Case Law[2024] ZACC 13South Africa
AFGRI Animal Feeds (A Division of PhilAfrica Foods (Pty) Limited) v National Union of Metalworkers South Africa and Others (CCT 188/22) [2024] ZACC 13; 2024 (9) BCLR 1111 (CC); (2024) 45 ILJ 1937 (CC); 2024 (5) SA 576 (CC); [2024] 10 BLLR 999 (CC) (21 June 2024)
Constitutional Court of South Africa
21 June 2024
Headnotes
Summary: Sections 161 and 200 of the Labour Relations Act 66 of 1995 — locus standi of trade union — trade union constitution — definitive of powers — admission of members outside registered scope — ultra vires and invalid
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: Constitutional Court
South Africa: Constitutional Court
You are here:
SAFLII
>>
Databases
>>
South Africa: Constitutional Court
>>
2024
>>
[2024] ZACC 13
|
Noteup
|
LawCite
sino index
## AFGRI Animal Feeds (A Division of PhilAfrica Foods (Pty) Limited) v National Union of Metalworkers South Africa and Others (CCT 188/22) [2024] ZACC 13; 2024 (9) BCLR 1111 (CC); (2024) 45 ILJ 1937 (CC); 2024 (5) SA 576 (CC); [2024] 10 BLLR 999 (CC) (21 June 2024)
AFGRI Animal Feeds (A Division of PhilAfrica Foods (Pty) Limited) v National Union of Metalworkers South Africa and Others (CCT 188/22) [2024] ZACC 13; 2024 (9) BCLR 1111 (CC); (2024) 45 ILJ 1937 (CC); 2024 (5) SA 576 (CC); [2024] 10 BLLR 999 (CC) (21 June 2024)
Download original files
PDF format
RTF format
Links to summary
PDF format
RTF format
Heads of argument BEGIN
Heads of arguments
PDF format
Heads of argument END
make_database: source=/home/saflii//raw/ZACC/Data/2024_13.html
sino date 21 June 2024
FLYNOTES:
LABOUR – Union –
Locus
standi
–
Union’s
constitution restricts its registered scope to workers in metal
and related industries – Employer objecting
to union’s
standing because employees working in animal feeds industry –
Union has no authority to represent
dismissed employees in Labour
Court because they are precluded from becoming members –
Dismissed employees were not
eligible for membership – Union
has no legal standing in Labour Court proceedings –
Labour
Relations Act 66 of 1995
,
ss 161
and
200
.
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case CCT 188/22
In
the matter between:
AFGRI
ANIMAL FEEDS
Applicant
and
NATIONAL
UNION OF METALWORKERS
SOUTH
AFRICA
First Respondent
MALULEKE
AND 13 OTHERS
Second and Further Respondents
Neutral
citation:
AFGRI Animal Feeds (A
Division of PhilAfrica
Foods (Pty) Limited) v National Union
of Metalworkers South Africa and Others
[2024] ZACC 13
Coram:
Maya DCJ,
Chaskalson AJ, Dodson AJ, Kollapen J
,
Mathopo J, Mhlantla J, Rogers J, Schippers AJ and
Tshiqi J
Judgment:
Schippers AJ
(unanimous)
Heard
on:
21 November 2023
Decided
on:
21 June 2024
Summary:
Sections 161
and
200
of the
Labour Relations Act 66 of 1995
—
locus standi
of trade union — trade union constitution —
definitive of powers — admission of members outside registered
scope
—
ultra vires
and invalid
ORDER
On
appeal from the Labour Appeal Court (hearing an appeal from the
Johannesburg Labour Court, Johannesburg):
1.
Leave to appeal is granted.
2.
The appeal succeeds.
3.
The order of the Labour Appeal Court is set aside and replaced with
the following:
“
The
appeal is dismissed.”
4.
The parties shall bear their own costs in the Labour Appeal Court and
this Court.
JUDGMENT
SCHIPPERS AJ
(Maya DCJ, Chaskalson AJ, Dodson AJ, Kollapen J,
Mathopo J, Mhlantla J, Rogers J
and Tshiqi J
concurring)
Introduction
[1]
Can a trade union represent employees in proceedings in the
Labour Court, if those employees cannot become members of that union?
That is the question raised by this application for leave to
appeal.
[2]
This question
arose when the applicant, AFGRI Animal Feeds, a division of
PhilAfrica
Foods
(Pty) Ltd (AFGRI), which manufactures and distributes animal feeds,
raised a preliminary point in proceedings before the Labour
Court
that the
first respondent,
the National Union of
Metalworkers of
South Africa (NUMSA), a trade union registered under the
Labour Relations Act
[1]
(LRA),
was precluded from representing the
second
to
thirteenth
respondents (dismissed employees) in that Court. In terms of
its constitution, membership of NUMSA is restricted
to workers in the
metal and related industries.
The
dismissed employees were
formerly employed by AFGRI in the animal feeds industry.
Background
[3]
It is common ground that in September 2017
the dismissed employees embarked on an unprotected strike following
AFGRI’s refusal
to grant NUMSA organisational rights. They
were dismissed on 1 December 2017. They challenged the fairness
of their
dismissals. On 19 December 2017, NUMSA, on their
behalf, referred an unfair dismissal dispute to the Commission for
Conciliation,
Mediation and Arbitration (CCMA).
[4]
The dispute was not resolved in the CCMA and, in June 2018,
NUMSA and the dismissed employees, represented by the same firm of
attorneys,
referred an unfair dismissal dispute to
the Labour Court. In the statement of case, NUMSA is cited as
the first applicant
and the dismissed employees as the second and
further applicants. They allege that in July 2017 the dismissed
employees became
members of NUMSA and are in good standing. They
seek an order declaring that their dismissal is procedurally and
substantively
unfair, and directing AFGRI to reinstate them
retrospectively; alternatively, to pay them compensation (Labour
Court proceedings).
Those proceedings are pending in the Labour
Court.
[5]
In
its statement of defence, AFGRI disputes that the dismissed employees
are members of NUMSA and asserts that NUMSA and its legal
representative lack legal standing and authority to act on their
behalf. When the case was heard in the Labour Court,
AFGRI
objected to NUMSA’s standing on the ground that its
constitution prohibits the dismissed employees, who were employed
in
the animal feeds industry, from becoming members of NUMSA. Its
constitution states that persons “working in the
metal and
related industries are eligible for membership of the Union”.
[2]
[6]
AFGRI’s objection was based on
section 161(1)(c) of the LRA, which provides
that
a party to proceedings in the Labour Court may appear in person or be
represented only by a member, office-bearer or official
of that
party’s registered trade union. Since the dismissed
employees could not become members of NUMSA, it had no
legal standing
to represent them in an unfair dismissal dispute in the Labour Court
under section 161(1)(c) of the LRA.
Litigation
history
Labour
Court
[7]
The Labour Court
upheld the preliminary point, with costs. It stated that the
enquiry was twofold. The first was whether
NUMSA had the right
to refer the matter in its own interest and the interests of its
members; and the second, whether NUMSA had
the right to represent the
dismissed employees.
[3]
[8]
As regards the
first enquiry, the Labour Court reasoned as follows. The
dispute had been referred to it in terms of section
191(5)(b) of the
LRA and rule 6 of the Rules for the Conduct of Proceedings in
the Labour Court
[4]
(Rules).
Section 191(5)(b) provides that an employee may refer a dispute
about the fairness of a dismissal to the Labour
Court for
adjudication. Rule 6 of the Rules requires the party
initiating the proceedings to refer the matter by way
of a statement
of claim, signed by that party. Rule 1 defines a party as
“any party to court proceedings and includes
a person
representing a party in terms of section 161 of the Act”.
[9]
The Labour Court
then referred to sections 161(1)(c) and 200 of the LRA.
Section 161(1)(c) entitles a party in any proceedings
before the Labour Court to appear in person or be represented by an
office-bearer or official of that party’s registered
trade
union. In terms of section 200(1)(b), a registered trade union
may act on behalf of any of its members, or in the interest
of any of
its members (section 200(1)(c)), in any dispute to which such member
is a party. The Labour Court concluded that
these provisions,
read together with rule 1 of the Rules, show that a trade union may
refer a dispute to or represent a dismissed
employee in the Labour
Court, only if that union is registered and the employee who is a
party to the dispute is a member of that
union.
[5]
[10]
As to the second
enquiry, the Labour Court cited this Court’s decision in
Lufil
[6]
for the principle that a voluntary association such as NUMSA is bound
by its constitution, and has no power to act beyond it. The
court rejected NUMSA’s argument that
Lufil
applies only in a case
where a trade union seeks to enforce organisational rights. It
held that a trade union could act only
on behalf of members falling
within the scope of its registered constitution, which is “valid
for all enquiries”.
[11]
The Labour Court rejected the argument that the point raised
by AFGRI constituted an interference in the internal affairs of
NUMSA.
Rather, AFGRI sought to hold NUMSA to its constitution
in a case where the union purported to exercise rights on the basis
that the employees were its members.
[12]
The Labour Court
concluded that NUMSA’s referral of the dispute in terms of
section 200 of the LRA, was invalid and void
from the outset.
NUMSA therefore lacked legal standing to launch the
proceedings.
[7]
NUMSA was
ordered to pay costs because the dismissed employees’
employment had “long since ended” and NUMSA
was not in a
collective bargaining relationship with AFGRI.
Labour
Appeal Court
[13]
The Labour Appeal
Court overturned the Labour Court’s decision. It held
that NUMSA was a party to the Labour Court proceedings
in terms of
section 200(1)(b) of the LRA, because it was acting both on
behalf of its members, and in their interests, as
envisaged in
section 200(1)(c). In those proceedings, both NUMSA and the
dismissed employees were represented by their attorney
as
contemplated in section 161(1)(a) of the LRA and not by an
office-bearer in terms of section 161(1)(c).
[8]
[14]
On the question
whether NUMSA could represent the dismissed employees when they
worked in an industry which fell outside its constitution,
the Labour
Appeal Court drew a distinction between a trade union’s
exercise of organisational rights on the one hand, and
its
representation of employees in an unfair dismissal dispute on the
other. For this proposition the Labour Appeal Court
relied on
its decision in
MacDonald’s
Transport
.
[9]
There, it was held in the context of arbitration proceedings,
that when exercising organisational rights such as the right
to
engage in collective bargaining, a trade union must establish that it
has a right to act on behalf of workers by proving that
they are its
members. However, in dismissal proceedings, generally the
workers (not the union) are parties to the proceedings.
Workers
have the right to choose a representative. When they want a
particular union to represent them in dismissal proceedings,
the only
question is the right to choose that union.
[10]
[15]
The Labour Appeal
Court referred to
Lufil
and stated that where a
trade union functions within a specified constitutional scope when
bargaining collectively on behalf of
its members, that union relies
on its particular knowledge of the industry it serves, and employees
may seek membership of the
union for this reason. However,
according to the Labour Appeal Court, different considerations apply
when deciding whether
employees are entitled to representation by a
trade union under section 200 or 161(1)(c) of the LRA. Fairness
and the employees’
right to representation in individual
disputes are then relevant considerations.
[11]
[16]
The Labour Appeal
Court stated that where a trade union “has accepted the
employee as a member outside its constitutionally-prescribed
scope of
operation” – in other words, allowing employees to become
members beyond the powers conferred on the union
by its constitution
– it does so on the basis that its representation of the
employee “is limited”. Where
this happens, and
following
Lufil
,
the Labour Appeal Court said, the trade union “will not be
entitled to bargain collectively with the employer”.
[12]
[17]
The Labour Appeal
Court found that where a trade union represents employees in
individual disputes with their employer, that representation
is aimed
at providing effective access to justice and redress to the
employees, “in accordance with sections 23 and 38 of
the
Constitution and prevailing labour legislation”. In such
a case, the employer has no interest in holding the union
to the
terms of its constitution in order to limit the employee’s
right to representation.
[13]
[18]
The Labour Appeal
Court held that it is not the business of an employer to concern
itself with the relationship between individual
employees and their
union; that an employer should not be able, at its election, to
invoke the provisions of a trade union’s
constitution; and that
the approach in interpreting the constitution of a voluntary
organisation is “one of benevolence,
rather than of
nit-picking, which ought to be aimed at the promotion of convenience
and the preservation of rights”.
[14]
[19]
The Labour Appeal
Court then “contrasted” the latter approach with the one
followed in
Lufil
,
namely that a voluntary association is bound by the categories of
membership contained in its constitution, and has no powers
beyond
those set out in that document.
[15]
It found that
Lufil
was not
concerned with a trade union’s suitability to represent
employees in unfair dismissal or unfair labour practice disputes,
but
with the role of a union’s constitution in giving effect to a
government policy of collective bargaining at a sectoral
level.
[16]
[20]
The Labour Appeal
Court concluded that the Labour Court erred in finding that the
dismissed employees’ membership of NUMSA
was invalid and void
from the outset. It also erred in holding that NUMSA lacked
legal standing, and that its referral of
the matter was invalid. The
Labour Appeal Court held that there was no reason for the costs
award. Consequently, the
Labour Appeal Court upheld the appeal,
set aside the Labour Court’s order and substituted it with an
order dismissing the
preliminary point.
[17]
Submissions
before this Court
The
applicant’s submissions
[21]
AFGRI submits that on a proper construction of section 161(1)
of the LRA, it confers legal standing on a registered trade union
only where it is a party to the proceedings, in which case it may be
represented by a director or equivalent (section 161(1)(b));
or
where its members are parties, in which event those members may be
represented by any office-bearer or official of the union
(section
161(1)(c)). NUMSA is not a party to the Labour Court
proceedings, because the unfair dismissal dispute is between
AFGRI
and the dismissed employees; not between AFGRI and NUMSA.
[22]
AFGRI contends that section 161(1)(c) of the LRA contemplates
representation only by a trade union whose constitution permits
workers
in the animal feeds industry to become members of that union.
NUMSA’s constitution precludes the dismissed employees
from membership of the union – they are not employed in the
metal and related industries. Therefore, NUMSA (or a member,
office-bearer or official of NUMSA) does not have standing in the
Labour Court proceedings.
[23]
Legal standing consists of procedural and substantive
requirements. AFGRI contends that procedurally, NUMSA has a
true onus
to prove that it has standing to represent the dismissed
employees and it must prove compliance with section 161(1)(c) of the
LRA.
Substantively, it also bears a true onus of proving that
it has a direct and sufficient interest in the unfair dismissal
dispute between AFGRI and the dismissed employees. NUMSA failed
to meet these requirements.
[24]
AFGRI submits that the Labour Appeal Court was wrong to hold
that section 200(1)(b) and (c) and 200(2) of the LRA confers standing
on NUMSA. Section 200(2) provides that a registered trade union
is entitled to be a party to any proceedings under the LRA,
if one or
more of its members is a party to those proceedings. These
provisions, AFGRI contends, do not grant a trade union
standing to
represent non-members in disputes before the Labour Court. The
wording of sections 161(1)(c) and 200 makes it
clear that legal
standing in an unfair dismissal dispute is regulated by section
161(1)(c). But even if section 200 applies,
it does not
authorise NUMSA to act on behalf of the dismissed employees –
they are prohibited by its constitution from becoming
members of the
union.
[25]
AFGRI contends that the Labour Appeal Court’s reliance
on
MacDonald’s Transport
is misplaced, and a
misdirection. The facts in that case are distinguishable.
There, the employees were not precluded
by the relevant trade union’s
constitution from becoming members. Instead, it was alleged
that they had not paid subscriptions
to the union as a result of
which their membership had lapsed, which the Labour Appeal Court
found had not been proved. Further,
so AFGRI contends, the case
was not concerned with standing under section 161(1)(c) of the
LRA, but with arbitrations in the
CCMA.
The
respondents’ submissions
[26]
The respondents
submit that the right of the dismissed employees to be represented in
the Labour Court by a party of their choosing
lies at the heart of
this case. This right is inextricably linked to the fundamental
right of access to courts,
[18]
because employees usually come up against well-resourced employers
with strong legal teams, and the right of access “without
comparable representation is meaningless”. Moreover,
preventing the dismissed employees from being represented by NUMSA,
which they have chosen as their trade union, unduly limits their
right to freedom of association.
[19]
Therefore, so it is submitted, membership of a trade union can
include persons employed in sectors falling outside its registered
scope, as defined in its constitution.
[27]
The respondents contend that AFGRI conflates the “right
to appear” on behalf of employees under section 161, with the
“right to represent” them under section 200 of the
LRA. NUMSA’s involvement in the Labour Court proceedings
is based on section 200 and not section 161 of the LRA. The
dismissed employees were represented by a legal practitioner,
as the
Labour Appeal Court found. The Labour Appeal Court rightly held
that NUMSA represented the dismissed employees in
terms of section
200(1)(b) and (c) and section 200(2) of the LRA; and that the
relationship between a trade union and its members
is a private
matter, save in the case of collective bargaining, where the union
may not act outside the scope of its constitution.
[28]
The rule laid down in
Lufil
that a trade union is bound
by the categories of membership set out in its constitution –
which the respondents say is confined
to collective bargaining as
found by the Labour Appeal Court – does not, the respondents
argue, apply to legal standing.
This is because organisational
rights have an impact on the rights of an employer. However,
the representation of vulnerable
employees in proceedings in the
Labour Court does not affect any of the employer’s rights.
The only right affected
is that of the dismissed employees to be
represented by NUMSA, a union of their choice. Recognition of
this right “can
amount to benevolence, but such benevolence is
necessary and justified in light of the broader mandate imposed by
the LRA and international
law”.
[29]
In short, the respondents submit that a distinction can be
made between membership of a trade union for the purpose of
exercising
organisational rights, and membership for the purpose of
representation before a forum, including the Labour Court. This
distinction, the respondents say, “is possible and necessary”,
as contemplated in
Lufil
and
MacDonald’s Transport
.
Issues
[30]
The issues in this case are these:
(a)
Does the application engage this Court’s
jurisdiction?
(b)
Should leave to appeal be granted?
(c)
If leave is granted, does NUMSA have the
authority to represent the
second to fourteenth respondents, and thus establish legal standing
in the Labour Court proceedings?
Jurisdiction
and leave to appeal
[31]
The LRA is
legislation designed to give effect to the rights enshrined in
section 23 of the Constitution. The central
issue in this
case concerns the meaning and effect of sections 161 and 200 of the
LRA, which is a constitutional matter.
[20]
[32]
The matter also
raises an arguable point of law of general public importance.
[21]
It concerns the legal standing of a trade union to represent
employees, precluded from membership under its constitution,
in the
Labour Court and other fora. The issue is not confined to the
interests of the parties, but is important to all trade
unions,
employers and employees.
[22]
This Court’s jurisdiction is thus engaged.
[33]
It is in the interests of justice that leave to appeal be
granted. In this regard, prospects of success are an important
consideration.
In light of this Court’s decision in
Lufil
, there are reasonable prospects that this Court will
reverse the decision of the Labour Appeal Court. Further, legal
standing
is a threshold issue and the Labour Court proceedings have
not reached the trial stage. On this issue, clarity and
certainty
are required for, as we were informed by NUMSA’s
counsel, numerous trade unions and employees are similarly situated,
and
they regard the Labour Appeal Court’s judgment as
authoritative.
Does
NUMSA have legal standing?
The
relevant provisions of the LRA
[34]
Section 161 of the LRA which is headed “Representation
before Labour Court”, provides:
“
(1)
In any proceedings before the Labour Court, a party to the
proceedings may appear in person or
be represented only by—
(a)
a legal practitioner;
(b)
a director or employee of the party;
(c)
any office-bearer or official of that party’s
registered trade
union or registered employers'
organisation;
(d)
a designated agent or official of a council; or
(e)
an official of the Department of Labour.
(2)
No person representing a party
in proceedings before the Labour Court in a capacity contemplated
in
paragraphs (b) to (e) of subsection (1) may
charge a fee or receive a financial benefit in consideration
for
agreeing to represent that party unless permitted to do so by order
of the Labour Court.”
[35]
Section 200 of the LRA is headed “Representation of
employees or employers” and reads:
“
(1)
A registered trade union or registered employers’
organisation may act
in any one or more of the following
capacities in any dispute to which any of its members is a
party—
in
its own interest;
on
behalf of any of its members;
in
the interest of any of its members.
(2)
A registered trade union or a registered employers’
organisation is
entitled to be a party to any proceedings in
terms of this Act if one or more of its members is a party
to those proceedings.”
[36]
AFGRI’s main complaint is that the Labour Appeal Court
erred in holding that NUMSA was authorised, in terms of section 200
of the LRA, to represent the dismissed employees in the Labour Court
proceedings. AFGRI contends that NUMSA had to demonstrate
legal
standing under section 161(1)(c) of the LRA.
[37]
AFGRI is however mistaken in relation to section 161(1).
Section 161(1)(a) makes it clear that a party to any proceedings
before the Labour Court may be represented by a legal practitioner.
As appears from the pleadings, NUMSA and the dismissed
employees were
represented by a firm of attorneys in the Labour Court proceedings,
as envisaged in section 161(1)(a). So,
the question of
representation under section 161(1)(c) does not arise. That
provision empowers a member, office-bearer or
official of the trade
union, of which the litigant is a member, to represent the litigant
in proceedings before the Labour Court.
Section 161(1)(c)
authorises the union official to sign pleadings and appear in court,
thereby overcoming the normal bar against
non- lawyers
representing others in superior courts.
[38]
The Labour Appeal Court was thus correct to hold that NUMSA
and the dismissed employees were represented by their attorney in the
referral of the matter to, and in the proceedings before, the Labour
Court, in terms of section 161(1). And nothing turns
on the
fact that the dispute is about an unfair dismissal. Section
161(1), on its plain wording, empowers the persons referred
to
therein to represent a party in “any proceedings” before
the Labour Court.
[39]
Section 200(1)
of the LRA empowers a registered trade union to act in one or more of
the three capacities listed in that provision,
in any dispute to
which any of its members is a party. In such a dispute a trade
union may act in its own interests or solely
for its own advantage;
or on behalf or in the interests of any of its members; or a
combination of these. The purpose of
section 200(2) is to
confer on the trade union itself a legal right to be a party to any
dispute to which its members are parties.
[23]
[40]
Section 200 thus
determines a trade union’s legal standing: it may act in its
own right or interest (section 200(1)(a)); it
is entitled to act on
behalf of any of its members (section 200(1)(b)); and it may act in
the interests of any of its members (section 200(1)(c)).
That a trade union should act on behalf or in the interests of its
members is not new. Some 75 years ago, Centlivres JA in
Amalgamated Engineering Union
[24]
described the role of a trade union as follows:
“
The
whole idea underlying the trade union system . . . is that the trade
union concerned should act as the spokesman of its members
. . . To
insist that whenever a dispute arises between employers and
employees, an individual employer or employee should set the
statutory machinery in motion for the purpose of settling the
dispute, would tend to defeat the object which the legislature had
in
mind . . . for it is obvious that what the legislature had in mind
was that employees should use the services of the trade union
of
which they are members and that employers should use the services of
employers’ organisations to which they belong.”
[25]
[41]
In the present case, NUMSA does not act in its own interests:
there is no such allegation in the statement of case. Rather,
NUMSA is litigating on behalf of or in the interests of the dismissed
employees, whom it claims are its members in good standing,
and the
relief sought is an order declaring their dismissal procedurally and
substantively unfair. The Labour Appeal Court
therefore rightly
concluded that the issue of NUMSA’s legal standing is governed
by section 200(1)(b) and (c), and not section
161(1) of the LRA.
NUMSA’s
registration and its consequences
[42]
The requirements
for registration of a trade union are set out in section 95 of the
LRA. A trade union may apply to the registrar
for registration
if it assumes a name and adopts a constitution in accordance with the
prescribed requirements;
[26]
has an address in the Republic;
[27]
and is independent.
[28]
[43]
The prescribed
requirements for the constitution of a trade union are contained in
section 95(5) of the LRA. These include
the requirement that
the constitution must “prescribe qualifications for, and
admission to, membership”.
[29]
NUMSA’s constitution provides that all workers who are working
in the metal and related industries are eligible for
membership of
the union.
[30]
NUMSA’s
scope is defined in Annexure B to its constitution. It states
that “[t]he Union shall be open to
all workers employed in any
of the following industries”. The annexure then lists and
describes the various industries
in considerable detail, which is
referred to as “the metal and related industries, [t]he scope
of the union”.
[31]
[44]
The most important
consequence of registration of a trade union is that it acquires
legal personality: it is a body corporate distinct
from its members
and officials, and acquires its own reputation separate from its
members, which is protectable.
[32]
This, however, does not permit a trade union to operate outside its
registered scope.
[33]
Generally, the scope of registration of a trade union is determined
by the nature of the entity.
[34]
[45]
One of the effects
of legal personality is that a trade union, as a body corporate, may
perform any act in law which its constitution
requires or permits it
to do. The constitution sets out the union’s powers –
a prescribed requirement for registration
under section 95(5) of the
LRA. The constitution corresponds with the articles of
association of a company and may be enforced
in like manner.
Where a trade union performs any act that deviates from or is
contrary to its constitution, that act is
ultra vires
(beyond its powers) and
null and void.
[35]
In
such a case, an individual may approach a court to interdict the
ultra
vires
act.
[36]
NUMSA
is bound by its registered scope of operation
[46]
The centrality of
a trade union’s constitution is underscored by section
4(1)(b) of the LRA. It provides that every
employee has
the right to join a trade union “subject to its constitution”.
The constitution, together with any
rules and regulations,
establishes a contract between the individual members of the union
who are bound in a voluntary association.
[37]
Registration of the union allows the public access to the
constitution: it becomes a public document.
[38]
[47]
The constitution of a trade union also promotes transparency,
as is demonstrated by this very case. In
Lufil
this
Court said:
“
The
constitution of the union . . . serves an important purpose for
employers, as they are informed of the different industries
within
which unions operate. To allow unions to operate outside their
constitutions, at their discretion, would go against
core
constitutional values such as accountability, transparency and
openness.”
[39]
[48]
NUMSA’s
constitution restricts its registered scope to workers in the metal
and related industries. The dismissed employees
were working in
the animal feeds industry when they applied for membership of the
union. They were not eligible for membership
for the simple
reason that they were employed outside NUMSA’s registered
scope. Their admission was, and remains, an
act that is beyond
NUMSA’s powers as defined in its constitution. In
Lufil
this Court rejected an
argument by NUMSA that it could admit to membership workers in any
industry, holding that such an argument
was inconsistent with the
text of its constitution.
[40]
[49]
Thus, in
Lufil
, this Court stated the position as
follows:
“
A voluntary
association, such as NUMSA, is bound by its constitution. It
has no powers beyond the four corners of that document.
Having
elected to define the eligibility for membership in its scope, it
manifestly limited its eligibility for membership.
When it
comes to organisational rights, NUMSA is bound to the categories of
membership set out in its scope.”
[41]
[50]
The Court went on to say:
“
As
a matter of common law and based on the LRA, NUMSA’s
constitution precludes membership outside of those industries listed
in Annexure B. Any admission of members outside the terms of
the constitution is
ultra
vires
and
invalid.”
[42]
[51]
Nothing could be clearer. There is no ground for drawing
a distinction between a trade union’s representation of
employees
when enforcing organisational rights and representation in
an unfair dismissal dispute, as submitted by NUMSA. That
distinction
is both illogical and at odds with the principle that a
trade union has no powers beyond those conferred by its
constitution.
It would mean that NUMSA is entitled to represent
the employees in an unfair dismissal dispute because they are members
of the
union; but it cannot exercise organisational rights on their
behalf, because they are not members.
[52]
It is untenable to
say that a person is a member of a trade union for one purpose, but
not for another, as counsel for NUMSA fairly
conceded. The
union either has the power under its constitution to admit the
dismissed employees as members, or it does not.
There can only
be one answer to the question: Can the dismissed employees become
members of NUMSA? The answer is no.
As this Court held in
Lufil
:
[43]
“NUMSA is precluded from concluding membership agreements with
workers who fall outside its scope”.
[53]
Consequently,
NUMSA has no authority to represent the dismissed employees and
therefore has no legal standing in the Labour Court
proceedings.
The question of standing is in a sense procedural, but it is also a
matter of substance. It concerns the
sufficiency and directness
of a litigant’s interest in proceedings which warrants its
title to prosecute the claim asserted.
[44]
Generally, a party claiming relief from a court must establish that
it has a direct and substantial interest in the subject
matter of the
suit.
[45]
Procedurally,
the onus of establishing an interest rests upon the applicant; it is
an onus in the true sense.
[46]
NUMSA has met neither requirement: it cannot prove that it has an
interest in the Labour Court proceedings, because its registered
scope precludes the dismissed employees from becoming members of
NUMSA.
[54]
It follows that
Lufil
is directly in point: the
issue here is the construction and meaning of NUMSA’s
registered scope as defined in its constitution,
which does not
extend to the animal feeds industry.
[47]
It is not about the right of the dismissed employees to be
represented by a union of their choice, nor their right of access
to
court. These rights are not implicated at all. The
dismissed employees have the right to join and be represented
by any
trade union whose registered scope permits them to be members.
And the issue has nothing to do with interference in
the internal
affairs of the union. As it was put in
Lufil
,
“[t]he essential approach in this case is not to police
compliance with [NUMSA’s] internal provisions, but once it
interfaces with third parties, NUMSA’s conduct is circumscribed
by its constitution and has wide ranging public consequences”.
[48]
[55]
The issue in this
application is also not about “holding the union to the terms
of its constitution in order to limit the
employee’s right to
representation”; nor fairness and the dismissed employees’
right to representation in individual
dispute proceedings, as the
Labour Appeal Court opined. Rather, the issue is whether NUMSA
may act beyond the bounds of its
constitution. Yet again,
Lufil
provides a complete
answer:
[49]
“
NUMSA
has adopted a constitution which is clear in its terms. It is a
voluntary association with rules and annexures that
collectively form
the agreement entered into with its members. The constitution
must be interpreted in accordance with the
ordinary rules of
construction applying to contracts in general. The classic
interpretative principle is that effect must
be given to the ordinary
language of the document, objectively ascertained within its
context.”
[56]
The Labour Appeal
Court however held that the approach to interpreting the constitution
of a voluntary association is one of benevolence,
aimed at the
promotion of convenience and the preservation of rights. That
is not so. The plain language and structure
of NUMSA’s
constitution in relation to its registered scope make it clear there
is no room for the Labour Appeal Court’s
approach. As was
said in
Capitec
:
[50]
“
Interpretation
begins with the text and its structure. They have a
gravitational pull that is important. The proposition
that
context is everything is not a licence to contend for meanings
unmoored in the text and its structure. Rather, context
and
purpose may be used to elucidate the text.”
[51]
[57]
Finally, NUMSA’s
submission that preventing it from representing the dismissed
employees in the Labour Court proceedings limits
their right to
freedom of association, lacks merit. As this Court held in
Lufil
,
[52]
there can be no suggestion of an infringement of the rights contained
in section 18 and 23 of the Constitution where the union
itself has
chosen to circumscribe its scope of operation in its
constitution.
[53]
Conclusion
[58]
NUMSA has no authority to represent the dismissed employees in
the Labour Court, because they are precluded from becoming
members
of the union. It therefore has no legal standing in the
Labour Court proceedings. Its constitution confines membership
to workers in the metal and related industries. The dismissed
employees, who formerly worked in the animal feeds industry,
fall
outside of those industries. NUMSA’s act in admitting
them as members of the trade union contrary to its constitution,
is
ultra vires
and invalid.
[59]
We were informed that there are trade unions operating in the
animal feeds industry which admit employees in that industry to
membership.
Moreover, the dismissed employees themselves are
entitled to continue with the Labour Court proceedings in their own
names.
A firm of attorneys acted for them when the dispute was
referred to the Labour Court, and is still on record for them.
Costs
[60]
Although AFGRI was awarded costs in the Labour Court, it did not ask
for such an order in this application.
In the circumstances, an order
that the parties should bear their own costs in the Labour Appeal
Court and in this Court is appropriate.
Order
[61]
The following order is made:
Leave
to appeal is granted.
2.
The appeal succeeds.
3.
The order of the Labour Appeal Court is set aside and replaced with
the following:
“
The appeal is
dismissed.”
4.
The parties shall bear their own costs in the Labour Appeal Court and
this Court.
For
the Applicant:
TJ
Bruinders SC and C Prinsloo
instructed
by Annelie Grundlingh Attorneys
For
the Respondent:
FA
Boda SC and S Bismilla
instructed
by Serena Chetty Incorporated Attorneys
[1]
66
of 1995.
[2]
NUMSA’s constitution states that the union is open to all
workers employed in any of the industries defined in Annexure
B to
the constitution. Those industries, in turn, are defined as
“THE METAL AND RELATED INDUSTRIES, the scope of
the union.”
[3]
National
Union of Mineworkers of South Africa v AFGRI Animal Feeds (Pty)
Limited
,
unreported judgment of the Labour Court, Johannesburg, Case No JR
387/18 (
LC
judgment
)
at para 7.
[4]
Rules for the Conduct of Proceedings in the Labour Court, GN 1665
GG
17495, 14 October 1996.
[5]
LC
judgment
above
n 3 at paras 8-12.
[6]
National
Union of Metal Workers of South Africa v Lufil Packaging (Isithebe)
[2020] ZACC 7
; (2020) 41
(ILJ) 1846 (CC);
2020 (6) BCLR 725
(CC) (
Lufil
)
at para 47.
[7]
LC
judgment
above
n 3 at paras 23-4.
[8]
National
Union of Metalworkers of South Africa (NUMSA) v AFGRI Animal Feeds
(Pty) Limited
[2022]
ZALAC 99
; (2022) 43 ILJ (LAC);
[2022] 10 BLLR 902
(LAC) (
LAC
judgment
)
at paras 22-3.
[9]
MacDonald’s
Transport Upington (Pty) Ltd v Association of Mineworkers and
Construction Union
[2016]
ZALAC 32
; (2016) 37 (ILJ) 2593 (LAC); [2017] 2 BLLR 105 (LAC).
[10]
LAC
judgment
above
n 8 at paras 26 and 34.
[11]
Id at paras 34-5.
[12]
Id at para 36.
[13]
Id at para 37.
[14]
General
Industries Workers Union of SA v Maseko
(2015)
36 ILJ 2874 (LC).
[15]
Lufil
above
n 6 at para 47.
[16]
Id at paras 27 and 32-3.
[17]
Id at paras 38-40.
[18]
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.”
[19]
Section 18 of the Constitution provides: “Everyone has the
right to freedom of association.”
[20]
National
Union of Metalworkers of South Africa v Trenstar (Pty) Limited
[2023] ZACC 11
;
2023 (4)
SA 449
(CC);
[2023] 7 BLLR 609
(CC) at para 21;
Lufil
above n 6 at paras 26-7;
National
Education Health and Allied Workers Union v University of Cape Town
[2002] ZACC 27
;
2003 (3) SA 1
(CC);
2003 (2) BCLR 154
(CC) at para 14.
[21]
Paulsen
v Slip Knot Investments 777 (Pty) Limited
[2015]
ZACC 5
;
2015 (3) SA 479
(CC);
2015 (5) BCLR 509
(CC) at para 20.
[22]
Mokone
v Tassos Properties CC
[2017]
ZACC 25
;
2017 (5) SA 456
(CC);
2017 (10) BCLR 1261
(CC) at para 17.
[23]
Manyele
v Maizecor (Pty) Limited
(2002)
23 ILJ 1578 (LC) at para 12.
[24]
Amalgamated
Engineering Union v Minister of Labour
1949
(4) SA 908 (A).
[25]
Id at 912. This dictum was cited in
NUMSA
v CCMA
[2000]
11 BLLR 1330
(LC) at para 31 and approved in
Blyvooruitzicht
Gold Mining Co Limited v Pretorius
[2000]
7 BLLR 751
(LAC) at para 12.
[26]
Section 95(1)(a) and (b) of the LRA.
[27]
Section 95(1)(c) of the LRA.
[28]
Section 95(1)(d) of the LRA.
[29]
Section 95(5)(b) of the LRA.
[30]
Constitution of the National Union of Metalworkers of South Africa
(NUMSA) as amended at National Congress of NUMSA in 2012 and
at its
Special National Congress in December 2013 at 8, Chapter 2(2).
[31]
Id.
[32]
Van Jaarsveld et al “Trade Unions” in
LAWSA
3 ed (2017) vol 24(1) at
para 480 citing
South
African National Defence Union v Minister of Defence
2012
ILJ 1061 (GNP);
Mokoena
v Mittal Steel South Africa
2007
ILJ 1391 (BCA);
SAMWU
v Jada
2003
ILJ 1344 (W);
Food
and Allied Workers Union v Wilmark
1998
ILJ 928 (CCMA);
Mbobo
v Randfontein Estate Gold Mining Co
1992
ILJ 1485 (IC).
[33]
Id;
Lufil
above n 6 at para 56.
[34]
Food &
Allied Workers Union
1992
ILJ 1271 (IC).
[35]
Van Jaarsveld above n 32 at para 481;
Gründling
v Beyers
1967
(2) SA 131
(W) (
Gründling
)
at 139H-140B, approved by this Court in
Lufil
above n 6 at para 53.
[36]
Gründling
above n 35;
Garment
Workers’ Union v Smith
1936
CPD 249.
[37]
Lufil
above n 6 at para 37.
[38]
Van Jaarsveld above n 32 at para 484.
[39]
Lufil
above n 6 at para 64.
[40]
Id at para 22.
[41]
Id at para 47.
[42]
Id at para 56.
[43]
Lufil
above n 6 at para 62.
[44]
Gross v
Pentz
[1996]
ZASCA 78
;
1996 (4) SA 617
(SCA);
[1996] 4 All SA 63
(A) at 632B-C;
Sandton
Civic Precinct (Pty) Limited v City of JHB
[2008]
ZASCA 104
;
2009 (1) SA 317
(SCA);
[2009] 1 All SA 291
(SCA) at
para 19.
[45]
Cabinet
of the Transitional Government for the Territory of South West
Africa v Eins
[1998]
2 All SA 379
(A);
1988 (3) SA 369
(A) at 388B-E.
[46]
Mars
Incorporated
v
Candy World (Pty) Ltd
[1990] ZASCA 149
;
1991
(1) SA 567
(A) at 575H-I.
[47]
Lufil
above n 6 at para 52.
[48]
Lufil
above n 6 at para 62.
[49]
Id at para 53, footnotes omitted.
[50]
Capitec
Bank Holdings Limited v Coral Lagoon Investments 194 (Pty) Limited
[2021] ZASCA 99; 2022
(1) SA 100 (SCA).
[51]
Id
at para 15.
[52]
Lufil
above n 6 at paras 54
and 61.
[53]
Section 18 of the Constitution states that everyone has a right to
freedom of association. In terms of section 23(2), every
worker
has a right to form and join a trade union.
sino noindex
make_database footer start
Similar Cases
Agribee Beef Fund (Pty) Ltd and Another v Eastern Cape Development Agency and Another (CCT 26/22) [2023] ZACC 6; 2023 (5) BCLR 489 (CC); 2023 (6) SA 639 (CC) (1 February 2023)
[2023] ZACC 6Constitutional Court of South Africa97% similar
Seebed CC t/a Siyabonga Convenience Centre v Engen Petroleum Limited (CCT 290/20) [2022] ZACC 28; 2023 (12) BCLR 1535 (CC) (20 July 2022)
[2022] ZACC 28Constitutional Court of South Africa97% similar
Afrocentrics Projects and Services (Pty) Ltd t/a Innovative Distribution v State Information Technology Agency (SITA) SOC Ltd and Others (CCT 54/22) [2023] ZACC 2; 2023 (4) BCLR 361 (CC) (24 January 2023)
[2023] ZACC 2Constitutional Court of South Africa96% similar
Barnard Labuschagne Incorporated v South African Revenue Service and Another (CCT 60/21) [2022] ZACC 8; 2022 (5) SA 1 (CC); 2022 (10) BCLR 1185 (CC); 84 SATC 351 (11 March 2022)
[2022] ZACC 8Constitutional Court of South Africa96% similar
Tholo Energy Services CC v Commissioner for the South African Revenue Service (CCT 252/24) [2026] ZACC 1 (16 January 2026)
[2026] ZACC 1Constitutional Court of South Africa96% similar