Kock v Enviroserve Waste Management (J3513/99) [2000] ZALC 142; [2001] 7 BLLR 765 (LC) (7 December 2000)

45 Reportability

Brief Summary

Labour Law — Retrenchment — Fairness of retrenchment process — Applicant claiming unfair dismissal after being retrenched due to operational requirements — Respondent demonstrating legitimate business reasons for restructuring and consolidation of positions — Court finding that applicant's position became redundant and that he was offered alternative employment which he declined — Dismissal of application for unfair dismissal upheld.

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J3513/99 1 JUDGMENT
Sneller Verbatim/HVM CASE NO. J3513/99
IN THE LABOUR COURT OF SOUTH AFRICA
BRAAMFONTEIN
2000­12­07
In the matter between:
J M KOCK Applicant
and
ENVIROSERVE WASTE MANAGEMENT Respondent
                                                             
J U D G M E N T   
Delivered on 8 December 2000
                                                             
REVELAS J :  
1.Mr Jacobus Kock, the applicant, was employed by the respondent during June  
1997 in the position of national waste manager.  During December 1997 he  
was appointed as operational supervisor which position he retained until  
his services were terminated with effect from 30 June 1999 due to the  
respondent's operational requirements.
2.The   applicant   accepted   that   the   respondent   experienced   financial  
difficulties which necessitated restructuring. 
It   was   also   not   disputed   by   him   that   discussions   pertaining   to   the  
restructuring were held with all the 
respondent's employees including the applicant.  
3.It   was   further   the   applicant's   case   that   employees   were   told   that   after  
retrenchment   any   new   re­employment   opportunities   would   be   communicated  
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to them.  It was also not disputed that the positions to be affected was  
explained with an organogram.  
Judgment
4.The applicant's case is that during the restructuring 
process his position never really became redundant and that there was no  
need to terminate his services.
5.Before scrutinising the applicant's allegations regarding his retrenchment  
it is necessary to examine the respondent's restructuring process in the  
context of the nature of its business.  
6.The respondent's business mainly concerns the management of different forms  
including   inter alia   medical waste such as hazardous and non hazardous  
waste.     Different   divisions   of   the   respondent   operated   as   such   in  
different regions.  One of the divisions is the Samu Med division which  
manage   medical   waste   in   Gauteng.     Samu   Med   operated   in   Kimberley,  
Roodepoort   and   Rietfontein,   near   Edenvale.     This   application   concerns  
the two latter divisions.
7.Prior   to   the   restructuring   which   commenced   in   1999,   the   following  
managerial   supervisory   sales   related   and   administrative   positions  
existed in this division:  
1. Regional manager.
2. Customer liaisons person.
3. Secretary.
4. Sales manager.
5. Regional operational manager.
6. Supervisors (four), and
7. Waste consultants (four).
8.The   investigations   and   advice   obtained   during   the   restructuring   had   as   a  
result that two incinerator supervisors were transferred from the Samu  
Med division to the respondent's Hi­Tech Divisions which could appro­

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priately accommodate these positions.
9.The   positions   of   Regional   Operational   Manager   and   the   Roodepoort   Store  
Supervisor were made redundant and the 
Judgment
single position of Transport Supervisor was changed to 
that   of   Fleet   Officer,   Rietfontein.     This   is   according   to   the  
respondent's pleadings.
10.At Roodepoort, the Operational Manager, the position held by Mr Brink, and  
the   position   of   Operations   Supervisor,   the   applicant's   position,   were  
consolidated   into   one   position   to   be   advertised   as:     "Transport  
Supervisor ­ Roodepoort".  According to the respondent, the new position  
was   on   a   higher   grading   than   the   applicant's   position   and   on   a   lower  
grading   than   Mr   Brink's   former   position.     The   remuneration   was   lower  
than   what   was   paid   to   Mr   Brink   but   higher   than   what   was   paid   to   the  
applicant.   
11.The   consolidation   of   the   two   positions   caused   a   saving   of   approximately  
R11 000,00 per month for the respondent.  The respondent avers that the  
applicant's position became redundant as a result of this consolidation.  
The applicant, on the other hand says the position was no more different  
than the position held formerly by him.
12.The applicant applied for the position along with four other candidates.  
He was unsuccessful and a Mr De Neysen was appointed.  This appointment,  
the applicant says, is unfair because the functions as set out in the  
advertisement   for   the   transport   supervisor   are   exactly   the   same  
functions which he had performed.  The applicant did not accept that the  
new   position   was   a   managerial   one   as   the   job   description   reads:  
"Supervisor".
13.Mr Oosthuizen, the respondent's general manager, was not
able   to   dispute,   when   it   was   put   to   him,   that   the   applicant   had  
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performed the functions as set out in the advertisement.  
14.The applicant, during cross­examination stressed that Mr 
Judgment
Oosthuizen did not exactly have a detailed knowledge of 
the   applicant's   function.     This   the   applicant   argues,   supports   his  
contention that he was unfairly treated.
15.What   the   applicant   could   not   dispute,   was   that   some   of   the   functions  
performed by Mr Brink, which was a managerial position, was on a much  
higher scale than those performed by the applicant, and would become the  
duties of the new incumbent.
16.The   applicant   could   also   not   dispute   that   the   latter   had   six   years'  
experience   in   the   transport   business   and   had   obtained   a   transport  
diploma.  Because he was more qualified than the applicant, Mr de Neysen  
was   appointed   and   although   the   duties   pertaining   to   the   newly   created  
post of Transport Supervisor, Roodepoort, on face value, coincides with  
the duties pertaining to the post of the applicant in terms of the old  
structure, the similar duties were now to be performed in a managerial  
capacity and not in a supervisory capacity as was the case previously.
17.The new incumbent had to manage the entire fleet at Roodepoort as well as  
that   at   the   Rietfontein   Depot   including   aspects   such   as   the  
implementation   of   a   vehicle   monitoring   system,   measurement   of  
productivity,   investigation   of   optimal   vehicle   routine,   development   of  
new price models and not only the supervision of control of the daily  
fleet activities.  
18.The applicant was not in a position to dispute this as the facts show to  
the contrary.  
19.Mr Oosthuizen and Mr Hall consulted with the applicant on three occasions.  
Each meeting lasted, on the applicant's
version,   for   approximately   one   hour   each.     They   attempted   to   pursuade

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the applicant to accept the position of a 
JUDGMENT
fleet officer in Rietfontein.  The applicant found this 
offer unacceptable and declined it.  His reasons for declining the offer  
was, firstly,  that he  was inconvenienced  and would  have had  to travel  
approximately one hour and 45 minutes longer than usual to Rietfontein.  
The applicant lives with his parents in Randfontein and was not prepared  
to move closer to Rietfontein.  He lived with his parents and felt that  
if he left he could no longer support them.  
20.Secondly, the applicant contended that he would suffer a severe reduction  
in salary of almost R4 000,00.  The evidence showed this to be factually  
incorrect.  The salary which the applicant would earn as a fleet officer  
would be approximately R1 000,00 less than he previously earned.  It was  
also explained that this was due to an amendment of the relevant income  
tax   legislation   in   terms   of   which   the   applicant   would   no   longer   be  
entitled   to   a   subsistence   allowance   which   forms   parts   of   his  
remuneration and structured as such.
21.The   applicant   was   also   offered   the   opportunity   to   obtain   a   diploma   in  
Transport Management sponsored by the respondent.  He would thus be able  
to study to improve his qualification at the Rand Afrikaans University  
and enhance his chances for promotion. It is of note that Mr De Neysen  
had   such   a   qualification   which   was   one   of   the   reasons   why   he   was  
regarded as more qualified for the position.
22.Despite the fact that the respondent intended to groom the applicant for a  
position   similar   to   that   of   Mr   De   Neysen,   the   applicant   refused   to  
accept   the   offer.     The   applicant   believed   that   Mr   De   Neysen   was  
appointed by the respondent because he was related to one of the respon­
JUDGMENT
dent's directors, a fact which was admitted by the 
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respondent.  
23.This allegation of nepotism flies in the face of the objective facts.  The  
applicant himself was appointed by his brother­in­law, who was a manager  
at   the   respondent   at   the   time,   a   fact   which   the   applicant   did   not  
disclose.     Mr   Jacobson,   the   applicant’s   brother­in­law   and   a   former  
employee of the respondent, was successful in establishing that his own  
services   were   unfairly   terminated   by   the   respondent   and   therefore   the  
applicant arfues, the respondent had some form of a grudge against the  
applicant.
24.There was no evidence to support the aforesaid.   It is highly improbable  
that   an   employer   would   go   to   all   the   trouble   to   consolidate   two  
positions just to get rid of the applicant because he was related to a  
former employee.  This also flies in the face of the reasonable offer of  
another   position   together   with   sponsored   further   education   which   was  
offered, to the applicant.  It was quite clear that the respondent held  
out the prospect for the applicant to be groomed in a new position and  
not to get rid of him.
25.The applicant  argued that  the respondent  could have  appointed him  as an  
Incinerator Supervisor at Roodepoort as an alternative to a demotion and  
for   the   same   reason   as   advanced   by   him   and   referred   to   above,   he  
contended that the respondent's failure to appoint him in this position  
was an unfair labour practice.
26.It is common cause that if he was appointed as an Incinerator Supervisor  
at Roodepoort he would earn R3 000,00 per month, almost half of what he  
would have earned in the Fleet Officers' position at Rietfontein.
JUDGMENT
27.It is further common cause that the applicant would be 
required   to   work   nightshifts   at   the   incinerators   in   Rietfontein   and  
renders his argument of the extra

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travelling   and   inconvenience   which   he   put   forward   in   respect   of   the  
Fleet Officers' position, quite disingenuous.
28.In the light of these facts the respondent can hardly be blamed for not  
offering this position to the applicant.  Furthermore the respondent had  
no idea that the applicant was at any stage interested in this position  
because the applicant did not even apply for the position or ever raised  
it with the respondent.
29.Some   time   after   the   applicant   was   offered   the   alternative   position   at  
Rietfontein,   and   after   the   above   arrangement   for   the   position   was  
entered into, the applicant contacted the respondent, more specifically  
Mr Oosthuizen, in order to determine whether the respondent would still  
appoint him in the said position.  It is common cause that the position  
would be held open for a month after determination of his services.
30.The applicant  was advised  that in  the light  of the  arrangements already  
made and  in terms  of which  the respondent  reflected a  further saving,  
the respondent  was not  prepared to  re­open the  offer to  the applicant  
and advised him accordingly.
31.It would be unfair in most circumstances, to offer an employee a position  
who declines it and nonetheless undertake that he could at a later stage  
apply for the position and this promise is not kept.
32.In the present case, the applicant was adamant that he did not want the  
position   in   Rietfontein.     After   three   meetings   which   each   lasted   an  
hour, two members of 
JUDGMENT
management could not persuade him to take up the offer.  In unreasonable  
circumstances he refuted that his posi­
tion   had   become   redundant   and   insisted   on   being   appointed   on   a  
managerial level.
33.In such circumstances it cannot be said that the failure to offer him a  
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position which he rejected on three former occasions, is unfair.   Even  
if   it   is   unfair,   this   would   be   a   situation   where   in   keeping   with   the  
considerations   expressed   in   the   matter   of   Johnson   and   Johnson   v   CWIU  
([1998]   12   BLLR   1209) ,   the   employee   would   not   be   entitled   to  
compensation.  
34.Insofar as costs are concerned, the applicant persisted in pursuing a case  
without any merit against the respondent.  
35.On the other hand I do have to take into account that the respondent had  
promised him that it would keep the position of Fleet Officer open for a  
month, which offer was basically reneged on. In such circumstances costs  
should not be awarded against the applicant.
36.In the circumstances I make the following order:  
The application is dismissed.  There is no order as to  
costs.
     __________
E. Revelas
 On behalf of Applicant: In person
 On behalf of Respondent: Adv. M.J. van As instructed by:
Wentzel, Viljoen & Swart Att.