Mpumalanga Development Corporation v Commission for Conciliation, Mediation and Arbitration and Others (J4469/99) [2002] ZALC 169 (5 September 2002)

55 Reportability

Brief Summary

Labour Law — Review of arbitration award — Application for review of an arbitration award under section 145 of the Labour Relations Act — Arbitrator awarding third respondent two months' salary after finding termination of employment was not communicated properly — Court dismissing review application as no irrationality in arbitrator's decision — Award made an order of court with costs awarded to third respondent.

Sneller Verbatim/mc
IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT JOHANNESBURG CASE NO: J4469/99
2002-09-05
In the matter between
MPUMALANGA DEVELOPMENT CORPORATION Applicant
and
THE COMMISSION FOR CONCILIATION,
MEDIATION AND ARBITRATION 1ST Respondent
2ND Respondent
3RD Respondent
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J U D G M E N T
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REVELAS J:
1. This   is   an   application   in   terms   of   section   145   to  
review   an   arbitration   award   made   by   the   second  
respondent   in   favour   of   the   third   respondent.     The  
respondent   made   an   award   to   the   effect   that   the  
applicant   is   to   pay   the   third   respondent   an   amount

equivalent   to   two   months   of   his   normal   salary   in  
respect of the months of February and March 1999.
1. 1. 2. The   evidence   before   the   arbitrator   was   that   the  
third   respondent   was   employed   by   the   Mpumalanga  
Development   Corporation   as   a   commercial   development  
councillor   in   the   FMME   division   where   he   had   been  
employed   for   almost   11   years.     Before   the   arbitrator  
was   the   undisputed   fact   that   the   third   respondent's  
salary was R6   095 per month.
3. At   some   stage   the   applicant   offered   a   voluntary  
severance package to its employees.   It made it clear  
to employees that those members who would be retained  
for   their   skills,   would   not   be   eligible   for   the  
voluntary severance package. 
4. The third respondent applied for a voluntary severance  
package   and   there   was   agreement   between   his   superior  
that   he   would   remain   in   the   applicant's   employ   until  
31  March   as   his   services   were   still   required   since   a  
co­employee   or   the   person   to   whom   he   reported   had  
resigned from the corporation before.  
5. The applicant informed the arbitrator that had it been  
indicated to him that he had to leave immediately, he  
would   not   have   applied   for   a   voluntary   severance  
package.
6. His services were terminated on 11   December 1998.  The

letter   of   termination   was   faxed   to   him   just   before  
16:00 on 11   December 1998, the same day.  Prior thereto  
he   was   not   consulted   that   his   services   would   end   on  
that day and he concluded his evidence by stating that  
he had expected, or he reiterated that he had expected  
to work till 31 March 1999.
1. 7. The arbitrator upheld the third respondent's version  
of the agreement reached.   It was argued on behalf of  
the   applicant   that   the   main   reason   of   the   respondent  
for   pursuing   the   matter,   was   an   attempt   to   unfairly  
enrich   himself.     The   arbitrator   did   not   share   this  
view.
8. In order to be successful in a review application, the  
applicant  is obliged to demonstate that the arbitrator  
came   to   a   conclusion   which   was   not   rationally   or  
reasonably   connected   to   the   evidence   which   was   led  
before him.  
9. There   are   no   facts   in   support   of   the   application   for  
review   which   justifies   such   a   finding.     Consequently  
the application for review falls to be dismissed with  
costs.
10. An   application   in   terms   of   section   158(1)(c)   of   the  
Labour Relations Act, 66 of 1995 has also been set down  
for   the   same   day.     The   matter   was   postponed   to   the  
opposed roll by  JAMMY J on 18 December 2001.

11. The legal representative for the applicant was not in a  
position to argue the matter and asked me to postpone  
the   matter   on   the   instructions   of   his   client.     I  
refused the application since this matter has continued  
for a long time and I do not believe that there were  
any prospects of success and there would have been no  
point in postponing the matter further.   There was no  
formal   application   for   a   postponement   nor   a   proper  
explanation from the bar as to why a postponement was  
necessary, no matter how many questions I asked in this  
regard.
12. Labour disputes should be resolved as expeditiously as  
possible.     I   am   enjoined   by   the   Act   to   keep   that   in  
mind. This court is burdened with many cases and at all  
costs it should be avoided that matters be remitted to  
the system for no apparent reason.
1. 13. On   the   evidence   before   the   arbitrator   and   in  
support of the application in terms of section 138(1)
(c)   of   the   Act,   the   third   respondent   is   entitled   to  
payment   of   R9   839.23   multiplied   by   two   (two   months  
remuneration   as   awarded   by   the   arbitrator)   which  
amounts to R19   678,46.
14. Consequently I make the following order:
1. The award of the second respondent is made an order of  
court.

2. The   applicant   (Mpumalanga   Development   Corporation)   is  
ordered to pay the third respondent (Mr Leon Smalman)  
an   amount   equal   to   two   months'   remuneration,   being  
R19  678,46 (R9   839,23 x 2).
3. Interest   is   to   accrue   on   the   aforesaid   amount   at   the  
rate of 15,5% per annum, calculated as from 18 May 1999  
to date of payment.
4. The   applicant   (Mpumalanga   Development   Corporation)   is  
ordered   to   pay   the   third   respondent's   costs   in   this  
matter.
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E. Revelas