Pretorius v Blyvooruitzicht Gold Mining Company Limited (J4116/98) [1999] ZALC 134; (1999) 20 ILJ 2917 (LC) (25 August 1999)

55 Reportability

Brief Summary

Labour Law — Unfair dismissal — Retrenchment — Applicant claiming unfair dismissal due to operational requirements — Court finding that dismissal was fair as the Respondent followed the retrenchment agreement and considered the Applicant's proposals — Decision to appoint another employee to the newly created position justified based on superior skills — Dismissal upheld as compliant with the Labour Relations Act.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD IN JOHANNESBURG CASE NO  
J4116/98 
In the matter between:
MM PRETORIUS Applicant
and
BLYVOORUITZICHT GOLD MINING COMPANY LIMITED
Respondent
JUDGMENT
de VILLIERS AJ
1. This is an application in terms of section 191 (5) (b) (ii) of the Labour  
Relations   Act   of   1995   (“the  Act”)  in   which  the   Applicant  claims  that  his  
dismissal on 24 February 1998, based on the operational requirements of  
the Respondent, was unfair.
1. Relative   to   the   fairness   of   the   dismissal,   according   to   the   pre­trial  
minute, the parties are agreed that:
1.1. the Applicant’s position as safety manager became redundant  
due to a change in the respondent’s operational requirements; and
1.1. the   Applicant   is   bound   by   the   terms   of   a   retrenchment  
agreement concluded between the Respondent and the union of which the  
Applicant was a member at the time the agreement.

1. What is in dispute, is that the Respondent failed to properly consider  
possible   avoidance   measures   and   that   the   Respondent   should   have  
considered the following possibilities:
1.1. the Respondent ought to have created a position of chief safety  
officer at Category 18; and
1.1. the   Respondent   ought   to   have   paid   the   Applicant   the   agreed  
retrenchment  package,  appointed  the Applicant to the  new  position and  
retained   the   employee,   who   was   appointed   chief   safety   officer,   in   the  
position he currently held (that of training officer).
1. In  addition, the Applicant contended that consultations regarding the  
dismissal   of   the   Applicant   were   not   conducted   in   accordance   with   the  
provisions   of   the   retrenchment     agreement   or   in   accordance   with   the  
provisions of section 189 of the Act.
1. Evidence material to the dispute is as follows.
1. As a result of his position as safety manager becoming redundant, the  
Applicant   was   requested   by   his   immediate   superior,   the   Respondent’s  
general   manager,   Derek   Steyn,   to   prepare   a   proposal   on   how   his  
department should be restructured.  
2. Five alternative proposals, in which the Applicant suggests that he be  
retrenched and either be demoted to chief safety officer/safety officer or be  
employed on retainer as a consultant are attached to a memorandum from  
the Applicant to Steyn dated 26 January 1998.   In the memorandum, the

Applicant,  inter alia , says the following:
“I realise that the mine cannot employ a safety manager, but must employ a chief  
safety   officer   in   terms   of   the   Regulations   [of   the   Mines   and   Works   Act ].   I  
propose that I be retrenched under the present agreement and be re­engaged as a  
chief safety officer.  A retrenchment package could be used to pay the outstanding  
amount due on my car and that monthly saving would make up for the lowered  
monthly earnings over 3 years.”
1. It is common cause that the Applicant presented these proposals to the  
mine’s forum (a body made up of representatives of the Respondent and  
representatives of the various unions involved at the Respondent’s mine,  
which   was   established   as   a   consultative   forum   to   consider   the  
restructuring of the Respondent) on 14 February 1998.
2. Steyn testified that, after the Applicant had made his presentation to  
the   forum   and   left,   the   forum,   at   the   instance   of   the   trade   union  
representatives,   decided   that   a   new   position   combining   the   position   of  
chief safety officer (which is a legal requirement in terms of the Mines and  
Works Act) and training officer should be created.  This was confirmed in  
evidence by the Respondent’s Human Resources manager, Willie Boshoff.
3. Thereafter Bosoff advised Steyn  that, in discussion with the Monitoring  
Committee,   (a   structure   established   in   terms   of   the   retrenchment  
agreement   to   deal   with   “specific   cases”),   it   was   agreed   that   the  
Respondent’s training officer, a Willie Nelson, should be appointed to the  
newly created position mainly because the failure to do so would result in  
“bumping”   (the   term   used   when   a   senior   employee’s   position   becomes  
redundant and a more junior employee is retrenched in order to make way  
for   the   senior   employee)   and   that   the   Applicant   should   be   retrenched.

“Bumping” is prohibited in terms of the retrenchment agreement.
4. On   20   February   1998,   the   Applicant   was   advised   in   writing   that   his  
services with the Respondent had been terminated and he was given 30  
days’ notice.  However, it is common cause that he left the premises on 24  
February 1999 and the parties agreed that his dismissal took place on that  
date.
5. Steyn testified that after he gave the Applicant the letter advising him  
that he had been retrenched, he “asked him to come back with things for  
us to consider, proposals for his re­deployment”.
1. Steyn testified that the Respondent could not afford to retrench and re­
employ the Applicant in the new position because it would then also have  
to pay Nelson a retrenchment package.
2. Boshoff   conceded   under   cross­examination   that   the   Monitoring  
Committee (as constituted in terms of the retrenchment agreement) had  
not considered the matter.  Instead, he had consulted with a group of five  
mine­based union officials from a newly­created union, UASA (a merger of  
the Administrative, Technical and Electronic Association and OASA, the  
Officials Association of South Africa, the latter of which the Applicant was a  
member).  He testified that this group agreed with his proposal that Nelson  
be   appointed   to   the   new   position   and   that   the   Applicant   should   be  
retrenched.   They agreed mainly because, to do otherwise, would have  
resulted   in   Nelson   being   “bumped”.     He   explained   that   the   forum   had  
delegated the monitoring function to union officials whose members were  
affected by the decisions of the forum.   These officials were required to  
consult with the heads of departments whose employees were affected by

retrenchments.  
3. The   Applicant   testified   that   he   was   unaware,   at   the   time   of   his  
retrenchment, that his union, OASA, had amalgamated with another.  (It is  
common cause that at the time of his dismissal, the dues being deducted  
from his salary were deducted in the name of OASA and not UASA.)   He  
identified three of the five union officials who had discussed his position  
with   Boshoff   as   being   officials   of   the   Administrative,   Technical   and  
Electronic   Association   and   the   only   official   representing   the   Applicant’s  
union,   OASA,   as   being   an   official   from   the   Doornfontein   and   not   the  
Blyvooruitzicht mine.
4. Boshoff testified that the Applicant was insistent that he could not take  
a demotion without being retrenched because he needed the severance  
package to pay off debt which would enable him to afford the demotion.  
He   testified   that   the   union   officials   he   had   spoken   to   had   rejected   the  
Applicant’s proposal that he be retrenched and re­employed in the more  
junior,   newly­created   position   because   that   would   involve   “bumping”  
Nelson.   He also confirmed that after the Applicant was given the letter  
terminating   his   services   (on   Friday   20   February   1999)   Steyn   gave   the  
Applicant   the   opportunity   to   return   the   following   Monday   with   further  
proposals.  
1. Boshoff also testified that, between the 14 and 20 February 1998, the  
Applicant had approached him on a number of occasions to find out what  
was going on.   He had also had cause to counsel the Applicant because  
he had heard that the Applicant had been telling other employees that he  
was   going   to   be   appointed   Chief   Safety   Officer.   At   these   meetings,   he  
advised   the   Applicant   that   he   could   not   tell   him   anything   until   he   had

consulted with the union officials.   The Applicant denied this saying that  
Boshoff   had   told   him   that   he   (Boshoff)   and   he   alone   would   make   the  
decision about who would be retrenched.
1. Taking   the   approach   suggested   by   the   Labour   Appeal   Court   in  
Johnson   &   Johnson     (Pty)   Limited   v   Chemical   Workers   Industrial  
Union   [1998] 12 BLLR 1209 LAC, I do not intend applying a mechanical  
‘checklist’   to   see   if   the   provisions   of   section   189   of   the   Act   have   been  
complied with in this case.
1. Against the background of the retrenchment agreement concluded by  
the parties which set the rules by which the retrenchment of the Applicant  
was to be effected, in order for me to determine whether the conduct of the  
Respondent relative to the dismissal of the Applicant was fair, I believe the  
following questions require consideration.
1.1. Did the Respondent have a fair reason to reject the Applicant’s  
proposals?
1.1. Having rejected them, was the decision to select Nelson rather than  
the Applicant for the newly created position fair?
1.1. Was the decision to retrench the Applicant made in accordance  
with the agreed alternatively a fair procedure?
1. Answering   the   first   question   first.     I   have   no   reason   to   reject   the  
testimony of both Steyn and Boshoff that the reason why the Applicant’s  
proposals  were  rejected  was  because  the forum,  at  the  instance  of  the  
union   representatives,   decided   it   would   make   better   business   sense   to

amalgamate   the   position   of   chief   safety   officer   and   training   officer   and  
create   a   new   position.     From   the   evidence   it   appears   that   this   was   a  
commercially   rational   and   sustainable   decision   and   that   there   was   no  
ulterior   motive   involved   and   therefore   this   Court   cannot   question   the  
commercial   imperatives   underlying   this   decision.     (In   this   regard   see  
SACTWU  & Others v Discreto (A  Division  of Trump and Springbok  
Holdings)   [1998]   12   BLLR   1228   (LAC).   The   Applicant   adduced   no  
evidence to persuade me otherwise.  In any event, because his union was  
involved   in   the   decision   he   is   bound   by   that   decision.     I   am   therefore  
satisfied   that   the   Respondent   has   a   fair   reason   to   reject   the   proposals  
made   by   the   Applicant   in   favour   of   the   decision   taken   at   the   forum  
meeting.   The Applicant’s contention that the Respondent ought to have  
created   the   position   of   chief   safety   officer   and   appointed   him   to   that  
position cannot be sustained.
1. To answer the second question, I must have regard to the terms of the  
retrenchment   agreement   relative   to   selection   criteria.     The   agreement  
clearly establishes the selection criteria in the event of retrenchment and  
the   process   to   be   followed   by   the   parties   in   implementing   the   criteria.  
What falls to be considered is whether the Respondent applied the agreed  
selection criteria and the agreed process for selection.
2. This raises a jurisdictional question.  Because the criteria are contained  
in   the   agreement   (which   complies   with   the   definition   of   a   collective  
agreement  in  terms  of  the  Act),   I  have  considered  whether,  in fact,   the  
dispute is one which is covered by section 24 of the Act relating to the

dispute is one which is covered by section 24 of the Act relating to the  
interpretation and application of a collective agreement.  If this is so, then  
the CCMA and not this Court has jurisdiction to determine the dispute by  
arbitration.

3. Incidental and necessary, if not fundamental, to the determination of  
the dispute concerning the fairness of the dismissal of the Applicant for  
operational requirements, a function conferred on this Court in terms of the  
provisions of section 191 (5) (b) (ii) of the Act,   is a determination as to  
whether the Respondent applied the agreed selection criteria and followed  
the   agreed   procedure   for   selection   as   contained   in   the   retrenchment  
agreement. 
1.   By   virtue   of   the   provisions   of   section   158   (1)   (j)   of   the   Act   which  
empowers the Court to:
“deal with all matters necessary or incidental to performing its functions in terms of  
this  Act…… .”
I believe this Court does have the necessary jurisdiction to deal with this  
aspect of the dispute.
1. The key agreed criterion, and the one applicable to this case, is that  
special skills had to be retained.   In this regard, the agreement requires  
that heads of departments identify the skills to be retained and “motivate to  
the relevant Full Time Officials” (Clause 2.3 and 3.1 of the retrenchment  
agreement).   Should the application of this criterion result in employees  
ranking   equally,   then   breadwinners   and   those   with   continuous   group  
service would be retained, in consultation with the Monitoring Committee. 
2. The   Respondent   (as   I   understand   its   evidence   through   Steyn   and  
Boshoff) justifies its decision to place Nelson, and not the Applicant,  in the  
position of chief safety officer/training officer on two grounds.

2.1. Firstly, it claims that, operationally, in the amalgamation of the  
two functions (safety and training), it made more business sense that the  
safety function should be absorbed into the training function.  In the words  
of Boshoff, that “training should drive safety”. Nelson had superior training  
skills to those of the Applicant and therefore his skills had to be retained at  
the expense of the Applicant.
2.1. Secondly, the union representatives who consulted with Boshoff  
agreed to this proposal mainly because to do otherwise would have led to  
Nelson being “bumped”.
1. As   I   see   it,   when   the   Respondent   decided   to   amalgamate   the   two  
functions of chief safety and training officers,   it created a new position.  
The new position was on a different grade (Grade 18) to the positions held  
by both the Applicant (Grade 20) and Nelson (Grade 16).  Therefore as a  
result of the creation of the new position both the Applicant’s position and  
Nelson’s position became redundant and they both became contenders for  
the   new   position.     Hence,   on   the   second   point,   the   Respondent   was  
wrong.     Nelson   would   only   have   been   ”bumped”   had   the   Respondent  
decided   to   place   the   Applicant   in   the   position   of   training   officer   and  
retrenched   Nelson   as   a   result.     With   the   creation   of   a   new   post   on   a  
different grade, “bumping” did not come into the picture because Nelson’s  
position had become redundant as well.
1. Hence, the critical decision on this aspect of the dispute is whether the 
Applicant’s   or   Nelson’s   skills   were   better   suited   to   the   newly   created  
position.  In this regard, I must find for the Respondent.  Once one accepts  
(and I have no reason to doubt the testimony of Steyn and Boshoff in this

regard) that training was the core function in the newly created position,  
one must then evaluate the two contenders’ abilities as trainers. 
1. There is no doubt, on the evidence before me, that, while the Applicant  
had some, not inadequate training skills, Nelson’s were far superior.   He  
had   been   head   of   the   Chamber   of   Mines   Training   College   and   was  
conversant   with   training   in   the   full   range   of   mining   activity   whereas  
Applicant’s   training   was   limited   to   the   production   of   course   materials   in  
loss control and the evaluation and production of course materials in and  
presentations on the safety function only. 
1. In order to find for the Applicant in this regard, I would have to second  
guess the wisdom of people who are intimately involved in the industry and  
know what skills are required.   The Applicant failed to convince me  that  
his training skills were sufficient to make him rank equally with Nelson in  
the race for the new position.  Inequality in the ranking meant that, in terms  
of   the   agreement,   a   consideration   of   his   longer   service   in   making   the  
choice between him and Nelson was irrelevant.  
  
1. I therefore find that the selection criterion relative to the retention of  
special skills was applied and that the selection of Nelson rather than the  
Applicant for the newly created position was fair.
1. Which   brings   me   to   the   third   question   namely   whether   the  
Respondent’s   decision   to   appoint   Nelson   to   the   new   position   and   to  
dismiss   the   Applicant,   without   further   reference   to   the   Applicant,   was  
effected   in   accordance   with   the   agreed   procedure   alternatively   a   fair  
procedure

1. In this regard, the Applicant contends that the process was flawed and  
unfair because:
1.1.   the Monitoring Committee, as constituted in the retrenchment  
agreement, was not involved in the decision; 
1.1. the   union   officials   who   met   Boshoff   and   agreed   to   his  
retrenchment were not  full­time officials; and
1.1. the officials who met Boshoff were not his representatives (they  
were   unknown   to   him,   they   did   not   know   about   his   qualifications   and  
experience   and   were   not   sufficiently   senior   to   represent   his   interests  
properly). 
1. As to the first point raised by the Applicant, the agreement does not  
require consultations or discussion, where retention of skill is an issue, to  
take place with the Monitoring Committee. As I understand the agreement,  
the function of the Monitoring Committee is to monitor the progress of the  
retrenchments and “specific cases”.   I am unable to make a finding as to  
whether the Applicant’s case would have qualified as a “specific case” as  
no evidence was led in this regard. 
1. As I see it, with regard to the second point raised by the Applicant, in  
terms   of   the   agreement,   the   Respondent   was   obliged   to   motivate   and  
discuss its proposal to appoint Nelson and not the Applicant to the new  
position (because it involved the retention of special skills) with the   full­ 
time  officials   of   the   unions   and   associations   which   were   party   to   the  
agreement (in terms of clauses 2.3 and 3.1). There is no evidence before  
me   that   the   Respondent   motivated   its   decision   to   keep   Nelson   and

retrench the Applicant with the full­time officials.  On the evidence, the only  
discussion  which  took  place  with  the  full­time  officials  was  in the  forum  
where the decision to amalgamate the safety and training functions was  
discussed.  As to who had the skill to fill that position, that was still to be  
determined.
1. On   the   Respondent’s   own   version,   the   people   to   whom   Boshoff  
motivated the decision to retain Nelson and not the Applicant were not full­
time   union   officials   but   rather   mine   based   officials   and   therefore   the  
Respondent was in breach of the written agreement
1. I have attached very little weight to Boshoff’s testimony that the forum  
dispensed with the agreed procedures in favour of the procedure which  
was followed and am in agreement with the Applicant’s argument that this  
testimony is somewhat “suspect” for the following reasons.
1.1. Boshoff’s evidence in this regard was that of a single witness  
and must, in any event, be treated with some caution;
1.1. Throughout   his   evidence­in­chief,   Boshoff   represented   to   the  
Court (as he had to Steyn) that agreement with regard to the appointment  
of Nelson had been reached with members of the Monitoring Committee.  
Only   under   cross­examination   did   he   concede   that   the   Monitoring  
Committee (as constituted) had  not  been party to  the discussion  or  the  
agreement reached.
1.1. The   evidentiary   burden   of   proving   that   the   written   agreement  
had been varied in the way alleged by Boshoff lies with the Respondent.  
The   Respondent   adduced   insufficient   evidence   in   this   regard   persuade

me, on a balance of probability, that it had been varied and hence failed to  
discharge the burden. 
1. I   therefore   find   that   the   Respondent   did   not   follow   the   agreed  
procedure.
1. The question then is: having departed from the agreed procedure, was  
the procedure which was followed fair?
1. The Respondent argued that the departure from the agreed procedure  
was   technical   in   nature   and   that   the   only   difference   between   the  
representatives   which   took   part   in   the   discussion   and   the   Monitoring  
Committee   as   constituted   in   the   agreement   was   the   absence   of     two  
management representatives at the meeting.   In this way, contends the  
Respondent, the Applicant got more rather than less representation that he  
would have got had the agreed procedures been adhered to.
1. The Respondent has missed the point.  What was required, in terms of  
the   agreement,   given   the   criterion   being   applied,   was   motivation   and  
discussion with the  full­time union officials, not the Monitoring Committee.  
Whilst   it   would   be   incorrect,   generally,   to   adopt   an   overly   formalistic  
approach in respect of the status of an employees’ representatives in the  
consultation process, the Respondent’s failure to consult with the full­time  
officials   and   rather   rely   on   the   fruit   of   discussion   with   the   officials   with  
whom it alleges it did consult, in the circumstances of this case, is not a  
mere technical breach of procedure.  
1. There   is   a   material   difference   between   what   full­time   union   officials  
bring   to   the   process   of   consultation   and   what   company­employed   shop

stewards   contribute.     Full­time   officials   are,   by   virtue   of   their   position,  
independent of any company influence.   Being paid from the dues of all  
members they are able to enter into debates, such as the one raised by  
the facts of this case, with greater objectivity and even­handedness. Also,  
full­time   officials   have   a   greater   depth   of   experience   and   knowledge   of  
what is required in a proper consultation process.  
1. In this case it was even more important for the Respondent to engage  
with the  full­time  officials, at a  distance from the mine, because Nelson  
was   himself   a   mine­level   union   official.   The   Appellant   is   justified   in  
querying   the   bona   fides,     objectivity   and   fairness   of   a   process   which  
involved only the colleagues of his rival for the position.
 
1. The Respondent’s representative argued that, after Boshoff had told  
the Applicant that the decision regarding his position would be discussed  
with the union officials (on the evidence of Boshoff that was not challenged  
in   cross­examination),   the   onus   was   then   on   the   Applicant   to   seek   out  
these officials and make representations to them. Although the Applicant  
conceded that he could not recall everything Boshoff said, he was insistent  
that he never believed he was going to be retrenched without being offered  
re­employment as chief safety officer.  He also testified that, at the time of  
his discussion with Boshoff, he did not know about the forum decision to  
create the new position. 
1. From   the   evidence   taken   as   a   whole,   it   appears   that,   even   if   one  
accepts Boshoff’s version, the Applicant had no reason, at that stage, to  
believe that he was going to be retrenched without any alternative offer of  
employment.     For   six   days   (between   the   date   on   which   he   made   his  
representations to the forum and the day he was advised that he had been

retrenched), the Applicant was kept in the dark, unaware that his proposals  
at the forum had been rejected and that the “organized labour” officials that  
Boshoff   was   talking   to   behind   closed   doors   were   not   the   full­time  
representatives   that   the   Applicant   knew   and   expected   to   be   party   to  
discussions about his future.  Had the Applicant been aware of what was  
taking place, there might be a basis for the Respondent’s argument in this  
regard.  But, in the circumstances, there is no reason to for the Applicant  
to have thought it necessary to brief his representatives. 
 
1. Given the sensitivity of the choice facing the Respondent and taking  
into  account that  the two key decision  makers,  Boshoff  and  Steyn, had  
been at the mine but a few months, the Respondent was obliged to ensure  
that the consultation process met the requirements of its own agreement  
which ensured, where skills were being compared, an objective input from  
the full­time officials.   Instead it disregarded the agreement and entered  
into   discussion   with   mine   based   officials   from   (on   its   own   version   and  
merely the   ipsa dixit   of Boshoff) a newly formed union with scant, if any,  
proof that the Applicant was even a member of the new union.   (A copy of  
the Applicant’s salary advice slip issued by the Respondent at the time of  
the   retrenchment   indicates   his   membership   of   “OASA”   not   “UASA”   (the  
new union)). At best for the Respondent it seeks to rely on the fact that  
one of  the five officials  who spoke  to Boshoff  was an official  of  OASA.  
Boshoff did not contest that Applicant’s evidence that this official was in  
fact from another mine and, as I understand it,   had only been recently  
transferred to Blyvoortuitzicht). 
1. The   facts   of   this   case   are   not   the   same   as   those   in   other   disputes  
where this Court has found that employees are bound, through the law of

where this Court has found that employees are bound, through the law of  
agency, by agreements reached between the employer and their union.  In

those cases representations were made, from employee to employer, that  
the union had the necessary authority to represent his or her interests in  
the consultation process and hence they were estopped from denying the  
authority.  (In this regard see  Ngcobo & Others v Blyvooruitzicht Gold  
Mining   Company   J1178/98   unreported   and   Molatudi   &   Others   v  
Centurion College  J2420/98 unreported).  Here there was enough reason  
for Boshoff to have been on his guard regarding these officials’ authority to  
properly protect the Applicant’s interests in the consultation process and to  
agree to his retrenchment particularly in view of the fact that, on Boshoff’s  
version,   the   Applicant   pestered   him   almost   daily   (during   the   six   days  
following   the   day   on   which   the   Applicant   made   his   presentation   to   the  
forum and the day on which the Applicant was advised that he had been  
retrenched) for news of what was happening regarding his retrenchment.  
This, in itself, must have alerted Boshoff to the fact that the officials that he  
was consulting were not in touch with the Applicant.
1. The   evidence   of   the   Respondent’s   witnesses   suggests   that   further  
consultation with the Applicant was unnecessary in any event because all  
his proposals had envisaged him being retrenched and that, in discussion,  
he had indicated that he could not accept a demotion without being paid  
the retrenchment package.   Also that he  could  not perform  the work  of  
safety officer which involved “crawling around in the stopes”. 
1. What the Respondent has lost sight of is that the Applicant’s proposal  
(that   he   be   retrenched)   was   inextricably   linked   to   a   condition   ­   that   he  
would either be re­employed or engaged as an independent contractor.  It  
was   in   this   context   that   the   Applicant   voiced   his   financial   and   other  
concerns.  Confronted with a choice between demotion or the outright loss

concerns.  Confronted with a choice between demotion or the outright loss  
of work, the Applicant may have seen the picture a little differently.

1. The   onus   was   on   the   Respondent   to   persuade   me   that   it   either  
followed the agreed procedure or, having failed to do so, embarked on a  
procedure which was fair to the Applicant.   This it has failed to do.   The  
Respondent’s half­hearted attempt at redress after it advised the Applicant  
that he had been retrenched by asking him to come back with suggestions,  
does not take the matter any further.   As the Applicant’s representative  
correctly argued, giving the Applicant a final notice of termination coupled  
with an invitation to return with suggestions after the weekend or merely  
giving the Applicant an opportunity to make representations or give advice  
does   not   satisfy   the   requirements   of   section   189   of   the   Act   ( Chetty   v  
Scotts   Select   a   Shoe   (1998)   19   ILJ   1465   (LC);   Ellias   v   Germiston  
Uitgewers (Pty) Ltd  [1997]  12 BLLR 1571 (LC)).
1. Hence,   while   I   have   no   difficulty   in   finding   that   the   dismissal   of   the  
Applicant was substantively fair, the procedure was not.
1. Which brings me to a consideration of the appropriate remedy.   The  
Applicant   has   not   asked   for   reinstatement   and,   in   any   event,   it   is   not  
appropriate having regard to the provisions of section 193 (2) (d) of the  
Act.   I must therefore consider the appropriate quantum of compensation  
to award the Applicant.
1. In  accordance with the principles laid down by the Labour Appeal Court  
in     Johnson   and   Johnson   (supra),   I   have   the   discretion   to   award   the  
Applicant nothing or the statutory amount set out in section 194 (1) of the  
Act   ­     an   amount   equal   to   the   remuneration   the   employee   would   have  
received between the date of dismissal and the last day of the adjudication  
or arbitration.

1. The only guidance given by the Labour Appeal Court as to how this “all  
or nothing” discretion ought to be exercised is at 1220A where Froneman  
DJP   says   the   discretion   not   to   award   compensation   must   be   exercised  
judicially and at 1220C­D where he says the following:
"The nature of  an employee's right  to compensation  under s.194(1) also implies  
that   the   discretion   not   to   award   that   compensation   may   be   exercised   in  
circumstances   where   the   employer   has   already   provided   the   employee   with  
substantially the same kind of redress (always taking into account the provisions  
of s.194(1)), or where the employer's ability and willingness to make that redress is  
frustrated by the conduct of the employee."
1. Subsequent   to   Johnson   and   Johnson   (supra),   this   Court   has  
introduced   the   principle   of   fairness   into   the   equation.   (See   Whall   v  
Brandadd   Marketing (Pty) Limited   J1130/97 unreported   ; Lorentzen v  
Sanachem   (Pty)  Limited   D637/98  unreported;   de  Bruyn   v   Sunnyside  
Locksmith Suppliers (Pty) Limited  J361/98 unreported)
1. Applying these guidelines to the facts of this case, the Respondent’s  
offer to the Applicant, after its general manager had given him the letter  
advising   him   of   his   retrenchment,   to   come   back   with   “things   for   us   to  
consider,  proposals for re­deployment” (on the Applicant’s version he was  
told   that   he   could   “come   back   on   Monday   if   I   had   any   questions   or  
suggestions”) does not amount to “substantially the same kind of redress”  
(Johnson and Johnson   (supra at 1220 C ­ D))   and no evidence was  
adduced to suggest that the Applicant frustrated “the employer’s ability or  
willingness to provide redress” ( Johnson and Johnson  (supra at 1220 C­
D).

1. Although, by applying the statutory formula in section 194 (1) of the Act  
the   quantum   is   indeed   substantial   and   some   evidence   regarding   the  
Respondent’s   financial   difficulties   was   led   (that,   at   the   time   of   the  
retrenchment it was experiencing critical  financial  constraints due to the  
low gold price and that it could not afford to retrench and then re­employ  
the   Applicant   and   retrench   Nelson)   no   evidence   was   led   as   to   the  
Respondent’s inability to pay compensation should it be awarded.   Given  
the Applicant’s status with the Respondent,   his age and what he lost by  
way of benefits and income as a result of the retrenchment (he testified  
that he lost R580 000 by having to cash in his pension three years before  
time, that his monthly pension was R8 500 less than it would have been  
had he been able to stay on until retirement and that the only employment  
he   had   managed   to   secure   earned   him   about   a   third   of   what   he   was  
earning at the time of the retrenchment), fairness demands that he receive  
some compensation for the unfairness and therefore I am bound to apply  
the statutory formula.
1. More than 12 months had elapsed between the date of the Applicant’s  
dismissal   and   the   last   day   of   the   hearing   of   this   dispute.   Following   the  
reasoning   of   Maserumule   AJ   in   Vickers   v   Aquahydro   Projects   (Pty)  
Limited   [1999]   6   BLLR   620   (LC) ,     I   believe   the   Court   must   limit  
compensation for procedural fairness to an equivalent of the remuneration  
the employee would have earned over a 12­month period.       According to  
the Applicant’s last  payslip (dated 28 February  1998) his  normal  pay  is  
reflected as being R10 919,00.   The only other amounts reflected under  
the   “Earnings”   column   are   travelling   claims   (R473,00),   a   car   allowance  
(R4236,00) and share options (R15 733,31).  Of these three amounts, only

(R4236,00) and share options (R15 733,31).  Of these three amounts, only  
the car allowance would qualify as remuneration (see   Staff Association

for   the   Motor   and   Related   Industries   (SAMRI)   v   Toyota   of   South  
Africa Motors (Pty) Limited  [1998] 6 BLLR 616 LC) and it has therefore  
been included in the calculation.
1. I therefore make the following order.
1.1. The   dismissal   of   the   Applicant   was   substantively   fair   but  
procedurally unfair.
1.1. The Respondent is to pay the Applicant the sum of R181 860,00  
(One   Hundred   and   Eighty   One   Thousands   Eight   Hundred   and   Sixty  
Rands) within 30 days of the date judgment.
1. There is no order for costs.
……………………………………
I de VILLIERS AJ
Date of Hearing : 24 ­ 27 May 1999
Date of Judgment : 25 August 1999
For the Applicant : Advocate S D Maritz
instructed by Tienus Roos Attorneys
For the Respondent : Attorney D J Pretorius