Case Law[2024] ZALAC 65South Africa
SA Steelworks division of SA Metal Group (Pty) Ltd v Metal and Engineering Industries Bargaining Council and Others (CA8/23) [2024] ZALAC 65; [2025] 3 BLLR 257 (LAC); (2025) 46 ILJ 572 (LAC) (6 December 2024)
Labour Appeal Court of South Africa
6 December 2024
Judgment
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## SA Steelworks division of SA Metal Group (Pty) Ltd v Metal and Engineering Industries Bargaining Council and Others (CA8/23) [2024] ZALAC 65; [2025] 3 BLLR 257 (LAC); (2025) 46 ILJ 572 (LAC) (6 December 2024)
SA Steelworks division of SA Metal Group (Pty) Ltd v Metal and Engineering Industries Bargaining Council and Others (CA8/23) [2024] ZALAC 65; [2025] 3 BLLR 257 (LAC); (2025) 46 ILJ 572 (LAC) (6 December 2024)
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FLYNOTES:
LABOUR – Jurisdiction –
Bargaining
council
–
Labour Court finding that bargaining council had no jurisdiction
to hear and determine fairness of dismissal
– Union’s
case was never that dismissed was for participation in unprotected
strike – Arbitrator was mindful
of her duty to determine if
she had jurisdiction – Dispute referred for arbitration was
misconduct for repeated refusals
to obey lawful instructions –
Conduct constituted gross insubordination which justified
dismissals – Appeal upheld.
THE
LABOUR APPEAL COURT OF SOUTH AFRICA, CAPE TOWN
Reportable
Case
No: CA8/2023
In
the matter between:
SA
STEELWORKS
A
DIVISION OF SA METAL GROUP (PTY) LTD
Appellant
and
METAL
AND ENGINEERING INDUSTRIES
BARGAINING
COUNCIL
First
Respondent
GAIL
MCEWAN N.O.
ASSOCIATION
OF MINEWORKERS AND
CONSTRUCTION
WORKERS UNION (“AMCU”)
Second
Respondent
OBO
MZAMO AND 14 OTHERS
Third
Respondent
Heard:
10 September 2024
Delivered:
06 December 2024
Coram:
Savage ADJP, Davis AJA
et
Jolwana AJA
JUDGMENT
JOLWANA,
AJA
Introduction
[1]
This appeal, which is with the leave of the Labour Court, concerns
the issue of the jurisdiction of the first respondent.
The Labour
Court had, on review, determined that the Metal and Engineering
Industries Bargaining Council (MEIBC) had no jurisdiction
to hear and
determine the fairness of the dismissal of the third respondent’s
(AMCU) members. It thereupon set aside the
arbitration award issued
by the arbitrator and directed AMCU to approach the Labour Court for
the adjudication of the dispute between
the appellant and AMCU’s
members (employees. The arbitrator had concluded that the dismissal
of the employees was fair and
dismissed the review application.
Factual
background
[2]
The appellant is in the metal recycling business which, by its very
nature, has to run 24 hours a day, seven days a week.
It therefore
operates on a shift system comprising three teams which are
colloquially referred to as the orange, purple and blue
teams. The
dismissed employees were all members of the blue team working on the
same shift. The employees, in the past, worked
two-day shifts,
followed by two-night shifts and closed off their working week with
two days off duty. The appellant introduced
a new shift system in
terms of which the employees were required to work a four-day shift
followed by two days off duty, and a
four-night shift followed by two
days off duty.
[3]
It is the introduction of this new shift pattern that was the
catalyst to the events that led to the disciplinary processes
and
ultimately the dismissal of the employees.
At
arbitration
[4]
AMCU, acting on behalf of the dismissed employees, referred an unfair
dismissal dispute to the MEIBC challenging the substantive
fairness
of the dismissal of its members, the affected employees. The
appellant’s evidence was that by means of a memorandum
dated 12
November 2018, it advised all its employees that the shift cycle
would change from the first day of work in January 2019
for
operational reasons. The employees were advised to submit any
comments in writing by 23 November 2018. On 14 November 2018,
AMCU
shop stewards sent a written response signed by most melt shop
employees indicating that they would like to continue working
according to the old shift pattern to avoid loss of overtime, fatigue
and exposure to heat and chemicals. The appellant responded
in
writing and pointed out that the new shift pattern would not lead to
loss of overtime or increases in the number of hours worked.
The
employees insisted that the new shift pattern could not be introduced
without their agreement and rejected it. Despite its
rejection, the
appellant advised its employees and AMCU that the new shift pattern
would be implemented with effect from 9 January
2019. The appellant
shut down for the end of the year on 12 December 2018 and reopened on
9 January 2019 with the new shift pattern
being implemented. In terms
of the new shift pattern the employees were put on a night shift for
9 January 2019.
[5]
The appellant testified that members of the blue and purple teams
embarked on a work stoppage. There was a meeting between
the
management of the appellant and a representative of each one of the
three teams. The employees claimed that they never agreed
to the new
shift pattern and insisted on working according to the old shift
pattern. In this meeting, the appellant told the employees
that the
previous shift pattern had been discontinued and that they had been
advised that from 9 January 2019, the new shift pattern
would be
implemented. The employees were further told that non-adherence to
the new shift pattern would result in disciplinary
action being
taken. It was then agreed that the employees would start working
according to the new shift pattern with the night
shift of 10 January
2019 as they had spent the entire day in the meeting on 9 January
2019 and were too tired to go on duty at
19:00 on that day. The 19:00
shift of 9 January 2019 was in accordance with the new shift pattern.
[6]
The employees worked according to the new shift pattern on 10 January
2019. There was a meeting between the appellant
and AMCU and the same
issue of the new shift pattern was discussed and AMCU was told that
going back to the old shift pattern was
not an option. However, there
were no disruptions on the 10 January 2019. On 11 and 12 January
2019, the employees did not avail
themselves to work as scheduled in
the new shift pattern and indicated that they would not be adhering
to it but would present
themselves according to the old shift
pattern. On 13 January 2019, the employees used their own transport
and went to work according
to the old shift pattern. They were,
however, not allowed access by the appellant’s security as they
were not scheduled to
be on that shift.
[7]
The employees were issued with notices to attend disciplinary
hearings on 17 January 2019. They were charged with misconduct,
which
led to their dismissal.
[8]
Mr Mzamo, an AMCU shop steward, was the only witness who gave
evidence on behalf of all the employees. He testified that
the
appellant had proposed a new shift pattern but no one had agreed to
it as it was perceived to be dangerous with insufficient
rest
periods. The new shift pattern would affect their overtime and it did
not take fatigue into account considering the dangerous
working
environment which exposed them to heat and furnaces. They had
received written communication on 4 December 2018 confirming
that
this new shift pattern would be implemented with effect from 9
January 2019. On 9 January 2019, the employees went to work
along
with the orange and purple teams and told the appellant that they
would not work according to the new shift pattern. The
blue team
employees said that they should not have been on the night shift on
that day in terms of the old shift pattern. On 10
January 2019, the
employees worked the night shift. In terms of the old shift pattern,
they would have been off duty on both 11
and 12 January 2019. On 13
January 2019, the employees were turned away by the appellant’s
security. They returned to work
on 15 January 2019 but were placed on
suspension.
[9]
On 15 January 2019, the employees would have been on a day shift in
terms of the new shift pattern whereas according to
the old shift
pattern, they would have been on the night shift. They were dismissed
following a disciplinary hearing. Mr Mzamo
refuted being absent
without authorisation as he would not have been working on both 11
and 12 January 2019. He had come to work
on 9 January 2019 to deal
with the problem of the introduction of the new shift pattern. All
the teams had mandated him to tell
the appellant that they would not
obey the new shift pattern. The employees wanted the appellant to
first reach an agreement with
AMCU about the new shift pattern. The
employees were charged with unauthorised absence or refusal to work
their shift starting
on 11 January 2019; unauthorised absence or
refusal to work their shift on 12 January 2019; breach of company
policy for their
failure to notify the employer of their absence;
gross insubordination for their refusal to abide by the 2019 shift
structure;
and gross insubordination for refusal to abide with the
employer’s instructions regarding the new shift structure.
[10]
In her award, the arbitrator summarised the issue as being whether,
by seeking to introduce a new shift pattern, the
appellant was
implementing a change to the terms and conditions of employment or
whether the introduction of a new shift pattern
merely constituted a
work practice. She found that in the employees’ contracts of
employment there was a clause providing
for a 44 hour work week from
Tuesday to Monday. They were required to work continuous rotating
shifts with the manager or supervisor
advising of the actual working
hours and shifts. The arbitrator found that the appellant was not
bound by shift times or cycles.
Therefore, the introduction of the
new shift pattern was a work practice and did not constitute a change
in the terms and conditions
of the employees’ employment.
[11]
The arbitrator concluded that the appellant was not compelled to
reach an agreement with its employees regarding the
introduction of
the new shift pattern. It was just prudent courtesy that the
appellant consulted the employees about the changes.
The employees
had no contractual right to work specific shifts forever. The
appellant was entitled to unilaterally introduce the
changes and the
employees had not demonstrated that the changes affected their
contractual rights.
[12]
The arbitrator found that the employees were excused from working
their shift on 9 January 2019 because they were tired
after the
negotiations. They were, however, required to work their shift from
10 January 2019 onwards like the other teams. Mr
Mzamo’s
evidence showed that the workers intended not to comply with the new
shift pattern and were absent without permission
and without
notifying the employer on 11 and 12 January 2019. Their absence was
due to a refusal to work according to the new shift
pattern which was
unauthorised and was without communication with the employer as
required by the company policy. Therefore, the
employees were in
breach of the company policy. The arbitrator, on these bases, found
that the employees were guilty as charged.
She concluded that the
refusal to abide by the instruction to work according to the new
shift pattern was gross insubordination.
Therefore, the dismissal of
the employees was, in all the circumstances, substantively fair and
that the trust relationship which
hitherto existed had been
irrevocably damaged.
In
the Labour Court
Grounds
of review
[13]
The grounds
of review set out by AMCU were that the arbitrator did not properly
apply Schedule 8 of the Code of Conduct for Good
Practice:
Dismissal
[1]
in that, in determining that dismissal was an appropriate sanction,
she did not consider the totality of the circumstances; the
importance of the rule that had been breached; the harm caused by the
employees’ conduct; whether any training would assist
the
employees in not committing the same offences and the service records
of the employees. It was contended that some of the employees
had
been in the employ of the appellant for a period in excess of 10
years. Therefore, a final written warning would have been
an
appropriate sanction thus making the dismissal sanction too harsh.
The Union further averred that the undertaking by one of
the
employees to adhere to the new shift pattern if his union agreed was
indicative of the possibility of resolving the dispute
without
dismissals was not properly considered. The arbitrator also took into
account the attendance of the EFF and some employees
at the
appellant’s premises. However, she failed to properly consider
that there was no intimidation and only an EFF member
was talking
loudly.
[14]
AMCU’s further grounds of review can be summarised as follows:
14.1
AMCU averred that the arbitrator misconceived the nature of the
enquiry and thus failed to consider the central
dispute which was
whether the employees were guilty of the misconduct they had been
charged with and been found guilty of. The
union further submitted
that the arbitrator misconceived the concept of insubordination, that
she did not even consider whether
the individual employees were
guilty of subordination or gross insubordination and further that a
reasonable decision marker would
have been alive to the differences
between insubordination and gross insubordination. The arbitrator
ignored the reasons why the
employees failed to report to work which
was crucial to the determination of the matter. The reason was the
employees’ genuine
belief that the appellant could not
unilaterally change the shift pattern which the appellant could only
do by way of agreement
with the employees. There was therefore no
wilful disobedience in the refusal to work according to the new shift
pattern as the
employees genuinely believed that the appellant’s
instruction was unreasonable and unlawful, as the union contends.
14.2
The Union further contended that the arbitrator determined the matter
on the basis that the change to the
shift pattern was a work practice
which required no agreement and therefore the refusal to adhere to it
amounted to gross insubordination,
based on the arbitrator’s
own view that the employees’ understanding of the law in
relation to unilateral changes to
terms and conditions of employment
was incorrect. In doing so, the arbitrator did not consider the facts
and the reasons for not
following the instructions to work according
to the new shift pattern. She failed to consider whether the
misconduct was participation
in an unprotected strike and if so, the
appropriateness of the dismissal sanction or whether the bargaining
council had jurisdiction
to deal with the matter. She therefore took
into account irrelevant considerations, ignored relevant
considerations and reached
an unreasonable conclusion. She failed to
consider material facts and evidence and made findings that were not
supported by the
objective facts.
Appellant’s
case
[15]
The appellant submitted that the employees were disingenuous in that
during the disciplinary hearings they admitted engaging
in other work
during the rest periods including selling alcohol, doing other odd
jobs, working for an NGO and installing burglar
bars and security
gates. In doing these activities, the employees compromised their
rest periods. The employees did not have fair
and valid health and
safety concerns but were motivated by their desire to defy the
appellant’s authority and work according
to a shift pattern
that better accommodated their personal circumstances. In arriving at
07h00 on 9 January 2019 instead of 19h00,
the blue team employees
intended to defy the new shift pattern by insisting on following the
old shift pattern. The appellant elected
not to subject the employees
to disciplinary processes in order to foster good relations and to
encourage them to accept the new
shift pattern. However, the
employees failed to work their new shifts on 11 and 12 January 2019.
This was after they had been given
instructions to go to work but
insisted on working according to the old shift pattern and displayed
a determination to refuse to
abide by the new shift pattern thus
overthrowing the new shift pattern as a whole.
[16]
The appellant contended that a final written warning was not
appropriate for repeated, deliberate and wilful insubordination
which
was therefore gross insubordination. The arbitrator applied her mind
to the elements of Schedule 8 and her conclusions were
one a
reasonable arbitrator would have reached. The employees’
insistence that the appellant could not unilaterally change
the shift
pattern without their consent was explicitly communicated to it by
AMCU in writing on 10 January 2019. In the disciplinary
hearings, the
employees said that AMCU advised them to reject the new shift pattern
and continue tendering their services in accordance
with the old
shift pattern. AMCU described the dispute in its referral to the
MEIBC as pertaining to the unilateral change of the
terms and
conditions of employment. At arbitration, AMCU’s representative
argued that the employees’ insubordination
was a legitimate
response to a unilateral change to the shift pattern and the
arbitrator dealt with this argument in the award.
[17]
The arbitrator determined correctly that the nature of the dispute
was an unfair dismissal dispute related to misconduct
and dealt with
this matter on that basis. She determined that the employees
wilfully, repeatedly and persistently refused a lawful
and reasonable
instruction. Therefore, the arbitrator was alive to the definitional
principles of gross insubordination and evaluated
the evidence on
that basis in reaching the conclusion she did. The individual
employees did not place their individual circumstances
before the
commissioner and chose to call only one witness. The arbitrator could
not consider evidence that was not led. The employees
knew that they
were acting in defiance of the new shift pattern on 11 and 12 January
2019 when they repeatedly refused company
transport to go to work.
They did not communicate their absences which were unauthorised. On
11 and 12 January 2019, the employees
showed egregious
insubordination whereas the members of the orange and purple teams
had accepted the shift changes and worked according
to the new shift
pattern. AMCU did not raise a jurisdictional objection at
arbitration. The insistence by the employees on a shift
pattern that
suited them was not unprotected strike action but a deliberate
attempt to defy and overthrow the new shift pattern.
Judgment
of the Labour Court
[18]
In determining the matter, the Labour Court considered the
appellant’s letter to AMCU dated 9 January 2019 wherein
AMCU
was requested to advise the employees that their conduct of not being
at work in accordance with the new shift pattern constituted
an
unprotected strike and that it should be stopped by 12h30 failing
which an ultimatum would be issued advising them that their
actions
amounted to misconduct. Resultantly, disciplinary action would be
instituted against every employee who did not return
to work by 12h30
on 9 January 2019. It further referred to the disciplinary
proceedings in which a finding was made that the appellant
informed
the employees that their conduct amounted to an unprotected strike.
[19]
The Labour
Court determined the matter on the basis that, in the analysis of the
evidence before the arbitrator, the issue to be
decided was whether
the appellant was implementing a change to the terms and conditions
of employment in introducing a new shift
pattern or whether this
constituted a work practice. It said that such an enquiry was
requisite in deciding whether the employees
were engaged in a
protected strike or not when “
the
employees downed tools
”.
It concluded that when the employees downed tools, they engaged in an
unprotected strike and the acts of misconduct for
which they were
charged took place in the context of an unprotected strike. It
concluded that in terms of section 191(5)(b)(iii)
of the Labour
Relations Act
[2]
(LRA), MEIBC did not have jurisdiction to entertain the dispute and
that it should have referred it to the Labour Court. The Court
criticised the arbitrator for not enquiring into the nature of the
dispute in order to ensure that she had jurisdiction to hear
it. It
then granted an order reviewing and setting aside the arbitrator’s
award for want of jurisdiction.
Submissions
on appeal
[20]
The appellant argued that the review application typically amounted
to an attack on the reasonableness of the award,
in particular, the
finding that the dismissals were substantively fair. It was submitted
that it was never AMCU’s case in
the review application that
the employees had in fact engaged in an unprotected strike and that
therefore the MEIBC lacked jurisdiction
over the dispute. The issue
that the MEIBC lacked jurisdiction was not pleaded or canvassed in
the papers before the Labour Court.
AMCU sought to rely on this point
because in their view, the true nature of the dispute concerned
dismissals for participation
in an unprotected strike, therefore the
MEIBC lacked jurisdiction to entertain the dispute. Such a dispute
could only be adjudicated
by the Labour Court in terms of section
191(5)(b)(iii) of the LRA. This was not the case as AMCU elected to
pursue arbitration
and not adjudication at the Labour Court.
[21]
It was argued that the new point on a lack of jurisdiction by the
MEIBC stood in stark contrast to AMCU’s position
throughout the
internal disciplinary enquiry, arbitration proceedings and its
pleaded review grounds. This notwithstanding, the
court
a quo
determined the review application on this basis, upheld it and set
aside the arbitrator’s award for lack of jurisdiction.
The
court
a quo
went on to permit AMCU to refer a new unfair
dismissal dispute to the Labour Court relating to an unprotected
strike. It was submitted
that the new dispute would have to proceed
from the starting point that the instruction to work according to the
new shift pattern
was lawful. This would be a complete obverse of the
case the employees elected to present at arbitration. The effect of
the Labour
Court’s judgment is to permit a litigant who has
lost the dispute he elected to pursue at arbitration and to prosecute
the
opposite or different case in court contrary to every principle
of effective dispute resolution which is one of the primary objects
of the LRA.
[22]
The appellant submitted that the arbitral jurisdiction of the CCMA or
a bargaining council and the adjudicatory jurisdiction
of the Labour
Court are founded on three legal principles. First, it is the
referring party’s categorisation of the dispute
that triggers
either its arbitration by the CCMA or bargaining council on the one
hand or adjudication by the Labour Court on the
other. Second, the
above principle is subject to the arbitrator’s duty to deal
with the substantial merits of the dispute.
This requires the
arbitrator to ascertain the real dispute between the parties,
regardless of the labelling ascribed to it by the
parties. Third,
where one dispute straddles the jurisdiction of the Labour Court and
the CCMA or bargaining council, it is permissible
for the referring
party to narrow the ambit of the dispute so as to fall within the
jurisdiction of the appropriate forum. The
appellant contended that
in terms of section 191(5)(b)(iii) of the LRA, the Labour Court’s
jurisdiction is only trigged where
the employees have alleged that
the reason for their dismissal was participation in an unprotected
strike. However, there can be
no unprotected strike unless the
employees are under a contractual obligation to render the services
they intend to withhold but
have not followed the provisions of
Chapter IV of the LRA.
[23]
The appellant contended that the court
a quo
’s
understanding that the dispute at arbitration was whether the
employees had engaged in a protected or unprotected strike
was flawed
as the employees never said that they had engaged in a protected
strike. The issue was whether or not the employees
had committed
misconduct by refusing to obey a lawful instruction. Therefore, the
arbitrator was correct in determining the dispute
as being whether
the employees were entitled to resist an ‘unlawful’
instruction (as they claimed), in which case they
would not have
committed misconduct or whether they committed misconduct in refusing
to comply with lawful instructions as the
appellant contended. This
in turn depended on whether the changing of the shift pattern
amounted to a unilateral change to the
terms and conditions of their
employment, which is impermissible or whether doing so was within the
employer’s prerogative.
The issue of whether the employees’
conduct amounted to a protected or an unprotected strike was not the
dispute before the
arbitrator. The employees throughout the
disciplinary proceedings and at arbitration were adamant that they
were entitled to refuse
to work. The arbitrator dismissed the claim
on the merits. This did not entitle the employees to pursue a
different cause of action
in a different forum which amounts to
impermissible forum shopping.
[24]
AMCU’s
case on appeal was that the facts before the arbitrator demonstrated
that the employees were dismissed for participating
in an unprotected
strike. The examples cited by AMCU include the letter addressed by
the appellant to it dated 9 January 2019.
[3]
The other examples cited were the use of words in the record of
arbitration such as ultimatum, refusal to work, tools down, no
work
no pay, and lock-out which, it was argued, are normally associated
with strikes. It was argued that the arbitrator failed
to enquire
about the true nature of the dispute and based on that, whether the
MEIBC had jurisdiction to deal with the matter.
The essence of AMCU’s
case on appeal was that the true nature of the dispute was that the
employees were dismissed for their
participation in an unprotected
strike consequent to which the MEIBC lacked jurisdiction to determine
the dispute. Therefore, so
went the argument, the court
a
quo
was
correct in its finding that the true nature of the dispute was that
the individual employees were dismissed for their participation
in an
unprotected strike and as a result, the MEIBC lacked jurisdiction to
determine that dispute.
Discussion
[25]
At the Labour Court, the matter was determined on the basis that the
arbitrator did not delve into the issue of whether
or not the MEIBC
had the requisite jurisdiction to entertain the dispute. This being a
review in terms of section 145 of the LRA,
the starting point must
therefore be the evidence and the material that was placed before the
arbitrator. That material shows that
after the refusal of the
employees to work according to the new shift pattern, and their
ignoring of repeated warnings to abide
by the new shift pattern, the
employees received notices to attend disciplinary hearings in which
it was indicated that they were
being charged with misconduct. The
five misconduct charges that they were alleged to have committed were
indicated, they were found
guilty of those charges and the employees
were dismissed. The employees then referred their dismissal to the
MEIBC. The referral
form to the MEIBC said nothing about an
unprotected strike and at the conciliation stage, a notice of set
down sent to them by
the MEIBC specifically stated that the dispute
was a dismissal related to misconduct. The certificate of outcome
which was issued
subsequent to the conciliation process also
reflected the dispute as an alleged unfair dismissal dispute. The
matter was then referred
to an arbitrator. The notice of set down for
arbitration also reflected the dispute as a dismissal related to
misconduct. Therefore,
up to this point, nothing was said about an
unprotected strike by AMCU which made the referrals on behalf of its
members.
[26]
The matter then served before the arbitrator and an application for
legal representation was made by the appellant. In
the appellant’s
founding affidavit in respect of that application, it was stated that
the employees were called to disciplinary
hearings for misconduct
related to their refusal to adhere to the new 2019 shift structure.
Nothing was said about an unprotected
strike. At the commencement of
the arbitration, the commissioner stated her understanding of the
dispute in her opening remarks
as being that the employees were
dismissed due to misconduct of gross insubordination and the
employees’ failure to arrive
for their shifts. The AMCU
official who represented the 15 employees did not object to the
arbitrator’s characterisation
of the nature of the dispute. He
did not suggest that the misconduct was that of participation in an
unprotected strike or that
the employees were on strike when they
were disobeying the instruction to work according to the new shift
pattern.
[27]
The arbitrator made a ruling allowing the appellant legal
representation. She thereafter gave the parties an opportunity
to
make opening statements for the commencement of the actual
arbitration proceedings. The AMCU official confirmed that they were
not challenging procedure and that “
the procedure was
conducted correctly
”. In regard to substantive fairness,
the AMCU official stated that the employees did not commit any of
those acts of misconduct
but he said nothing about an unprotected
strike. Then the commissioner asked, “
insubordination you
mean?
” The AMCU official’s unequivocal response was
yes, and said that the employees were working the shift pattern they
knew they had agreed with the applicant to work and that they were
disputing the implementation of the new shift pattern.
[28]
Section
191(5) of the LRA
[4]
creates two streams of referrals for dismissed employees depending on
the nature of the dispute. The delineation of disputes and
the
determination of whether a dispute should follow the arbitration or
adjudication route largely depend on what the employee
alleges the
dispute is. The employee is the referring party after all. It was
common cause that the dispute between the employees
and the appellant
arose because the appellant introduced the new shift pattern. The
employees repeatedly said from the onset that
the appellant could not
do so without reaching an agreement with them and defied the new
shift pattern. They went on to tender
their services according to the
old shift pattern ignoring repeated warnings and admonitions by the
appellant’s officials.
That dispute, which in essence was about
the appellant’s entitlement to change the shift pattern
unilaterally, led to the
disciplinary charges and eventually the
dismissal of the employees. At no stage during the disciplinary
hearings and the referrals
of the dispute to the MEIBC for
conciliation and arbitration did AMCU (which represented the
employees throughout the dispute),
mention an unprotected strike.
Even during the arbitration proceedings, AMCU never raised the issue
of the dismissal of the employees
for their participation in an
unprotected strike nor was it ever suggested by AMCU that the
employees were on strike, protected
or not, on the dates relevant to
the charges.
[29]
AMCU’s case at arbitration was never that the employees were
dismissed for their participation in an unprotected
strike at any
stage. If AMCU had done so, it would have necessitated the
discontinuation of the arbitration proceedings, so that
AMCU would
then take the adjudication route before the Labour Court in terms of
section 19(5)(b)(iii). Objective facts showed that
AMCU, throughout,
insisted that the employees had a right to disobey an unlawful
instruction. Even when AMCU instituted review
proceedings, it did not
pertinently raise the MEIBC’s lack of jurisdiction as a ground
of review in its initial founding
affidavit. In its supplementary
founding affidavit, jurisdiction is referred to in passing at the
tail end of its affidavit in
no more than a sentence. This is telling
as if anything, it shows that the jurisdiction of the MEIBC to deal
with the dispute referred
to it was never an issue for AMCU.
[30]
In
CUSA
v Tao Ying Metal Industries and Others
[5]
(
CUSA
)
,
from which I quote liberally, the court made the following
instructive observations:
‘
[67]
Subject to what is stated in the following paragraph, the role of the
reviewing court is limited to deciding
issues that are raised in the
review proceedings. It may not on its own raise issues which were not
raised by the party who seeks
to review an arbitral award. There is
much to be said for the submission by the workers that it is not for
the reviewing court
to tell a litigant what it should complain about.
In particular, the LRA specifies the grounds upon which arbitral
awards may be
reviewed. A party who seeks to review an arbitral award
is bound by the grounds contained in the review application. A
litigant
may not on appeal raise a new ground of review. To permit a
party to do so may very well undermine the objective of the LRA to
have labour disputes resolved as speedily as possible.
[68]
These principles are, however, subject to one qualification. Where a
point of law is apparent on the papers,
but the common approach of
the parties proceeds on a wrong perception of what the law is, a
court is not only entitled, but is
in fact also obliged,
mero
motu
, to raise the point of law and require the parties to deal
therewith. Otherwise, the result would be a decision premised on an
incorrect application of the law. That would infringe the principle
of legality. Accordingly, the Supreme Court of Appeal was entitled
mero motu
to raise the issue of the Commissioner’s
jurisdiction and to require argument thereon. However, as will be
shown below, on
a proper analysis of the record, the arbitration
proceedings, in fact, did not reach the stage where the question of
jurisdiction
came into play.
…
[71] In
determining the real dispute between the parties, the Supreme Court
of Appeal appears to have placed much
emphasis on the counter-claim
by the workers that the exemptions relied upon were invalid for lack
of prior consultation. This
approach to the identification of the
real dispute between the parties does not take sufficient account of
the substantial dispute
between the parties. That dispute was whether
the employer was exempted from complying with the provisions of the
bargaining council
main agreement. What matters is not the form of a
dispute but rather the substance of the dispute. The characterization
of the
dispute by the parties is not necessarily conclusive as to the
nature of the dispute. It is necessary for a commissioner to look
at
the substance of the dispute in order to ascertain the real dispute
between the parties.’
[31]
The proposition apparent in the submissions on behalf of AMCU that
the Union, which was involved in the activities of
the employees at
all material times and went on to represent them both at the
disciplinary hearings and arbitration, might not
have been certain
whether its members had been engaged in an unprotected strike or not,
is difficult to understand as I demonstrate
below.
[32]
First, if one starts with the events of 9 January 2019 and assumes
that it was factually correct that the actions of
the employees on 9
January 2019 amounted to an unprotected strike, an amicable
resolution of that dispute was reached. In terms
of that resolution,
it was agreed that the employees would go back to work according to
the new shift pattern. It was further agreed
that they would be
excused from going to work on that day as they were tired, having
spent the entire day in the appellant’s
offices in negotiations
which culminated in the dispute being resolved. Second, the employees
did go to work on 10 January 2019
and worked according to the new
shift pattern. That could only be because they had understood and
accepted that they were not entitled
to insist on working according
to the old shift pattern. Third, the strike, protected or not, would
only be a strike if the appellant
was in fact entitled to decide
unilaterally about the shift pattern, which was common cause that it
was. That could then lead to
a strike which would be unprotected if
the requirements for a protected strike were not observed. There
never was a strike notice
issued by AMCU and at no stage did they
ever say they were on strike throughout this issue, including before
and after the dismissal
of the employees. In any event, it is
difficult to conceptualise a strike, protected or not, if the conduct
of the employer is
unlawful. In other words, refusal to obey an
unlawful instruction cannot be described as a strike for the simple
reason that workers
are under no obligation to obey an unlawful
instruction.
[33]
This takes me to
CUSA
’s admonition that the
commissioners must determine the real dispute between the parties.
The question in this regard being
what the real dispute between the
parties on 11 and 12 January 2019 was. Was it an unprotected strike
or was it a refusal to obey
instructions to work according to the new
shift pattern which amounted to gross insubordination? This is the
essence of the appellant’s
argument that the dispute referred
to the MEIBC related to a clear and determined disobedience of its
instructions by the employees
that they were to work according to the
new shift pattern. The employees and AMCU were told that it was the
prerogative of the
employer to decide on matters of shift patterns
and that there was no need for consultation much less an agreement
being reached
with the employees about it.
[34]
It was AMCU who characterised the introduction of the new shift
pattern as being unlawful. That has a consequence that
the refusal to
obey that unlawful instruction cannot be a strike as the instruction
itself is, for lack of a better word, nothingness.
That being so, the
employees could not have it both ways in the sense of being protected
from being subjected to a disciplinary
process for not obeying an
unlawful instruction. The consequence of that is that they could not
have their disobedience of what
they said as an unlawful instruction
being regarded as an unprotected strike. Furthermore, there was
evidence by the employees
themselves which suggested that their
refusal to work according to the new shift pattern might not have
been driven by a genuine
belief that the new shift pattern was
unlawful. The evidence suggested that the employees preferred the old
shift pattern because
it was convenient for their other side hustles,
which they attended to when they were not at work. It is not in
dispute that some
of the employees worked as welders and made
security gates when they were off duty while others were running
their own businesses
like taverns. It is therefore highly probable
that they refused to work according to the new shift pattern
disobediently because
they wanted a shift pattern that was most
convenient for them, taking into account their preferences in light
of their other activities.
[35]
The reality that the instruction was, contrary to the employees’
belief, lawful in the sense that it was the appellant’s
prerogative to decide on the shift patterns, as the arbitrator found,
means that the repeated refusal to obey a lawful instruction
amounted
to gross insubordination. The dispute is whether the employees were
fairly dismissed for the related acts of misconduct.
As the appellant
had argued, if the commissioner had determined that the dismissal was
unfair and reinstated the dismissed employees,
the appellant could
not, having charged and found them guilty,
inter alia
, of
gross insubordination for their refusal to work according to the new
shift pattern, be entitled to turn around and argue that
because of
the determination by the arbitrator that the dismissal was unfair,
the employees had embarked on an unprotected strike
and therefore the
arbitrator had no jurisdiction. It would be incorrect to suggest that
the arbitrator’s jurisdiction could
be based on the outcome of
the arbitration proceedings as against the real nature of the
dispute. That is not what the determination
of the real dispute as
required by
CUSA
is nor could it be. The determination of the
true nature of the dispute cannot be determined selectively and
disjunctively disregarding
certain aspects of the material before the
arbitrator as the court
a quo
seems to have unwittingly done.
The arbitrator is certainly not entitled to fashion out a new dispute
ignoring the dispute that
the employees have chosen to refer or the
case they have elected to pursue.
Conclusion
[36]
The objective facts show quite clearly that the arbitrator was
mindful of her duty to determine if she had jurisdiction
to entertain
the matter based on the true nature of the dispute between the
parties. That is why the arbitrator repeatedly pointed
out what her
understanding of the true nature of the dispute was and on each
occasion, AMCU did not object to her characterisation
of the dispute.
On the basis of the material before her and the evidence given during
the arbitration proceedings, it is clear
that the arbitrator had
jurisdiction to determine the dispute that had been referred for
arbitration which was that of misconduct
characterised by repeated
refusals to obey lawful instructions. This conduct constituted gross
insubordination which justified
the dismissals. It is unfortunate
that it was AMCU, which should know better, that encouraged if not
instigated this gross disobedience
for reasons that are shrouded in
obscurity.
[37]
It was agreed between the parties on appeal that because the Labour
Court determined the matter only on the basis of
the issue of
jurisdiction, and did not determine the other grounds of the review,
the matter would have to go back to the Labour
Court for the
determination of the other review grounds if the appeal succeeded. I
agree that that is a sensible approach as the
Labour Court must be
given an opportunity to deal with the other grounds of review that
were referred to it.
[38]
In the result, the following order is made:
Order
1. The appeal is
upheld.
2. The order of the
Labour Court is set aside and the review application is remitted back
to the Labour Court for determination.
3. No costs order
is made.
JOLWANA AJA
Savage ADJP
et
Davis AJA concur.
Appearances:
For
The Appellant:
Instructed
by:
Adv
G Lesley SC
Guy
and Associates
For
The Third Respondent:
Instructed
by:
Adv
A.L. Cook
LDA
Incorporated Attorneys
[1]
Schedule
8 of the
Labour Relations Act 66 of 1995
, as amended.
[2]
Act
66 of 1995, as amended.
[3]
The content of that letter was the following:
‘
URGENT:
UNPROTECTED STRIKE OF THIS MORNING, 9 JANUARY 2019, as of 7h00 this
morning a full shift, comprising 11 of your members,
has entered our
premises, downed tools and refused to work. The strike is
unprotected in every respect, no process in accordance
with the
Labour Relations Act has
been followed whatsoever. We will shortly
engage with the shop stewards amongst this shift in efforts to avert
this strike. We
further notify you and request that you convey to
your members that should this unprotected strike not be stopped by
12h30, SA
Steelworks will:
[1]
Issue an ultimatum to all employees involved advising then that
their actions amount to misconduct;
[2]
Advise employees involved that this misconduct of severe detriment
to our business and will be consider gross in nature;
[3]
Implement disciplinary action in respect of every employee who does
not return to work by 12h30 today.’
[4]
‘If a council or a commissioner has certified that the dispute
remains unresolved, or if 30 days or any further period
as agreed
between the parties have expired since the council or the Commission
received the referral and the dispute remains
unresolved –
(a)
the council or the Commission must arbitrate the dispute at the
request of the employees if –
(i)
the employee has alleged that the reason for dismissal is related to
the employee's conduct or capacity, unless paragraph
(b) (iii)
applies;
(ii)
the employee has alleged that the reason for dismissal is that the
employer made continued employment intolerable or the
employer
provided the employee with substantially less favourable conditions
or circumstances at work after a transfer in terms
of
section 197
or
197A
, unless the employee alleges that the contract of employment
was terminated for a reason contemplated in
section 187
;
(iii)
the employee does not know the reason for dismissal; or
(iv)
the dispute concerns an unfair labour practice; or
(b)
the employee may refer the dispute to the Labour Court for
adjudication if the employee has alleged that the reason for
dismissal is –
(i)
automatically unfair;
(ii)
based on the employer’s operational requirements;
(iii)
the employee’s participation in a strike that does not comply
with the provisions of Chapter IV; or
(iv)
because the employee refused to join, was refused membership of or
was expelled from a trade union party to a closed shop
agreement.’
[5]
[2008] ZACC 15
;
2009 (2) SA 204
(CC) at paras 67 - 68 and 71.
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