Southern African Clothing and Textile Workers’ Union v Plusnet Geotex, A Division of Master Plastics Ltd and Others
JR 1598/22
Heard: 30 April 2025; Delivered: 28 August 2025
This case is reportable due to its implications for the interpretation of unfair dismissal in the context of collective actions during a protected strike. The judgment addresses significant issues regarding the application of the common purpose doctrine, the admissibility of hearsay evidence, and the procedural fairness of disciplinary hearings. The ruling sets a precedent for how arbitrators should evaluate evidence and the standards required for establishing misconduct in collective labor disputes.
The Labour Court reviewed an arbitration award concerning the dismissal of 50 employees from Plusnet Geotex, following a protected strike. The court found that the arbitrator had committed gross irregularities in applying the common purpose doctrine and in admitting hearsay evidence. The court ultimately ruled that the dismissals of 19 employees were substantively and procedurally unfair, ordering their reinstatement with back pay.
The key legal issues addressed in this case include the following: 1. The application of the common purpose doctrine in determining individual culpability for collective misconduct. 2. The admissibility and treatment of hearsay evidence in arbitration proceedings. 3. The procedural fairness of the disciplinary hearings conducted by the employer.
The court held that the arbitrator's findings were unreasonable and that the dismissals of the 19 employees were both substantively and procedurally unfair. The court ordered their reinstatement and back pay, while confirming the fairness of dismissals for other employees not implicated in the misconduct.
The case arose from the dismissal of 50 employees who participated in a protected strike organized by the Southern African Clothing and Textile Workers Union. Following the strike, the employer alleged misconduct, including violence and intimidation, leading to the dismissal of the employees. The arbitration proceedings revealed disputes over the identification of individuals involved in the alleged misconduct, with some employees denying any wrongdoing. The arbitrator ultimately found all dismissed employees guilty based on the common purpose doctrine, leading to the union's application for review.
The court had to decide whether the arbitrator had committed a gross irregularity in his decision-making process, particularly regarding the application of the common purpose doctrine, the admissibility of hearsay evidence, and the procedural fairness of the disciplinary hearings. The court also needed to determine the appropriate remedy for the unfair dismissals.
The court analyzed the arbitrator's reasoning, noting that he failed to adequately consider the individual circumstances of the employees and the evidence presented. The court emphasized that mere participation in a strike does not equate to culpability for violence unless there is clear evidence of individual involvement. The court also criticized the arbitrator's provisional admission of hearsay evidence, which lacked proper evaluation and clarity, leading to confusion during the proceedings.
The court ordered the reinstatement of the 19 employees found to have been unfairly dismissed, along with back pay equivalent to 36 months' remuneration. The court confirmed the fairness of dismissals for other employees not mentioned in the order and provided compensation for those whose dismissals were deemed procedurally unfair.
The judgment established several key legal principles, including: 1. The necessity for clear evidence of individual misconduct in collective actions. 2. The importance of procedural fairness in disciplinary hearings, particularly in allowing employees to present their cases. 3. The proper application of the common purpose doctrine, requiring evidence of individual awareness and intent to participate in misconduct.