NUCCAWU v Transnet Limited t/a Portnet (C552/2000) [2000] ZALC 69; [2001] 2 BLLR 203 (LC); (2000) 21 ILJ 2288 (LC) (3 August 2000)

60 Reportability

Brief Summary

Labour Law — Lock-out — Interdict — Trade union seeking interdict against employer for alleged unlawful lock-out of casual employees — Employer's refusal to consider employees for work unless they signed a new contract — Court finding that the refusal constituted a lock-out as defined in the Labour Relations Act — Lock-out deemed unlawful due to failure to follow procedural requirements — Interdict granted against the employer.

IN THE LABOUR COURT OF SOUTH AFRICA REPORTABLE
(HELD AT CAPE TOWN)
CASE NO:   C552/2000
DATE: 3­8­2000
In the matter between:
N U C C A W U                          Applicant
and
TRANSNET LIMITED t/a PORTNET           Respondent
                                                           
J U D G M E N T
WAGLAY, J:
1. The applicant in this matter, a trade union, has come to this Court as a  
matter of urgency to interdict the respondent from continuing with what  
it alleges is a lock­out of its members, all of whom are listed in an  
Annexure to applicant's papers, on the grounds that the said lock­out is  
unlawful.
2. The   background   to   this   matter,   as   evidenced   by   the   papers   filed   of  
record, is the following:
1. The applicant's members referred to in this matter on or about 1993 or  
1994 signed an agreement with the respondent headed "casual employment  
agreement" in terms whereof the said members were offered employment on  
a casual basis.   
2. The terms of the agreement were,  inter alia , that:
(a) the duration of employment will run on a day­to­day basis as required by  
1

the employer at a maximum of three days per week;
(b) the members shall not be entitled to any
of the privileges of a permanent
employee of the employer as described by Regulations;
(c) the agreement  may be  terminated by  the employer  without any  notice or  
any   payment   in   lieu   of   notice   in   the   case   of   gross   misconduct   or  
dishonesty on the part of the employee.
3. The agreement also set out normal hours that the members were required  
to keep on the day on which they were required to work as well as the  
amount   he   or   she   would   be   paid   for   the   day   and   the   rate   of   pay   for  
overtime work, as also how the overtime would be calculated.
4. These members, with others who also signed similar contracts as referred  
to above, first formed a pool of workforce from which respondent would,  
on   a   daily   basis,   select   persons   to   render   services,   depending   on  
respondent's needs for that particular day.
5. Although   the   pool   consisted   of   some   2   000   workers,   respondent,   on  
average,   employed   between   50   to   70   from   amongst   them,   and   none   for   a  
period in excess of three days per week.
6. The   procedure   that   applied   was   that   the   members   would   report   to   a  
particular office known as "the TIS office", which office is advised by  
the   various   of   respondent's   business   units,   as   to   the   number   of  
employees it requires for that particular day.   The
office would then engage the requisite number from amongst those in  
the pool who would report to that office for work for that particular  
day.
7. There   is   no   obligation   upon   the   members   to   report   to   the   TIS   office  
everyday,   or   at   all.     Likewise   there   is   no   obligation   upon   the  
respondent   to   give   a   particular   person   in   the   pool   preference   or   to  
offer   to   a   particular   person   in   the   pool   employment   for   a   particular  
2

day.
8. The persons in the pool are further not paid a salary at the end of the  
day on which they were employed, but at the end of any given week and  
from   such   pay   the   statutory   deductions   that   is   PAYE   and   UIF   are  
deducted.
9. The respondent also employs a permanent workforce numbering about 2 000.
10. Although the applicant members referred to herein, together with other  
persons   formed   a   pool,   the   respondent   is   free   to   employ   on   a   casual  
basis persons who are not part of the pool.
11. Some   time   during   April   or   May   of   this   year   the   respondent   drew   a   new  
memorandum   of   agreement   which   it   intended   concluding   with   the  
applicant's members, as also those casual employees who formed part of  
the pool referred to above.  
12. The applicant objected to this agreement, alleging that if agreed to it  
would change
the present status of the members viz­ á­viz the respondent.
13. Unlike the previous agreement headed "casual employment agreement" which  
consisted   of   some   three   pages,   the   new   contract   comprised   12   pages.  
The   contract   was   vastly   different   from   the   previous   agreement   in   that  
while the basis of employment remained the same, the previous agreement  
was not limited in terms of time, whereas the new contract offered to  
engage   the   services   of   the   applicant's   members   only   for   a   period   of  
three months.     The new contract also no longer limited the number of  
days in a week to be worked to three, but that members would be employed  
for the full week "Mondays to Sundays", if needed.     Furthermore, the  
hours of work as set out in the previous agreement would no longer apply  
and   the   respondent   was   free   to   determine   on   an   ad   hoc   basis   what   the  
hours of work would be.   
14.Since applicant objected to the new agreement, the respondent on 17 July  
3

2000, issued the following memorandum to its TIS office:
"The   Port   of   Cape   Town   has   recently   updated   the   contract   which  
casuals/temps   signed   to   be   employed   at   Portnet.       This   update   was  
necessitated by the need for these contracts to be brought in line with  
the Basic Conditions of Employment Act, No. 75 of 1997.     I am led to  
believe that some temps have refused to sign this new contract which is
surprising as it contains terms and conditions which are more  
favourable   than   the   previous   contract.       Portnet   is   hereby   serving  
notice that temps who have not signed the new contract by 21 July 2000  
will not be eligible for employment at Portnet in any capacity."
The date of 21 July was extended to 24 July 2000.   
15. On 24 July 2000 when applicant's members reported to the TIS  
office   to   be   allocated   work,   if   such   work   was   available,   they   were  
advised   that   unless   they   signed   the   new   agreement   they   would   not   be  
considered for any employment with the respondent.   Applicant's members  
refused to sign the new agreement and were consequently not considered  
for   and   continue   not   to   be   considered   for   any   employment,  
notwithstanding employment being available on a day­to­day basis.   
3.Based on the above the applicant contends that the action of the respondent  
in   not   considering   its   members   for   employment,   as   it   had   done   in   the  
past, constitutes a lock­out and since respondent has failed to comply  
with   the   provisions   of   section   64   of   the   Labour   Relations   Act  
(hereinafter "the Act') such lock­out is unlawful.
4. The Act defines "lock­out' as:
"The exclusion by an employer of employees from the employer's workplace  
for   the   purposes   of   compelling   the   employees   to   accept   a   demand   in  
4

respect   of   any   matter   of   mutual   interest   between   the   employer   and  
employee, whether or not the employer breaches those employees contracts  
of employment in the course, or for the purposes of that exclusion."   
5. The   first   issue   that   needs   to   be   decided,   however,   is   are   the  
applicant's   members   employees   as   contemplated   by   the   Act?       The   Act  
defines "employee" to mean:
"Any person, excluding an independent contractor, who works for another  
person or for the State and who receives, or is entitled to receive, any  
remuneration;   and   any   other   person   who   in   any   manner   assists   in   the  
carrying on or conducting the business of an employer."
The same definition is accorded to the employee in the Basic Conditions  
of Employment Act, No. 75 of 1997.   
6.As   stated     earlier   in   the   instant   matter   do   applicants   qualify   to   be  
employees as defined?   The right that applicant's members have in terms  
of   the   agreement   they   concluded   with   the   respondent   is   that   they   be  
considered for work that may be available on a day­to­day basis.     The  
fact   that   they   would   be   considered   for   day­to­day   employment   is   as   a  
result of  them being  part of  a pool  of people,  a pool  created by  the  
respondent,   and   being   part   of   the   pool   they   were   thus   entitled   to   be  
considered   for   the   day­to­day   employment.     In   effect   what   we   have   is  
that   applicant's   members   constituted   a   special   class   of   employees;   a  
class of employees who were not guaranteed that they would be employed  
but had the right to be considered for employment on a day­to­day basis,  
if   respondent   had   a   need   for   them.       The   fact   that   the   respondent  
records in its affidavit that when there is a need to employ extra staff  
for   its   day­to­day   requirements,   it   would   employ   from   the   pool   it

for   its   day­to­day   requirements,   it   would   employ   from   the   pool   it  
created,   satisfies   me   that   the   applicant's   members   do   fall   within   the  
5

definition   of   employee   as   provided   for   in   the   Act.   I   come   to   the  
conclusion   because   I   believe   that   the   definition   of   "employee"   in   the  
Act is wide enough to include persons who are retained on the books of  
an employer to render services, albeit on an  ad hoc  basis.
7. The respondent, however, relying on the arbitration award handed down by  
the Commission for Conciliation, Mediation and Arbitration (CCMA) in the  
matter   of   Mavata   v   Afrox   Home   Help   Care   1998   19   ILJ   931   CCMA,   argued  
that   applicant's   members   were   in   a   position   no   different   to   the  
applicant in that matter and as such, applicant's members were in fact  
casual   employees.       The   label   of   "casual",   however,   does   not   detract  
from the fact that the person remains an employee.     Furthermore, I am  
not   satisfied   that   simply   because   one   is   a   casual   worker,   which   is  
defined by the Chambers 20th Century Dictionary to mean "employed for a  
short time or without fixed employment" does not mean that such employee  
is not afforded any protection by the Act.  In the matter of  Mavata, the  
Commissioner   was   faced   with   a   dismissal   dispute   and,   quite   correctly,  
the   Commissioner   found   that   the   applicant,   because   of   her   status   of  
casual employee, had no employment or future employment beyond the date  
currently worked by her, this did not mean that she was not an employee  
for purposes of the Act.
8. Moving then to the issue of whether or not the refusal by the respondent  
to consider applicant's members for employment that may arise constitute  
a   lock­out.       In   this   respect,   respondent   argued   that   a   lock­out  
presupposes that an employee has a right to be at work and the employer  
an obligation to afford such employee work and remuneration.   Firstly,  
there   is   no   dispute   that   applicant's   members   were   excluded   from   being

there   is   no   dispute   that   applicant's   members   were   excluded   from   being  
considered for any day­to­day employment until such time as they signed  
6

the new contract drawn by the respondent.   Further, as I have said, the  
applicant's
members   constitute   a   special   class   of   employees   in   that   they   had   no  
guarantee that they would be employed for at least three days in a week,  
or occasionally or at all.     Their right was limited to be considered  
for the day­to­day employment.   As such, if there was no work available  
or had one employee been chosen in preference to another from within the  
pool of employees, such excluded employee had no right to either demand  
employment   or   challenge   the   respondent's   right   to   choose   any   other  
employee from amongst its pool of employees.     However, the denial of  
this right to be considered for employment on a day­to­day basis on the  
grounds   that   applicant's   members   comply   with   the   demand   made   by   the  
respondent that they sign the new terms and conditions of employment is,  
I believe, sufficient to satisfy the definition as provided for by the  
Act as constituting a lock­out.
89. Respondent's submission as recorded earlier, although of some merit, is  
rather narrow.     I do not see why the lock­out should only presuppose  
that an employee has a right to work and an employer an obligation to  
afford   such   employee   work   and   remuneration.       I   believe   that   the  
definition of a lock­out is also sufficiently wide to include the denial  
of a right that an employee may have to be considered for employment.
10. Respondent's further submission that since it was not obliged to offer  
any employment  to any  specific person  from the  pool of  employees, and  
because it was entitled to engage other casual employees on terms wholly  
different from those applying to existing casual employees and to give  
work to such other employees to the exclusion of those in the pool, it  
had the right only to engage those persons who assented to the terms and  
7

conditions   contained   in   the   new   agreement.       This   argument   I   have  
difficulty in accepting.  While respondent could quite correctly require  
those who have not entered into any agreement with it to agree to the  
terms   and   conditions   it   proposes   before   it   can   offer   them   employment,  
where   there   already   is   an   agreement   in   place,   it   is   not   open   to  
respondent   to   unilaterally   change   such   agreement.       The   fact   that  
applicant's   members   were   not   entitled   to   employment   beyond   the   day  
employed does not mean that there is no employment relationship between  
the   parties.       This   relationship   exists   by   virtue   of   the   agreement  
concluded between the parties.   To suggest, as respondent does, that it  
is   entitled   to   impose   such   conditions   as   it   deems   expedient,  
notwithstanding an agreement, is clearly not correct.
11. In   the   circumstances   I   am   satisfied   that   the   action   of   respondent  
constituted a lock­out and since there is no dispute about the fact that  
the procedure as set out in section 64 was not followed, the lock­out  
is,   at   the   very   least,   unprocedural   and   therefore   liable   to   be  
interdicted.
12. The respondent's further argument is that this matter is not urgent and  
because   the   applicant   has   failed   to   refer   the   matter   to   conciliation  
before petitioning this Court, the relief prayed for should be declined.  
While it is correct that the applicant has not specifically stated why  
this matter is urgent, it is obvious that the matter is an urgent one.  
The   applicant's   members   suffer   prejudice   which   cannot   be   addressed  
adequately, or at all, when the matter is heard in due course.   This is  
so because by not being considered for employment, the members who may  
have obtained day­to­day employment, are not being so employed.     They

have obtained day­to­day employment, are not being so employed.     They  
cannot come to this Court at some future date and allege that they would  
8

have been employed, because it did not have such a right.  Nor can they  
allege that they, with any certainty, would have been employed, having  
regard   to   the   fact   that   the   pool   from   which   respondent   selected  
employees to work on a particular day comprised persons in addition to  
applicant's members and thus there is no guarantee that they would have  
been selected for employment.
13. With regard to applicant's failure to refer the matter to conciliation,  
while this Court will not entertain a matter which is not referred to  
conciliation, when  it comes  to matters  such as  the present  this Court  
has a discretion as there is nothing in the Act with regard to disputes  
of   this   nature   that   require   that   the   matter   first   be   referred   to  
conciliation before it can be referred to this Court.
14. Due to the fact that I am satisfied that this is an urgent matter I am  
not prepared to refuse relief simply because the matter was not referred  
to conciliation.
15. With regard to costs I am satisfied that this is a matter in which costs  
should follow the result.     In the circumstances I make the following  
order:
1. Respondent   is   interdicted   from   locking   out   the   applicant's   members  
referred to in Annexure JD1 to its founding papers.
2. Respondent is ordered to pay the costs of this application.
                                                          
                                           WAGLAY, J
9