloses the manner
in which these
employees were identified. Arndt’s evidence was that each of
the employees was observed participating in misconduct
and that they
were identified by reference to photographs and videos that had been
taken at the scene. Specifically, Arndt’s
evidence was that the
employees were those whom he had positively identified and who
“
positively took part in the hostage taking
”.
Under cross-examination, he stated that the photographs taken were
used for the purposes of the identification of the employees
who were
involved in the incident. Put another way, the employees were
identified as having directly and actively participated
in the
misconduct; the photographs were not intended to prove participation
in the misconduct, they were used only to put names
to the
individuals identified as having participated. Under
cross-examination, when Arndt was pressed on the issue, the union’s
representative put it to Arndt that he would call witnesses “
to
prove that actually this (sic) workers were not actually involved in
the taking of hostage of the employers as well as the employees
that
the company is claiming to say they were taken as hostage
”.
That challenge never materialised - no such evidence was adduced by
the union, and there was no basis on which to reject
or call into
question Arndt’s testimony as to how employees whose names were
placed on the list were all active participants
in the misconduct.
[29]
In short, the arbitrator’s reference to the employees being
“
either primarily or derivatively guilty
” is
unfortunate – the evidence before him established, on a balance
of probabilities, that the employees had directly
participated in the
misconduct for which they were dismissed. The arbitrator’s
reference to derivative misconduct is a misnomer,
but the conclusion
to which he ultimately came is not untenable, having regard to the
evidence that served before him. The arbitrator’s
factual
findings must therefore be upheld.
[30]
To the extent that the review court was required to enquire into the
appropriateness of dismissal as a sanction, the employees
committed a
serious act of misconduct. They held two directors of the appellant
captive in their motor vehicle for four hours,
in the sun, with no
ventilation. As the arbitrator pointed out, all this in support of an
issue that ought properly to have been
the subject of further
engagement with their employer. A resort to violent protest in the
circumstances was an act of serious misconduct
for which the sanction
of dismissal is undoubtedly an appropriate penalty. The arbitrator’s
conclusion to that effect clearly
falls within a band of decisions to
which a reasonable decision-maker could come.
[31]
The appellant does not seek an order for costs.
Order
1.
The appeal is upheld with no order as to costs.
2.
The order of the Labour Court is set aside and replaced by the
following:
‘
1.
The application is dismissed, with no order as to costs.’
A Van Niekerk JA
Nkutha-Nkontwana JA
et
Govindjee AJA concur.
APPEARANCES:
For the Applicant:
M Pillemer SC
Instructed by Jacques
Roos Attorneys
(jacques@jrooslaw.co.za;ben@lawyze.co.za)
For the Respondent:J
Nxusani SC
Instructed by Purdon and
Munsamy Attorneys
(rama@purdon.co.za)
[1]
[2022] ZACC 30
;
(2022)
43 ILJ 2269 (CC).
[2]
The
rule that an appeal lies against an order and not the reasoning in
the judgment has been described by the Supreme Court of
Appeal as a
“
sound
principle which has been confirmed in numerous decisions, including
decisions by this court over a long period
…”
See:
Neotel
(Pty) Ltd v Telkom SA SOC Ltd and others
[2017]
ZASCA 47
(31 March 2017) at para 22.
[3]
Her
h
oldt
v Nedbank Ltd (Congress of SA Trade Unions as Amicus Curiae
[2013]
ZASCA 97
;
(2013)
34
ILJ
2795
(SCA)
.
See also:
Head
of Department of Education v Mofokeng and others
[2014]
ZALAC 50
; (2015) 36
ILJ
2802 (LAC).
[4]
[2023] ZALAC 4
; (2023) 44
ILJ
1005 (LAC)
.
[5]
Ibid
at para 4.
[6]
Ibid
at para 13.
[7]
None of the arbitrator’s conclusions concerning procedural
fairness, or what was alleged to constitute inconsistency or
provocation were pursued.
[8]
[2019]
ZACC 25
; (2019) 40 ILJ 1957 (CC) (
Dunlop
Mixing
).
[9]
The terms of both the arbitration award and the Labour Court’s
judgment, and the loose use of the terms ‘derivative
misconduct’ and ‘common purpose’, necessitates a
brief consideration of the application of the concepts of
derivative
misconduct and common purpose in the context of the workplace. This
is so because in drawing his conclusions, the
arbitrator makes
reference to derivative misconduct; the Labour Court makes reference
to the
Marley
Pipe
judgment, a matter that dealt with common purpose. Both concepts
have been applied in a context where an employee is a witness
to
misconduct, but not directly a perpetrator of that misconduct. But
the concepts of derivative misconduct and common purpose
are
discreet, and each has different requirements that must be
established before application. The difference between derivate
misconduct and common purpose is clearly explained by the authors of
‘
The
Essential Labour Law Handbook’
(C Garbers
et
al
MACE Labour Law Publications, 8 ed., 2024). The authors note, with
reference to
Dunlop
Mixing
,
that reliance on derivative misconduct requires the employer to
prove that the dismissed employee knew or must have known about
the
primary misconduct but elected, without justification, not to
disclose to the employer what he or she knew. The application
of the
principle of common purpose, on the other hand, arises in the
context of allegations of participation in an act of misconduct
where the employer seeks to hold an employee liable not on account
of actually perpetrating the primary misconduct, but rather
on the
basis of an active association with that misconduct.
Marley
Pipes
does
not reject the application of the doctrine of common purpose in
workplace discipline – it sets the parameters for the
application of that principle by requiring some direct or
circumstantial evidence that persons present at the scene in some
manner or form associated themselves with the conduct of the others.
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make_database footer start
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