Nationwide Airlines (Pty) Ltd v Mudau and Others (J1946/2000) [2002] ZALC 93; [2003] 3 BLLR 279 (LC) (4 November 2002)

70 Reportability

Brief Summary

Labour Law — Unfair dismissal — Review of arbitration award — Applicant challenging finding of procedural unfairness in dismissal of employee — Employee not informed of meeting purpose or allowed representation — Court finding that failure to observe audi alteram partem rule rendered dismissal procedurally unfair — Award of compensation upheld.

THE LABOUR COURT OF SOUTH AFRICA REPORTABLE
HELD AT JOHANNESBURG
CASE NO: J1946/2000
In the matter between:
NATIONWIDE AIRLINES (PTY) LTD Applicant
and
COMMISSIONER AR MUDAU First 
Respondent
COMMISSION FOR CONCILIATION
MEDIATION AND ARBITRATION Second 
Respondent
ALPA­SA obo M WRIGHLEY Third 
Respondent
MICHAEL WRIGHLEY Fourth 
Respondent

JUDGMENT
MASERUMULE AJ:
1. The   Applicant   seeks   an   order   in   terms   of   section   145   of   the  
Labour   Relations   Act,   66   of   1995,   (“the   Act”),   reviewing   and  
setting aside an arbitration award made by the first respondent,  
in   terms   of   which   he   found   the   dismissal   of   the   fourth  
respondent to have been procedurally unfair and awarded him  
compensation in the amount of R120 000.00.
2. The facts that were placed before the first respondent are as  
follows:
2.1 The fourth respondent was employed by the applicant as a flight  
engineer in 1997;
2.2 The fourth respondent was, on at least two occasions, warned  
that his performance was not satisfactory; 
2.3 From 23­26 May 1999, fourth respondent was sent to the United

Kingdom   for   a   simulator   instruction.   A   simulator   is   a   device  
which resembles an aircraft cockpit and can be programmed to  
replicate various flying conditions and manoeuvres. The pilots  
and   flight   engineer   team   up   as   the   flight   deck   crew   and   are  
taken   through   a   number   of   simulated   flying   emergency  
situations   to   test   their   ability   to   react   swiftly   and   in   a   correct  
fashion to such situations, given each crew member’s tasks and  
responsibilities   in   the   cockpit.   A   simulator   instructor,   who  
remains present on the flight deck during the session, makes  
written   assessments   of   the   individual   crew   member’s  
performance;
2.4 Following his return from the simulator’s session and on 7 June  
1999, the fourth respondent was told to attend a meeting on 8  
June 1999.   He was not told what the purpose of the meeting  
was nor was he informed that he could bring a representative.
2.5 The meeting on 8 June 199 was attended by applicant’s Chief  
Pilot,   Captain   Willemse,   Captain   Isherwood,   the   B727   Fleet  
Captain and L Bradley, the Human Resources Manager;
2.6 The fourth respondent was informed that according to a report  
prepared by the simulator instructor, he had performed poorly  
during   the   simulator   session   held   in   May   1999   and   he   was  
asked   to   explain   his   shortcomings   as   recorded   in   the   report.

The   fourth   respondent   had   not   previously   been   shown   or  
provided with a copy of the report;
2.7 At the conclusion of the meeting, the fourth respondent was told  
that the management representatives would deliberate on the  
matter;
2.8 On 10 June 1999, the fourth respondent was handed a letter in  
which he was advised that his services with the applicant were  
being   terminated   with   immediate   effect   due   to   his   poor   work  
performance;
2.9 Around 25 May 1999, the fourth respondent was told that there  
was a clerical position available in flight operations and he was  
asked to try it out for a few days. He did so but when he was  
told that the position paid R4500.00 per month, being almost a  
third  of  the  R12  500.00   that   he   previously  earned  as   a  flight  
engineer, he turned down the offer. The latter is disputed by the  
applicant.
3. Following   the   referral   of   first   respondent’s   alleged   unfair  
dismissal dispute to the CCMA, and at the arbitration hearing  
held on 11 May 2000, the applicant applied for a postponement  
to   enable   it   to   call   Mr.   Bradley,   its   ex­Human   Resources  
Manager, who was not in attendance at the hearing. Bradley’s

evidence   would   have   been   to   refute   fourth   respondent’s  
allegation that he had met with the former and was told that his  
salary   would   be   R4500.00.   The   first   respondent   turned   down  
the application for a postponement and as a result, Bradley did  
not testify.
 
4. The   first   respondent   does   not   in   his   award   deal   with   the  
application for a postponement and the reasons for refusing to  
grant the application. There is no reference in the record of the  
arbitration hearing to the application for a postponement either.  
The record is also incomplete in that there is no indication in the  
court   file   that   the   CCMA   filed   a   Rule   7A     notice   and   the  
documents used at the arbitration hearing. Only the transcribed  
record of the evidence is in the court file. I am therefore, unable  
to determine whether the first respondent filed an explanatory  
affidavit in which he addressed the issue about his refusal to  
postpone   the   arbitration   hearing.   This   is   an   extremely  
unsatisfactory   state   of   affairs   as   the   court   depends   on   the  
record to make an appropriate evaluation of decisions by CCMA  
commissioners.
5. The applicant attacks the award on a number of grounds and I

deal with each of these grounds below.
Refusal to grant a postponement
6. The   applicant   states   in   its   founding   affidavit   that   a  
postponement was necessary to hear the evidence of Bradley  
regarding the clerical position offered to the fourth respondent  
and whether or not the fourth respondent had given reasons for  
allegedly rejecting the position. This evidence would have been  
relevant in determining whether or not the fourth applicant had  
absconded or was dismissed. 
7. According   to   the   affidavits,   the   first   respondent   refused   a  
postponement   because   the   arbitration   hearing   would   be  
delayed   by   a   couple   of   months.   The   applicant   claims   that   it  
could not have anticipated that Bradley would be required as a  
witness as it could not have known in advance that the fourth  
respondent   would   allege   that   he   had   met   with   Bradley   and  
discussed the clerical position with him.
8. Notwithstanding the deficiencies in the record, it appears to me  
that this first ground of review must fail. A letter attached to the  
third   and   fourth   respondents’   answering   affidavit   specifically  
refers to a meeting between Bradley and the fourth respondent  
that   took   place   on   8   July   1999   and   at   which   the   fourth

respondent   gave   reasons   why   the   clerical   position   was  
unacceptable to him. The applicant was thus aware all along of  
what fourth respondent’s version was with regard to the alleged  
meeting and ought to have consulted with Bradley earlier and  
arrange for his availability on the day of the arbitration hearing.  
The first respondent cannot be faulted for refusing to grant the  
applicant   a   postponement   and   this   ground   of   review   must  
accordingly fail.
9. The   alternative   position   was   offered   to   the   fourth   respondent  
more   than   two   weeks   after   he   was   dismissed   and   not   as   an  
alternative to his dismissal. The offer for the position was not  
coupled   with   a   withdrawal   of   fourth   respondent’s   dismissal.  
Refusing to take up this position would not change the fact that  
he had been dismissed from  his position as a flight engineer  
and Bradley’s evidence would not in any way have changed this  
outcome.   In   any   event,   given   fourth   respondent’s   reason   for  
rejecting   the   clerical   position,   and   assuming   in   favour   of   the  
applicant   for   this   purpose   that   the   job   was   offered   as   an  
alternative to dismissal, such rejection would have been entirely  
reasonable and would not have amounted to a “fresh” dismissal.  
Bradley’s   evidence,   therefore,   would   not   have   changed   this  
outcome. In the result, the first respondent correctly refused to  
grant the applicant a postponement and a review of his award  
on this ground must fail.

Fourth respondent’s alleged desertion
10. The second ground for review is that the fourth respondent had  
absconded and was not dismissed. I have already indicated, in  
dealing with first respondent’s refusal to postpone the arbitration  
proceedings,   that   the   applicant’s   argument   that   the   fourth  
respondent had absconded and was not dismissed cannot be  
sustained.
11. The   fourth   respondent   was   given   a   letter   in   which   it   was  
unequivocally stated that his services were being terminated for  
poor work performance. The offer to the fourth respondent to  
work as a clerk in flight operations was made some weeks after  
his dismissal and there is no evidence that it was coupled with  
an offer of reinstatement, albeit to a different position from the  
one   which   the   fourth   respondent   occupied   at   the   time   of   his  
dismissal.
 
12. In addition, one would have expected the applicant to take issue  
with fourth respondent’s referral of his dismissal dispute to the  
CCMA on the basis that it was premature. This is because the  
fourth respondent referred the dispute to the CCMA before he  
took up and later rejected the offer to try the clerical position. No  
such challenge was mounted.

13. First   respondent’s   conclusion   that   the   fourth   respondent   was  
indeed   dismissed,   cannot   be   faulted.   The   second   ground   for  
review must accordingly fail as well. 
Fourth respondent’s dismissal was not procedurally unfair 
14. The   third   ground   of   review   relates   to   first   respondent’s  
conclusion   that   the   fourth   respondent’s   dismissal   was  
procedurally unfair. Applicant’s attack on this conclusion can be  
summarized as follows: the fourth respondent was called to a  
meeting on 8 June 1999 and was told that he had performed  
poorly on the simulator. He was given an opportunity during this  
meeting   to   make   representations   about   his   performance   and  
was thereafter dismissed. The applicant was thus given a fair  
hearing and his dismissal was thus procedurally fair.
15. The submission is startling, to say the least.
16. The applicant knew, when it summoned the fourth respondent  
to   the   meeting,   that   the   intention   was   to   discuss   his  
performance on the simulator and the intention to terminate his  
services   in   the   event   that   his   explanation   were   not   to   be  
accepted. Yet the applicant does not convey this information to  
the fourth respondent when it informed him of the meting on 7

June 1999. The applicant was literally ambushed;
17. Secondly,   the   applicant   was   in   possession   of   the   report  
prepared by the simulator instructor before 8 June 1999. The  
fourth respondent was not given a copy of the report before the  
meeting to enable him to prepare to deal with its contents. He  
was shown the report in the meeting and was there and then  
asked to respond to the content thereof, which was critical of his  
performance. No reason has been given why he was not given  
a copy of the report beforehand to enable him to prepare his  
response to its criticism of his performance on the simulator.
18. Thirdly, given that the applicant knew what the purpose of the  
meeting   was,   it   was   obliged   but   failed   to   warn   the   fourth  
respondent that he would be expected to give reasons at that  
meeting why he should not be dismissed. In fact, even at the  
meeting   itself,   the   fourth   respondent   was   not   told   that   the  
deliberations of the management’s representatives were about  
his   possible   dismissal.   He   only   learnt   that   this   was   the   case  
when he received his letter of termination. 
19. Fourthly, the fourth respondent was entitled to be assisted by  
his union representative. He could not be because he 8was not  
told what the purpose of the meeting was. The applicant has not  
suggested   that   it   was   unaware   of   fourth   respondent’s   union

membership.   Even   if   that   were   the   case,   he   would   still   have  
been   entitled   to  assistance   by  a   fellow   employee.   No  reason  
has been advanced why he was not accorded this basic right.
20. In   JDG  Trading  (Pty)   Limited t/a Price  and Pride  v Brundson  
(2000) 21 ILJ 501 (LAC), Zondo AJP,(as he then was) writing  
for the majority of the court, observed as follows:
“ [61] Some argument was advanced by the appellant’s counsel that  
the respondent was employed as a   senior manager and that he  
knew   what   his   shortcomings   were.   That   an   employee   is   a  
senior manager does not, in my view, give the employer licence  
to   dispense   with   the   observance   of   the   audi   alteram   partem  
rule. Such an employee is also entitled to the observance of the  
audi alteram partem rule. What may be relaxed in the case of a  
senior manger may be the form which the observance of the  
rule may take….
[62] The opportunity which is given to a senior employee must still  
meet at least two basic requirements of the audi alteram partem  
rule,   namely,   he   must   be   given   notice   of   the   contemplated  
action and a proper opportunity to be heard. The reference to  
‘notice of the contemplated action’ necessarily implies that the  
action has not been decided upon finally as yet but it is one

which   may   or   may   not   be   taken   depending   on   the  
representations which the affected person may give. In these  
case the opportunity to be heard which the appellant purported  
to give to the respondent did not meet any of these two basic  
requirements…”  
 
21. The above quotation may well have been written for this case.  
Although the judgment dealt with an appeal from the Industrial  
Court, and therefore, the repealed 1956 Labour Relations Act,  
the   principles   stated   therein   are   of   equal   application   to   a  
dismissal for incapacity under the 1995 LRA. In fact, in the light  
of the constitutional right to fair labour practices and the right  
not   to   be   unfairly   dismissed   as   prescribed   in   the   Act,   the  
principles set out by the Labour Appeal Court apply with even  
more force.
22. The   fourth   respondent   was   not   informed   of   the   action  
contemplated against him prior to the meeting of 8 June or even  
at that meeting. He was not given an opportunity to influence  
the   decision   to   dismiss   him.   There   was,   in   casu,  a   complete  
failure to observe the  audi alteram partem  rule.
23. The fact that the fourth respondent was a flight engineer of a  
passenger aircraft does not mean that he was not entitled to a  
proper   observance   of   the   audi   alteram   partem   rule .   He   was

grounded   before   the   meeting   of   8   June   1999   and   there   is  
therefore, no reason why he was not informed of the purpose of  
the meeting and given an opportunity to make representations  
as to why he should not be dismissed. 
24. The applicant attacks the first respondent’s conclusions on the  
basis   that   he   confused   issues   related   to   substantive   fairness  
with   those   related   to   procedural   fairness.   In   his   award,   first  
respondent concluded that:
24.1 The   fourth   respondent   was   a   good   in   theory   but   not   a   good  
performer;
24.2 The fourth respondent dismissed procedurally fairly;
24.3 The  fourth respondent should  have  been offered  training and  
given a reasonable chance to improve and the applicant failed  
to do so;
24.4 The fourth respondent was not given a chance to present his  
side of the matter;
24.5 The   applicant   may   have   had   a   good   reason   to   dismiss,  
however, things did (not) go well procedurally;

24.6 The fourth respondent was dismissed unfairly with regards to  
procedure.
25. Undoubtedly,   reference   to   failure   to   provide   the   fourth  
respondent with training and an opportunity to improve suggests  
that the first respondent was critical of the substantive fairness  
of the dismissal. It is not entirely clear whether the reference to  
the fourth respondent not being given a chance to present his  
side of the story (or  the matter  as the first respondent would  
have it), refers to his poor performance or why he should not be  
dismissed.
26. These   deficiencies   notwithstanding,   I   am   not   persuaded   that  
they are of such a nature as to render the award reviewable.  
The   summary   of   the   findings   as   outlined   and   the   conclusion  
arrived at by the first respondent indicates that he considered  
procedural   fairness   to   have   been   applicant’s   shortcoming   in  
respect  of  fourth respondent’s  dismissal.  His reference to the  
fourth   respondent   being   good   in   theory   but   not   a   good  
performer and that the applicant may have had a good reason  
to   dismiss   the   fourth   respondent   clearly   shows   that   he  
considered   the   dismissal   to   have   been   substantively   fair.   His  
statements that things did not go well procedurally and that the  
applicant was dismissed unfairly with regards to procedure puts  
the issue beyond doubt as to what his conclusion is with regard

to the reason for unfairness.
27. Does   the   fact   that   first   respondent’s   brief   reasons   seem   to  
confuse substantive fairness with procedural fairness taint the  
award   to   an   extent   where   it   should   be   set   aside?   I   do   not  
believe so. His conclusion is entirely justifiable, having regard to  
the evidentiary material before him, see  Federated Timbers (Pty  
Ltd v Lallie NO & Others  (1999) 20 ILJ 348 (LC). 
28. In  Shoprite Checkers (Pty) Ltd v Ramdaw NO & Others  (2001)  
22 ILJ 1603 (LAC) at 1636H­I, Zondo JP stated as follows:
[101] In my view it is within the contemplation of the dispute­ resolution system  
prescribed   by   the   Act   that   there   will   be   arbitration   awards   which   are  
unsatisfactory in many respects but nevertheless must be allowed to stand  
because   they   are   not   so   unsatisfactory   as   to   fall   foul   of   the   applicable  
grounds of review. Without such contemplation, the Act’s objective of the  
expeditious resolution of disputes would have no hope of being achieved.  
In my view the first respondent’s award cannot be said to be unjustifiable  
when regard is had to all the circumstances this case and the material that  
was before him.”
  
29. The above remarks are of equal application to the award made  
by the first respondent.
30. The   applicant   has   not   suggested   that   the   compensation

awarded to the fourth respondent is not justified.
31. The third and fourth respondents had brought an application to  
make the arbitration award an order of court in terms of section  
158(1)(c) of the Act.
  
32. In the result, the application for the review of first respondent’s  
award is dismissed and the award issued by the first respondent  
is made an order of court. The applicant is ordered to pay third  
and fourth respondents’ costs in respect of both applications.
__________________________
MASERUMULE AJ
On behalf of the Applicant: Adv A Landman, instructed by  
Golding Venniker Attorneys
On behalf of Third and Fourth Respondents: Adv NH Maenetje,  
instructed by Cheadle Thompson & Haysom Inc.
Date of hearing: 8 August 2002
Date of judgment: 4 Novemebr 2002.