Case Law[2024] ZALAC 69South Africa
HOSPERSA obo Naidoo and Others v MEC Department of Health KZN and Others (DA 8/23) [2024] ZALAC 69; (2025) 46 ILJ 933 (LAC); [2025] 5 BLLR 445 (LAC) (23 December 2024)
Labour Appeal Court of South Africa
23 December 2024
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: Labour Appeal Court
South Africa: Labour Appeal Court
You are here:
SAFLII
>>
Databases
>>
South Africa: Labour Appeal Court
>>
2024
>>
[2024] ZALAC 69
|
Noteup
|
LawCite
sino index
## HOSPERSA obo Naidoo and Others v MEC Department of Health KZN and Others (DA 8/23) [2024] ZALAC 69; (2025) 46 ILJ 933 (LAC); [2025] 5 BLLR 445 (LAC) (23 December 2024)
HOSPERSA obo Naidoo and Others v MEC Department of Health KZN and Others (DA 8/23) [2024] ZALAC 69; (2025) 46 ILJ 933 (LAC); [2025] 5 BLLR 445 (LAC) (23 December 2024)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZALAC/Data/2024_69.html
sino date 23 December 2024
IN THE LABOUR APPEAL
COURT OF SOUTH AFRICA, DURBAN
Reportable
Case No: DA 8/23
In the matter between:
HOSPERSA obo MG NAIDOO
& OTHERS
Appellant
and
MEC DEPARTMENT OF
HEALTH KZN
First Respondent
DEPARTMENT OF
HEALTH
Second Respondent
PSCBC
Third Respondent
COMMISSIONER N. MKHIZE
N.O.
Fourth Respondent
Heard:
17 September 2024
Delivered:
23 December 2024
Coram:
Savage ADJP, Van Niekerk JA and Jolwana AJA
JUDGMENT
JOLWANA, AJA
Background
[1]
This appeal concerns the proper
interpretation of a specific clause of a collective agreement in
respect of employees in the public
sector who are members of the
appellant. The appeal is with the leave of this Court.
[2]
The five employees on whose behalf the
appellant acts are all employees of the first respondent whose career
trajectory included
their promotion to various positions. Mr Nair is
employed as a systems manager at the Newton Community Health Clinic
and was, on
1 July 2014, promoted to salary level 9. He seeks to be
upgraded to salary level 10. Mr Nxasana is employed as a finance
manager
at Tongaat Community Health Center. On 5 November 2013, he
was promoted to salary level 9. He now seeks to be upgraded to salary
level 10. Mr Naidoo is a systems manager at Edendale Hospital. On 1
November 2012, he was promoted to salary level 11. He now seeks
to be
upgraded to salary level 12. Mr Green is employed as deputy director,
district planning, monitoring and evaluation at uMgungundlovu
Health
District Office. On 1 December 2012, he was promoted to salary level
11. He seeks to be upgraded to salary level 12. Ms
Sahadeo is the
deputy director, district planning, monitoring and evaluation at
iLembe Health District Office. On 1 December 2012,
she was promoted
to salary level 11 and now seeks to be upgraded to salary level 12.
[3]
The genesis of the demand for promotion and
therefore the dispute between the parties is the interpretation of
clause 3.6.3.2 of
the Public Service Coordinating Bargaining Council
(PSCBC) Resolution 3 of 2009 which reads thus:
‘
The
commencing salary for all employees on posts not covered by any OSD
[Occupation Specific Dispensation] as per PSCBC Resolutions
1 of 2007
and 3 of 2008, and appointed as Assistant Directors and Deputy
Directors shall, with effect from 1 July 2010, be on salary
level 9
and 11 respectively.’
[4]
Resolution 3 of 2009 was amended in terms
of Resolution 1 of 2012 on 31 July 2012 as per clause 18(1) and in
its amended version
it reads as follows:
‘
Clause
3.6.3.2 of PSCBC Resolution 3 of 2009 is hereby amended to allow
employees whose posts are graded on salary levels 10 and
12 to be
appointed and remunerated on salary levels 10 and 12 respectively.’
[5]
The appellant contends that these five
employees had their posts upgraded to salary levels 10 and 12 on
coming into effect of Resolution
1 of 2012 on 31 July 2012. However,
due to directives issued by the Department of Public Service and
Administration the upgrades
were made subject to the approval of the
Minister and after a process of evaluation by the Department of
Public Service and Administration.
Their salary levels were, as a
result, not upgraded to levels 10 and 12 respectively.
At
arbitration
[6]
The dispute between the appellant and the
first and second respondents (employer) was referred to the PSCBC for
arbitration. The
arbitrator correctly identified the issue as being
whether the employer correctly interpreted and applied PSCBC
Resolution 3 of
2009 and whether the employees qualified for salary
upgrades from salary levels 9 and 10 to salary levels 11 and 12
respectively.
[7]
What was before the arbitrator and key to
the interpretative exercise was Resolution 3 of 2009 and various
circulars and other documents
in particular, a circular issued by the
Director General for the Department of Public Service and
Administration (DPSA) which was
addressed to all heads of the
national and provincial government departments as well as provincial
administrators. It was intended
to guide the implementation of PSCBC
Resolution 3 of 2009. The relevant clause is clause 5 from which I
quote almost in full for
context. It reads:
‘
5.
… [T]he Minister for Public Service and Administration
determined the following for the specific posts categories:
(a)
Posts graded salary levels 10 and 12 since
the implementation of PSCBC, Resolution 3 of 2009.
(i)
The salary levels of such posts will have
to be reconsidered in terms of the revised job weight ranges
determined by the for the
Minister for the Public Services and
Administration (MPSA) which came into effect from 1 October 2011,
under cover of Circular
16/P dated 12 September 2011. This means that
this circular removed any job weight range overlap between salary
levels 9 and 10,
as well as salary levels 11 and 12.
(ii)
This effectively means that the grade of
the jobs will have to be reconsidered in terms of the revised job
weight ranges. For example,
a job obtained a job weight score of 540.
Under the pre-revised job weight ranges applicable before 1 October
2011 this score falls
in the overlap between the job weight ranges
applicable to salary levels 9 and 10. As there was discretion to
allocate a salary
grade, the job could have been graded at salary
level 10. However, under he revised the job weight ranges applicable
from 1 October
2011 the score falls in the job weight range attached
to salary level 9 and the job will therefore have to be graded at
salary
level 9.
(iii)
However, no retrospective implementation of
regrades must be done prior to 1 August 2012.
(iv)
To ensure that the implementation of
Clause 18.1 of the Resolution is done in a uniform manner, the MPSA
directed in terms of PSR
Chapter 1, Part 1G – “
that
only employees serving in posts that were graded on salary levels 10
and 12 since the implementation of Resolution 3 of 2009
up to and
including 31 July 2012, be automatically absorbed into the regraded
posts with effect from 1 August 2012, on condition
that such posts
were previously job evaluated and graded at salary levels 10 or 12 in
terms of the revised job weight ranges as
specified in terms of
Circular 16/P dated 12 September 2011”.
(v)
With the consideration of the grading of
existing posts, either prior to 1 October 2011 or subsequent to 1
August 2012, it should
be ensured that due job evaluation processes
are followed and that there is compliance with Circular 16/P dated 12
September 2011,
to prevent any unnecessary queries, grievances or
disputes.
(b)
Grading of posts on salary levels 9/10 and
11/12 NOT covered by paragraph (a) above
(i)
The grading or regrading of all other posts
either at salary levels 9/10/11 or 12 not covered by paragraph (a)
above, as well as,
the absorption of employees into regraded posts,
will have to be done in terms of the relevant Public Service
Regulations and Provisions.
(ii)
The grading of all posts already advertised
must be amended in terms of the measures of this Circular.
Core business (the line
function) posts
(iii)
Departments must still grade new posts and
regrade existing posts in the core business (line function) with the
job evaluation processes
if the posts are not covered by an OSD.
·
Salary levels 10 and 12 can be utilized as
separate organizational levels in the core business (line function)
environment to assist
departments with the recruitment and retention
of employees if supported by job evaluation process.
·
This approach should however only be
followed if justifiable from an organization and job evaluation
perspective and should be applied
with circumspect.
Corporate services
(Program 1) posts
(iv)
Jobs within the corporate services
functional area are generic and transversal in all departments in the
Public Service and such
jobs that are the same or similar must be
graded the same. Generic functional structures were developed to
assist departments with
the determination of their organization
structures on a justifiable basis. Benchmark job weights need to be
used where available.
(v)
Considering the aforementioned the MPSA
directed in terms of Section 3(1)(c) and 3(2) of the Public Service
Act that: “
Should executive
authorities grade new jobs/posts or regrade existing jobs/posts
within the corporate services environment at salary
levels 9, 10, 11
or 12 grades of such jobs/posts must be consulted with and
recommended by the MPSA before a final decision on
the grade of the
post is taken so as to ensure contemporaneous consistency
.”
(vi)
The authority vested in executive
authorities to grade jobs is established in terms of the Public
Service Regulations, Chapter 1,
Part V C 1. However, the MPSA may
establish norms and standards in terms of Section 3 of the Public
Service Act. This authority
is established in terms of the aforesaid
legislation that supersedes the authority established in terms of
subordinate legislation.’
[8]
The arbitrator embarked on the
interpretation exercise on the basis that the appellant accepted that
its case was based on paragraph
5(b) of the above circular.
Furthermore, the Minister had authority to issue directives that he
issued including job evaluation
and implementation directives in
respect of Resolution 3 of 2009. He then concluded that in terms of
paragraph 5(b)(v) of the above
circular, it was mandatory that all
job upgrades for the support service employees in the corporate
services environment must be
done in consultation with and approval
by the Minister. While there was no dispute that the job evaluations
for the posts were
approved by the provincial head of department, in
terms of paragraph 5(b)(v), that was not enough absent consultation
with and
approval by the Minister. In light of the fact that there
was no evidence that the Minister had been consulted and that he
recommended
the job evaluation levels and job weights, it was not in
conflict with the resolution to ensure that there were no conflicts
and
inconsistences in the implementation of job grades for generic
and transversal jobs as the employees’ jobs were generic and
transversal. The job grading for generic and transversal jobs could
not be finalized without consultation with the Minister and
obtaining
his approval. The arbitrator thereupon dismissed the application.
Before
the Labour Court
The condonation
application
[9]
In launching the review application, the
appellant also applied for the condonation of its late filing of the
review application.
In its affidavit deposed to by its manager for
legal services, it is stated that the appellant received the
arbitration award on
18 January 2018 and that the degree of lateness
was five months and two weeks. The explanation was that after the
appellant received
the award, it engaged the second respondent
seeking documents regarding the grading of the posts of its members
on whose behalf
it was acting. It submitted an access to information
request to the second respondent. The response it received did not
include
information concerning the posts of two of its members, Mr
Green and Ms Sahadeo. This necessitated a further request to which
there
was no response by the second respondent. This was the only
explanation tendered for the delay in the original founding
affidavit.
[10]
The
appellant later filed a supplementary affidavit after receiving the
arbitration records from the PSCBC. In its supplementary
affidavit,
the appellant indicated that it was instituting the review
application in terms of section 145 of the Labour Relations
Act
[1]
(LRA) and that its application was lodged outside of the time limit
of six weeks from the time it got knowledge of the award. It
confirmed that it received the award on 18 January 2018 and asserted
that there was a delay of about four months from the time
the award
was received. This was more or less the sum total of the appellant’s
case in seeking condonation for its late filing
of the review
application beyond contending that it had good prospects of success
and that its case was of some significance.
[11]
The
Labour Court dealt extensively with the appellant’s condonation
application. It concluded that the appellant adopted an
insouciant
approach in dealing with the issue of condonation. It concluded that
the basis for the application was not properly
dealt with and that
the appellant’s reasons for being non-compliant with the
prescribed six weeks upper limit provided for
in section 145 of the
LRA
[2]
were less than
convincing. The Labour Court then concluded that the application for
condonation must fail. Evidently, the application
for condonation was
not only unconvincing in the sense that the reasons for the delay
were unsatisfactory. It would be no exaggeration
to say that there
was no explanation for the delay as the little explanation given was
woefully inadequate. All that the applicant
said was that it received
the award on 18 January 2018. The application was issued on 4 July
2018 just over five months reckoned
from the 18 January 2018 which is
a period way over the prescribed six weeks’ period. It then
says that it asked for certain
information regarding the dragging of
its members and had to make an access to information request. Details
of this information
were not stated, its relevance and why the
application could not be instituted without it were not addressed.
The long period of
delay was not properly accounted for. This
excessive delay called for a detailed explanation which the appellant
failed to give.
In the absence of a reasonable explanation for the
delay, that is the end of the matter.
[12]
In
Council
for
Mineral
Technology
[3]
this Court was very clear that in the absence of a reasonable
explanation, considerations such as the prospects of success become
irrelevant. It said:
‘
The
approach is that the court has a discretion, to be exercised
judicially upon a consideration of all the facts and in essence
it is
a matter of fairness to both sides. Among the facts usually relevant
are the degree of lateness, the explanation therefore,
the prospects
of success and the importance of the case. These facts are
interrelated; they are not individually decisive. What
is needed is
an objective conspectus of all the facts. A slight delay and a good
explanation may help to compensate for prospects
of success which are
not strong. The importance of the issue and strong prospects of
success may tend to compensate for a long
delay. There is a further
principle which is applied and that is that without a reasonable and
acceptable explanation for the delay,
the prospects of success are
immaterial, and without prospects of success, no matter how good the
explanation for the delay, an
application for condonation should be
refused.’
[13]
As
I said earlier, no reasonable explanation was proffered for this
doubtlessly lengthy delay. The principle set above has further
been
expatiated on in quite some detail recently by the Constitutional
Court in
NEHAWU
[4]
which forties my view that once the court a
quo
found, as it correctly did, that there was no reasonable explanation
for the delay, that was the end of the matter. Of course,
it could
not complete that process and determine the condonation application
without also considering the prospects of success
and whether there
could be no other compelling reason militating against its refusal,
inadequate explanation notwithstanding. This
is essential, if not
indispensable, for the proper exercise of the judicial discretion.
The Constitutional Court aptly expressed
itself as follows in
NEHAWU
.
‘
[97]
This Court in
Khumalo
carefully considered the question of delay and said:
‘
it
is a long-standing rule that a legality review must be initiated
without undue delay and that courts have the power (as part
of the
inherent jurisdiction to regulate their own proceedings) to refuse a
review application in the face of an undue delay in
initiating
proceedings or to overlook the delay. This discretion is not
open-ended and must be informed by the values of the Constitution.’
In the present case, the
State was required to explain its delay in challenging the legality
of the impugned collective agreement
proactively. To date, it has not
proffered any plausible explanation for its delay for such a lengthy
period. The Minister was
made aware that no additional funds would be
made available to fund a collective agreement that exceeded the
fiscal envelope by
R30.2 billion. The State committed itself to
addressing the shortfall and that was not successful either. Instead
of instituting
proceedings reviewing the legality of the impugned
collective agreement, it performed in terms of clauses 3.1 and 3.2 of
the collective
agreement.
‘
[98]
After finding that the delay by the State was unreasonable, the
Labour Appeal Court correctly went on to
determine whether in the
circumstances of this case there was a basis for overlooking the
delay. In
Gijima
,
this Court stated that there must be a basis for the exercise of a
discretion to overlook the inordinate delay and held:
‘
From
this, we see that no discretion can be exercised in the air. If we
are to exercise a discretion to overlook the inordinate
delay in this
matter, there must be a basis for us to do so. That basis may be
gleamed from the facts placed before us by the parties
or objectively
available factors. We see no possible basis for the exercise of the
discretion here.’ ”
[14]
There was no basis set out by the appellant
for the Labour Court to exercise its discretion and overlook the
delay. This is in addition
to the fact that the delay itself was
simply not explained. There were no facts placed before the court a
quo
beyond
the terse averments already captured above. For example, it remains
unknown how long the appellant took to ask for the information
it
alleged it needed. How long it took for the employer to respond? What
the appellant did for months is simply unexplained when
it knew that
its upper limit was six weeks. There is no doubt that there was an
inordinate delay that needed, at the very least,
a serious attempt to
take the court in its confidence about the whole period from the 18
January 2018 until 4 July 2018 when the
appellant eventually issued
the review application. That is a period in excess of five months
which was therefore an unreasonable
delay. The Labour Court went on
to consider the prospects of success on the merits.
[15]
In looking at the prospects of success, the
Labour Court considered the fact that the positions in the corporate
services environment
are transversal across all government
departments. The departments were therefore required to consult with
the Minister on the
grading of assistant director and deputy director
posts which were on salary levels 9, 10,11 and 12 with effect from 1
August 2012.
In terms of paragraph 5(a) of the ministerial circular,
all posts that were graded on salary levels 10 and 12 between 1 July
2010
and 31 July 2012 in respect of which the incumbents were
appointed on salary levels 9 and 11 were to be automatically upgraded
to salary levels 10 and 12 with effect from 1 August 2012. The court
then considered paragraph 5(b) of the circular and section
3(1)(c) of
the PSA. It stated that in terms of paragraph 5(b) read with section
3(1)(c) of the PSA, executive authorities, be they
Ministers, Members
of Executive Councils or Premiers were required to consult the
Minister in respect of the grading or regrading
of jobs or posts
within the corporate services environment for salary levels 9, 10, 11
and 12. Such consultation must take place
and ministerial approval
sought and obtained before a final decision was taken. This, the
court said, applied to all jobs or posts
and employees who were
appointed to such posts on or after 1 August 2012. In terms of
paragraph 5(c) of the circular, where job
evaluations and grading
were never conducted and where there were no records of job
evaluations having been done in the past, such
posts should be
evaluated and full motivation provided for regrading in consultation
with the Minister.
[16]
The Labour Court then looked at the Public
Service Regulations, 2016, in particular, Chapter 1, Part VI.I,
sub-regulation 43(2).
In terms of these Regulations, an executive
authority is empowered to determine the grade of a post to correspond
with its job
weight and determine the salary of the employees on the
minimum notch of the salary range attached to the relevant grade.
[17]
The appellant’s case at the Labour
Court was,
inter alia
,
the following. The arbitrator regarded the ministerial directives as
decisive, trumping the provisions of Resolutions 3 of 2009
and 1 of
2012. In doing so, the arbitrator undermined these resolutions which
were a product of collective bargaining processes.
The appellant
contended that the resolutions, contextually interpreted, their
effect was that all employees on salary levels 9
and 11 where posts
were graded on salary levels 10 and 12 were to be appointed on salary
levels 10 and 12 respectively. The very
purpose of clause 18.1 of
Resolution 1 of 2012 was to allow employees whose posts were graded
at salary levels 10 and 12 to be
appointed and remunerated at salary
levels 10 and 12 respectively. Therefore, the arbitrator’s
decision was not one which
a reasonable decision maker could make. He
failed to apply his mind judiciously in interpreting and determining
a proper implementation
of the resolutions.
[18]
The court concluded that the circular
created two dispensations, one before 1 August 2012 and one after 1
August 2012. It determined
that consultation with the Minister was
required in respect of salary levels 9, 10, 11 and 12 in the
corporate services environment
for salary upgrades with effect from 1
August 2012 with supporting documents for the grading of the
incumbents of those posts.
[19]
As the employees were all appointed after 1
August 2012 their grading needed to comply with the procedure set out
in paragraph 5(b)
of the circular. It was mandatory for the Minister
to be consulted and his or her approval sought and obtained. The job
evaluations
conducted by the head of department were not enough as
compliance with Circular 16/P and were not enough to comply with
paragraph
5(b)(v) of the circular as employees appointed on or after
1 August 2012 needed ministerial approval. He then concluded that the
arbitrator committed no irregularity that could have led to an
unreasonable decision. This was because the arbitrator had considered
all the material that was placed before him and gave an
interpretation that gave effect to the purpose of the resolutions and
the circular. It concluded that the arbitrator’s decision was
therefore within the band of reasonableness. On these bases
the court
dismissed the review application.
Submissions on appeal
The appellant’s
case
[20]
There are four grounds of appeal raised by
the appellant. The first one is that the Labour Court should have
found that the arbitrator
did not interpret clause 3.6.3.2 of
Resolution 3 of 2009 as amended by Resolution 1 of 2012. On a proper
interpretation thereof
the arbitrator would have found that the
employees were entitled to be remunerated at the salary levels
applicable to grades 10
and 12 to which they were appointed. The
second ground of appeal was that the court a
quo
should have found that the posts to which the employees were promoted
were graded at levels 10 and 12 at the time they were promoted.
Therefore, the amended clause 3.6.3.2 allowed employees whose posts
were graded at levels 10 and 12 to be appointed and remunerated
on
salary levels 10 and 12 respectively. Thirdly, the court a
quo
should have found that the arbitrator misunderstood the law, did not
apply the correct facts to the law and failed to apply his
mind to
the issues before him. Therefore, he committed a gross irregularity
in the arbitration proceedings. Fourthly, this resulted
in the
arbitrator delivering an unreasonable award and one that no
reasonable decision maker could have arrived at applying the
law
correctly.
[21]
It was submitted that the issue is a
question of law. That is the proper interpretation of clause 3.6.3.2
of Resolution 3 of 2009
as amended. The appellant places reliance on
section 5(4)(b) of the Public Service Act (PSA) which provides that
any act of a functionary
in terms of the PSA may not be contrary to
the provisions of any collective agreement concluded by a bargaining
council established
for the public service as a whole or for a
particular sector in the public service. In terms of section 5(1) of
the PSA the term
“act” means the making of any
regulation, determination, the issuing of any directive or the taking
of any decision
for the purposes of section 5. It was contended that
many of the assistant director and deputy director posts were graded
at levels
10 and 12. Therefore, clause 3.6.3.2 of the resolution
meant that an incumbent of a grade 10 or 12 post. would be paid the
salary
of grade 9 or 11 for posts graded at 10 and 12 respectively.
This was unfair hence the amendment effected in terms of clause 18.1
of Resolution 1 of 2012. These employees have been denied payment on
salary levels 10 or 12. This denial was based on the DPSA’s
interpretation of the ministerial directive which was issued as
Circular 4 of 2014.
[22]
The appellant contends that the posts to
which the employees were appointed were graded at 10 or 12 before 1
August 2012 in the
period between 1 July 2010 and 31 July 2012.
Therefore, the part of paragraph 5(b) of the directive that deals
with newly graded
posts which needed to have ministerial consultation
and approval did not apply to them. They were automatically upgraded
from 9
or 11 to 10 or 12 with effect from 1 August 2012 because they
could not be appointed to the lower grade 9 or 11 in terms of the
amended resolution. It was argued that the respondent was wrongly
relying on the part of paragraph 5(b) which deals with the grading
of
new posts and the regrading of existing posts. This is the basis on
which the respondent was contending that employees appointed
on or
after 1 August 2012 were not entitled to be paid as provided for in
the collective agreement and were to be paid salaries
that were below
the posts they occupied. Their posts were neither new posts nor
regraded posts but posts that were graded 10 and
12 to which the
collective agreement applied and were not impacted by the ministerial
directive. Had the directive been intended
to deprive public servants
that were appointed to a grade 10 or 12 post from earning a salary
applicable to such post if they were
appointed after 1 August 2012,
it would be in conflict with the collective agreement. The collective
agreement did not discriminate
based on the date of appointment to
the posts. Such an interpretation would be in conflict with section
5(6)(b) of the PSA.
[23]
It was argued that the interpretation that
even if a post was graded at 10 or 12 before 1 August 2012 a new
person employed in it
would not be entitled to be paid the salary
attached to that grade was incorrect. The ministerial directive was
being incorrectly
interpreted by the employer and its interpretation
was in conflict with the collective agreement. It was a
non
sequitur
that because the employees
were employed after the 1 August 2012, they were not entitled to be
paid at the grade 10 or 12 posts
to which they were promoted. It was
further argued that the implicit interpretation placed on clause
3.6.3.2 that employees employed
after 1 August 2012 should be treated
less favorably than those appointed prior to 1 August 2012 was not an
interpretation that
was in accord with the constitutional imperative
of achieving equality and fair labour practices. The interpretation
placed on
the collective agreement read with the directive that a
person appointed to a post graded 10 or 12 after the 1 August 2012
was
not entitled to be paid the salary of that post until it was
regraded was not based on any provision of the collective agreement
as neither it nor the directive makes such a provision. The
directive, correctly interpreted, applies only to new posts or
regraded
posts. On a proper interpretation of the collective
agreement as amended, the employees are entitled to be remunerated at
the level
of their posts at levels 10 and 12 from the date of their
appointment.
The respondents’
case
[24]
The respondents contend that the positions
in the corporate services transverse all government departments.
Therefore, the departments
were required to consult with the Minister
on the grading of assistant director and deputy director posts on
salary levels 9, 10,11
and 12 in the corporate services environment
from 1 August 2012. Supporting documents were required for the
grading of these posts.
In terms of paragraph 5(a) of the circular,
it was directed that all posts that were graded on salary levels 10
and 12 between
1 July 2010 and 31 July 2012 in respect of which the
incumbents were appointed on salary levels 9 and 11 respectively were
to be
automatically upgraded to salary levels 10 and 12 respectively
with immediate effect from 1 August 2012. However, paragraph 5(b)
of
the circular was to the effect that in terms of section 3(1) (c) and
section 3(2) of the PSA, should the Ministers, Premiers
or MECs grade
new posts or regrade existing posts in the corporate services
environment at salary levels 9, 10, 11 and 12, the
grading of such
posts would have to be subject to consultation with and approval by
the Minister before a final decision was taken.
In terms of paragraph
5(c) of the circular where job evaluation and grading processes had
never been conducted and there were no
records of any job evaluation
being conducted in the past, such posts should be evaluated and full
motivation provided and the
Minister consulted.
[25]
There were therefore two dispensations for
job evaluations in the public service. There is a period before 1
August 2012 and the
period after 1 August 2012. It was argued that
irrespective of whether a post was graded at salary level 10 or 12,
employees in
those positions had to be appointed and remunerated at
salary levels 9 and 11 if they were not covered by any OSD
dispensation.
This effectively suspended the appointment of employees
into salary levels 10 and 12. Resolution 1 of 2012 amended Resolution
3
of 2009 so that a post graded at salary level 10 or 12, incumbents
of such posts would be appointed and remunerated at salary levels
10
and 12 respectively. This was done to cure the mischief created by
clause 3.6.3.2 of Resolution 3 of 2009. The circular titled
Implementation of Amendment of Resolution 3 of 2009 provided for
grading measures for salary levels 9/10 and 11/12. The circular
provided for consultation with the Minister for salary levels 9, 10,
11 and 12 in the corporate services environment together with
supporting documents for the objective and appropriate grading of the
incumbent. The employees were appointed after 1 August 2012
and as
such their grading had to comply with the above requirements. In
terms of section 6A of the PSA, the Minister is empowered
to issue
directives for the proper implementation of the collective agreement.
Discussion
[26]
It is common cause that all the employees
were appointed to their posts after 1 August 2012. It is further
common cause that the
posts to which they were appointed had been
upgraded to salary levels 10 and 12 at the provincial level by the
provincial department
of health. There is no dispute that the posts
relevant to this matter are in their very nature transversal across
government departments
and across provinces. Section 5(6) of the
Public Service Act reads:
‘
(a)
Any provision of a collective agreement contemplated in subsection
(4), concluded on or after the commencement of the
Public Service
Amendment Act, 2007
, shall, in respect of conditions of service of
employees appointed in terms of this Act, be deemed to be a
determination made by
the Minister in terms of
section 3(5).
(b) The Minister
may, for the proper implementation of the collective agreement,
elucidate or supplement such determination
by means of a directive,
provided that the directive is not in conflict with or does not
derogate from the terms of the agreement.’
[27]
Section 3(5)
of the Act is also relevant.
It reads:
‘
(a)
Subject to the Labour Relations Act and any collective agreement, the
Minister may make determinations regarding any conditions
of service
of employees generally or categories of employees, including
determinations regarding a salary scale for all employees
or salary
scales for particular categories of employees and allowances for
particular categories of employees.
(b) A determination
involving expenditure from revenue shall be made in consultation with
the Minister of Finance.’
[28]
As I understand it, the case sought to be
made by the appellant is that the posts to which its members had been
promoted had been
graded to salary levels 10 and 12 respectively. For
that reason, the grading by the provincial department of health
entitled them
to be remunerated at the applicable salary levels. The
difficulty with the appellant’s case in this regard is that it
is
not its case that the Minister was not empowered to issue the
directive that he or she issued. This is not even a case in which
the
directive is sought to be set aside. I do not see how the circular
dated 5 February 2014 is not aligned with or conflicts with
the
collective agreement or the resolution as amended. It seems to me
that the appellant’s members’ posts being transversal
across the public service, a regulatory mechanism for the
implementation of the resolution is absolutely necessary and in fact
rational to ensure consistency. This is not only so that all
employees occupying similar posts and appointed on or after the 1
August 2012 are remunerated equally or at least equitably across all
national and provincial government departments for generic
and
transversal jobs. There is also section 3(5)(b) which requires
consultation with the Minister of Finance for determinations
that
involve expenditure from the fiscus. It is not difficult to imagine
varying weights for the exact same jobs or posts being
given by the
different national and provincial government departments for posts
that are generic and transversal. This surely is
undesirable as one
would expect that to the extent that the Minister is empowered in
terms of the PSA, job weighting and the evaluation
of the personnel
appointed to transversal jobs or posts should have some measure of
consistency to achieve, not necessarily equality,
but certainly
equitability. The principle of equal pay for equal jobs is of some
relevance in my view.
[29]
There is another logical reason for the
need for ministerial approval. The job grading for Mr Naidoo’s
post was done in 2010
and confirmed in 2014. Mr Green’s post
was last graded in 2007 and confirmed in 2009 and 2013. Ms Sahadeo’s
post was
last graded in 2007 and confirmed in 2009 and 2013. Mr
Nxasana’s post was graded in 2011 and evaluated again in 2014.
Mr
Nair’s post was graded in 2011 and confirmed in 2014. It is
unclear what has been happening in other provincial government
departments for similar posts. It is not even certain if all the
posts were correctly weighted across all government departments.
The
statutory power bestowed on the Minister to oversee these processes
appear to have been exercised very rationally and justifiably.
[30]
In
MEC
Van Wyk
[5]
,
this Court explained what is required of an arbitrator interpreting a
collective agreement as follows:
‘
In
interpreting the collective agreement the arbitrator is required to
consider the aim, purpose and all the terms of the collective
agreement. Furthermore, the arbitrator is enjoined to bear in mind
that a collective agreement is not like an ordinary contract.
Since
the arbitrator derives his/her powers from the Act he/she must at all
times take into account the primary objects of the
Act. The primary
objects of the Act are better served by an approach that is practical
to the interpretation and application of
such agreements, namely, to
promote the effective, fair and speedy resolution of labour disputes.
In addition, it is expected of
the arbitrator to adopt an
interpretation and application that is fair to the parties.’
Conclusion
[31]
I do not see any misconduct by the
arbitrator in interpreting the collective agreement read with the
determination by the Minister
which is contained in the directive nor
is there any irregularity in the arbitrator determining the matter in
the manner he did.
In fact, the arbitrator correctly interpreted the
resolution read with the circular. The suggestion that the arbitrator
never interpreted
the resolution is difficult to understand. When one
looks at the whole Resolution 3 of 2009 together with the relevant
provisions
of the PSA and the 2016 Regulations, it is almost
difficult to understand how it could be correct for any collective
agreement
to be interpreted and applied totally independently of
ministerial circulars when issued. Therefore, the arbitrator did not
commit
any misconduct or misdirection in dealing with this matter and
reaching the conclusion she did.
[32]
It is so that the appellant’s
members’ posts were evaluated by the head of department. It
follows that the evaluation
process must be completed as required by
getting the ministerial approval for the upgrades. Once the
ministerial approval is sought
but refused for no legally sound
reason, it may very well be that the appellant, on behalf of these
employees may have a relief
against the Minister. I may comment in
passing that I find it very strange that the Minister of Public
Service and Administration
was not joined in these review proceedings
as it would seem to me that he has a substantial interest regard
being had to the fact
that the relevant posts are transversal and
he/she issued the impugned circulars. But that is not the reason why
the appeal must
fail. The insurmountable problem for the appellant is
its failure to make a proper application for condonation. The failure
to
make a proper application for condonation as indicated earlier in
this judgment, must lead to the ineluctable conclusion that the
appeal is dismissed. The court a
quo
,
having reached that conclusion, the appellant has not explained the
basis on which the discretion could have been and should have
been
exercised differently absent a proper explanation for the delay being
made in the condonation application. The authorities
in this regard
are clear. There is nothing special about the appellant’s case
that would make a compelling case for all the
short comings in the
condonation application to be overlooked in the interests of justice.
After all, all the employees were promoted
in 2012, 2013 and 2014,
some five, four or three years respectively after their promotion and
after the resolution was amended.
Nobody knows if similar employees’
gradings and regradings were subjected to ministerial approvals in
other government departments
or other provinces in compliance with
the impugned directive after it was issued as part of the
rationalization and standardization
process that seems to have been
intended. They only started taking the matter to the PSCBC in 2017
for conciliation. In any event,
the arbitrator correctly interpreted
Resolution 3 of 2009 as amended in terms of clause 18.1 of Resolution
1 of 2012 read with
the ministerial circular and for that reason too,
the appeal stands to be dismissed.
[33]
With due consideration to law and fairness,
it would be inappropriate to award costs in this matter.
The result
[34]
In the result the following order is
issued:
Order
1.
The appeal is dismissed with no order as to
costs.
M.S. Jolwana
Savage ADJP and Van
Niekerk J concur.
APPEARANCES:
FOR
THE APPELLANT:
Adv M Pillemer SC
INSTRUCTED
BY:
Purdon & Munsamy Attorneys, Durban
FOR
THE FIRST RESPONDENT: Adv R
Athmaran
INSTRUCTED
BY:
The State Attorney, Durban
[1]
Act
66 of 1995, as amended.
[2]
Section
145(1) provides that: Any party to a dispute who alleges a defect in
any arbitration proceedings under the auspices of
the Commission may
apply to the Labour Court for an order setting aside the arbitration
award –
(a)
Within six weeks of the date that the
award was served on the applicant, unless the alleged defect
involves corruption, or
(b)
If the alleged defect involves corruption,
within six weeks of the date that the applicant discovers
corruption.
[3]
NUM v
Council for Mineral Technology
[1999] 3 BLLR 209
(LAC);
[1998] ZALAC 22
at para 10.
[4]
National
Education Health and Allied Workers’ Union v Minister of
Public Service and others and related matters
[2022]
5 BLLR 407
(CC); (2022) 43 ILJ 1032 (CC).
[5]
Western
Cape Department of Health v MEC Van Wyk and others
[2014]
11 BLLR 1122
(LAC); (2014) 35 ILJ 3078 (LAC) at para 22.
sino noindex
make_database footer start
Similar Cases
Mbeje and Others v Department of Health Kwazulu-Natal and Others (DA33/2022) [2024] ZALAC 38; [2024] 11 BLLR 1111 (LAC); 2024) 45 ILJ 2681 (LAC) (22 August 2024)
[2024] ZALAC 38Labour Appeal Court of South Africa98% similar
MEC Health Limpopo Head of Department of Health v Makgoba Others (JA121/2022) [2025] ZALAC 33; [2025] 9 BLLR 936 (LAC) (4 June 2025)
[2025] ZALAC 33Labour Appeal Court of South Africa98% similar
Bonakele v Department of Health (CA17/2024) [2025] ZALAC 34; [2025] 9 BLLR 886 (LAC) (4 June 2025)
[2025] ZALAC 34Labour Appeal Court of South Africa97% similar
Ekurhuleni Metropolitan Municipality v Mabusela N.O. and Others (JA 56/21) [2022] ZALAC 112; (2023) 44 ILJ 137 (LAC) (13 October 2022)
[2022] ZALAC 112Labour Appeal Court of South Africa97% similar
NEHAWU v Minister For The Public Service And Administration and Others (JA19/2023) [2023] ZALAC 7; [2023] 6 BLLR 487 (LAC); (2023) 44 ILJ 1207 (LAC) (13 March 2023)
[2023] ZALAC 7Labour Appeal Court of South Africa97% similar