Case Law[2024] ZALAC 72South Africa
South African Correctional Services Workers Union obo Kasper v Minister of Justice and Correctional Services and Others (PA06/22) [2024] ZALAC 72; [2025] 3 BLLR 247 (LAC); (2025) 46 ILJ 954 (LAC) (18 December 2024)
Labour Appeal Court of South Africa
18 December 2024
Judgment
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# South Africa: Labour Appeal Court
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## South African Correctional Services Workers Union obo Kasper v Minister of Justice and Correctional Services and Others (PA06/22) [2024] ZALAC 72; [2025] 3 BLLR 247 (LAC); (2025) 46 ILJ 954 (LAC) (18 December 2024)
South African Correctional Services Workers Union obo Kasper v Minister of Justice and Correctional Services and Others (PA06/22) [2024] ZALAC 72; [2025] 3 BLLR 247 (LAC); (2025) 46 ILJ 954 (LAC) (18 December 2024)
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FLYNOTES:
LABOUR – Jurisdiction –
Collective
agreement dispute
–
Arising
from interpretation in circumstances in which referral to GPSSBC
is at instance of non-party union or employee –
Argument
that only parties to collective agreement could refer disputes
rejected – Restrictive interpretation –
Would unjustly
limit access to dispute resolution mechanisms – Violation of
s 34 Constitution – GPSSBC had jurisdiction
to determine
dispute – Labour Court and arbitrator erred in its findings
– Appeal upheld.
THE
LABOUR APPEAL COURT OF SOUTH AFRICA,
JOHANNESBURG
Reportable
Case
No:
PA06/2022
In the matter between:
SOUTH AFRICAN
CORRECTIONAL SERVICES
WORKERS
UNION (“SACOSWU”) obo BRAIN KASPER
Appellant
and
THE MINISTER OF
JUSTICE AND CORRECTIONAL
SERVICES
First Respondent
THE
GENERAL SERVICES SECTORAL
BARGAINING
COUNCIL (“GPSSBC”)
Second Respondent
MBULELO
SAFA N.O.
Third Respondent
Heard:
17 September 2024
Delivered:
18 December 2024
Coram:
Van Niekerk JA, Nkutha-Nkontwana JA
et
Jolwana AJA
JUDGMENT
JOLWANA,
AJA
Introduction
[1]
This appeal, which is with the leave of the Labour Court, is against
the judgment and order of the Labour Court in terms
of which the
appellant’s application to review the arbitration award of the
General Public Service Sectoral Bargaining Council
(GPSSBC) was
dismissed. The crisp issue in this appeal is whether it is only a
party to a collective agreement that has a right
to declare a dispute
about its interpretation or application. Ultimately, whether the
GPSSBC is clothed with jurisdiction to determine
a dispute arising
from the interpretation of a collective agreement in circumstances in
which the referral to it is at the instance
of a non-party union or
employee.
Background
[2]
The appellant, on behalf of its member, Mr Brain Kasper, referred a
dispute to the GPSSBC concerning the interpretation
of GPSSBC
Resolution 2 of 2009. This resolution embodies a collective agreement
on the implementation of an occupation-specific
dispensation (OSD)
for Correctional Services Officials. The resolution provides for such
things as salary structure, career pathing
opportunities, pay
progression, grade progression, the recognition of appropriate
experience and similar matters. The parties to
the collective
agreement are unions that meet the specified threshold for bargaining
council membership and the Department of Correctional
Services, of
which Mr Kasper is an employee. Mr Kasper is a member of the
appellant union which is not a party to the collective
agreement. The
dispute resolution clause of the collective agreement provides that
in the event of a dispute about its interpretation
or application,
any party may refer the dispute to the GPSSBC for resolution in terms
of the dispute resolution procedure of the
council.
Before
the GPSSBC
[3]
At the commencement of the bargaining council proceedings, the first
respondent made a preliminary application. It sought
a ruling that
the GPSSBC lacked jurisdiction to entertain the appellant’s
interpretation dispute. This was on the basis that
Mr Kasper was a
member of a union that was not an admitted party to the GPSSBC and
therefore was not a party to the collective
agreement. The first
respondent contended that an interpretative dispute could only be
referred to the GPSSBC by a registered trade
union that is a party to
the collective agreement. Therefore, the GPSSBC lacked jurisdiction
to entertain the dispute.
[4]
The appellant applied for the dismissal of the jurisdictional point
in
limine
on the basis that the scope of Resolution 2 of 2009
included and bound employers, trade unions party to the agreement and
their
member employees, and employees who are not members of any
trade union which is a party to the agreement who fall within the
scope
of the GPSSBC. It contended that whilst it does not meet the
threshold for membership and therefore it is not a party to the
collective
agreement, it cannot be prevented from representing the
interests of its members in the GPSSBC.
[5]
The arbitrator reasoned that since the appellant made the referral to
the GPSSBC in circumstances in which it was not
a party to the
resolution sought to be interpreted, the appellant did not have
locus
standi
to refer a dispute on the interpretation and application
of GPSSBC Resolution 2 of 2009 as it was not a party to the said
resolution.
Consequently, GPSSBC lacked jurisdiction to entertain the
dispute.
Before
the Labour Court
[6]
Dissatisfied
with the reasoning and the conclusion of the arbitrator, the
appellant instituted review proceedings in the Labour
Court seeking
the review and setting aside of the arbitrator’s jurisdictional
ruling. The appellant further sought a declarator
that the GPSSBC
does have jurisdiction to entertain the dispute on the interpretation
and application of the collective agreement.
Therefore a non-party to
a collective agreement such as the appellant may refer a dispute in
terms of section 24 of the Labour
Relations Act
[1]
(LRA). The appellant submitted that the arbitrator incorrectly
adopted a literal approach in his reliance on
Arends
and Others v South African Local Government Bargaining Council and
Others
[2]
(
Arends
)
(in which reliance was placed on
South
African Police Services v Du Preez and Others In Re: Du Preez v South
African Police Services
[3]
(
Du
Preez
))
as authority for the conclusion that only a party to a collective
agreement has a right to refer a dispute about its interpretation
or
application. The appellant contended that those judgments were
plainly wrong. Alternatively, the matters of
Arends
and
Du
Preez
were distinguishable from this matter and therefore the arbitrator
was, on this basis too, wrong in relying on those judgments.
[7]
The Labour
Court found that as the appellant was not a party to the collective
agreement contained in GPSSBC Resolution 2 of 2009,
it followed that
the appellant had no
locus
standi
to refer a dispute about its interpretation and application. It
accordingly concluded that the GPSSBC had no jurisdiction to
entertain
the dispute. In doing so, it relied on the case of
Arends
and made an observation that the case of
Arends
was taken on appeal before this Court
[4]
.
In deciding that matter, this Court did not set aside the findings of
the Labour Court on the interpretation of section 24 of
the LRA. The
Labour Court further reasoned that section 24 of the LRA requires
that the dispute must not only be about the interpretation
or
application of the collective agreement but also it must be between
parties to the collective agreement. It thereupon dismissed
the
review application.
Submissions
on appeal
[8]
The grounds of appeal relied on by the appellant are that the Labour
Court was wrong in finding that only a party to a
collective
agreement has a right to refer a dispute about its interpretation or
application. It further erred in not finding that
any party bound by
that collective agreement has a right to refer a dispute about its
interpretation or application.
[9]
It was submitted, on behalf of the appellant, that the Labour Court
erred in its interpretation of section 24 of the LRA.
The Labour
Court’s judgment has adverse implications in relation to access
to dispute resolution processes for non-parties
to collective
agreements. If it was only a party to a collective agreement that has
a right to declare a dispute about its interpretation
or application,
that would lead to access to the dispute resolution process provided
for in section 24 of the LRA being unjustifiably
curtailed. The
section 24 dispute resolution process would be unavailable to many
people who are bound by collective agreements
concluded by unions
party to collective agreements of which they are not members.
[10]
It was further contended that while the Labour Court was correct in
attaching the appropriate weight to the judgments
of
Arends
and
Du Preez,
those matters were only authority for the
proposition that only a party to a collective agreement may refer a
dispute about its
interpretation or application. It was argued that
those matters were, in any event, decided by the same Judge and
therefore, the
issue of access to the dispute resolution mechanism
provided for in section 24 of the LRA was not settled.
[11]
The appellant contended that the question of who is entitled to refer
a dispute on the interpretation or application
of a collective
agreement is expressly answered by the use of the words “
any
party to the dispute
” in section 24(2). Therefore, if the
legislature intended to limit the right to refer a dispute only to a
party to the collective
agreement, it could have done so by simply
using the words “
any party to the collective agreement may
refer
”. The legislature chose not to do so. It was
submitted that the interpretation of section 24(2) contended for by
the appellant
was further bolstered by section 24(5). Section 24(5)
provides that if the dispute remains unresolved, any party to the
dispute
may request that the dispute be resolved through arbitration.
[12]
The Court in
Arends
approached the matter on the basis that
section 24 limits the dispute to being between parties to a
collective agreement. In placing
reliance on that judgment, the court
a quo
did not deal with the appellant’s contention about
the language employed by the legislature in the use of the words “
any
party to the dispute
” as against “
any party to the
collective agreement
”. The Court in
Arends
also
relied on the fact that section 24 is located in part B –
collective agreements of the LRA and on that basis, only collective
agreements issues are dealt with there. It then said that section 23
of the LRA, which is also in Part B, deals with the legal
effect of
collective agreements.
Analysis
[13]
It is important to point out from the outset that the test in this
matter is not the usual test of whether the commissioner’s
ruling was reasonable in light of the facts and the material before
him. The issue is whether the GPSSBC has jurisdiction or not
and
thus, the test is whether the arbitrator was right or wrong in his
conclusion that the GPSSBC did not have jurisdiction to
entertain the
dispute.
[14]
This matter
turns on the interpretation of section 24 (2) of the LRA read in
context with other relevant sections of the LRA and
indeed, the
Constitution
[5]
. Section 24 (2)
reads:
‘
(2) If there
is a dispute about the interpretation or application of a collective
agreement, any party to the dispute may
refer the dispute in writing
to the Commission if –
(a) the collective
agreement does not provide for a procedure as required by subsection
(1);
(b) the procedure
provided for in the collective agreement is not operative; or
(c) any party to
the collective agreement has frustrated the resolution of the dispute
in terms of the collective agreement.’
[15]
However, the Court in
Arends
did not deal with the fact that
while the parties to a collective agreement are the parties that have
entered into it, section
23(1) extends collective agreements beyond
the signatory parties. Section 23(1) reads:
‘
(1)
A collective agreement binds –
(a)
the parties to the collective agreement;
(b)
each party to the collective agreement and the members of every other
party to the collective agreement, in so far as
the provisions are
applicable between them;
(c)
the members of a registered trade union
and the employers who are members of a registered employers’
organisation that are
party to the collective agreement if the
collective agreement regulate
s –
(i) terms and
conditions of employment; or
(ii) the conduct of
the employers in relation to their employees or the conduct of the
employees in relation to their employers;
(d) employees who
are not members of the registered trade union or trade unions party
to the agreement if –
(i) the employees
are identified in the agreement;
(ii) the agreement
expressly binds the employees; and
(iii) that trade
union or those trade unions have as their members the majority of
employees employed by the employer in the
workplace.’
[16]
Resolution
2 of 2009 specifically defines “employees” as people
employed by the Department of Correctional Services
in terms of the
Correctional Services Act
[6]
and
persons employed in terms of the Public Service Act
[7]
.
The Court in
Arends
did not deal with the fact that, in terms of section 23 of the LRA,
collective agreements may have a wider reach than just the
parties to
it.
[17]
The appellant also raised the issue of section 32 of the LRA which
incidentally, was not dealt with by the Court in
Arends
.
Section 32(1) enables a bargaining council to ask the Minister to
extend a collective agreement to non-parties. The Minister is
then
empowered to extend a collective agreement. It reads:
‘
(1)
A bargaining council may ask the Minister in writing to extend a
collective agreement concluded in the
bargaining council to any
non-parties to the collective agreement that are within its
registered scope and are identified in the
request, if at a meeting
of the bargaining council –
(a) One or more
registered trade unions whose members constitute the majority of the
members of the trade unions that are
party to the bargaining council
in favour of the extension; and
(b) One or more
registered employers’ organisations, whose members employ the
majority of the employees employed by
the members of the employers’
organisations that are party to the bargaining council, vote in
favour of the extension.’
[18]
In addition to the provisions of sections 23(1) and 32(1) of the LRA,
clause 4 of the resolution provides:
‘
4.1
Subject to clause 4.2 this agreement binds
4.1.1 the
employer;
4.1.2 the
employees of the employer who are members of trade union parties to
this agreement; and
4.1.3 the
employees of the employer who are not members of trade union parties
to this agreement, but who fall within
the registered scope of the
council.’
[19]
Mr Kasper falls within the registered scope of the GPSSBC. Therefore,
in terms of clause 4.1.3, the collective agreement
in this matter is
applicable to him. There is something patently wrong with parties to
a collective agreement reaching an agreement
that binds non-parties
but precludes them from some of the dispute resolution processes
ordinarily available to their members.
The difficulties become
manifest when the non-party, who is bound by the terms of the
collective agreement, is not allowed to contest
their interpretation
or the interpretation of a document or agreement that binds her or
him. It is cold solace to say that that
party is not precluded from
seeking other remedies, as the first respondent contended.
[20]
With regard to section 32(1) and the power bestowed on the Minister
to extend the application of the collective agreement
to non-parties,
the first respondent contended that such extension is not automatic
and that it must be sought and obtained. The
difficulty with the
first respondent’s argument in this regard is that it creates a
situation in which, the same employees
who did not have the rights
and obligations that flow from the collective agreement suddenly have
those rights and obligations
at the stroke of a pen by the Minister
granting the extension. It is difficult to imagine that the
legislature could have intended
to deprive a non-party employee or
non-party trade unions depending on the whims of the trade union
parties to the collective agreement
and/or the Minister.
[21]
It seems to
me that such a distinction between employees who are all otherwise
bound by the collective agreement but distinguished
purely based on
whether or not the threshold for bargaining council membership is
reached is both an artificial and illogical differentiation.
This, in
circumstances in which the legislature couched section 24(2) in wide
terms and therefore inclusively by the employment
of the words
“
parties
to the dispute
”
as against “
parties
to the collective agreement
”.
Furthermore, the first respondent’s argument on
Kem-Lin
Fashions CC v Bruton and another
[8]
(
Kem-Lin
Fashions
)
on which the appellant relies is difficult to understand. It was
submitted on behalf of the first respondent that cases in which
courts have held that collective agreements concluded between the
employer and the majority party union also apply to non-party
unions
were based on the respective agreements having been extended to
non-party union members.
[22]
In
Kem-Lin Fashions,
this Court expressed itself as follows:
‘…
[I]t
seems to me that the effect in law of an extension of a collective
agreement in terms of s 32(2) is that, for all intents and
purposes,
a non-party is turned into a party, and is placed in relation to the
collective agreement on the same level as a signatory
to the
collective agreement. The extension of a collective agreement by the
Minister in terms of s 32(2) means making the collective
agreement
binding on employers and employees who otherwise would not be bound
by it.’
In
casu
, Resolution 2 of 2009 is binding on Mr Kasper and many
other employees to whom the resolution applies.
[23]
If the whole architecture of all the sections dealing with collective
agreements is considered carefully, there is nothing
to suggest that
the legislature intended to exclude employees who happen to be
members of non-party unions from accessing the dispute
resolution
mechanism created in section 24. There does not seem to be any
logical reason to exclude referring the dispute about
the
interpretation or application of a collective agreement to the GPSSBC
when it comes to employees who happen to be members of
non-party
unions such as Mr Kasper. This is so because section 24(2) does not
restrict access to the dispute resolution mechanism
only to parties
to a collective agreement as the legislature elected to couch the
section inclusively through repeatedly using
words such as “
any
party to a dispute may refer the dispute
…”.
[24]
Restricting the remedial processes provided for in section 24(2)
would require unnecessarily reading into the section
the words,
“collective agreement” and cutting out the words “a
dispute”. Such excision and reading in would
be done so as to
deny some employees access to justice in the form of being able to
contest for a particular interpretation or
application of a
collective agreement which is ordinarily available to employees
through their unions which are parties to collective
agreements.
Doing so would be impermissibly venturing into the exclusive law
making domain of the legislature instead of interpreting
the law.
[25]
Furthermore,
such restrictive interpretation would have the effect of unjustly
limiting access to the rights provided for in section
34 of the
Constitution
[9]
. Section 34 of
the Constitution provides:
‘
Everyone
has the right to have any dispute that can be resolved by the
application of law decided in a fair public hearing before
a court
or, where appropriate, another independent and impartial tribunal or
forum.’
[26]
Therein lies the problem with the first respondent’s argument
that the appellant could use other remedies. Once
it is accepted that
the appellant has a dispute about the interpretation or application
of a collective agreement which is binding
on its members, it is
simply incorrect and self-contradictory to restrict the remedies
which may be sought by excluding interpretation
when the very dispute
concerns interpretation. Axiomatically, all documents, be they
legislation, contracts generally, and indeed
collective agreements,
are fertile ground for contested interpretations as to their effect
and meaning or application in their
very nature. To say that if the
dispute is about the interpretation, an interested or affected party
cannot seek to resolve that
dispute through an interpretative
exercise in a court or other impartial tribunal such as a bargaining
council or the CCMA is a
direct affront to section 34 of the
Constitution.
Conclusion
[27]
This surely cannot, nor should it be countenanced. The right of
access to all and any lawful forms of dispute resolution
should only
be curtailed in the most extreme and deserving cases and with great
reluctance. Whether or not a party to the dispute
will succeed in the
interpretation contended for is irrelevant. The fact of the matter is
that just like section 34 of the Constitution,
section 24(2) does not
prohibit the appellant from accessing the dispute resolution
mechanism provided for therein. Therefore,
it follows that the appeal
must be upheld.
[28]
Counsel for the appellant and the first respondent were in agreement
that, as the arbitrator’s ruling was a jurisdictional
ruling,
and if this Court finds for the appellant, the matter must go back to
the GPSSBC for arbitration before a commissioner
other than the third
respondent.
[29]
Therefore, the following order is made:
Order
1. The appeal is
upheld with no order as to costs.
2. The Labour
Court’s judgment is set aside and replaced with the following
order:
1. The GPSSBC has
jurisdiction to determine the dispute on the interpretation and
application of Resolution 2 of 2009.
2. The matter is
remitted back to the GPSSBC for arbitration before a commissioner
other than the third respondent.
3. There is no
order as to costs.
M.S. Jolwana
Van Niekerk JA and
Nkutha-Nkontwana JA concur.
Appearances:
FOR
THE APPELLANT:
Adv F E le Roux
Instructed
by:
Brown Braude & Vlok Inc.
FOR
THE FIRST RESPONDENT: Adv N
Msizi
Instructed
by:
The State Attorney, Gqeberha
[1]
Act
66 of 1995, as amended.
[2]
[2013]
ZALCPE 6;
[2013] 5 BLLR 465
(LC).
[3]
[2019]
ZALCPE 3 (8 March 2019).
[4]
See:
Arends
and others v South African Local Government Bargaining Council and
others
[2014] ZALAC 69; [2015] 1 BLLR 23 (LAC).
[5]
Constitution of the Republic of South Africa, 1996.
[6]
Act 111 of 1998.
[7]
Proclamation
103 of 1994.
[8]
[2000]
ZALAC 25; [2001] 1 BLLR 25 (LAC).
[9]
Constitution
of the Republic of South Africa, 1996.
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