Telkom SA Ltd v CCMA and Others (JR1863/01) [2002] ZALC 170; [2003] 1 BLLR 92 (LC) (6 September 2002)

60 Reportability

Brief Summary

Labour Law — Review of arbitration award — Application for review of CCMA award on grounds of procedural and substantive unfairness — Commissioner found dismissal both procedurally and substantively unfair despite parties agreeing not to contest substantive fairness — Court finding that commissioner exceeded his mandate by addressing substantive fairness — Review application granted, award set aside and matter remitted for fresh arbitration.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT BRAAMFONTEIN
Case Number: JR1863/01
J67/02
In the matter between:
Applicant
and
First Respondent
Second Respondent
COMMUNICATION WORKERS UNION Third Respondent
Fourth Respondent 
JUDGMENT
DLODLO  AJ
Introduction
1. This is a review application brought by the Applicant in terms of section 145(2)(a)(ii)  
and   section   145(2)(a)(iii)   of   the   Labour   Relations   Act   66   of   1995   (the   Act).   The  
Applicant is Telkom SA Limited, a company duly registered in terms of Company  
laws   of   SA.   The   first   Respondent   is   commission   for   Conciliation,   Mediation   and

Arbitration   (CCMA).   The   second   Respondent   Mr   D.   Matee   ,   Commissioner   who  
conducted   arbitration   under   the   auspices   of   the   first   respondent   in   regard   to   the  
dispute which is the subject of this review. The third Respondent is communications  
workers union. The fourth respondent is Mr Mashaba, an employee of the Applicant.
THE FACTS
2. The   fourth   Respondent   (Mr   M.   Mashaba)   was   employed   by   the   Applicant   as   a  
technical officer on the 21 st January 1991. On the 24 th November 1999, Mr Mashaba  
faced certain allegations of misconduct which read as follows:
“Unauthorized   use   of   a   Telkom   vehicle   on   various   occasions   between   the  
periods of March 1999 until October 1999 as misuse of company petrol card.”
Mr Mashaba was advised in writing to attend a disciplinary inquiry. The notice  
gave   him   three(3)   working   days.   This   was   in   compliance   with   the   collective  
agreement in force at the workplace. A certain Mr Abba Essop was to chair the  
inquiry proceedings.
3. On the date of the inquiry, it was postponed in order to enable Mr Mashaba to arrange  
representation.   It   appears   Mr   Mashaba   was   firmly   advised   to   bring   along   his  
representative on the new date, being the 13 th December 1999. On the latter date Mr  
Mashaba came without a representative. The matter was stood down to enable Mr  
Mashaba to telephonically enquire where his representative was. On resumption there  
was no representative.  There  was also no explanation.  The inquiry was proceeded  
with   and   Mr   Mashaba   was   found   guilty.   The   chairperson   imposed   dismissal   as   a  
sanction. The in­house appeal took place on the 14 th February 2000. Mr Mashaba was  
then represented by a shop steward, Mr Lekgotla Mokotlo. The in house appeal was  
unsuccessful.
CONCILIATION AND ARBITRATION
4. On   the   18 th  February   2000,   Mr   Mashaba   referred   the   matter   to   the   CCMA   for

conciliation.   The   referral   was   late.   An   application   for   condonation   was   made.  
Condonation was granted. The conciliation took place on the 26 th  April 2001. The  
matter became unresolved. It was referred to arbitration which took place on the 12 th 
November   2001.   At   arbitration   Mr   Mashaba   and   his   union   representative,   on   one  
hand, and, the applicant, on the other, agreed not to contest substantive fairness of the  
dismissal.   This   agreement   was   placed   on   record.   The   Applicant   informed   the  
commissioner   that   they   would   not   call   Mr   Herman   Keyser   to   give   evidence.   The  
reason for not calling this witness was stated to be because the merits were not in  
dispute. The Applicant’s only witness at the arbitration hearing was Mr Abba Essop.  
The commissioner found that the dismissal was procedurally and substantively unfair.  
He issued an award in the following terms:
“(a) The Respondent is ordered to reinstate Applicant retrospectively to the date  
of dismissal being the 13 th December 1999.
(B) Any loss of salary or benefits suffered by the Applicant must be made good as  
if nothing happened in the beginning.” 
REVIEW   APPLICATION   IN   TERMS   OF   SECTION   145(2)(A)(ii)   AND  
SECTION  145 (2)(A)(iii) OF THE ACT. 
5. The applicant brought an application to have the award reviewed and set aside. The  
review application seeks to attack the following findings made by the commissioner:
“(a) That the dismissal was both procedurally and substantively unfair;
(b)  That the inquiry was held in the mid­December when people were preparing  
to go on leave and that it influenced Mr Essop not to postpone the inquiry for  
the second time;
(c) That the Respondent (Mr Mashaba) did not have adequate time to prepare  
for his case nor his defence;
(d) The employer failed to charge Mr Mashaba timeously” .

GROUND FOR ATTACKING COMMISSIONER’S FINDINGS ARE:
DISMISSAL BOTH PROCEDURALLY AND SUBSTANTIVELY UNFAIR
(Commissioner had no Power to decide a matter. That he was not called  
upon to decide)
6. Mr Leech, on behalf of the applicant submitted that there was no evidence on record  
before the commissioner regarding substantive fairness of the dismissal. There was on  
record instead an agreement between the parties not to address the issue of substantive  
fairness. He further contended that in making a finding which is not supported by  
evidence, the commissioner failed to apply his mind to the dispute before him. The  
commissioner thereby committed an irregularity in the conduct of the proceedings. He  
exposed himself to the provisions of section 145(2)(a)(ii) which reads:
“A   defect   referred   to   in   subsection   (1),   means   that   the   commissioner  
committed a gross irregularity in the conduct of the arbitration award.”
Mr Leech relied on   Carephone (Pty) Ltd v Marcus NO and others (1998) 19  
ILJ 1425 (LAC) and County Fair Foods v CCMA & others (1999)20 ILJ 1701  
(LAC) in support of his submission. Mr Mokoto (union official) on behalf of Mr  
Mashaba   conceded   that   no   evidence   was   led   on   the   question   of   substantive  
fairness   and   that   the   commissioner   was   required   to   make   a   finding   only   on  
procedural   fairness   of   the   dismissal.   According   to   Mr   Mkoto,   apart   from   the  
finding the commissioner made, namely, that the dismissal was   “substantively 
and procedurally unfair ”, the rest of the matter was properly dealt with by the  
commissioner. In conclusion, Mr Mokoto contended  that the commissioner did  
apply   his   mind   to   the   matter   before   him.   He   asked   for   the   dismissal   of   the  
application with costs.
EVALUATION
7. Having   read   the   record   of   proceedings       before   the   commissioner,   it   can   be

confirmed  that  no  evidence   was  led   on  question  of  substantive  fairness  of  the

dismissal. Indeed the partie had not placed this in issue. John Grogan in his book  
entitled  “workplace Law”  sixth edition states the following:
1. “The parties can agree to restrict the matter to be determined by the  
arbitrator by, for example, agreeing that only the Substantive fairness of a  
dismissal is at issue. If the commissioner proceeds to consider other matters,  
for example, procedural fairness, the award can be set aside.”     The learned  
author   refers   to   Northern   Transvaal   Motors   v   Phatudi   &   Others   Labour  
Court case number J161/98. (Unreported).  It is not necessary to deal with other  
grounds of attack  on the commissioner’s  finding. I find that  the commissioner  
decided   on   the   issue   not   placed   before   him   for   decision.   He   thereby   rendered  
himself   guilty   of   gross   irregularity.   This   court   is   entitled   to   interfere.   At   the  
request of the applicant as shown on the papers before me, I decide not to deal  
with the matter myself, but to have it remitted back to the arbitrator. 
Order
In the result therefore I make the following order:
(a) That the Application for review in terms of section 145(2)(a)(ii) is granted.
(b) That the finding and award made by the commissioner is set aside and the matter  
is remitted to the CCMA to be arbitrated a fresh by a different commissioner.
(c) That the application in terms of section 158(1)(c) of the Act in case number J67/02  
is dismissed.
(d) There is no order as to costs.
____________________
D. DLODLO AJ
Acting Judge of the Labour Court

30th July 2002
DATE OF JUDGEMENT: 6 September 2002
MR B.E. LEECH
    MR M KOTO ( Union Official)