Mondi Kraft (Pty) Limited v Paper, Printing, Wood and Allied Workers Union ans Others (D231/98) [1999] ZALC 97; [1999] 10 BLLR 1057 (LC) (14 June 1999)

62 Reportability

Brief Summary

Labour Law — Review of arbitration award — Application to set aside award of CCMA — Senior Commissioner finding dismissal of employee was unfair and reinstating him — Court finding that Senior Commissioner’s conclusions were not rational or justified due to lack of evidence — Award set aside, dismissal found to be procedurally fair, and matter remitted for determination of appropriate sanction.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT DURBAN
CASE NO: D231/98
In the matter between
MONDI KRAFT (PTY) LIMITED Applicant
and
PAPER, PRINTING, WOOD AND ALLIED First Respondent
WORKERS UNION
COMMISSION FOR CONCILIATION, MEDIATION Second 
Respondent
AND ARBITRATION
S J NGWENYA N.O. Third Respondent
ENOCK MWELASE Fourth Respondent
JUDGMENT
de VILLIERS A J
1. This is an application in terms of section 145 of the Labour Relations  
Act   of   1995     to   have   the   award   of   the   Third   Respondent   (“the   Senior  
Commissioner”)     under   Commission   for   Conciliation,   Mediation   and  
Arbitration (“the CCMA”) Case Number KN9274 dated 19 February 1998  
set aside.
2. In the award, the Senior Commissioner found that the dismissal of the

Fourth   Respondent   (“the   employee”)   by   the   Applicant   was   unfair   and  
reinstated him in his employment with the Applicant.
3. The   application   was   opposed   only   by   the   First   and   Fourth  
Respondents (“the Respondents”).
4. The Respondents and the Applicants failed to comply with time limits  
imposed by the rules of this Court for the delivery of a Notice of Opposition  
and   Answering   Affidavit   and   a   Replying   Affidavit   respectively.     At   the  
hearing, the parties agreed not to take issue with each other in this regard  
and   therefore   the   Court   considered   it   expedient   to   condone   the   non­
compliance in order to expedite the hearing of the application.
5. The essence of the Applicant’s case is that:
5.1. the   Senior   Commissioner’s   findings   relative   to   the   procedural  
fairness of the dismissal was not supported by evidence presented at the  
arbitration and the finding itself is not justifiable or rational; and
5.1. the Senior Commissioner’s finding that the sanction of dismissal  
was “harsh” is not supported by reasons in the award and is, in any event,  
not justifiable or rational.
6. It is common cause that, despite the Applicant’s compliance with the  
Rule, effective at the time when the application was launched, calling upon  
the   Commission   and   the   Senior   Commissioner   to   provide   the   written  
record of the proceedings and to provide further reasons for the making of  
the   award,   should   they   so   wish,   the   Commission   and   the   Senior

Commissioner have failed to do so.  
7. The Respondent argued,  inter alia , that because the decision whether  
the award was justifiable or rational in terms of the test laid down by the  
Labour   Appeal   Court   in   Carephone   (Pty)   Limited   v   Marcus   N.O.   and  
others   [1998] 11 BLLR 1093 LAC   can only properly be made made on  
the totality of evidence before an arbitrator, an application for review on  
this   basis   is   fatally   defective   where   the   entire   record   of   the   arbitration  
proceedings is not placed before the reviewing court. 
8. The court does not entirely accept this argument.  The mere failure to  
provide a verbatim record of the proceedings has not prevented this Court  
from exercising its powers of review in terms of the provisions of section  
145 in appropriate circumstances.   As Landman J points out   in   County 
Fair v CCMA & Others  [1998] 6 BLLR 577 LC at 583B :
  “…where   there   has   been   no   mechanical   transcribing   of   the   proceedings,   the  
applicant   in   a   review   is   obliged   to   reconstruct   the   record   insofar   as   it   may   be  
necessary to advance his or her case and to give the court of review a fair picture  
of what transpired before the arbitrator …… .”
9. Where there  is a  conflict between  the versions of the  Applicant and  
Respondent, the Court will prefer the version of the Respondent unless the  
Senior   Commissioner’s   notes   or   his   award   are   conclusive   of   the   issue.  
(County Fair  supra at 583 C­D)
10. There   may   well   be   instances   where   the   Court   is   unable   to   make   a  
finding without a full record of the proceedings.   But where a defect as  
defined in section 145 is obvious from the award and the admitted facts

before   it,   and   if,   from   the   award   and   the   admitted   facts,   the   Court   is  
satisfied that it has before it all material evidence relative to a particular  
point and is thus able to make a finding that there is no rational objective  
basis   justifying   the   connection   made   by   the   arbitrator   between   that 
material and the conclusion he or she eventually arrived at on that point,  
the   Court   is   placed   in   a   position   to   set   aside   the   award   despite   the  
absence of the entire record.
11. In   this   case   the   Senior   Commissioner   makes   a   finding   that   the  
“procedural irregularity”   occurred only in relation to the appeal hearing,  
having found that the disciplinary enquiry was procedurally fair.  It is clear  
from the award and the admitted facts on the papers that this finding is  
based   only   on   the   written   report   of   the   person   who   chaired   the   appeal  
which   was   read   into   the   record   at   the   arbitration   hearing   because   the  
appeal  chairperson was not available  to give   vive  voce   evidence at the  
time. 
12. The material section of the award reads as follows:
“The   chairman   of   appeal   turned   down   the   appeal   on   the   grounds   that   the  
respondent   has   bent   over   backwards   in   accommodating   the   applicant.     This   is  
what he had to say in his opening remarks.
‘In order for me to get a feeling of what direction I should take in this case I looked  
at this man’s history.   In fact, not only did I go back as far as his first warning  
which I have on record, I went back earlier the year (sic) to find out whether this  
man was going through a particularly bad time in his life, which may have resulted  
in these instances or whether there was some other pattern’
He then goes further and catalogue (sic) a list of the applicant’s absence or late  
notification of his absence.”

notification of his absence.”
13. From   this,   and   this   alone,   the   Senior   Commissioner   makes   the  
following factual findings:

13.1. “when  the  [employee]  appeared  before the  appeal   enquiry  he  
had not been apprised that he would be confronted with his whole past’;
13.2. “[H]e was thus taken by surprise;
13.3. “…when the [employee] appealed, he expected the chairman to  
deal with the incident for which he was dismissed;
13.4. “the chairman on appeal was influenced by factors which were  
not   properly   before   him   and   of   which   the   applicant   did   not   have   the  
opportunity to contest”.  
14. It   is   noteworthy   that   the   Respondents,   at   paragraph   22   of   their  
Answering Affidavit, admit the contents of paragraph 29 of the Applicants  
Founding Affidavit which includes an assertion by the Applicant that the  
Senior Commissioner made these findings in the absence of evidence to  
support them.
15. From this evidence, too, the Senior Commissioner imputes a sinister  
motive to the appeal chairman’s enquiry into the employee’s prior record  
when an ordinary reading of this passage and the report itself indicates  
that the appeal chairman was trying to find a way to show leniency ­ that  
his motive for delving into the employee’s past was to establish whether  
there were factors indicating that the employee’s current absences were  
an aberration from previous behaviour – whether he was going through a  
“bad time in his life” which could justify the absences for which he was  
dismissed and hence give the appeal chairperson a reason for overturning  
the decision taken at the disciplinary enquiry.

16. In the light of the aforegoing and in the absence of any response from  
the   Commission   or   the   Senior   Commissioner   to   the   allegation   that   he  
made material findings of fact in the absence of evidence, the Court can  
only conclude that the Senior Commissioner’s findings listed above are not  
only  not   rational   or  justified   because   there   was  no   evidence   to   support  
them but there is no rational connection between the wording of the report  
and the conclusions reached by the Senior Commissioner that the appeal  
was   procedurally   flawed.     His   finding   that   the   chairman   on   appeal   was  
“influenced by factors which were not properly before him and of which the  
applicant   did   not   have   the   opportunity   to   contest”   is   particularly  
unjustifiable since it is common cause that the employee was present at  
the appeal and chose not to give evidence or participate therein.
 
17. In   addition,   his   finding   that   “[T]he   record   of   appeal   shows   incidents  
which no doubt in my mind could have justified a harsher sanction” makes  
no sense in circumstances such as this.   What the Senior Commissioner  
does   not   appear   to   appreciate   is   that   the   employee   had   already   been  
dismissed and there is no harsher sanction than that. 
 
18. The Senior Commissioner also concludes that “the sanction was  
harsh   in   the   first   instance”   without   giving   any   reasons   in   the   award   or  
otherwise as to why he comes to this conclusion.   Not only does section  
138 (7) (a) of the Act compel the Senior Commissioner, at the very least,  
to provide  brief reasons for coming to this conclusion, but there is also a  
constitutional   imperative   (section   23   (2)   of   the   Constitution)   requiring  
written reasons to be furnished. The Senior Commissioner’s failure to do  
so constitutes a gross irregularity.
19. For all these reasons, the award is set aside.

20. If  an  award is  set  aside,  the  Court  is given  a  discretion  in terms  of  
section   145   (4)   either   to   determine   the   dispute   in   a   manner   it   deems  
appropriate   or   to   make   an   order   it   considers   appropriate   about   the  
procedures to be followed to determine the dispute.
21. The Applicants have asked for the Court to substitute a finding that the  
dismissal was fair.  
22. If one accepts, as the Senior Commissioner does, that the disciplinary  
enquiry was conducted in accordance with a fair procedure and, as the  
Court   does,   that   the   Senior   Commissioner’s   finding   with   regard   to   the  
procedural irregularities relative to the appeal hearing are not justifiable,  
there is no reason why the Court should not substitute a finding that the  
dismissal of the Fourth Respondent was procedurally fair. 
23. However,   the   substitution   of   a   finding   relative   to   the   fairness   or  
otherwise of the sanction is another matter.  
24.  While the Applicant has gone as far as it can to provide the Court with  
a fair picture of the evidence presented at the arbitration, the failure by the  
Senior Commissioner to provide written reasons for his bald assertion that  
the   sanction   was   “harsh   in   the   first   instance”,   tacked   on   almost  
gratuitously, cannot in and of itself, justify a mere reversal of the decision  
reached where there are no reasons given for it in the absence of a full  
record   of   the   proceedings   before   the   Court   from   which   mitigating   and  
aggravating factors can be properly assessed. 
25. Although   the   Court   could   attempt   to   make   a   decision   based   on   the

award itself and the admitted facts on the papers, it is reluctant to do so as  
there may be other factors which were before the Senior Commissioner  
which   could   have   had   a   bearing   on   this   aspect.     For   example,   the  
employee’s   length   of   service   and   the   employee’s   argument   at   the  
arbitration that the charges relating to the offences committed on 29 March  
and 1 April 1997 should have been treated as one, together with the fact  
(as noted in the award) that the employee’s supervisor appeared easily  
able to find a replacement for the employee on one of the days when he  
was   absent,     may,   in   the   opinion   of   the   Senior   Commissioner,   have  
constituted strong mitigating factors justifying his finding that the sanction  
was “harsh”. 
26. The mere substitution of one finding for another is not something which  
can be appropriately determined on a  selection of the evidence led at the  
arbitration.  In making a substitution, the Court must be certain that it has  
all the material evidence which was before the arbitrator which may have  
had a bearing on the issue is being called upon to determine.   The failure  
of the Senior Commissioner to include the reasons in his finding does not  
necessarily   mean   that   there   were   no   reasons.     The   Court   has   no  
alternative, therefore, but to refer the matter back for a hearing only as to  
whether the sanction of dismissal is appropriate.
26.1 I therefore make the following order.
26.2. The   award   of   the   Third   Respondent   dated   19   February   1998  
under case number KN 9274 is set aside.
26.3.   The dismissal of the Fourth Respondent was procedurally fair.

26.4. The   dispute   is   remitted   back   to   the   Second   Respondent   for  
hearing   by   a   commissioner   other   than   the   Third   Respondent   for   a  
determination only as to whether dismissal, in the circumstances of this  
case, is an appropriate sanction and for an appropriate order in terms of  
section 192 of the Act.  
  
26.5. The   First   and   Fourth   Respondents   are   to   pay   the   Applicant’s  
costs jointly and severally, the one paying the other to be absolved.
. . 
I de VILLIERS A J
Acting Judge of the Labour Court
Date of Hearing : 6 May 1999
Date of judgment : 14 June 1999
For the applicant : Advocate L C A Winchester
instructed by Shepstone & Wylie
For the First and Fourth : Advocate P Schumann
respondents instructed by Chennells, Albertyn and Tanner