Sun International (South Africa) Limited trading as Morula Sun Hotel and Casino v Commission for Conciliation, Mediation and Arbitration and Others (J 3275/98) [1999] ZALC 71 (7 May 1999)

60 Reportability

Brief Summary

Labour Law — Review of CCMA decision — Application for review of CCMA certificate of outcome — Applicant contending that Commissioner committed gross irregularity by allowing late filing of referral without proper condonation application — Court finding that the Commissioner failed to apply his mind to the matter and did not have jurisdiction to conciliate the dispute — Certificate of outcome set aside.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT JOHANNESBURG
CASE NUMBER:  J 3275/98
In the matter between:
SUN INTERNATIONAL (SOUTH AFRICA) LIMITED
TRADING AS MORULA SUN HOTEL AND CASINO Applicant
and
COMMISSION FOR CONCILIATION, MEDIATION
AND ARBITRATION                                                                                                     First 
Respondent
DUMISANI H ZONDI                                                                                                    Second 
Respondent
JOYCE CHAUKE                                                                                                             Third 
Respondent
SOUTH AFRICAN COMMERCIAL CATERING 
AND   ALLIED   WORKERS   UNION  
Fourth Respondent
JUDGMENT
JAJBHAY, AJ :
[1] The parties :

The applicant in this matter is Sun International (South Africa) Limited trading as Morula  
Sun Hotel and Casino.   The applicant employed Joyce Chauke, the third respondent, (the  
employee)   prior   to   her   dismissal   on   25   November   1998.     The   first   respondent   is   the  
Commission for Conciliation, Mediation and Arbitration (CCMA).  
The   second   respondent   is   Dumisani   H   Zondi,   a   Commissioner   who   presided   over   the  
conciliation proceedings that are relevant to this application.   The fourth respondent is the  
South   African   Commercial   Catering   and   Allied   Workers   Union   (The   Union)   which  
represented the employee at the conciliation.
[2] This is an application in terms of section 158(1)(g) of the Labour Relations Act 66 of  
1995 as amended (the LRA).   The application  is for the review  and setting aside of the  
certificate of outcome of dispute dated 3 September 1998 (the certificate).   This certificate  
was issued by the Commissioner.  
[3] Section 158(1)(g) of the LRA affords this court the power to review the performance  or 
purported performance of any function provided for in the LRA or any act or omission of any  
person or body in terms of the LRA, or any grounds that are permissible in law.  
[4] The issue to be determined :
The issue to be determined in the present matter is whether the Commissioner in allowing the  
condonation for the late filing of the referral, has committed a gross irregularity, or mistake  
in such a manner that it amounts to a gross irregularity.

[5] The facts :
The employee was suspended with pay and without any loss of benefits by the employer on  
17 November 1997.  The reason for the suspension was that she failed to account for certain  
funds in her capacity as a cashier.  The sum of R30 000,00 was unaccounted for at the end of  
the shift conducted by her on 12 November 1997.  The 
employee   was   subsequently   found   guilty   of   the   charges   levelled   against   her   and   she  
was dismissed on 25 November 1997. The employee appealed against her dismissal.  
The appeal was unsuccessful. After the finalisation of the appeal proceedings, the applicant  
instituted criminal proceedings against the employee.   For reasons that are not relevant for  
the purposes of this application, the charges were withdrawn.
[6] On 7 May 1998, the Union approached the applicant requesting a meeting to discuss 
the dismissal of the employee.  A meeting was scheduled for 19 May 1998.  At this  
meeting the applicant stated categorically to the Union that it had no intention of entering  
into any settlement agreement with either the employee or the Union.
[7] At   the   conclusion   of   the   meeting   the   Union   representative   was   advised   by   the  
applicant's representative that any referral of the dispute would be outside the 30 day period  
as contemplated in the LRA.   On 11 June 1998, the Union served the prescribed LRA form  
7.11   at   the   offices   of   the   applicant.     It   was   stated   in   the   form   7.11   that   “the   necessary  
condonation application was attached relating to the late referral".   However the   evidence

indicated that no such application for condonation was attached to the form.  The referral was  
approximately five months late.  The CCMA served a notice of set down on the parties for  
the dispute to be conciliated on 3 September 1998. 
[8] The applicant communicated a letter to the Union indicating that it had not received  
the application for condonation.  This letter was faxed on 31 August 1998. The applicant did  
not receive any reply from the Union.   A similar letter was submitted to the CCMA.   The  
CCMA did not reply to the applicant's request. Thereafter, and on  
2 September 1998, a second letter was communicated to the CCMA, setting out the fact that  
the   applicant   was  not   in   receipt   of  the   application   for  condonation.     This  letter   was   not  
replied to.
[9] At   the   conciliation   meeting,   the   Commissioner   indicated   that   he   was   desirous   to  
execute his duty in terms of section 135 of the Act.  At this time, the representative of the  
applicant objected to the procedure that was to be adopted by the Commissioner.   It was  
brought   to   the   Commissioner's   attention   that   the   CCMA   did   not   have   the   necessary  
jurisdiction to conciliate the dispute due to the fact that the referral was not timeously served.  
[10] The Union representative then produced an affidavit deposed to by himself   (Jabulani Motau).  
The affidavit is dated 20 July 1998.  In terms of this particular affidavit, the Union representative  
requested condonation for the late referral on the following ground:   "From date on which Joyce  
Chauke was dismissed, the company led criminal charges against her on the second day being 2  
November 1998.  She was then busy with the court case up till 2 April 1998 whereby the criminal  
charges were withdrawn, but to her surprise to learn that she was not called back to work.
[11] Joyce   then   communicated   with   the   company   through   their   industrial   relations

department to find out about the matter and was advised to go personally to the company.  
The industrial relations officer advised the applicant to refer the matter to CCMA.  It is then  
that she came to our offices for our intervention.  We then wrote to the company proposing a  
meeting trying to discuss possible ways of re­instating the applicant.  The meeting failed to  
resolve the matter.  The meeting was proposed of 19 May 1998.  
[12] After failing at the company, we then referred the matter to CCMA.  I am therefore  
requesting that the late referral should be condoned and the matter be heard through auspices  
of CCMA, otherwise the applicant have a strong interest in the matter as she strongly feels  
that she was unfairly treated and dismissed without the reasonable grounds."
[13] The above affidavit was deposed to on 20 July 1998, the LRA 7.11 form was  
served on 21 May 1998.  It is not possible that the affidavit could have been attached to the  
referral form in the circumstances. 
[14] At   the   conciliation   hearing,   after   having   been   informed   about   the   condonation  
application, the Commissioner allowed the Union representative to read the contents of the  
affidavit.     The   applicant's   representative   was   allowed   an   opportunity   to   respond.     The  
applicant's representative protested  that he was not furnished with the affidavit prior to the  
proceedings.   He continued by stating that had he been furnished with such a document, it  
would   have   afforded   him   an   opportunity   to   investigate   the   contents   and   would   have  
responded there to in writing.  The applicant's representative further objected to the contents

of the affidavit in that it consisted of material that was hearsay in nature.   The applicant's  
representative   further   drew   the   Commissioner's   attention   to   the   guidelines   that   were  
published   in   the   government   Gazette   number   18936   on   5   June   1998,   that   governed   the  
applications for condonation.
[15] It appears from the founding affidavit deposed to by the applicant's representative,  
that  the Commissioner attempted to investigate "the merits of the matter".   Immediately  
after the investigation, the Commissioner made the following statement:  "It was in the spirit  
of the act to grant a party condonation, based on the contents of annexure JC6 (the affidavit)  
condonation is granted to the third respondent.  There were no other reasons furnished".
[16] When the applicant's representative objected to the finding, the Commissioner  
responded by stating that the applicant may address the issue of
condonation "once the matter proceeds to arbitration". Thereafter the
Commissioner issued a certificate in terms of section 135 of the act. No
attempt was made to conciliate the dispute.
[17] The applicant's grounds for the review application:
The applicant set out the following grounds to support its application for
the review:
“(i) the Commissioner committed misconduct in relation to the duties of
a Commissioner; and/or
(ii) the Commissioner committed gross irregularities in the conduct of

the aforesaid proceedings;
(iii) the Commissioner exceeded his powers in dealing with the
aforesaid proceedings;
(iv) the Commissioner exceeded his powers as a Commissioner in terms
of the act;
(v) the Commissioner exceeded his powers in terms of the bill of rights
contained in the Constitution of the Republic of South Africa Act number
108 of 1996;
(vi) the Commissioner acted grossly unreasonably in performing his
duties during the course of the aforesaid proceedings.”
[18] The Commission:
It is trite that the CCMA was not created as a court of law (sections 112
to 114 of the LRA read with sections 165 and 166 of the Constitution of
the Republic of South Africa). Carephone (Pty) Limited v Marcus N.O. and
Others (1998) 19 ILJ 1425 (LAC). When Commissioners conduct
compulsory conciliation, in terms of the LRA, this involves the exercise of
a public power and function, because they attempt to resolve disputes
between the parties in terms of the LRA.
[19] The   view   expressed   by   Froneman   DJP   in   the   Carephone  matter   at   paragraph   20   "the  
constitutional imperatives for compulsory arbitration under the LRA and are thus based that the  
process   must  be   fair   and   equitable,   that   the   arbitrator   must   be  impartial   and   unbiased,   that   the  
proceedings must be lawful and procedurally fair, that the reasons for the award must be given  
publicly and in writing, that the award must be justifiable in terms of those reasons, and that it must  
be   consistent   with   the   fundamental   right   to   fair   labour   practices"   are   in   my   opinion   equally

applicable   when   Commissioners   are   conducting   a   fact   finding   during   the   application   for  
condonation.
[20] In terms of the Constitution, the CCMA is an organ of the state as defined in section  
239 of the constitution.  See  Carephone supra  at 1430F.  The CCMA, in fact does perform  
functions of a judicial character, however these actions remain administrative in nature. 
[21] In terms of section 33(1) and section 33(2) of the Constitution:
"Every person has a right to ­
(a) lawful   administrative   action   when   any   of   their   rights   or   interests   is   affected   or  
threatened;
(b) procedurally   fair   administrative   action   where   any   of   their   rights   or   legitimate  
expectations is affected or threatened;
(c) be furnished with reasons in writing for administrative action which affect any of  
their rights or interests unless the reasons for that action have been made public;  and
(d) administrative action which is justifiable in relation to the reasons given for it where  
any of their rights is affected or threatened."
[22] The standard of review in terms of section 158(1)(g) :
In   the   matter   of   Juggath   v   Shanker   N.O.   and   Another   (1999)   2   BLLR   141   (LC)   141  
LANDMAN, J in an application brought in terms of section 158(1)(g) of the LRA stated that  
"for the present purposes it  is sufficient  to accept that  those grounds include the  normal  
common law grounds for reviewing decisions of an administrative body" in discussing the

grounds   that   are   permissible   in   law   for   the   review   of   the   performance   of   any   function  
provided for in the LRA.
[23] In the unreported decision of   Softex Mattress (Pty) Limited v Paper Printing Wood  
and Allied Workers Union and Others  case number D473/97 MLAMBO, J at paragraph 10  
stated   the   following:     "As   long   as   the   council   official   or   Commissioner   is   aware   of   the  
applicable principles and it can be showed that the council official or 
Commissioner applied his mind to the matter and applied the relevant principles to the fact  
before coming to his decision there can be no talk of a reviewable irregularity."
[24] The provisions of sections 33(1) and (2) of the Constitution quoted above deal with  
administrative  actions.  In my opinion, the act of determining whether the late referral has to be  
condoned or not, is an  administrative action.  In a complex society such as ours, administrative  
bodies such as the CCMA are increasingly necessary.  The experience and expert knowledge of this  
body is invaluable.  The Commission provides a mechanism for a speedy resolution of complex, and  
frequently technical, matters.
[25] The   CCMA   is   a   specialised   body   which   administers   a   comprehensive   statute  
regulating labour relations. In the administration of that function, the Commissioner is called  
upon   not   only   to   find   the   facts   and   decide   questions   of   law,   but   also   to   exercise   its  
understanding of the body of jurisprudence that has developed around the LRA.   Our   courts 
should  exercise  deference  in reviewing  the  decisions of specialised  administrative  bodies  
such as the CCMA.   This deference extends both to the determination of the facts and the  
interpretation of the law. However, where the evidence viewed reasonably, is incapable of  
supporting   the   Commissioner's  finding   of  fact,   or   where   the   interpretation   placed   on   the

legislation is grossly unreasonable,  the courts should interfere.  If the above is shown, then

clearly the Commissioner could not have applied his mind to the matter at hand.
[26]    Application of the Law to the facts:
In   determining   whether   an   employee   has   shown   good   cause   as   is   envisaged   in   sections  
191(2) of the LRA, the commissioner is enjoined to make a factual enquiry.  See 
Shoprite Checkers v CCMA and Another  (1998) BLLR 510 and then  Softex Mattress (Pty)  
Limited supra .  In  Shoprite Checkers (Pty) Limited supra , PRETORIUS, AJ at 
paragraph 21 said the following:  "The section makes it clear that condonation is not there  
merely for the asking.   The employee must tender an adequate explanation for the delay.  
This explanation must be considered by the Commissioner.  Due regard must also be had to  
the other generally accepted requirements for the ground of condonation as contemplated in  
the words 'good cause'."  
[27]  Upon   a   proper   construction   of     the   affidavit   in   support   of   the   application   for  
condonation, it cannot be said that the Commissioner applied his mind to the matter before  
him and took account of the relevant considerations prior to his conclusion.  This being so,  
the Commissioner did not have jurisdiction to conciliate the matter.  The subsequent issuing  
of the certificate, was accordingly an irregular step in the circumstances.
[28]  The decision of the Commissioner is not capable of reasonable justification when 
regard is had to the factual premises on which it is based. 
[29] Order:
Accordingly, I make the following order:
(i) The certificate issued by the Commissioner in this matter is reviewed and set aside.

(ii) The matter is remitted to the Commission for Conciliation, Mediation and Arbitration  
for a proper determination of the condonation application
(iii)      There is no order as to costs.
______________________
Jajbhay, AJ.
Acting Judge of the Labour Court of South Africa
DATE OF HEARING: 21st of April 1999
DATE OF JUDGMENT: 7th of May 1999
APPEARING FOR THE APPLICANT: Mr C Van Zyl 
INSTRUCTED BY: Van Zyl’s Inc