Oerlikon Electodes South Africa v Commission for Conciliation And Arbitration and others (J2544/00) [2003] ZALC 8; [2003] 9 BLLR 900 (LC) (1 July 2003)

60 Reportability

Brief Summary

Labour Law — Unfair dismissal — Review of CCMA award — Applicant seeking review of commissioner’s decision to reinstate employee dismissed for using abusive language — Commissioner finding dismissal substantively unfair as it did not fit the offence and ordering retrospective reinstatement — Court upholding commissioner’s award, emphasizing the need for proportionality in disciplinary actions.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD ATJOHANNESBURG CASE NO. J2544/00
In the matter between:­
OERLIKON ELECTODES SOUTH AFRICA Applicant
and
THE COMMISSION FOR CONCILIATION, MEDIATION First Respondent
AND ARBITRATION
PHALA, NO   Second Respondent 
NATIONAL UNION OF METAL WORKERS OF SA  Third Respondent
THAVER, P Fourth Respondent 
                                                                                                                          
JUDGMENT
                                                                                                                          
MODISE A J 
Introduction
1. This is an application brought in terms of section 145 of the Labour  
Relations   Act   66   of   1995   ("the   Act")   for   the   review   of   an   award  
made by the  second Respondent  ("the  commissioner")  under the  
auspices of the first respondent ("the CCMA").

2. The commissioner found that although he agreed with the applicant  
that the "infraction" committed by the fourth respondent had racial  
overtones the applicant's dismissal of the fourth respondent did not  
fit the offence and therefore the fourth respondent's dismissal was  
substantively   unfair.   He   accordingly   ordered   the   retrospective  
reinstatement   of   the   fourth   respondent   from   the   date   of   his  
dismissal, being 9 February 1999.     
3. The   review   application   is   opposed   by   the   third   and   fourth  
respondents.
The facts
4. Prior to the fourth respondent's dismissal he was employed by the  
applicant as a laboratory technician for a period of ten years. 
5. On   or   about   2   February   1999,   the   applicant's   production  
superintendent,   Mr   Du   Plessis,   telephoned   an   independent  
electrician,   Mr   Hayden   Heilman,   to   collect   a   hot   plate   from   the  
applicant's laboratory for repairs. Mr Heilman duly collected the hot  
plate from the applicant's premises on the same day. 
6. On 4 February 1999 Mr Heilman returned the repaired hot plate to  
the   applicant's   laboratory.   When   Mr   Heilman   arrived   at   the  
applicant's   premises   Mr   Du   Plessis   accompanied   him   to   the  
laboratory. As he and the fourth respondent were about to enter the  
laboratory,   the   baking   operator,   Lesley,   called   Mr   Du   Plessis   to  
attend to a query. At that stage, Mr Du Plessis told Mr Heilman to  
proceed   to   the   laboratory   as   he   already   knew   where   to   find   the  
stove.   After   attending   to   the   query,   Mr   Du   Plessis   went   to   the  
laboratory   and   thereafter   showed   to   the   fourth   respondent   the

element and the wires. He told him that they had been repaired. Mr  
Heilman   then   asked   the   fourth   respondent   to   remove   the   vials  
which were lying on the oven.  Instead of removing the  vials, the  
fourth respondent snatched the hot plate from Mr Heilman's hands  
and   said   " the   repair   was   a   s_   _   _t   job ".   He   continued   to   be  
abusive to Mr Heilman by saying   "f_ _ _dutchmen you   f _ _ _d up  
the country"   He also said,   "there f_ _ _ ing whites think they  
can do anything they want in the company. This government  
has had enough of apartheid."  
7. At that stage, Mr Du Plesssis telephoned the technical manager, Mr  
Gould, to come to the laboratory. Mr Gould obliged. As he entered  
the   laboratory   he   found   Mr   Heilman   and   the   fourth   respondent  
involved   in   a   heated   argument.   Out   of   the   blue   the   fourth  
respondent said,   "dutchmen" who think they could do as they  
please".  These words were said in Mr Gould's presence. 
8. The fourth respondent testified that Mr Heilman racially abused him  
by calling him a "koelie".
9. After this incident the fourth respondent was charged with the use  
of abusive language.
10. A   disciplinary   enquiry   was   held   on   5   February   1999.   The   fourth  
respondent was found guilty and dismissed
11. The   fourth   respondent   appealed   against   the   decision   of   the  
chairperson of the disciplinary enquiry. The appeal was dismissed.
12. Subsequent   to   the   fourth   respondent's   dismissal,   he   invoked   the  
statutory dispute resolution procedures. An arbitration hearing was

convened before the commissioner on 25 February 2000. 
13. During the arbitration hearing, the applicant called three witnesses  
being   Messrs   Gould,   Du   Plessis   and   Heilman.     The   fourth  
respondent testified in his defence. 
14. The   applicant   now   seeks   to   review   the   commissioner's   award  
against the retrospective reinstatement of the fourth respondent.
Analysis of the evidence
15. During cross­examination the fourth respondent conceded that he  
used the words attributed to him by Mr Du Plessis and Mr Heilman.  
However,   he   explained   that   he   used   the   words   attributed   to   him  
because he was extremely provoked by Mr Heilman. He first called  
Mr Heilman a "dutchmen" because he stormed into the laboratory  
and ordered him around without greeting him. He said that he was  
also provoked when Mr Heilman called him a "koelie". 
16. During   further   cross­examination   the   fourth   respondent   explained  
that   by   "dutchmen"   he   meant   that   Mr   Heilman   was   like   all   other  
white   people   in   this   country.   He   also   conceded   that   the   word  
"dutchmen" is indeed derogatory.

17. In argument, Mr Orr on behalf of the applicant submitted that during  
the fourth respondent's disciplinary enquiry at no stage did he testify  
that Mr Heilman called him a "koelie". Mr Cartwright on behalf of the  
fourth respondent referred me to the relevant portions of the record  
reflecting that the fourth respondent testified that Mr Heilman called  
him a "koelie". 
18. It is not very clear from the fourth respondent's evidence why he  
called   Mr   Heilman   and   Mr   Du   Plessis   "dutchmen"   and   white  
supremacist.   His   evidence   appears   to   be   contradictory   in   this  
regard.
19. On page 225 of the record, the applicant's representative during the  
disciplinary hearing, Mr Harris, put certain questions to the fourth  
respondent.  
20. On page 18 of the record from paragraphs 10 to 15, the following  
questions and answers are recorded:
20.1 "And the only provocation that you can tell us about is that  
he did not greet you when he walked into the laboratory  
_   _   _.   No,     _   _   _   (inaudible)   no   he   used   the   words  
fucking, remove the _ _ _ (inaudible) and then later on he  
said … (inaudible) fucking "koelie", you are labourers in  
this country. But not when he first walked in? _ _ _ No." 
20.2 "So the thing that provoked you really was that he did not  
greet you _ _ _ Yes, that was _ _ _ (inaudible).”
20.3 On  page  228  of  the record from paragraphs 5 to  10, the  
following is stated:

"At what stage was "koelie" put to you _ _ _ Mr Heilman's  
first sentence to me _ _ _ (inaudible) to me was you fucking  
"koelies" were labourers?"
20.4 On  page  231  of  the record from paragraphs 5 to  10, the  
following is apparent:
"You had a problem with the gentlemen because he did  
not greet you _ _ _ . That is right ". 
21. It is also apparent from the transcript of the disciplinary hearing that  
the   alleged   use   of   the   word   "koelie"   directed   at   the   fourth  
respondent   was   used   after   the   fourth   respondent   had   called   Mr  
Heilman   and   Mr   Du   Plessis   "dutchmen"   and   white   supremacists.  
However,   during   the   arbitration   hearing   the   fourth   respondent  
testified that he used the words "dutchmen" and white supremacist  
in reaction to him being called a "koelie" by Mr Heilman.   
22. It is common cause that during the disciplinary hearing the fourth  
respondent's   representative   did   not   put   to   any   of   the   applicant's  
witnesses that the fourth respondent would testify that Mr Heilman  
called him a "koelie". In argument, Mr Cartwright submitted that it  
was unfair to expect a shop steward when representing employees  
at   the   CCMA   to   conduct   himself   as   if   he   was   counsel.     Mr  
Cartwright   also   argued   that   the   fact   that   the   fourth   respondent's  
representative did not put to the applicant's witnesses that he was  
called a "koelie" was of no consequence and that I should not place  
any   weight   on   the   shop   stewards   failure   to   put   what   the   fourth  
respondent's version would be to the applicant's witnesses. 
23. For the purposes of this judgment, I do not think it is necessary for

me   to   decide   on   Mr   Cartwrights's   submission   referred   to   above.  
However, I find it very strange that if indeed Mr Hayden called the  
fourth respondent a "koelie", the shop steward representing him did  
not   at   any   stage   during   the   disciplinary   hearing   point   out   that  
Hayden called him a "koelie". One does not have to be a seasoned  
counsel or have a legal qualification to mention something which on  
the facts of this case could have possibly tilted the outcome of the  
dispute in the fourth respondent's favour. My view in this regard is  
further   reinforced   by   the   contradictions   made   by   the   fourth  
respondent regarding the use of the words "koelie" by Mr Hayden  
alluded to earlier in this judgment.   
24. Mr Orr argued that if I were to find that Mr Heilman provoked the  
fourth respondent by calling him a "koelie" it was not open for me to  
find   that   Mr   Du   Plessis   similarly   provoked   the   fourth   respondent  
because   the   fourth   respondent   did   not   accuse   Mr   Du   Plessis   of  
having called him a "koelie" and
that   there   was   therefore   no   basis   whatsoever   on   the   part   of   the  
fourth respondent to have called Mr Du Plessis a white supremacist  
and a "dutchmen". I am of the view that there is merit in Mr Orr's  
submission in this regard. Although the words uttered by the fourth  
respondent would possibly not be regarded by some to be racist  
and   offensive   they   are,   when   viewed   holistically,   abusive   as  
contemplated   by   the   applicant's   disciplinary   code   and   procedure  
discussed later in this judgment.
Award
25. In ordering the fourth respondent's retrospective reinstatement the  
commissioner   found   that   the   applicant   acted   in   violation   of   its

disciplinary code and procedure and the Act and that he could not  
condone such conduct on the part of the applicant. He found that  
the penalty of dismissal as meted out by the applicant to the fourth  
respondent did not fit the offence. 
26. In   reaching   this   conclusion,   the   second   respondent   relied   on   a  
category of offences listed in the applicant's disciplinary code and  
procedure under " attitudinal offences ". The applicant's disciplinary  
code   and   procedure   provides   for   a   written   warning   for   a   first  
offender in respect of " the use of abusive and/or derogatory and/
or offensive language or signs ".  In terms of the disciplinary code  
and   procedure,   a   dismissal   only   kicks   in   after   an   employee   has  
committed   a   third   offence.   In   his   award,   the   second   respondent  
made   much   of   the   fact   that   the   fourth   respondent   was   a   first  
offender   and   that   the   code   of   good   practice   reinforced   the   view  
adopted by this court that " a dismissal should be reserved only  
for the gravest infractions and should be action of last resort ". 
27. The   head   note   in   the   case   of   SA   Yster,   Staal   –   &   Verwante  
Nywerhede Unie & 'n Ander v Asea Electric SA (Pty) Ltd (1988) 9  
ILJ 463 states the following:
"The   court   found   that,   given   De   Beers'   role   in   initiating   the  
incident in question, the defence of provocation could not be  
sustained. With respect to the absence of a warning, the court  
concluded after an examination of the employer's code that the  
penalties set out therein were not inflexible and that the right  
to dismiss summarily in appropriate circumstances had been  
preserved   by   the   employer.   Given   the   racial   context   of   the  
incident   and   certain   other   aggravating   features,   the   court

decided   that   the   decision   to   dismiss   was   reasonable   and  
hence not an unfair labour practice."       
28. In   County   Fair   Foods   (Pty)   Ltd   v   Commission   for   Conciliation,  
Mediation and Arbitration (1999) 20 ILJ 1701 (LAC) at 1709  A – D  
Kroon JA said the following
"The   basis   on   which   the   arbitrator   considered   that   the  
appellant had apparently felt itself constrained by the terms  
of its disciplinary code (which was in fact not produced at any  
stage) was, it would seem, founded on the evidence on behalf  
of the appellant that the third respondent  was aware of the  
provisions of a disciplinary code negotiated by the appellant  
with   a   rival   union,   that   in   terms   thereof   a   dismissal   could  
follow   after   a   first   offence   of   assault   and   that   the   other  
employees found guilty of assault had been visited with the  
sanction   of   dismissal.   Be   that   as   it   may,   Mr   Sutherland,  
correctly, did not seek to join issue with the approach of the  
arbitrator   that   the   provisions   of   a   disciplinary   code   are   no  
more than a guide; each case would be governed by its own  
merits.   Implicit   in   counsel's   argument,   however,   was   the  
contention   that   the   comment   that   the   appellant   had  
apparently   felt   itself   constrained   by   the   terms   of   its  
disciplinary code was not justifiable.  …."     
29. It   was   submitted   on   behalf   of   the   applicant   that   the   suggested  
penalties contained in the third respondent's disciplinary code and  
procedures   are   guidelines   and   nothing   more.   This   submission  
seems to find support in the third respondent's disciplinary code and  
procedure.

30. The applicant's disciplinary code and procedure under the heading  
disciplinary action provides the following:
"As a general rule the offences as set out will normally incur a  
verbal   or   written   warning   but   in   certain   circumstances   and  
depending  upon  the gravity of the offense this may lead to  
summary dismissal in terms of level four of the disciplinary  
procedure."
31. In my view, a disciplinary code and procedure was never intended  
to be applied and followed slavishly by an employer. Each case has  
to   be   decided   on   its   facts   and   circumstances   regarding   the  
imposition of the appropriate sanction.
Racism 
32.   Mr Orr argued that the applicant dismissed the fourth respondent  
for the use of abusive, racist and derogatory language directed at  
Mr Du Plessis and Mr Heilman in the presence of a superior, Mr  
Gould.   He   also   pointed   out   that   the   fourth   respondent   conceded  
having repeatedly used the following words:
"S_   _   _t   job",   "dutchmen"   and   that   the   days   of   white  
supremacy are over and that we live in a new South Africa ."
33. During cross­examination the fourth respondent explained that by  
"dutchmen"   he   meant   that   Mr   Heilman   was   like   all   other   white  
people   in   South   Africa   and   that   he   used   these   words  
notwithstanding the fact that they are derogatory.
34. Mr Cartwright submitted that the words white supremacist do not  
have the same historical significance as the word "kaffir". He further

submitted   that   although   a   white   person   may   be   offended   when  
called a white supremacist the "emotional and psychological effect"  
evoked by such words would not have the same impact of calling a  
black person a "kaffir". Although there is an element of truth in Mr  
Cartwright's   submission   in   this   regard.   However,   I   am   unable   to  
dismiss   Mr   Orr's   submission   that   Mr   Cartwright's   submission  
amounts   to   urging   me   to   enter   into   some   "_   _   _   sociological  
enquiry" which I believe to be unnecessary for the purposes of this  
judgment.    
35. In Crown Chickens (Pty) Ltd t/a Rocklands Poultry v Kapp & Others  
(2002) 6 BLLR 493 (LAC) the court had occasion to pronounce on  
racism in the work place. At pages 504­505 A­B Zondo JP said:
"The attitude of those who refer to, or call, African "Kaffirs" is  
an attitude that should have no place in any workplace in this  
country and should be rejected with absolute contempt by all  
those in our country – black and white – who are committed to  
the  values of human  dignity,  equality,  and freedom  that now  
form  the foundation   of our  society. In  this  regard  the courts  
must   play   their   proper   role   and   play   it   with   conviction   that  
must flow from the correctness of the values of human dignity,  
equality and freedom that they must promote and protect. The  
courts must deal with such matters in a manner that will "give  
expression to the legitimate feelings of outrage" and revulsion  
that reasonable members of our society – black and white –  
should have when acts of racism are perpetrated ".    
36. At   page   509   E   –   F   the   Crown   Chickens   judgment   Nicholson   JA  
endorsed the sentiments expressed by Zondo JP when he said:

"It   was   never   contended   that   the   use   of   racist   epithets   in  
question   should   not   be visited   by the  sanction   of  dismissal.  
Racism is a plague and a cancer in our society which must be  
rooted   out.   The   use   by   workers   of   racial   insults   in   the  
workplace   is   anathema   to   sound   industrial   relations   and   a  
severe and degrading attack on the dignity of the employee in  
question. _ _ _".   
37. The   Labour   Appeal   Court   came   out   very   strongly   and  
unambiguously   that   any   use   of   racist   epithets   in   the   new   South  
Africa should lead to the dismissal of employees who are found to  
be guilty of such conduct. I respectfully agree with and adopt, what  
Zondo   J   P   and   Nicholson   J   A   said   in   this   regard   in   the   Crown  
Chicken case.
Sanction
38. The second respondent found the fourth respondent's dismissal to  
be   substantively   unfair   and   ordered   that   he   be   reinstated   with  
retrospective effect. Mr Orr attacked the reinstatement of the fourth  
respondent on the basis that the second applicant could not have  
ordered such reinstatement without having considered what unique  
circumstances if any were present to warrant a sanction other than  
a   dismissal   and   that   he   instead   irrationally   and   inexplicably  
proceeded to set aside the fourth respondent's dismissal. He also  
argued that it was clear from the Crown Chickens' case that it was  
only in the most exceptional circumstances that acts of racism may  
not be visited with a sanction of dismissal. 
39. Our   Courts   have   had   occasion   to   consider   circumstances   upon

which   the   commissioners   would   be   entitled   to   interfere   with   a  
sanction   of   dismissal   imposed   by   an   employer.     Generally,   the  
Labour Appeal Court has found that a commissioner should show  
deference to the disciplinary sanction imposed by an employer. 
40. In   County   Fair   Foods   (Pty)   Ltd   v   Commission   for   Conciliation,  
Mediation and   Arbitration (1999) 20 ILJ 1701 (LAC) at 1712­1713  
A­B Ngcobo AJP said the following:
"Given the finality of the awards and the limited power of the  
Labour   Court   to   interfere   with   the   awards,   commissioners  
must approach their function with caution. They must bear in  
mind   that   their   awards   are   final.   There   is   no   appeal   against  
their   awards.   In   particular,   commissioners   must   exercise  
greater   caution   when   they   consider   the   fairness   of   the  
sanction  imposed  by an employer. They should  not  interfere  
with   the   sanction   merely   because   they   do   not   like   it.   There  
must be a measure of deference to the sanction imposed by  
the   employer   subject   to   the   requirement   that   the   sanction  
imposed by the employer must be fair. Rationale for this is that  
it is primarily the function of the employer to decide upon the  
proper sanction ." 
41. At 1712 D – E   in the same judgment, Ngcobo AJP continued to  
say:
"In my view there is no reason, both in principle and logic, why  
the   approach   set   out   above   should   not   be   applicable   to  
commissioners, who are called upon to consider the fairness  
of   the   sanction   imposed   by   employers.   The   fact   that   the

proceedings   before   the   commissioner   take   the   form   of   a  
hearing   de   novo,   matters   not.   Where   an   employer,   upon  
investigation,   has   acted   fairly   in   imposing   the   sanction,   the  
commissioner   should   not   disturb   it.   The   mere   fact   that   the  
commissioner   may   have   imposed   a   somewhat   different  
sanction   or   a   somewhat   more   severe   sanction   that   the  
employer would have, is no justification for interference by the  
commissioner. The minds of equally reasonable people differ ".
42. Mr Orr further submitted that the second respondent's award was  
not   rational   in   the   sense   of   him   not   having   applied   his   mind  
seriously to the case and his reasoning was flawed in arriving at the  
conclusion that the fourth respondent's dismissal was substantively  
unfair. It was also argued that the second respondent's finding that  
the applicant's disciplinary code and procedure did not comply with  
the code of good practice was without substance.
43. I   agree   with   the   submissions   made   by   Mr   Orr   that   the   second  
respondent did not properly reason his way out by arriving at the  
conclusion  that  the  applicant's  dismissal  of  the  fourth  respondent  
was substantively unfair. I do so for the following reasons:
43.1 By   failing   to   appreciate   the   fact   that   the   proposed  
penalties set out in the applicant's disciplinary code and  
procedure   and   in   particular,   the   penalty   relating   to   the  
use of abusive language is only a guideline and that in  
appropriate   circumstances   such   as   in   this   case   even  
though   the   fourth   respondent   was   a   first   offender   the  
sanction of dismissal imposed by the applicant was not  
unfair;

43.2 Notwithstanding the second respondent's finding as well  
as Mr Cartwright concession that the words used by the  
fourth   respondent   were   abusive   and   had   racial  
overtones,   the   second   applicant   found   the   fourth  
respondent's   dismissal   to   have   been   substantively   fair  
because   of   the   " cavalier   fashion "   with   which   the  
applicant applied discipline.
43.3 The   second   respondent   improperly   and   unjustifiably  
interfered with the sanction of dismissal imposed by the  
applicant when it was not open for him to do so on the  
facts of this case;
44. In my view, no purpose would be served in remitting the matter to  
the first respondent to be considered by another commissioner. The  
second   respondent   should   have   upheld   the   dismissal   on   the  
grounds   that   there   was   good   reason   to   terminate   the   fourth  
respondent's employment.
45. In the result I make the following order:
45.1 The award of the second respondent is set aside.
45.1.1 The   dispute   between   the   applicant   and   the  
third   respondent   is   to   be   determined   as  
follows:
(a) The dismissal of the fourth respondent by the applicant  
is declared to have been for a fair reason;
(b) The third and fourth respondents are ordered to pay the  
applicant costs jointly and severally the one paying the

other to be absolved. 
L MODISE
ON BEHALF OF THE APPLICANT MR C ORR
INSTRUCTED BY  
WEBBER WENTZEL  
BOWENS
ON BEHALF OF THE THIRD AND FOURTH 
RESPONDENTS NUMSA
MR D O CARTWRIGHT
DATE OF HEARING 21 ST NOVEMBER 2002
DATE OF JUDGMENT         JULY 2003