Maestro Housing (Pty) Ltd v CCMA and Others (J1161/00) [2001] ZALC 88; - (15 June 2001)

55 Reportability

Brief Summary

Labour Law — Unfair dismissal — Review of arbitration award — Applicant seeking to set aside arbitrator's award reinstating employee — Employee's performance issues raised by client company, leading to constructive dismissal claim — Arbitrator finding unfair treatment and reinstating employee — Court finding no grounds to interfere with arbitrator's well-reasoned decision — Application for review dismissed with costs.

Sneller Verbatim/PJ
IN THE LABOUR COURT OF SOUTH AFRICA
BRAAMFONTEIN CASE NO: J1161/00
2001-06-15
In the matter between
MAESTRO HOUSING [PTY] LTD Applicant
and
1st Respondent
2nd Respondent
3rd Respondent
________________________________________________________________
EX TEMPORE JUDGMENT
________________________________________________________________
REVELAS, J:
1.The   third   respondent   was   employed   by   a   company   called   Bessemer   Steel  
Construction   [Pty]   Ltd.   [“Bessemer”].     Thereafter,   he   was   employed   by  
the applicant who is a labour broker and who then hired his service to  
Bessemer Steel to do work there.
2.In terms of the contract with the third respondent there were no guarantees  
that the third respondent would always be given work by the applicant. 
3.
4.Evidence was led before the arbitrator, whose award (in favour of the third  
respondent),   the   applicant   now   seeks   to   have   set   aside,   that   Bessemer  
became   unhappy   with   the   third   respondent's   performance.   Warnings   were  
given to him by Bessemer although Bessemer was not his employer, but the  
applicant, (“Maestro Housing”) held disciplinary hearings.   Because 
Bessemer   was   unhappy   with   the   third   respondent's   performance,   the

applicant then wanted to transfer the third respondent or to engage his  
duties at some other company within the new group of companies that was  
formed. The position held less favourable conditions of employment and  
was unacceptable  to the  applicant. He  insisted that  he wished  to work  
for Bessemer Steel.    The arbitrator found as follows in his award:
"This effectively attempts to allow Bessemer to get rid of employees it is not
happy with without giving such employees the right to defend themselves at the
level of their effective employment. The fact that Bessemer and Maestro are both
controlled by the same holding company and have certain members of
management incognant, makes it highly unlikely that Maestro would contest a
finding made by a manager of Bessemer whether the employee was guilty of not
rendering satisfactory services or misconduct or not abiding by any rules,
regulations, policies, procedures or standards. The fact that Mr De Klerk just
accepted Mr Hoogenhout's allegations against the applicant without a proper
investigation corroborates this. This makes the playing field doubly uneven. The
fact that the applicant was technically a temporary employee in terms of his
contract with Maestro, makes no difference to his right to fair treatment in terms
of the act.
In these circumstances I believe I am entitled to pierce the corporate in order to
unveil the true situation which exists in this case."
5.The   arbitrator   then,   after   considering   the   relevant   law   on   the   subject,  
found   that   the   applicant,   in   order   to   attempt   to   circumvent   the  
requirements of the act, did not treat the third respondent fairly.  The  
arbitrator also found that a constructive dismissal took place because  
the   respondent   made   continued   employment   intolerable   and   that   this  
dismissal was unfair. The third respondent was then reinstated.

dismissal was unfair. The third respondent was then reinstated.
6.In order to interfere with this award, the applicant needs to demonstrate  
that the conclusion arrived at by the arbitrator was not justifiable or  
reasonable in terms of the reasons given for it.

7.In a well reasoned award, the arbitrator gave, in my view, a justifiable  
award. 
8.In his analysis of the evidence he did not overlook any relevant factors  
and on the facts before him, I am of the view that he could not have  
come to another conclusion.(not that  is the test.)  
9.The applicant's case is couched in the form of an appeal, and in my view,  
has failed to demonstrate that the award is reviewable. Consequently 
the application should fail.
10.The arbitrator reinstated the applicant. Both parties have submitted that  
compensation   instead   of   reinstatement   should   be   granted   if   the   review  
fails. It is however not within my province to amend an award, which I  
am   not   prepared   to   interfere   with.   The   parties   should   make   their   own  
arrangements in this regard. 
11.In the circumstances the application for review is dismissed with costs.
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E. Revelas