National Union of Construction Workers v Oranje Mynbou en Vervoer Maatskapy Beperk (J1204/99) [1999] ZALC 158; [2000] 2 BLLR 196 (LC) (22 October 1999)

45 Reportability

Brief Summary

Labour Law — Settlement Agreement — Enforcement — Applicant seeking court order for enforcement of settlement agreement with respondent — Respondent contending it is not bound by agreement made with another union — Court finding that the agreement constitutes a collective agreement under the Labour Relations Act — Dispute regarding enforcement must be referred to the CCMA, not the Labour Court — Application dismissed.

IN THE LABOUR COURT OF SOUTH AFRICA
(Held at Johannesburg)
Case No. J1204/99
In the matter between:
NATIONAL UNION OF CONSTRUCTION WORKERS Applicant
and
ORANJE MYNBOU EN VERVOER MAATSKAPPY BPK  
Respondent
                                                    
                           JUDGMENT
REVELAS, J :
1] In   this   matter   the   applicant   had   approached   this  
court to make a settlement agreement entered into with  
the respondent, an                 order of court in  
terms of section 158(1) (c) of the Labour Relations Act  
66 of 1995 (“the Act”).     The parties to the Deed of

Settlement   are   the   Building   Construction   and   Allied  
Workers Union and “Booysen  P and Others”.
2] The respondent was not present at court, despite the  
fact   that   it   has   filed   opposing   affidavits   in   this  
matter.     In   the   respondent's   answering   affidavit   the  
respondent has raised  the point that the agreement was  
not reached between itself and the applicant now before  
court, but with another union and it therefore does not  
regard itself bound by the agreement which it did not  
comply with.  It appears that on this ground alone the  
applicant     may   not   entitled   to   the   relief   it   seeks.  
However,   another   question     arises,   namely   whether   a  
trade union can enforce a settlement agreement, such as  
the one in question.
3] The   deed   of   settlement   envisaged   that   49   dismissed  
employees   were   to   be   reinstated   in   the   employ   of   the  
respondent.   The   applicants   allege   that   the   respondent  
did not comply with the agreement.
4] The agreement of settlement in question was entered  
into   between   a   trade   union   and   an   employer   (the  
applicant) and seems to fall  within the definition of

a “Collective Agreement” in section 213 of the Labour  
Relations   Act   ,   No   66   of   1995   ("the   Act").     The  
definition reads:
"'Collective   Agreement'   means   a   written   agreement   concerning   terms   and  
conditions of employment or any other matters of mutual interest, concluded by  
one or more registered trade unions on the one hand, and on the other hand;
(a) one of more employers;
(b) on or more registered employers organisations; or
(c) one or more employers or one or more registered employers organisations."
5] The   settlement   agreement   in   question   deals   with  
terms   and   conditions   of   employment,   the   reinstatement  
part   of   it   at   least.   Therefore   it   has   to   be     a  
collective   agreement   as   defined   in   the   Act.     The  
definition   does   not   specifically     exclude   agreements  
between trade unions and employers which were  reached  
to   resolve   dismissal   disputes.     Such   an   exception   or  
exclusion   is   not   capable   of   being     read   into   the  
definition.  
6] Section 24(1)  of the Act reads as follows:
“1. Every   collective   agreement,   excluding   an   agency   shop   agreement,  
concluded in terms of section 25 or a closed shop agreement concluded in  
terms of section 26, must provide for a procedure to resolve any dispute

about   the   interpretation   or   application  [my   emphasis]   of   the   collective  
agreement.   The procedure must first require the parties to attempt to resolve the  
dispute   through   conciliation   and   if   a   dispute   remains   unresolved,   to   resolve   it  
through arbitration."
Section 158(1)(c) of the Act provides that the Labour Court may
“make   any   arbitration   award   or   any   settlement   agreement,   other   than   a  
collective agreement , (my emphasis)  an order of court."
7] The latter two sections are plain in their meaning.  
Any   dispute   about   the   application   of   a   collective  
agreement   has   to   be   referred   to   the   Commission   for  
Conciliation,   Mediation   and   Arbitration   (“the   CCMA”)  
and   the   Labour   Court   may   not   make   such     agreements  
orders              of court.  In section 158(1)(c) of  
the Act the words “other than a collective agreement,”  
clearly     distinguishes   collective   agreements     from  
other settlement agreements.  The wording suggests that  
it is envisaged, that certain settlement agreements may  
be collective agreements, and vice versa.  
8] Whether   a   dispute   about   the   “application”   of   a

collective   agreement,  referred   to  in   section  24(1)   of  
the Act, would include the enforcement of a collective  
agreement   when   it   is   breached,   is   a   further   question  
which needs to be decided.   
9] Enforcement   of   an   agreement   only   becomes   an   issue  
when   there   is   some   form     of   non­compliance   with   that  
agreement.     When   a   party   wishes   to   enforce   the  
agreement it would be, at least  inter alia,  because it  
believes the agreement is applicable to the party who  
is in breach thereof.   Therefore a “dispute about the  
application of a                             collective agreement”  
(section   24   (1)   of   the   Act)   applies   to   the   situation  
where   there   is   non­compliance   with   a   collective  
agreement and one of the parties wishes to enforce its  
terms.     Consequently,   the   CCMA,     and   not   the   Labour  
Court, should entertain disputes arising from the non­
compliance with collective agreements. 
10] The applicant therefore has to refer this dispute  
to the CCMA because the breach of the agreement gives  
rise to a dispute about the application of a collective  
agreement   which   is   also   a   settlement   agreement.       If  
the   dispute  is   not  resolved   through  conciliation,   the

CCMA may                   arbitrate     this dispute about the  
agreement,   and   any   award   then     made,   may   be   made   an  
order of the Labour Court. 
11] I   do  appreciate   that  the   applicant’s  members   are  
in   an   akward   position.     I   do   not   believe   it   was   the  
intention   of   the   drafters   of   the   Act   that   individual  
employees   in  unfair   dismissal  disputes   may  have   their  
settlement   agreements   made   orders   of   court,   whereas  
similar agreements   between trade unions and employers  
may   not   be   enforced   in   the   same   way.     I   am   however  
bound   by   the   wording   and   the   provisions   of   the   Act.  
It would then also appear that agreements between trade  
unions   and   employers   reached   at   court,   in   respect   of  
urgent   applications,   or   disputes   about   dismissals   for  
operational requirements, should  not be  made  orders  
of   court   or   before   following   the   conciliation   and  
arbitration   route   at   the   CCMA.     This   anomolous  
situation clearly calls for legislative intervention. 
12] The application is dismissed.

­­­­­­­­­­­­­­­­­­­­­
E REVELAS
Date of Hearing: 22 October 1999
Date of Judgement: 22 October 1999