Profal v National Entitled Workers Union (J4285/01) [2001] ZALC 158 (3 October 2001)

55 Reportability

Brief Summary

Labour Law — Strike action — Interdict against unprotected strike — Applicant seeking urgent interdict to prohibit strike by Union — Court finding that the dispute regarding refusal to bargain is subject to the provisions of the collective main agreement of the Metal and Engineering Industries Bargaining Council — Union not being a party to the agreement — Court granting interdict pending resolution of the dispute regarding interpretation of the agreement.

J4285/01-mc
Sneller Verbatim/mc
IN THE LABOUR COURT OF SOUTH AFRICA
BRAAMFONTEIN CASE NO: J4285/01
2001-10-03
In the matter between
PROFAL Applicant
and
Respondent
________________________________________________________________
J U D G M E N T
Delivered on 4 October 2001
________________________________________________________________
REVELAS J:
1.The applicant has approached this court for an urgent interdict prohibiting  
a strike.  The applicant contends that the strike is unprotected as the  
issue in dispute is one that is not capable of being the subject matter  
of a strike.
2.The first respondent, (or “the Union”), referred a further dispute to the  
bargaining council about "a refusal to bargain".   This type of dispute  
may   form   the   subject   matter   of   a   strike,   as   the   applicant   has   indeed  
refused to bargain with the Union in respect of its demands pertaining  
to   wage   increases,   severance   pay,   long   service   pay   and   certain   other  
terms and conditions of employment.
3.The applicant contended that it is not obliged to consult and  bargain with  
the Union because the applicant is a member of a registered employers’  
organisation,   namely   the   Light   Engineering   Industries   Association   of  
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South Africa which  is affiliated to the Steel and Engineering Industries  
Federation   of   South   Africa   (SEIFSA).     The   employers'   organisation   is  
also a party to the Metal and Engineering Industries Bargaining Council,  
(the “MEIBC”). SEIFSA generally deals with substantive negotiations with  
other connecting bargaining agents in the metal and engineering industry  
of the applicant.
4.As a member of the employers organisation, the applicant says it is bound  
as   a   party   to   the   provisions   of   the   collective   main   agreement   of   the  
MEIBC.  
5.The   first   respondent   is   not   a   member   of   any   employees'   or   trade   union  
organisation   which   are   a   party   to   the   collective   main   agreement   of  
MEIBC.  Therefore, the applicant argues it is required to give effect to  
the   provisions   of   the   main   agreement   of   the   MEIBC   by   virtue   of   its  
membership   thereof.     The   applicant   is   bound   by   the   provisions   of   the  
agreement and so are its employees, (the second and further respondents,  
insofar as the agreement relates to wages and substantive conditions of  
employment).
6.The applicant argues that whereas the first respondent is not a party to  
the main  agreement, the  main agreement  is extended  by the  Minister of  
Labour from time to time.   The main agreement governs the issues upon  
which the Union seeks to engage the strike action today.
7.According to the founding affidavit the main agreement was extended by the  
Minister   to   all   non­parties   in   terms   of   notice   no   941   published   in  
Government Gazette no 20330 on 6 August 1999 for the period 16 August to  
30 June 2001 which is the period in respect of the dispute between the  
parties.  That agreement has lapsed.  
8.A further  agreement was  concluded, again  under the  auspices of  MEIBC for  
the   period   1   July   2001   to   30   June   2002   in   respect   of   wages   and   in

the   period   1   July   2001   to   30   June   2002   in   respect   of   wages   and   in  
respect of  all other  issues governed  by the  agreement.    The agreement

J4285/01-mc
was concluded and signed on 1 August 2001. 
9.Previous disputes were referred by the Union, other interdicts were sought,  
further demands were made. 
10.The applicant pointed out to the Union that in terms of section 37 of the  
Main   Agreement,   the   Bargaining   Council   was   the   sole   forum   for  
negotiating matters contained in the main agreement.  For example wages,  
severance pay and other conditions of employment.
11.The Union argues that the applicant generalises too much.   The union was  
interested in specific demands to met. I was referred to many examples  
in   the   Main   Agreement,   which   the   applicant   argues,   demonstrated   were  
issues to strike over. 
12.On 17 November 2000 the Union referred the dispute about the applicant’s  
refusal to bargain on issues listed in a letter from the Union to the  
applicant, stating its demands.  The dispute was  conciliated under the  
auspices   of   the   MEIBC   on   13   February   2001.     At   this   meeting   the  
applicant continued with its stance that it was not obliged to bargain  
about   demands   made   by   the   Union   as   both   issues   related   to   wages   and  
substantive   conditions   of   employment   which   were   governed   by   the   main  
agreement.     The   dispute   remained   unresolved.     An   advisory   award   was  
obtained.  The certificate of outcome of dispute stated:
"I certify that the dispute between NEWU on behalf of members and Profal (Pty)
Limited, which was referred for conciliation on 17 November 2000, concerning the
applicants' refusal to bargain on matters of interest, remains unresolved at
13 February 2001.
Comments: Alleged refusal to bargain."
13.The Union then brought urgent interdict proceedings in this court against  
the MEIBC, the concilliator, the applicant and SEIFSA.  
14.The application was dismissed due to a lack of urgency.  The parties filed  
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papers in the ordinary cause and the matter became before GERING AJ who  
handed   down   a   judgment   on   29   August   2001.     The   MEIBC   was   directed   to  
appoint a concilliator, (other than the concilliator that presided over  
the previous proceedings), to furnish an advisory award within 14 days  
after the conclusion of the proceedings.
15.In its founding affidavit the applicant directed me to a passage in the  
judgment of GERING AJ at paragraph 26:
"There is in my view another dispute in addition to the dispute that was referred
to conciliation between the Union and the employer, namely in regard to the
proper interpretation of the collective agreement. The Union contends that the
correct agreement does not cover bargaining on the matter set out in the letter of
15 November, whereas the employers' contention is that under section 37 of the
agreement the bargaining council is the sole forum for negotiating matters
contained in the main agreement, that is wages, severance pay and other
conditions of employment."
And then in paragraph 31:
"Whether the Union is correct or whether the employer is correct in regard to their
respective contentions, involves the dispute as to the interpretation of the
collective agreement and in my view it should be resolved in accordance with the
process envisaged by section 24 of the Act. That, however, is not the dispute that
has been referred in terms the dispute resolution agreement which is binding on
the parties. If one of the parties wishes to refer the dispute as to the
interpretation of the collective agreement, that party must take the necessary
steps as set out in the collective agreement. It is not a matter on which it would
be proper for this court to give a decision or express a view."
15. The time spent during Mr. Maluleke’s argument to demonstrate, why the Main
Agreement covered the demands of the Union illustrated that the decision in

Agreement covered the demands of the Union illustrated that the decision in
respect thereof was not capable of being made without reference to the Main

J4285/01-mc
Agreement.
16.The   dispute   has   been   referred   to   the   relevant   Council   and   before   that  
dispute is resolved, the applicants may not strike over those demands.  
The   issue   relates   to   the   interpretation   of   the   Main   Agreement   and  
therefore the matter must take its normal course in terms of section 24  
of the Act.
17.The applicant has established that the matter is urgent and that it will  
suffer irreparable harm if this court does not come to its assistance.  
It has already, as demonstrated above, shown that it has a clear right.  
18.Therefore, in the circumstances I make the following order:
1. The   respondents   are   interdicted   from   calling   for,     engaging   or  
participating   in   industrial   action,   pending   the   determination   of   the  
dispute   between   the   applicant   and   the   first   respondent   concerning   the  
interpretation   and   application   on   the   main   agreement   of   the   Metal   and  
Engineering Industries Bargaining Council, the MEIBC, whether the first  
respondent can negotiate or bargain on matters at plant level which are  
governed by the main agreement of the MEIBC.
2. The first respondent is directed to take all steps necessary to restrain  
its   members   from   creating   or   participating   in   any   industrial   action,  
pending   the   determination   of   the   dispute   referred   to   in   the   above  
paragraph.
3. The   respondents   are   to   pay   the   costs   of   the   application   jointly   and  
severally.  In this regard I may mention that I heard no argument on the  
question   of   costs   and   the   applicant   had   asked   for   a   cost   order   on   a  
scale as between attorney and client.
19.In the circumstances the parties are entering into a process at the CCMA  
regarding a dispute between them and may have an ongoing relationship.  
I   do   not   deem   it   appropriate   to   grant   the   cost   order   on   a   punitive  
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scale.
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E. Revelas