Chemical Workers Industrial Union v Polifin Limited (J2525/98) [2000] ZALC 139; (2001) 22 ILJ 682 (LC) (30 November 2000)

60 Reportability

Brief Summary

Labour Law — Unfair dismissal — Jurisdiction — Five workers claiming unfair dismissal due to non-compliance with retrenchment procedures under section 189 of the Labour Relations Act — Court determining that referral to CCMA for conciliation is a jurisdictional precondition for adjudication in Labour Court — Dispute not referred for conciliation, thus Labour Court lacking jurisdiction to hear the matter.

SNELLER VERBATUM/JHB/LKS
IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT JOHANNESBURG
DATE:  30 November 2000 CASE NO. J2525/98
 
In the matter between:
CHEMICAL WORKERS INDUSTRIAL UNION Applicant
and
POLIFIN LIMITED Respondent
                                                           
                            J U D G M E N T
SUTHERLAND, AJ :
[1] In   this   case   five   individual   workers,   represented   by   their   union,  
Chemical Workers Industrial Union, have referred to this court a case in  
which   they   plead   an   unfair   dismissal   for   want   of   compliance   with   the  
retrenchment   procedures   provided   for   in   section   189   of   the   Labour  
Relations Act.
[2] A challenge has been raised to the propriety of that dispute by these  
five individuals being heard by this
court.     To   this   end   the   parties   settled   a   statement   of   preliminary  
issues to be resolved prior to entering into the principal case.
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[3] The parties formulated a draft document entitled "Separate Adjudication  
of Issues" which was later 
refined.  I have had regard to both drafts.  I am of the view that there  
is no difference of substance and in the revised draft the points are  
somewhat better expressed.  The issues are:­
"1. Whether or not the dispute that the court is called upon to adjudicate  
upon   in   terms   of   the   applicant's   statement   of   case,   read   with   the  
contents   of   the   pretrial   minute,   was   referred   for   conciliation   as  
intended by section 191 of the Labour Relations Act of 1995.
 2. If   the   dispute   had   not   been   referred   for   conciliation   in   terms   of  
section 191, whether or not the court has jurisdiction to determine the  
dispute.
 3. Whether or not an attempt had been made to resolve the dispute through  
conciliation   as   intended   by   section   157(4)(a)   of   the   Labour   Relations  
Act, 1995.
 4. If   an   attempt   had   not   been   made   to   resolve   the   dispute   through  
conciliation   as   contemplated   by   section   157(4)(a),   whether   or   not   the  
court should determine the dispute or in terms of section 157(4)(a) of  
the Labour Relations Act refuse to do so.
 5. Whether or not the settlement of a severance pay dispute on the 3rd June  
1998   was   a   final   settlement   between   the   respondent   and   the   individual  
five applicants regarding their retrenchment which was effective on 15  
September 1997."
[4] It   emerged   from   the   hearing   that   the   critical   question   of   fact   is  
whether or not the dispute concerning the five individual applicants was  
ever referred to the CCMA for conciliation, and in this regard a debate  
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ensued concerning the implications of the judgment which was handed down  
in   the   Labour   Appeal   Court   in   The   National   Union   of   Metal   Workers   of  
South Africa and Others v Driveline Technologies (Pty) Ltd and Another  
(2000)   21   ILJ   142.     The   bench   consisted   of   Zondo   JP,   Conradie   JA   and  
Mogoeng AJA.  There are two judgments, the majority given by the Judge­
President and Mogoeng 
AJA and minority judgment in which a dissenting view on the application of  
section   157(4)   was   given.     Section   157   provides   extensively   for   the  
jurisdiction of the Labour Court and deals with various aspects in which  
it   enjoys   exclusive   or   concurrent   jurisdiction   with   the   civil   courts,  
and in section 157(4)(a) provides that:­ "The   Labour   Court   may  
refuse to determine any dispute, other than an appeal or review before  
the Court, if the Court is not satisfied that an attempt had been made  
to resolve the dispute through conciliation".
[5] Conradie   JA   took   the   view   that   this   provision   authorised   the   Labour  
Court to entertain matters notwithstanding the absence of conciliation,  
where,   nevertheless,   provisions   elsewhere   in   the   Labour   Relations   Act  
prescribed conciliation.  That view was not shared by the majority.
[6]/..
[6] At page 158I of the judgment, the Judge President observed that:­
"The Act does contemplate that the Labour Court will have jurisdiction  
to adjudicate a dispute even when there is no meaningful conciliation in  
respect of such a dispute.   This is supported by the fact that section  
191(5) of the Act contemplates, amongst others, that a dispute may be  
referred   to   arbitration   or   adjudication   if   the   dispute   remains  
unresolved after a period of 30 days have elapsed since the council or  
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the CCMA received the referral of such dispute to conciliation.  
[7] The learned  judge then  deals with  various other  aspects of  the debate  
and then at page 160 he stated:
"To   me   it   is   as   clear   as   daylight   that   the   wording   of   section   191(5)  
imposes the referral of a dismissal dispute to conciliation as a pre­
condition before such a dispute can either be arbitrated or be referred  
to   the   Labour   Court   for   adjudication.     I   cannot   see   what   clearer  
language   the   Legislature   could   have   used   other   than   the   language   it  
chose   to   use   in   section   191(5)...     In   section   191(5)   the   Legislature  
used the wording:
'If a council or commissioner certified that or if 30 days have expired  
since and the dispute remains unresolved ­
(a) the counsel or the commissioner may arbitrate the dispute;
(b) the   employee   may   refer   the   dispute   to   the   Labour   Court   for  
adjudication."
[8] He then, at page 161E says the following:
"The   long   and   the   short   of   the   above   is,   therefore,   that   in   my   view  
section 137(4)(a) provides no basis for the proposition that the Labour  
Court has jurisdiction to adjudicate a dismissal dispute which has   not 
been referred to conciliation .   It is only a basis for the proposition  
that in a case where no certificate of outcome stating a dispute remains  
unresolved has been issued but the dispute was referred to conciliation  
but no attempt was made to conciliate the dispute, the Labour Court may  
in its discretion refuse to determine the dispute."
[9] The   submission   was   made   in   this   court   that   the   remarks   both   of   the  
Judge­President   and   of   Conradie   JA   were   obiter  for   purposes   of   the  
decision in the  Driveline case.  It seems to me that this is an apposite  
submission   to   advance.     However,   in   my   view,   whether   it   is   obiter  or  
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not, I am inclined to adopt the view articulated by the Judge­President.
[10] In my view the Labour Relations Act as a whole is intended to, and must  
be understood to, create an exclusive dispute resolution system.  One of  
the 
fundamental tenets of that system is that disputes are to be submitted  
to a process of conciliation.  Only when that process is exhausted is it  
envisaged that adjudication either in the CCMA, by way of arbitration,  
or in the Labour Court by way of trial, may occur.   The only instances  
in the Act of judicial intervention without the prior exhaustion of the  
conciliation process, are those instances where the Labour Relations 
Act   expressly   authorises   the   Labour   Court   to   grant   relief   which   is  
intended   to   support   the   consensus   seeking   objectives   of   the   dispute  
resolution procedures provided for in the Act.   The classic example of  
this sort of intervention is where a Labour Court is approached in order  
to   obtain   an   interdict   in   respect   of   industrial   action   which   is   on­
going.  Such relief is not required to be preceded by conciliation. 
[11] A rare example of the exercise of a discretion in terms of section 157(4)  
is  that   which  is   offered  in   the  judgment   of  Landman   J  in   Lomati  Mill  
Barberton   v   Paper   Printing   Wood   and   Allied   Workers   Union   and   Others  
(1997) 18 ILJ 178.  In that case the court was approached on urgency to  
determine   a   dispute   which   had   arisen   in   regard   to   picketing   rules.  
Picketing is governed by section 69.  It is incumbent upon 
parties who are in dispute concerning the content or the application of  
such rules, to approach the CCMA and have it conciliated.  That did not  
happen in this case.  The learned judge, for reasons of urgency, excused  
the absence of conciliation, relying on the provisions of section 157(4)  
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in order to assume jurisdiction to grant the appropriate urgent relief.
[12] This is  a significant  example in  relation to  the remarks  I have  already  
made   because   it   indicates   that   the   role   of   the   court   in   adjudicating  
disputes of different classes, proceeds from the premise that where the  
process requires to be protected, conciliation anterior to adjudication  
by this court is unnecessary or may be excused.  In contra­ disctinction  
to those matters, the present dismissal dispute does not give rise to a  
need to protect the process. The only point in issue now is whether or  
not   the   individual   applicants   have   or   have   not   been   visited   with   an  
unfair dismissal.
[13] I   am   therefore   of   the   view   that   a   referral   of   a   dispute   for   a  
conciliation,   either   to   the   CCMA   or   a   Bargaining   Council   is   indeed   a  
jurisdictional precondition for a dismissal matter to be adjudicated 
in this court.
[14] The respondents, in challenging the propriety of the dispute being before  
the court, advanced two independent arguments.   The first was that the  
dispute which had been referred to the court and upon which reliance is  
made now in order to advance a claim was different to the case which has  
been pleaded.  The second argument was that the dispute referred to the  
CCMA   upon   which   reliance   is   made   to   conduct   this   case,   was   not   a  
dispute, however valid it may have been, which encapsulates the case of  
the five individual applicants. I shall deal with these two arguments in  
turn.
[15] It is appropriate to look first of all at the referral which was lodged  
with the CCMA on 21 June 1997.   That dispute, lodged on the prescribed  
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form, LR   7.11, described the nature of the dispute as:­ 
"unilateral   restructuring   of   the   PVC   Division   without   proper  
consultations which affected our members' employment".
And   in   regard   to   the   relief   sought,   the   referral   articulated   the  
following prayer:
"Company   to   consult   bona   fide   before   embarking   onto   this   programme   as  
already done and also indicated the 
date for implementation being 31 July 1997."
[16] The contention of the respondent was that that dispute is so distant from  
the   one   which   is   before   this   court   that   the   differences   cannot   be  
reconciled.   It   is   clear   that   what   is   in   issue   before   the   court   is  
whether or not the individual applicants were unfairly dismissed.  It is  
of course made plain that the foundation for the complaint of unfairness  
has its root in non­compliance with the provisions of section 189 of the  
Labour Relations Act.
[17] In addition to what appears from the record as such, the evidence revealed  
what had transpired at the conciliation meeting before the commissioner  
of the  CCMA on  18 August  1997.    The evidence  of Mrs  Strydom, a  human  
resources   practitioner   engaged   by   the   respondent,   who   had   made   a  
contemporaneous note was indeed the only meaningful information on what  
did transpire on that day.   The evidence of the trade union official,  
Ngcana, did not in any material respect challenge or contradict what was  
recorded there.   When regard is had to what was included in her notes,  
one   sees   once   again   a   fair   reflection   of   the   dispute   which   was  
articulated on the Form 7.11.
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[18] Various complaints were raised.  One seemed to focus on the role which Mr  
Kobotwane, an employee representative and member of the union, played in  
certain   meetings   which   were   convened.     There   were   also   complaints  
concerning the non­involvement of the 
union   or   its   individual   members   in   the   consultations.     Ultimately   the  
meeting ended inconclusively.  One thing that is odd when one has regard  
to the evidence of what took place is the decision of the commissioner  
in his certificate which he issued on that same day, to describe what  
had taken place as a dispute concerning unfair dismissal, with reference  
to section 189.   It is common cause that the five applicants were not,  
as at 18 August dismissed.   Their dismissal in fact took place only on  
15 September.  To the extent to which a debate could have been conducted  
on 18 August it could not have been premised on the basis that they had  
been dismissed.  It is plain when one examines what was referred to the  
CCMA   at   that   time   and   what   is   pleaded   in   this   court   that   a   different  
dispute has in fact been placed before this court.
[19] However,   if   one   adopted   a   generous   approach   to   what   is   articulated   as  
having been referred it may bear a 
different   interpretation.     I   entertain   this   thought   because   there   is  
some support for a generous view in a judgment of the Judge­President in  
the   Driveline  decision   to   which   I   have   already   referred.     In   that  
particular   decision   a   party   had   referred   a   dispute   alleging   an   unfair  
dismissal for want of compliance with section 189 and it sought at the  
trial stage to amend its pleadings to include an allegation based on an  
automatically unfair dismissal.   This was challenged on the basis that  
it was  a wholly  different dispute.   The  Judge­President found  that in  
his view it was not that different that it could not be encapsulated by  
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the dispute which had been referred.  If one takes that generous view, I  
suppose   it   is   possible   to   conclude   that   the   nature   of   the   dispute  
referred   to   conciliation   and   deliberated   upon   on   18   August,   could,  
conceptually,   have   contemplated   the   imminent   dismissal   of   the  
individuals   and   on   that   basis   the   day   may   well   be   saved   from   the  
applicants' point of view.  That approach, if adopted, would dispose of  
the respondent's point.   I shall assume, without deciding so, that the  
referral and the pleaded case are on common ground.
[20] The key controversy in this case relates to the question of whether or not  
it can be found that the five applicants were party to the dispute which  
was indeed referred to the CCMA on 21 June 1997. 
[21] The   respondent   company   was   at   the   time   a   gargantuan   organisation   with  
plants   in   several   places   in   South   Africa.     One   such   place   was   in   the  
vicinity of Sasolburg where, so the evidence disclosed, several plants  
or   factories   or   business   units,   as   the   case   may   be,   were   situated,  
geographically   distinct   from   each   other   on   a   tract   of   land   some   12  
square kilometres in extent, known as 'Midlands'.  Amongst the business  
units which are situated on the site was one factory known as the PVC  
Division and another known as the Polyethylene Division.  These are the  
two divisions that are central to the controversy.  In addition to that,  
a central head office 
establishment   was   also   in   existence,   geographically   distinct   from   all  
other   factories.     At   that   head   office   was   situated   the   industrial  
relations department where Steenkamp and Slier, who are mentioned in the  
evidence, had their offices.
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[22] The five applicants worked at the polyethylene plant.   They did not work  
at the PVC plant but certain other 
workers, including one   Mkwanazi, worked there.   They were all members  
of   the   union.     During   1997   restructuring   took   place   within   the  
respondent's concerns.  At more or less the same time restructuring of a  
radical   nature   took   place   in   both   the   PVC   Division   and   in   the  
Polyethylene Division.  The places are about half a kilometre apart.  In  
each   case   the   company   furnished   notices   to   the   respective   workers  
informing them of the risk of retrenchment.  Workers in the polyethylene  
factory, including the five applicants, received a notice dated 13 March  
1997.  Workers in the PVC Division received notices dated 1 April 1997.
[22] In   the   respondent's   operations   three   principal   unions   were   active,   the  
South   African   Chemical   Workers   Union,   the   Mine   Workers   Union   and   the  
first   applicant,   the   Chemical   Workers   Industrial   Union.     The   company  
applied a principle of giving recognition to any union that had members  
in   excess   of   a   15%   proportion   of   employees   on   a   site.     The   Chemical  
Workers Industrial Union enjoyed recognition at various sites where they  
exceeded   that   threshold   but   did   not   enjoy   recognition   at   the   Midlands  
site.  At 
Midlands it was the South African Chemical Workers 
Union and the Mine Workers Union which enjoyed such recognition.   This  
is   a   significant   fact   because   it   explains   why,   although   consultations  
occurred with certain unions, the Chemical Workers Industrial Union was  
not notified.   As a result, when its members in both the PVC plant and  
in   the   polyethylene   plant   received   notices   telling   them   of   their   jobs  
being in jeopardy, the union was not itself at the same time notified.
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[24] When exactly the first applicant trade union became aware of these events  
is not clear but the union announced its awareness in a letter which it  
sent to the Group Industrial Relations Department on 29 May 1997.  This  
correspondence is central to the controversy and it is necessary to look  
closely at what passed between the parties.  On 29 May Ngcana, the union  
official who dealt with these matters throughout the course of events,  
wrote   a   letter   to   the   respondent   for   the   attention   of   Steenkamp,   the  
then Group Industrial Relations Manager, as follows:
"Dear Sir
Re:  Retrenchment
It   came   to   our   attention   that   the   company   has   issued   notification  
letters with an intention to 
carry out  illegal retrenchments  in the  warehouse section.   We  want to  
bring   to   your   attention   that   the   company   has   not   complied   with   the  
provisions of the LRA, section 189 thereof, as we are by no means party  
to your  retrenchment policy.   We  therefore demand  that this  action be  
stopped   at   once   and   proper   consultation   process   takes   its   course,  
failing   which   we   shall   refer   this   dispute   to   the   CCMA   for   legal  
recourse."
What is significant, of course, is that this letter gives no indication  
of   who   is   involved,   where   they   work   or,   indeed,   what   had   been  
communicated by individuals to the union in regard to the plans of the  
company which might lead to retrenchment.
[25] This letter  was received  by the  respondent and  dealt with  by Slier,  the  
Industrial Relations specialist.  On 6 June he responded to the union's  
letter saying the following:
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"Could   you   please   provide   the   company   with   more   specific   information  
regarding the above.  On receipt of your response the company will be in  
a   more   favourable   position   to   investigate   and   reply   according   to   your  
specific concerns."
The company in requesting better and further particulars acted properly.  
There   may   be   some   question   mark   about   whether   or   not   this   letter   was  
carefully composed  so as  not to  disclose any  information to  the union  
and that may indeed be a warrantable inference.  It is not necessary for  
me to decide on it, but in so far as Ngcana gave voice to the fact that  
he regarded the response as a delaying tactic, it is not hard to realise  
why he did not take this letter at face value.
[26] What then happened was that on 12 June Ngcana wrote a further letter in  
which he said the following:
"Retrenchment
Further to your response dated the 6th June 1997 we hereby wish to send  
you a copy sent to one of our members.  We must further add that should  
this   company   intend   to   continue   with   this   unfair   labour   practices,   we  
shall   be   compelled   to   obtain   an   order   from   the   court   restraining   the  
company not to continue, including an order for costs.
We thus demand an undertaking by yourselves by return fax not later than  
the close of business, 20 June 1997, that the action will be postponed  
pending proper consultation as outlined in the Act."
Attached to that letter is a document critical to the case.   It was a  
letter sent to T A Mkwanazi.  It is dated 1 April.  It was signed by Mr  
E Roper who described himself as the operations manager, PVC Division.  
The document is on a letterhead of 'Polifin, PVC Division' and Mkwanazi  
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is   addressed   as   being   in   the   "Warehouse   Section,   PVC   Operations  
Department, PVC Division".
[27] On   receipt   of   this   communication   Slier,   on   behalf   of   the   respondent,  
addressed a letter dated 13 June in which he described the subject he  
was dealing with as "Restructuring at the PVC Warehouse Section" and he  
invited a meeting with the union.
[28] On   16   June   the   union   responded   and   at   this   stage   entitled   its  
correspondence "Retrenchment at the PVC Warehouse".   Thereafter further  
correspondence passed in which some reference in one way or another to  
the PVC Warehouse was maintained.
[29] A meeting was held on 17 June.   It was not fruitful.   It is not common  
cause as to what exactly passed.   The respondent contends that it broke  
down   on   the   basis   of   the   union   demanding   that   it   be   involved   in   the  
retrenchment consultations, something which was 
contrary to the recognition policy of the company. The union's version  
is that it demanded that either the union or its individual members must  
be properly consulted. 
[30] What followed shortly thereafter on 21 June was the referral to the CCMA,  
and   on   18   August   the   consequent   fruitless   conciliation   meeting   took  
place.
[31] What   is   possible   to   deduce   from   that   record   and   from   the   testimony   in  
relation thereto is that only the PVC Division (to the exclusion of the  
Polyethylene   Division)   was   referred   to.   Respondent's   representatives  
say, in  their testimony,  that they  had no  idea throughout  this period  
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that the grievances of individuals in the Polyethylene Division were in  
the   least   degree   part   and   parcel   of   what   was   being   complained   about.  
There is indeed not as much as a hint of evidence that they did become  
aware at any relevant time.
[32] The   only   source   for   the   idea   that   the   complaints   articulated   in   the  
correspondence and the reference of a dispute on 21 June to the CCMA,  
were   intended   to   include   the   polyethylene   warehouse   and   its   workers,  
including the five applicants, is the testimony of 
the union organiser, Ngcana.  Other than his evidence there is no other  
source from where that idea emerges.
[30] Ngcana   testified   that   he   was   ignorant   at   the   relevant   time   of   the  
significance   of   the   divisional   set   up   within   the   respondent's  
organisation.     The   absence   of   recognition   of   his   union   rendered   it  
unnecessary, and perhaps inappropriate, for him to visit the site.   It  
was   not   disputed   that   he   had   never   been   to   the   site   although   it   was  
suggested   to   him   that   any   casual   observation   would   have   indicated   the  
geographic distinctness of the various divisions. I am satisfied that I  
can   accept   that   Ngcana   was   ignorant   of   the   divisional   set   up   at   the  
relevant   time   and   that   there   was   nothing   from   the   respondent's  
correspondence   that   would   have   alerted   him   to   its   significance   at   the  
point at which it would have made any difference.
[34] He explains his references to the PVC Division as having been unconscious  
and   inspired   by   the   correspondence   which   had   come   to   hand.     The  
testimony indicates that the earliest correspondence to hand would have  
been the letter of Mkwanazi which, as alluded to above, referred to the  
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PVC Division.   Clearly when that was furnished to Slier, Slier in his  
correspondence,   picked   up   on   it   and   wrote   back   to   Ngcana   in   like  
fashion.     The   plausibility   of   an   innocent   misunderstanding   arising   is  
manifest and it is not improbable that the references made by Ngcana to  
the PVC Division were not necessarily, in his mind, limited to the PVC  
Division   and   that   he   did   so   from   ignorance.     This   is   the   perspective  
which is consistent with the documentary record.
[35] What   needs   to   be   further   examined   is   Ngcana's   evidence   that   he   was  
conscious   at   the   relevant   time   of   the   problems   and   grievances   of   the  
five applicants in the polyethylene division.   According to him, prior  
to him sending his letter of 29 May to the respondent, various workers  
came into the union office in Sasolburg to complain about retrenchments.  
Amongst   the   workers   who   came   in   to   complain   were   some   of   the   five  
applicants.    These complainants  gave him  letters, some  in the  cast of  
the letter sent to Mkwanazi and others in the cast of a letter dated 13  
March which had been given to the five applicants.  What appears on the  
letters given to the five applicants is a matter of some significance.  
They received letters dated 13 March 1997 on a letterhead upon which the  
legend is inscribed 'Polifin, 
Polythene Division'.   They were addressed as being at the 'Warehousing  
Section, Consumer Services Department, Polythene Division'.   The letter  
was signed by J Doherty, Distribution Manager, Polythene Division.   If  
Ngcana had had these letters prior to 29 May and had troubled to read  
them, he  would have  been under  no illusion  that different  letters had  
been   sent   to   individuals   in   the   two   divisions,   giving   not   only   an  
indication   of   a   divisionalisation   but   also,   significantly,   indicating

indication   of   a   divisionalisation   but   also,   significantly,   indicating  
that the date at which their potential retrenchment would take place was  
different.     The   date   of   31   August   was   designated   in   the   applicants'  
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letters of 13 March 1997 whereas Mkwanazi was told that he was at risk  
from 31 July 1997.
[36] Ngcana explains his failure to respond to this information by saying that  
he did  not read  all the  letters.    His evidence  is that  he received  a  
batch   of   letters   and   when   he   wrote   to   Slier   in   June   1997   he   simply  
picked Mkwanazi's letter from the top and did not apply his mind to any  
of the others.
[37] There   is,   however   plausible   that   explanation   may   be   on   its   own   terms,  
reason   to   suspect   the   veracity   of   this   evidence.     Indeed,   there   is  
reason to suspect 
the   veracity   of   his   evidence   in   regard   to   his   very   possession   of   a  
letter of 13 March at any relevant time and in consequence, the veracity  
of   his   evidence   that   he   was   conscious   of   the   complaints   of   those  
individuals. 
[38] Three   grounds   exist   for   the   suspicions.     The   first   is   that   he   claims,  
somewhat oddly, never to have read the letters.   I have allowed in the  
evaluation   of   his   evidence   for   the   prospect   that   for   reasons   of  
slackness   or   pressure   of   other   work   (a   consideration   not   unknown   to  
trade union organisations), that that may in fact have happened.
[39] The second consideration is, however, not capable of being excused.  When  
this   case   was   pleaded   in   this   court,   not   only   did   the   claim   refer  
exclusively to the PVC Division, but the letters of 13 March 1997, self­
evidently   critical   letters   in   the   case   of   the   applicants,   were  
conspicuous   by   their   absence   from   the   schedule   of   documents   which   is  
required   to   be   annexed   to   the   statement   of   claim.     What   made   their  
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absence   all   the   more   astonishing   was   the   inclusion   of   two   letters  
addressed to individuals in the PVC 
Division of which Mkwanazi was one.  If Ngcana indeed was in possession  
of letters of both kinds from as 
early   as   29   May   1997,   it   is   inexplicable   why   all   of   them   were   not  
included with the pleadings. If the attorneys who drafted the pleadings  
were   in   possession   of   such   documentation,   they   could   not   have   drafted  
the pleadings  as they  initially read,  to refer  exclusively to  the PVC  
Division.   No explanation has been advanced at all and the appropriate  
inference is an adverse one.
[40] The third reason for suspecting the veracity of Ngcana's evidence derives  
from   what   happened   in   the   polyethylene   division   during   the   course   of  
late 1997.   As  alluded to  earlier, the  effective date  of retrenchment  
was 15 September 1997.   It is common cause that a group of individuals  
in   the   Polyethylene   Division,   including   members   of   both   SACWU   and   the  
CWIU   and   including   the   applicants,   referred   a   dispute   concerning   the  
calculation of their severance pay to the CCMA.  This was lodged on 6th  
November 1997.   Because of various difficulties, including a mix­up in  
regard to management being represented, the conciliation meeting did not  
in fact proceed and the commissioner referred the matter immediately to  
arbitration.  That arbitration eventually was heard on 6 June 1998.  At  
that time the fact of no 
conciliation   was   apprehended   and   the   matter   was   resolved   by   way   of   a  
conclusion of an agreement that the question of the calculation would be  
revisited.  The dispute was resolved on that footing.
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[41] The   question   which   arises   from   that   set   of   circumstances   is   why   the  
applicants   should   have   made   themselves   party   to   a   further,   and   indeed  
individually initiated, dispute about the calculation of the severance  
pay, when they already were the subject matter of   a dispute concerning  
the whole of their retrenchment which had been referred on 21 June 1997 . 
No satisfactory explanation emerges either from the record or from the  
testimony.   It is strange, to say the least, if they had just emerged  
from an encounter with their employer, having been represented by their  
union,   in   regard   to   the   unfairness   of   the   way   they   had   been   treated,  
they   would   then   not   return   to   the   union   with   their   complaint   about   a  
further   aggravating   feature   of   their   retrenchment   in   the   form   of  
concerning the alleged miscalculation of their retrenchment package.
[42] The   inference   which   is   warranted   from   these   circumstances   is   that   the  
workers in fact had not 
been   in   any   way   involved   in   the   earlier   dispute   and   in   fact   had   only  
approached the union after the issue concerning their severance pay had  
been   resolved,   ostensibly   not   to   their   satisfaction,   whereupon   an  
endeavour had been made to facilitate an opportunity for this court to  
consider their retrenchment complaints by piggy­backing on the referral  
of   21   June   which   indeed,   as   all   the   other   evidence   points   to  
convincingly,   dealt   only   with   the   restructuring   and   the   complaints  
within in the PVC Division.
[43] In my view, the evidence is convincing that the five applicants were never  
part   of   the   dispute   which   was   referred   to   the   CCMA   on   21   June   1997.  
However, even if I were to reach a favourable point of view in regard to  
the credibility of Ngcana, his own evidence does not go far enough to  
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help   his   case.     It   seems   to   me   to   be   manifestly   obvious   that   in   the  
absence of any hint that anyone other than himself at the relevant time  
had the polyethylene plant in mind, it cannot be said that any referral  
of the dispute could have been achieved, the very least to be expected  
of   a   person   referring   a   dispute,   being   to   articulate,   objectively  
speaking, a dispute which is capable of being understood to encapsulate  
the persons and
issues subjectively contemplated by him.   If I were to set a threshold  
any   lower   than   that,   it   would   have   the   absurd   result   that  
notwithstanding what words or gestures or conduct of a person referring  
a dispute, the nature and scope of the dispute would be whatever that  
person wanted it to be regardless of whether or not it was capable of  
being understood in that way by any reasonable person.   Self­evidently  
such   an   approach   will   not   serve   the   interests   of   sound   industrial  
relations.
[44] I may add, reverting once again to the debate concerning section 157(4) of  
the   Act,   which   refers   to   an   attempt   to   conciliate.     Even   under   the  
generous terms of that section, an "attempt" must be more than just a  
subjective intention and it must at least achieve the result of calling  
the attention of the 
other party to the existence of the dispute.  There must be, in my view,  
at   very   least   proven   facts   which   support   the   conclusion   that   a  
reasonable   person   would   have   understood   that   the   scope   of   the   dispute  
submitted   to   the   conciliation   process,   encapsulated   the   issues   or  
persons concerned.
[45] As   a   result,   on   one   or   other   footing,   I   am   satisfied   that   Ngcana   did  
either not refer or did not succeed 
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in referring a dispute encapsulating the five applicants to the CCMA on  
21 June when that dispute was referred.   The absence of such a refusal  
is fatal for the reasons which have already been dealt with above.   In  
the   circumstances   the   appropriate   order   is   for   the   application   to   be  
dismissed.
[46] In regard to costs, as a general rule the court has declined to make costs  
orders where an on­going relationship exists between an employer and a  
union.   The union, albeit not recognised at the Midlands site, has an  
on­going relationship at other places and it seems to me that that would  
not be a distinction which would be appropriate to make in regard to the  
way in which this discretion has usually been exercised.  However, given  
the reasons supporting the judgment, I am of the view that the policy  
reasons   in   regard   to   the   non­award   of   costs   must   be   dependent,   not  
simply   on   an   on­going   relationship,   but   also   have   some   bearing   in  
relation to the way in which the particular   causa  has been prosecuted.  
I have expressed views concerning the way in which the union dealt with  
this matter, which 
understandably leads to the conclusion that much is left to be desired  
in its approach.  The pursuit of 
this matter, was ill­advised and, in my view, these considerations make  
it appropriate that this is not a case where I should decline to allow  
costs to follow the result.
[47] In the circumstances the order I make is that the application is dismissed  
together with an order for costs.
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___________________
ROLAND SUTHERLAND
Acting Judge of the Labour Court
: ADV J G RAUTENBACH
: Cheadle, Thompson & Haysom
: ADV F G BARRIE
: Deneys Reitz
30 NOVEMBER 2000
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