National Union of Mine Workers v Impala Platinum Limited (J4683/01) [2001] ZALC 195 (31 October 2001)

45 Reportability

Brief Summary

Labour Law — Restructuring — Interdict — Applicant seeking urgent interdict to prevent respondent from implementing restructuring of hostel services pending CCMA referral — Court finding no clear right established, no irreparable harm demonstrated, and balance of convenience not favoring applicant — Application dismissed.

Sneller Verbatim/mc
IN THE LABOUR COURT OF SOUTH AFRICA
BRAAMFONTEIN CASE NO: J4683/01
2001-10-31
In the matter between
NATIONAL UNION OF MINE WORKERS Applicant
and
IMPALA PLATINUM LIMITED Respondent
________________________________________________________________
J U D G M E N T
________________________________________________________________
REVELAS J:
1.The   applicant   approached   this   court   for   urgent   relief     interdicting   the  
respondent from implementing its restructuring strategy of its hostels  
and   accommodation,   pending   the   referral   of   a   dispute   about   the  
restructuring and the determination of the dispute by the Commission for  
Conciliation Mediation and Arbitration ( ΑThe CCMA ≅). The matter has not  
yet been referred to the CCMA.
2.The   respondent   and   the   applicant   had   a   seminar   during   September   1998  
regarding   the   restructuring   strategy   of   the   hostel   and   accommodation  
services of the respondent.   A constitution was drawn up for a hostel  
executive committee and a management committee to discuss the issue.  
3.On   7   August   2001   a   meeting   was   held   where   the   respondent   announced   its  
intention   to   restructure   the   hostels.   Another   meeting   was   held   on   28  
September   2001   where   the   respondent   advised   that   the   restructuring  
process would be implemented on 1 October 2001.  These are the meetings

that the applicant refers to in its founding affidavit.
4.The   applicant   then   declared   a   dispute   with   the   respondent   about   what   it  
says   was   the   unilateral   implementation   of   the   restructuring   of   the  
hostel   services.     Several   meetings   were   held   thereafter   about   the  
implementation which the applicants sought to delay.
5.The applicant also contends that :
the respondent should comply with an agreement which was reached between  
the parties on 17 July 1997 regarding the restructuring process.  
6.The agreement provides that:
"The parties enter into negotiations on the issue of restructuring prior to the
implementation thereof.
The various branches and/or shaft committees will refer any contemplated
restructuring to the Central Negotiating Forum."
7.The   respondents   failed   to   refer   the   issue   of   restructuring   or   the  
implementation thereof to the Central Negotiating Forum.
8.No consensus was reached with any of the committees or management and that  
any such consent was of no value since those committees did not have the  
necessary authority to reach agreements.
9.The first time it heard about the implementation date of the policy, namely  
26 October 2001, was when it served its application on the respondent on  
24 September 2001.  And that is the application in question.
10.During 1999, 200 employees of the respondent were paid severance packages  
and transferred to a company to whom the catering function had been out­
sourced.  A meeting was also held on  February 2000 where the respondent  
says it reported back on the completion of phase 1 of the restructuring  
and   gave   notice   that   it   intended   to   move   onto   the   next   phase   of   the  
restructuring process.  
11.The hostel superintendent gave a presentation   at this meeting explaining

what   was   contemplated.     The   applicant's   representative   at   the   meeting  
adopted   the   position   that   the   respondent   was   not   entitled   to   proceed  
with the restructuring without the consent of the CMC which stance the  
respondents did not accept. 
12.The   respondent   in   its   answering   papers   contend   that   on   a   regular   basis  
from   1998   until   the   present   time,   the   respondent   had   engaged   in  
continuous   discussions   with   the   hostel   executive   in   respect   of   the  
proposed restructuring and the various phases thereof.
13.It   had   also   repeatedly,   according   to   the   respondent,   discussed   the  
restructuring   with   the   Services   Branch   of   the   applicant   and   the  
applicant's Services Selection Utility Committee.
14.In   the   respondent's   answering   affidavit   reference   was   made   to   a   further  
meeting   held   on   22   June   2001   where   consensus   was   reached   between   the  
respondent   and   the   Hostel   Executive   Committee   on   proceeding   with   the  
next   phase   of   the   restructuring,   including   the   out­sourcing   of   the  
maintenance ownership.  
15.All that remained to be finalised at the time was agreement on "scope of  
works"   and   that   is   apparently   what   the   exact   nature   of   the   service  
provider's obligations were to be.  
16.The   remaining   question   had   to   be   referred   to   the   applicant's   Services  
Branch for further discussion which took place.  
17.A   meeting   was   also   held   on   7   August   2001   with   the   Services   Branch,   the  
Services Utility Committee and the CMC on implementing the next phase.  
At this meeting a further presentation of what was contemplated was also  
given.     The   applicant   held   the   view   at   the   meeting,   according   to   the  
minutes, that it regarded the presentation as "information sharing only

minutes, that it regarded the presentation as "information sharing only  
as management is well aware of the relevant structure to deal with these  
matters".  This was not further qualified.  
18.According to the respondent the meeting of 7 August was with the Services

Branch   Committee.     The   respondent   contends   that   it   discussed   the  
proposed restructuring both with the relevant committees as well as with  
the CMC.  
19.The respondent also refers to a further meeting held on 4   September 2001  
where   the   applicant   was   represented.     Notice   was   given   that   43  
engineering positions would be affected. 
20.On 26   September 2001 the respondent discussed the restructuring with the  
Utility Sectional Committee.   A further presentation was given and the  
applicant   was   represented   and   previously   on   20   September   2001   the  
applicant requested that the meeting of 26 September 2001 be convened,  
specifically to discuss the next phase.
21.The next meeting then took place on 28 September 2001 where it is common  
cause   between   the   parties   that   the   respondents   indicated   that   the  
proposed implementation date was 1 October 2001.  
22.According to the respondent, from 7 August onward at all the meetings the  
respondent   made   clear   that   the   proposed   restructuring   would   not   give  
rise to any compulsory redundancies.
23.On   the   papers   before   me   there   is   a   dispute   of   fact   as   to   what   was  
discussed at the meetings and discussions that were held.   I am unable  
to accept that the first time the applicant heard of an implementation  
date for the restructuring, was on the day the papers had been served on  
the   respondent.     The   application   would   not   have   been   brought   if   this  
were the case.   In any event if appears from the applicant's replying  
affidavit,   paragraph   20.7   that   1   October   2001   was   the   implementation  
date.  On its own version there were several discussions thereafter.
24.On the facts of the case it appears that several meetings were indeed held  
and   that   restructuring   of   hostels   had   commenced.     If   I   grant   an  
interdict   it   would   have   the   effect   of   suspending   that   process   and

interdict   it   would   have   the   effect   of   suspending   that   process   and  
restoring the   status quo ante,    which is not the relief the applicant

seeks in its notice of motion.
25.The   applicant   argued   that   the   relief   it   seeks   is   interim   relief   in   the  
sense that it would be granted pending the outcome of the dispute which  
intends to refer to the CCMA. This is in fact final relief. In order to  
obtain   the   relief   sought   by   the   applicant   the   applicant   must   show   a  
clear   right   case,   even   if   open   to   some   doubt.     A   well­grounded  
apprehension   of   irreparable   harm,   that   the   balance   of   convenience  
favours it, and that there is no other satisfactory alternative remedy. 
26.Insofar as a clear right is concerned, there is no clear right to refer a  
dispute to the CCMA or to compel an employer to negotiate restructuring  
according to a particular pattern.  
27.No   positions   were     declared   redundant.     In   the   founding   affidavit   no  
irreparable harm was demonstrated to warrant the interference with the  
implementation process.  
28.In   my   view   the   balance   of   convenience   does   not   favour   the   applicant  
either.   The CCMA could determine this dispute, but this could take a  
very   long   time   as   the   dispute   has   not   even   yet   been   referred   to   the  
CCMA.   The restructuring process of the hostels had begun a relatively  
long time ago.  
29.The   CCMA   could   very   well   make   a   determination   even   in   the   respondents'  
favour and the respondents would then be in an unenviable position vis­
à­vis its contractors.
30.There   is   also   no   merit   in   the   submission   that   there   is   no   other  
alternative   remedy.     Section   64(4)   of   the   Labour   Relations   Act   ( ΑThe 
Act≅) provides one.   The applicant could have argued that this was the  
case if no negotiations or meetings were held and that the restructuring  
and   implementation   date   thereof   was   introduced   at   very   short   notice.  
Factually that has not occurred.

31.It appears that the applicant is under the impression that the respondent  
needs the consent of the CMC before it can embark on a process which had  
been   negotiated   for   some   time.   The   respondent =s   consent   is   not   a  
prerequisite to the process. If the parties are not satisfied with the  
manner   in   which   the   restructuring   was   implemented,   it   can   refer   a  
dispute to the CCMA which it has not done at this stage.  Such a dispute  
could have been referred as far back as February 2000 when the meetings  
first began  or on  22   June 2001  when the  respondent says  consensus was  
reached   between   itself   and   the   Hostel   Executive   Committee.     It   is  
improbable   that   the   respondent   would   spend   time   consulting   with   the  
committees if they did not have the necessary authority to reach final  
agreements and they actively participated in the process.
32.In my view this application was a last attempt at delaying that process.  
Therefore the application must fail.  
33.I considered the question of costs and this might be a matter where costs  
perhaps should follow the result.  But in my view, since the services of  
the   applicant's   members   had   been   out­sourced   and   that   in   respect   of  
these employees there is still a process ahead it would not be advisable  
to grant costs against the applicant.
34.Therefore I make the following order:  
1.The application is dismissed.
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E. Revelas