Case Law[2023] ZACC 11South Africa
National Union of Metalworkers of South Africa v Trenstar (Pty) Ltd (CCT 105/22) [2023] ZACC 11; (2023) 44 ILJ 1189 (CC); 2023 (7) BCLR 814 (CC); [2023] 7 BLLR 609 (CC); 2023 (4) SA 449 (CC) (18 April 2023)
Constitutional Court of South Africa
18 April 2023
Headnotes
Summary: Labour Relations Act 66 of 1995 — section 76(1)(b) — distinction between a terminated strike and a suspended strike — interpretation of “in response to a strike”
Judgment
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## National Union of Metalworkers of South Africa v Trenstar (Pty) Ltd (CCT 105/22) [2023] ZACC 11; (2023) 44 ILJ 1189 (CC); 2023 (7) BCLR 814 (CC); [2023] 7 BLLR 609 (CC); 2023 (4) SA 449 (CC) (18 April 2023)
National Union of Metalworkers of South Africa v Trenstar (Pty) Ltd (CCT 105/22) [2023] ZACC 11; (2023) 44 ILJ 1189 (CC); 2023 (7) BCLR 814 (CC); [2023] 7 BLLR 609 (CC); 2023 (4) SA 449 (CC) (18 April 2023)
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sino date 18 April 2023
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 105/22
In
the matter between:
NATIONAL
UNION OF METALWORKERS
OF
SOUTH
AFRICA
Applicant
and
TRENSTAR
(PTY)
LIMITED
Respondent
Neutral
citation:
National Union of
Metalworkers of South Africa v Trenstar (Pty) Ltd
[2023] ZACC 11
Coram:
Maya DCJ,
Kollapen J, Madlanga J, Majiedt J, Makgoka AJ,
Mathopo J, Potterill AJ,
Rogers J and Theron J
Judgment:
Rogers J (unanimous)
Heard
on:
2 February 2023
Decided
on:
18 April 2023
Summary:
Labour Relations Act 66 of 1995
—
section 76(1)(b)
—
distinction between a terminated strike and a suspended strike —
interpretation of “in response to a strike”
ORDER
On
appeal from the Labour Appeal Court (hearing an appeal from the
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 an
order in the following terms:
“
(a)
The appeal succeeds.
(b)
There is substituted, for the order of the Labour Court, an order as
follows: ‘It
is declared that the respondent was not entitled
to use replacement labour for the purpose of performing the work of
any employees
who were locked out by virtue of the lock-out declared
by the respondent on 20 November 2020.’
(c)
The parties shall bear their own costs in the Labour Court and the
Labour Appeal Court.”
4. The
parties shall bear their own costs in this Court.
JUDGMENT
ROGERS J
(Maya DCJ, Kollapen J, Madlanga J, Majiedt J,
Makgoka AJ, Mathopo J, Potterill AJ
and Theron J
concurring):
Introduction
[1]
An
employer who embarks on a lock-out may not, as a general rule, use
replacement labour to perform the work of the locked out
employees. There is one exception: if the lock-out “is in
response to a strike”.
[1]
This case is about the interpretation of that exception. The
employer is the respondent, Trenstar (Pty) Limited
(Trenstar),
whose employees include members of the applicant, the National Union
of Metalworkers of South Africa (NUMSA).
NUMSA brought an
urgent application in the Labour Court to interdict Trenstar
from using replacement labour during a lock out.
The
Labour Court dismissed NUMSA’s application. The
Labour Appeal Court subsequently dismissed NUMSA’s
appeal
on the basis of mootness. The matter comes before us as an
application by NUMSA for leave to appeal against the respective
orders of the Labour Court and the Labour Appeal Court.
[2]
The
prohibition and exception mentioned above are contained in
section 76(1)(b) of the Labour Relations Act
[2]
(LRA).
For convenience, I quote the whole subsection:
“
(1)
An employer may not take into employment any person—
(a)
to continue or maintain production during a protected
strike
if
the whole or a part of the employer’s service has been
designated a maintenance service; or
(b)
for the purpose of performing the work of an
employee
who is
locked out, unless the
lock-out
is in response to a
strike
.”
[3]
Section 213 of the LRA defines “strike” and
“lock-out” thus:
“‘
strike’
means the partial or complete concerted refusal to work, or the
retardation or obstruction of work, by persons who are or have been
employed by the same employer or by different employers, for the
purpose of remedying a grievance or resolving a
dispute
in
respect of any matter of mutual interest between employer and
employee
, and every reference to ‘work’ in this
definition includes overtime work, whether it is voluntary or
compulsory”.
“‘
lock-out’
means the exclusion by an employer of
employees
from the
employer’s workplace, for the purpose of compelling the
employees
to accept a demand in respect of any matter of
mutual interest between employer and
employee
, whether or not
the employer breaches those
employees’
contracts of
employment in the course of or for the purpose of that exclusion”.
Factual
background
[4]
On Friday 23 October 2020, after failed conciliation on a
demand by NUMSA for the payment of a once-off gratuity to employees,
NUMSA
gave Trenstar notice that its members would embark on a strike
starting at 07h00 on Monday 26 October 2020. The
notice stated that the strike would take the form of a total
withdrawal of labour. The strike began as notified and
continued
for several weeks. As a result of an urgent
application by Trenstar to have the strike action declared unlawful
and unprotected,
the parties became legally represented. The
details of that urgent application are not now relevant except to
note that it
failed.
[5]
At 13h25 on Friday 20 November 2020, NUMSA’s attorneys
notified Trenstar’s attorneys thus:
“
Kindly note that
our client and its members have decided to suspend (as of the close
of business on the 20
th
November 2020) the protected
strike action which commenced on the 26
th
October 2020.
This is not to be construed as a withdrawal of the demand for the
R7500.00 ex-gratia payment.
Our client’s
members will tender their services and return to work on Monday the
23
rd
November 2020.”
[6]
On the same day, and shortly after receipt of this
notification, Trenstar wrote to NUMSA as follows:
“
Please take note
that the Company hereby gives 48 hours’ notice that it intends
locking out all NUMSA members, with effect
from 07h00 on Monday the
23
rd
November 2020.
This lock-out is in
accordance with section 64(1)(c) of the LRA, in terms of which the
Company’s demand is that:
The NUMSA members in
the Trenstar bargaining unit drop and waive their demand to be paid
by the Company a once off taxable gratuity
in an amount of R7500 to
be paid in addition to the ATB.
The Company records that
this lock-out is in response to NUMSA’s strike action and
accordingly section 76(1)(b) is applicable.
During the lock-out the
picketing rules agreed between the parties shall be applicable.
Finally, the issuing of
this lock-out notice does not constitute a waiver by the company that
the strike action to date has been
unprotected and which is currently
before the Labour Court in respect of a Leave to Appeal
application.” (Italics
in the original.)
[7]
NUMSA’s attorneys responded in a letter to Trenstar’s
attorneys, contending that the lock-out was in response to a strike,
denying that Trenstar was entitled to use replacement labour during
the lock-out and demanding an undertaking that Trenstar would
not use
temporary labour. In reply, Trenstar’s attorneys disputed
NUMSA’s attorneys’ contentions.
Trenstar’s
attorneys stated, among other things, that the lock out notice
was served before the strike was suspended
at close of business on
that day (Friday 20 November 2020) and that the strike was in any
event not over, having only been suspended.
Trenstar’s lock-out
began at 07h00 on Monday 23 November 2020.
Litigation
history
Labour
Court
[8]
NUMSA
launched an urgent application in the Labour Court to interdict
Trenstar from using replacement labour during the lock-out.
NUMSA did not challenge the lawfulness of the lock-out but alleged
that it was not in response to a strike. This was so,
according
to NUMSA, because by the time the lock-out began, the strike action
had ended. The lock-out was thus “offensive”.
[3]
In its answering affidavit, Trenstar repeated the contentions
contained in its attorneys’ letter of Friday 20 November
2020.
Trenstar alleged that NUMSA and its members had not “withdrawn
the strike or the demand”; they had merely
“suspended it”
and they could at any time “reinstitute [it]”.
[9]
The matter was argued before Whitcher J in the Labour
Court on 24 November 2020. On 30 November 2020 the
Labour
Court delivered judgment, dismissing the application with no
order as to costs. The Labour Court found that the lock out
was lawful. The Court emphasised that the issue was not the
lawfulness of the lock out but whether Trenstar could use
replacement labour. Trenstar did not dispute that the employees
had tendered their services, even though they had not abandoned
their
demand for the gratuity. Although the employees could resume
the strike at any time, “the current state of play
is that the
strike is over because the employees are once again tendering their
services”. This was so, the Labour
Court reasoned, having
regard to the definition of “strike” in the LRA.
With the suspension of the strike, there
was no longer a partial or
complete concerted refusal to work.
[10]
In the Labour Court’s view, however, the word “strike”
in section 76(1)(b) simply functioned to qualify and
identify
the kind of lock-out during which replacement labour could be
used. The Labour Court could not accept that
the mere
suspension of a strike, which attracted the counter-measure of a
lock-out by the employer, disqualified the use of replacement
labour. That would render “effectively nugatory”
and lead to “insensible or unbusinesslike results”.
Properly interpreted, section 76(1)(b) provided that “the
trigger for the lawful use of replacement labour is the lock-out
of
those employees whose labour is to be replaced, not the existence of
a continuing refusal to work by those employees”.
The
fact that the strike may have ended shortly before the lock-out
started is not determinative.
[11]
The Labour Court was alive to the fact that its interpretation
would considerably weaken NUMSA’s bargaining position.
However,
it said that this was what the drafters of the LRA had
done when permitting an employer to use replacement labour after a
union
has called a strike and the employer has responded with a
lock-out.
[12]
In light of the Labour Court’s judgment, NUMSA and its
members abandoned their demand for a gratuity, and the lock-out
ended.
According to NUMSA, its members had little choice but to
capitulate. The effect of the Labour Court’s judgment was
that Trenstar could continue to use replacement labour indefinitely
without any negative impact on its business operations.
NUMSA’s
bargaining position was hopelessly weak.
Labour
Appeal Court
[13]
The
Labour Court granted leave to appeal to the Labour Appeal Court.
That Court dismissed the appeal. It was common
cause, said the
Labour Appeal Court, that because the strike and lock-out had both
ended, the matter was moot. NUMSA argued
that it was still in
the interests of justice for the Labour Appeal Court to address the
legal issues, because the Labour Court’s
judgment in the
present case was at odds with the earlier judgment of the Labour
Court in
Sun
International
.
[4]
The Labour Appeal Court was unmoved. The Court stated that,
although NUMSA was a large trade union, it did not represent
the
broader labour law community. No other party had applied to
join as an amicus. Whether Trenstar’s lock-out
was in
response to the strike was, moreover, an issue to be determined “on
the unique facts of the case”. That
there were
conflicting judgments on the legal issue did not alter the position.
Contentions
in this Court
NUMSA’s
contentions
[14]
On jurisdiction, NUMSA submits that our constitutional
jurisdiction is engaged because the case concerns the interpretation
of the
LRA, being legislation giving effect to the labour relations
rights guaranteed in section 23 of the Constitution. NUMSA
submits,
too, that the interpretation of section 76(1)(b) is an
arguable point of law of general public importance which this Court
ought
to consider.
[15]
On the question of leave to appeal, NUMSA submits that it has
reasonable prospects of success on the merits. NUMSA
acknowledges
that the matter is moot, but submits that it is in the
interests of justice for this Court to entertain it in order to
provide
legal clarity on the interpretation of section 76(1)(b).
The matter is one of importance in the labour field, particularly
for
those involved in collective bargaining. Cases in which the
proper interpretation of section 76(1)(b) arises will generally
be
moot by the time they reach an appellate court.
[16]
On the merits, NUMSA argues that the right of an employer to
engage replacement labour “in response to a strike”
impacts
negatively on the efficacy of strikes. Because the
right to strike is guaranteed in section 23(2)(c) of the
Constitution,
this Court should prefer an interpretation of
section 76(1)(b) that impacts least on the right to strike.
Moreover,
proportionality and balance in the power dynamics of
collective bargaining are essential to promote the orderly and
effective resolution
of labour disputes. An interpretation that
preserves rather than distorts power dynamics should be favoured.
[17]
For
these reasons, the exemption permitted by section 76(1)(b) should be
interpreted as ending when the strike ends. This
is said to
accord with common sense and the ordinary meaning of the phrase “in
response to a strike”. The reason
for the general
prohibition against using replacement labour during a lock-out is
that employers could otherwise place themselves
in a virtually
unassailable position. Subject to the limited exception
contained in section 76(1)(a), employers may use replacement
labour
during a strike. The exemption in section 76(1)(b) merely
preserves that right where the employer has responded to
the strike
with a lock-out. Once the strike ends, the employer may
continue with its lock-out but may no longer fortify its
position by
using replacement labour. The contrary view is grossly unfair
to employees and irrationally advantages employers.
NUMSA thus
supports the interpretation adopted by the Labour Court in
Sun
International
and
criticises the contrary interpretation adopted by the Labour Court
in
Ntimane
[5]
and the present case.
[18]
NUMSA’s
written submissions did not address the distinction, if any, between
a suspended and terminated strike. In oral
argument, and in
response to questions from this Court, counsel for NUMSA submitted
that the premise of their case was that the
strike had ended, as the
Labour Court found. Regardless of whether a strike is
terminated or suspended, employees have to
give fresh statutory
notice if they want to withdraw their labour again, at least in the
case of a plant-specific strike.
[6]
It is not necessary for employees to abandon their demand in order
for a strike to end.
Trenstar’s
submissions
[19]
Trenstar
does not contest this Court’s jurisdiction. In regard to
mootness, Trenstar submits that there are no conflicting
authorities
which this Court need resolve.
Sun International
[7]
dealt with the question whether an employer which had locked out its
employees in response to a strike could continue to use replacement
labour once the strike came to an end. Here, by contrast, the
strike was merely suspended. The applicable Labour Court
judgment was thus
Kings
Hire
,
[8]
which also dealt with a suspended strike. If the strike in the
present case had been settled or permanently withdrawn, there
might
have been a different finding. This goes to show that the
present case was decided on its own unique facts.
[20]
On the merits, Trenstar’s submissions focused on the
distinction between a terminated and suspended strike.
Trenstar’s
lock-out notice was issued while the strike was
still underway, even though the suspension of the strike had been
announced.
Factually, the lock-out was in response to the
strike. The employees had only suspended their strike and could
at any time
have reinstituted it. Trenstar argues that, if
NUMSA’s argument were accepted, no lock-out in response to a
strike
could ever succeed. Whenever an employer gave 48 hours’
notice of a lock-out in response to a strike, a union could
defeat
the employer’s response “by simply issuing a suspension
notice bringing the strike to an end before the lock-out
notice took
effect”. The argument that NUMSA’s bargaining
position is weakened by the Labour Court’s interpretation
overlooks the fact that NUMSA and its members retained the right to
start striking again.
Jurisdiction
[21]
Our
jurisdiction was rightly not in dispute. This Court has
consistently held that the interpretation of the LRA is a
constitutional
matter.
[9]
The interpretation of section 76(1)(b) also raises an arguable
point of law of general public importance.
Leave
to appeal
[22]
Whether
it is in the interests of justice to grant leave to appeal must take
into account NUMSA’s prospects of success and
the question of
mootness. As will appear, NUMSA enjoys reasonable prospects of
success. As to mootness, the proper
interpretation of section
76(1)(b) has been the subject of conflicting judgments in the
Labour Court. The Labour Appeal
Court has twice declined,
on grounds of mootness, to address the issue.
[10]
As NUMSA contended, cases in which the proper interpretation of
section 76(1)(b) arises will typically be moot before they
reach an
appellate court. It is desirable that those involved in
collective bargaining should know where they stand when
it comes to
the use of replacement labour during lock-outs.
[11]
A further issue raised by this case is the distinction, if any, for
purposes of section 76(1)(b), between a suspended strike
and a
terminated strike. These issues transcend the interests of the
litigants in the present case. Although every
case will present
its own particular facts, the facts of the present matter do not
preclude general answers to the issues.
[23]
For these reasons, it is in the interests of justice to grant
leave to appeal.
The merits
The
suspension issue
[24]
I start with the distinction Trenstar draws between a
suspended and terminated strike. In order for there to be a
strike as
defined in the LRA, there must be a concerted withholding
of labour and this concerted withholding of labour must be for a
specified
purpose. If employees are not refusing to work and
are not retarding or obstructing work, they are not on strike, and no
strike exists. This is the ordinary meaning of the words used
in the definition of “strike”. If the employees
were previously refusing to work for a prescribed purpose, but are no
longer refusing to work, there is not a strike. The
fact that
the grievance or dispute underlying the prescribed purpose remains in
existence does not mean that the strike has not
come to an end; a
demand unaccompanied by a concerted withdrawal of labour is not a
“strike”.
[25]
The LRA does not deal with the “termination” of
strikes or with “suspended” strikes. This is
unsurprising.
A “strike’ is a state of affairs
occurring with a particular purpose. It either exists or it
does not.
A “strike” ends, in the sense of no
longer existing, when there is no longer a concerted withdrawal of
labour.
[26]
Although the LRA does not deal with the termination and
suspension of strikes, terminology of this kind is used in collective
bargaining.
Its precise meaning may depend on the context.
In general terms, though, employees who tender to return to work by
“suspending”
their strike, rather than “terminating”
it, are signalling that they do not abandon their demand and reserve
the right
to withdraw their labour again in pursuit of their demand.
One must distinguish between a strike and an unconditional right
to
strike. If the dispute has been the subject of unsuccessful
conciliation, and if 48 hours’ notice of the strike
has
been given, there is an unconditional right to commence a strike.
But there is no strike until there is a concerted withholding
of
labour.
[27]
If
there is a concerted withholding of labour, and if the employees
later return to work by “suspending” their strike,
they
are conveying that they do not waive the unconditional right to
strike which previously accrued to them. During the
period of
suspension, there is no strike as defined, only an unconditional
right to strike. If employees suspend their strike
and the
employer accepts their tender of services, the employer could
obviously not then refuse to pay them on the basis that they
were
still on strike.
[12]
[28]
Counsel
for NUMSA submitted that, where employees “suspend” their
strike, they have to give a fresh 48 hours’
notice if they want
to reinstate their strike. This is contrary to the decision of
the Labour Court in
Transportation
Motor Spares
.
[13]
This Court, in
Moloto
,
[14]
cited
Transportation
Motor Spares
as one of several Labour Court judgments which had interpreted
section 64(1)(b) of the LRA generously to employees.
[15]
Whether, in the case of a suspended strike, the reinstitution of the
strike requires a fresh 48 hours’ notice was not
actually the
issue in
Moloto
and thus the point may still be regarded as open. For present
purposes, I am willing to assume that no fresh notice need
be given
and that the suspension of a strike may thus differ in this respect
from the complete abandonment of a strike. Nevertheless,
and
during the period of the suspension, there is no strike, even though
the employees have an unconditional right to reinstitute
the strike
at any time.
[29]
In the present case, the strike took the form of a complete
withdrawal of labour. The suspension of the strike, coupled
with
a tender of services as from Monday 23 November 2020,
meant that the strike came to an end at 17h00 on Friday
20 November 2020.
Trenstar did not claim that the
tender of services was a ruse or incomplete or that NUMSA’s
members were going to continue
their strike in some new form, such as
partial refusal to work or a retardation or obstruction of work.
[30]
The position in this case, therefore, is that the strike ended
at 17h00 on Friday 20 November 2020. A few hours earlier,
but after being notified that the strike would so end, Trenstar gave
notice that it would commence a lock-out at 07h00 on Monday
23 November 2020. Trenstar in fact implemented the
lock-out as notified. As from the Monday morning, the
employees’
absence from work was due to a lock-out, not a
strike. Trenstar did not reject the tender of services as
unacceptable or
incomplete. Instead, it excluded the employees
from the workplace in terms of a lock-out despite their tender of
services.
The
response issue
[31]
In oral argument, counsel for Trenstar said that if this Court
rejected his argument that a suspended strike remained a strike for
purposes of section 76(1)(b), he did not contest NUMSA’s
interpretation of that section. It is unclear whether counsel
was conceding that the Labour Court’s judgment in
Sun
International
was right and that the earlier judgment in
Ntimane
was wrong. Either way, it would not be right for us to
decide the matter simply on the basis of a concession.
[32]
The expression “in response to a strike” is
capable, semantically, of the meaning given to it in
Ntimane
.
The expression could be understood as characterising a lock out
with reference to what caused the lock-out to be implemented.
If the lock out was implemented because the employees went on
strike, one could say that the lock-out was “in response
to a
strike”. Once the cause of the implementation of the
lock-out is established, its character is fixed, and the
right to use
replacement labour lasts as long as the lock-out lasts. On this
view, it might not even be necessary for the
lock-out to have started
while the strike was still underway. The question would simply
be whether the employer had recourse
to use its ultimate weapon
because the employees were the first to choose their ultimate weapon.
[33]
This is not, however, the only meaning of which section
76(1)(b) is capable. Like a strike, a “lock-out” as
defined
in the LRA is a state of affairs occurring with a specified
purpose. It is an exclusion of employees from the workplace for
the purpose of compelling them to accept a demand. In the
context of section 76(1)(b), the question is whether that state
of
affairs “is in response to a strike”. Since the
state of affairs persists as a result of ongoing decisions
by the
employer to maintain the exclusion of employees from the workplace,
the lock-out’s character need not be treated as
immutably fixed
as at the date of its commencement. At certain stages of the
lock-out it might be in response to a strike;
at other stages it
might not.
[34]
The present tense “is”, in the expression “unless
the lock-out is in response to a strike”, lends some support
to
this approach. The right to use replacement labour depends on
whether, at the time such use is proposed, the employer’s
exclusion of workers from the workplace is an exclusion which is
responding to a strike. This suggests that the strike must
still be underway at the relevant time.
[35]
An argument which might be raised against this interpretation
is that a lock out occurring in parallel with a strike is a
purely
notional exclusion of employees from the workplace, since the
employees are in any event withholding their labour. The
lawmaker,
it might be suggested, could not have had such a pointless
lock-out in mind when enacting section 76(1)(b). However,
parallel
lock-outs in response to strikes are not uncommon.
Such a lock-out signals to the strikers that it is the employer
rather
than they who control the timing of the employees’
return to work. Moreover, not all strikes take the form of a
complete
withdrawal of labour. A complete exclusion of
employees from the workplace may be a rational response where the
strike takes
the form of a partial withdrawal of labour or a
retardation or obstruction of work.
[36]
Technikon
[16]
involved a parallel lock-out. The union gave notice of its
members’ intention to strike for two days as from 14 March
2000. The employer immediately responded by giving notice of
its intention to embark on a “defensive” lock-out
[17]
from the time of the commencement of the strike, which lock-out would
continue until the union accepted the employer’s wage
offer.
In subsequent correspondence, a dispute arose as to whether the
employer would be entitled to use replacement labour
during the
lock-out. The case served in the Labour Court as a matter of
urgency before either the strike or the lock-out
began. The
Labour Court, for reasons which need not detain us, concluded that
the employer’s lock-out notice was invalid.
[37]
On
appeal,
[18]
the union argued that the exception in section 76(1)(b) should be
read as applying only where the lock-out is in response to an
unprotected strike. The Labour Appeal Court rejected that
argument. Zondo JP said the following about the
purpose of
section 76(1)(b):
“
The rationale
behind section 76(1)(b) is that if an employer decides to institute a
lock out as the aggressor in the fight
between itself and
employees or a union, it may not employ temporary replacement
labour. That is to discourage the resort
by employers to
lock-outs. The rationale is to try and let employers resort to
lock outs only in those circumstances
where they will be
prepared to do without replacement labour (ie when they are the
aggressors) or where they are forced to in self-defence
in the sense
that the lock-out is ‘in response to’ a strike by the
union and the employees – in other words,
where the union and
the employees are the aggressors.
The policy is one that
also says to unions and employees: Do not lightly resort to a strike
when a dispute has arisen because, in
the absence of a strike, the
employer may not employ replacement labour even if it institutes a
lock-out but, if you strike, the
employer will be able to employ
replacement labour – with or without a lock-out. The sum
total of all this is that
the policy is to encourage parties to
disputes to try and reach agreement on their disputes and a strike or
lock-out should be
the last resort when all reasonable attempts to
reach agreement have failed.”
[19]
[38]
On the question whether the employer could use replacement
labour, Zondo JP said that it was “as clear as daylight”
that the employer’s lock-out was in response to the strike
which the union’s members had begun. The Labour Appeal
Court concluded that the Labour Court should have dismissed the
union’s urgent application. The Labour Appeal
Court’s judgment was not directed to the question whether the
employer would be entitled to carry on using replacement labour
after
the strike ended. The urgent application to which the appeal
related had been brought and adjudicated before the strike
and
lock-out began.
[39]
In
interpreting the exception contained in section 76(1)(b), it is
important to bear in mind the usual position governing the use
of
replacement labour during strikes and lock outs. Subject
to the one exception contained in section 76(1)(a), an employer
may
use replacement labour during a strike. But subject to the one
exception contained in section 76(1)(b), an employer may
not use
replacement labour during a lock out. The LRA, in
allowing an employer in general to use replacement labour
during a
strike, has already allowed a significant weakening of the efficacy
of strikes. The norm advocated by the International
Labour
Organisation (ILO) is that employers should not be entitled to use
replacement labour during strikes except in the case
of essential
services or where the strike would cause an acute national
crisis.
[20]
[40]
Particularly since the right to strike is constitutionally
protected while the right to lock-out is not, one can understand why
our lawmaker in general does not allow an employer to use replacement
labour during a lock-out. If the employer wishes to
“inflict pain” on employees by excluding them from
the workplace and not paying them, it must in general be willing
to
suffer the matching “pain” of an interruption in its
revenue-earning operations. Why then should there be
any
exception to the prohibition? The obvious answer is that if the
employees are in any event on strike, the employer should
not, by
responding with a lock-out, be deprived of the right it would
otherwise have had to use replacement labour during the strike.
That justification for the exception ceases when the employees are no
longer on strike.
[41]
An employer who decides to persist with an exclusion of
employees from the workplace after they have ended their strike and
tendered
their services is no longer responding to the strike, but is
choosing to use the lock-out offensively in a way that is
indistinguishable
from the employer who, in the complete absence of a
strike, embarks on a lock-out to compel compliance with its demand.
To
say that the ongoing lock out is still responding to the
strike is to treat the ongoing lock-out almost as some form of
punishment
because the employees chose to embark on a protected
strike. The lawmaker could not have intended to reward
retribution of
that kind.
[42]
In
Moloto
[21]
the question was whether a strike notice has to be issued on behalf
of all employees who go on strike or whether a notice covering
only
some of them is sufficient to afford protection to a strike by all of
them. The majority in this Court preferred
the latter
interpretation of section 64(1) of the LRA. The majority’s
approach to the interpretation of the relevant
provisions of the LRA
is important. After noting that the right to strike is
protected as a fundamental right in the Constitution
without any
express limitation, the majority said:
“
Constitutional
rights conferred without express limitation should not be cut down by
reading implicit limitations into them and
when legislative
provisions limit or intrude upon those rights they should be
interpreted in a manner least restrictive of the
right if the text is
reasonably capable of bearing that meaning.”
[22]
[43]
The
majority also emphasised the injunction in section 39(2) of
the Constitution that every court, when interpreting any
legislation, must “promote the spirit, purport and objects of
the Bill of Rights”. In interpreting section 64(1),
therefore, a court “should not restrict the right to strike
more than is expressly required by the language of the provision”,
unless the purposes of the Act and the section on a proper
interpretation import a restriction.
[23]
The majority also referred to the
First Certification
case
[24]
in support of the proposition that the right to strike protected in
the Bill of Rights “must be interpreted
in the
general context that it is a right that is based on the recognition
of disparities in the social and economic power held
by employers and
employees”.
[25]
[44]
The competing interpretations of the exception in section
76 (1)(b) undoubtedly have a bearing on the right to strike.
The extent of an employer’s right to use replacement labour
where a lock-out “is in response to a strike” must
inevitably affect an assessment by unions and employees on whether
they should go out on strike in the first place. If, as
was
held in
Ntimane
, the right to use replacement labour continues
for as long as the lock-out continues, provided that the lock-out
started as a response
to a strike, strike action is decidedly less
attractive and less effective for unions and employees. Once
they have embarked
on a strike, even one of limited duration, the
employer may respond with a lock-out and then use replacement labour
indefinitely
until the employees capitulate. That is what
happened in the present case.
[45]
This Court’s jurisprudence thus mandates us to
prefer an interpretation which confines the use of replacement labour
to the duration of the strike, provided that section 76(1)(b) is
reasonably capable of that meaning. For the reasons
I have
given, that is a meaning which the language of the section can bear.
[46]
The
Kings Hire
case,
[26]
on which Trenstar has placed so much reliance, is a red herring.
The case was not concerned with an employer’s right
to use
replacement labour during a lock-out. Section 76(1)(b) was
not mentioned in the judgment. The case was
about the
lawfulness of the employer’s lock-out. The union
contended that the employer could not lawfully implement
a lock-out
where the employees had decided to suspend a proposed strike in
response to which the lock-out notice had been issued.
The
Labour Court’s rejection of that contention is
unremarkable and of no application here.
[47]
It follows, from my preferred interpretation of section
76(1)(b) that, even if, notionally, Trenstar’s decision to give
notice
of a lock-out was in response to the strike which had lasted
for several weeks and which was not quite over when the lock out
notice was given, the right to use replacement labour no longer
existed when the lock out actually began on the Monday morning.
Conclusion
[48]
The appeal must thus succeed. The Labour Court erred in
dismissing NUMSA’s application, and the Labour Appeal Court
erred in not upholding NUMSA’s appeal. Because the matter
is moot, it would not now be appropriate to substitute, in
place of
the Labour Court’s dismissal of the application, the
interdictory relief which NUMSA sought in its notice of motion.
A substituted order in declaratory form will suffice.
[49]
Neither
the Labour Court nor the Labour Appeal Court granted costs against
NUMSA. Although we are reversing those Courts’
decisions
on the merits, it remains appropriate that the parties should bear
their own costs. This is, for sound reasons,
the default
position where parties seek to enforce their rights in terms of the
LRA.
[27]
Apart from the fact that the parties remain in a collective
bargaining relationship, we have, at NUMSA’s instance,
dealt
with the merits of the case despite its mootness in order to clarify
important matters of principle.
Order
[50]
The following order is made:
1.
Leave to appeal is granted.
2.
The appeal succeeds.
3.
The order of the Labour Appeal Court is set aside and replaced with
an order
in the following terms:
“
(a)
The appeal succeeds.
(b)
There is substituted, for the order of the Labour Court, an order as
follows: ‘It
is declared that the respondent was not entitled
to use replacement labour for the purpose of performing the work of
any employees
who were locked out by virtue of the lock-out declared
by the respondent on 20 November 2020.’
(c)
The parties shall bear their own costs in the Labour Court and the
Labour Appeal Court.”
4.
The parties shall bear their own costs in this Court.
For
the Applicant:
M
Pillemer SC and D Aldworth instructed by Purdon & Munsamy
Attorneys
For
the Respondent:
I
Veerasamy instructed by MacGregor Erasmus Attorneys
[1]
For the statutory source of the prohibition and the exception, see
para [2] below.
[2]
66 of 1995. Italicised words in the extracts from the LRA
quoted in this judgment are italicised in the LRA itself in order
to
indicate that they are defined in section 213.
[3]
In labour law parlance, a lock-out which is not in response to a
strike is sometimes styled “offensive”, because
the
employer is seen as using the lock-out as a weapon of offence
(attack). Conversely, a lock-out which is in response
to a
strike is sometimes styled “defensive”. Neither of
these expressions is used in the LRA.
[4]
SA
Commercial Catering & Allied Workers Union v Sun International
[2015] ZALCJHB 341; (2016) 37 ILJ 215 (LC); [2016] 1 BLLR 97 (LC).
[5]
Ntimane
v Agrinet t/a Vetsak (Pty) Ltd
[1998] ZALC 98
; (1999) 20 ILJ 896 (LC).
[6]
Counsel for NUMSA added the plant-specific qualification after his
attention was directed to the statement in para 89 of
this
Court’s judgment in
South
African Transport and Allied Workers Union v Moloto N.O.
[2012] ZACC 19
;
2012 (6) SA 249
(CC);
2012 (11) BCLR 1177
(CC)
(
Moloto
)
to the effect that a fresh notice is not required where employees
resume a suspended strike. Counsel submitted that this
statement in
Moloto
was
made in the context of a nationwide multi-plant strike.
[7]
Sun
International
above
n 4.
[8]
National
Association of South African Workers obo Members v Kings Hire CC
[2019] ZALCJHB 345; (2020) 41 ILJ 685 (LC);
[2020] 3 BLLR 312
(LC).
[9]
See, for example,
Solidarity
obo Members v Barloworld Equipment Southern Africa
[2022] ZACC 15
; (2022) 43 ILJ 1757 (CC);
[2022] 9 BLLR 779
(CC) at
para 34,
Steenkamp
v Edcon Ltd
[2016] ZACC 1
;
2016 (3) SA 251
(CC);
2016 (3) BCLR 311
(CC) at para
25,
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 paras
13-4.
[10]
An appeal against the Labour Court’s judgment in
Sun
International,
above
n 4, was dismissed for mootness:
Sun
International Limited v South African Commercial Catering and Allied
Workers Union
[2017] ZALAC 24
; (2017) 38 ILJ 1799 (LAC);
[2017] 8 BLLR 776
(LAC).
The Labour Appeal Court followed the same course in the present
matter.
[11]
Compare
Association
of Mineworkers and Construction Union v Anglo Gold Ashanti Limited
t/a Anglo Gold Ashanti
[2021] ZACC 42
; (2022) 43 ILJ 291 (CC);
2022 (8) BCLR 907
(CC) at
para 30, where this Court held that it was in the interests of
justice to hear a matter that was moot because “[i]f
leave to
appeal is granted, the decision would clarify the approach to
secondary strikes, for the parties and others in the labour
relations community. A judgment would also resolve disputes,
if any, between different courts”.
[12]
Section 67(3) of the LRA provides that an employer is not obliged to
remunerate employees for services they do not render during
a
protected strike.
[13]
Transportation
Motor Spares v National Union of Metalworkers of South Africa
[1998]
ZALC 71
; (1999) 20 ILJ 690 (LC).
[14]
Moloto
above n 6.
[15]
Id at para 89 and fn 83.
[16]
National
Union of Technikon Employees v Technikon South Africa
[2000] ZALC 155
; (2000) 21 ILJ 1645 (LC).
[17]
For
this terminology, see above n 3.
[18]
Technikon
South Africa v National Union of Technikon Employees of South Africa
[2000] ZALAC 24.
[19]
Id at paras 40-1.
[20]
International Labour Organisation “Right to strike”
Compilation
of Decisions of the Committee on Freedom of Association
(2018),
available at
https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:70001:0::NO
.
The Committee on Freedom of Association (Committee) is a
tripartite body, set up by the Governing Body (GB) of the ILO,
that
examines alleged infringements of the principles of freedom of
association and the effective recognition of the right to
collective
bargaining enshrined in the Constitution of the ILO (para 1).
At paras 917 19, the conclusions and
referenced reports of
the Committee on the hiring of workers during a strike are set out
as follows:
“
Strikers
should be replaced only: (a) in the case of a strike in an essential
service in the strict sense of the term in which
the legislation
prohibits strikes; and (b) where the strike would cause an acute
national crisis.
The
hiring of workers to break a strike in a sector which cannot be
regarded as an essential sector in the strict sense of the
term, and
hence one in which strikes might be forbidden, constitutes a serious
violation of freedom of association.
If
a strike is legal, recourse to the use of labour drawn from outside
the undertaking to replace the strikers for an indeterminate
period
entails a risk of derogation from the right to strike, which may
affect the free exercise of trade union rights.”
[21]
Moloto
above n 6.
[22]
Id at para 43. See also at para 52.
[23]
Id at paras 53-4.
[24]
Ex
Parte Chairperson of the Constitutional Assembly: In re
Certification
of the Constitution of the Republic of South Africa, 1996
[1996] ZACC 26
;
1996 (4) SA 744
(CC);
1996 (10) BCLR 1253
(CC) at
para 66.
[25]
Moloto
above
n 6 at paras 56-7.
[26]
Kings
Hire
above n 8.
[27]
See Commercial Stevedoring Agricultural and Allied Workers’
Union v Oak Valley Estates (Pty) Ltd
[2022] ZACC 7
;
2022 (5) SA 18
(CC);
2022 (7) BCLR 787
(CC) at para 67.and
Zungu
v Premier of the Province of KwaZulu-Natal
[2018]
ZACC 1
; (2018) 39 ILJ 523 (CC);
[2018] 4 BLLR 323
(CC) at paras 22-4
.
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