NUMSA and Others v Pro Roof Cape (Pty) Ltd (LC156/03 , C156/03) [2005] ZALC 14; [2005] 11 BLLR 1126 (LC); (2005) 26 ILJ 1705 (LC) (2 August 2005)

60 Reportability

Brief Summary

Labour Law — Dismissal — Unprotected strike — Employees dismissed for participating in a strike due to non-payment of bonuses — Respondent's failure to comply with collective agreement regarding remuneration — Court finding that dismissal was unfair as employees had legitimate grievances and the strike was a response to the employer's breach of obligations.

I N   T H E   L A B O U R   C O U R T   O F   S O U T H   A F R I C A
H E L D   A T   C A P E   T O W N
CASE NO:  C156/03
In the matter between:
NUMSA AND 41 OTHERS                               Applicants
and
PRO ROOF CAPE (PTY) LTD                     Respondent
                                                                                                                                                     
JUDGMENT  
MURPHY, AJ
1. This   case   concerns   the   dismissal   of   the   individual   applicants   for  
participation   in   an   unprotected   strike   on   20   December   2002   at   the  
respondent’s factory in Atlantis.
2. The dispute has its origins in the failure by the respondent to honour its  
obligations to its workforce in respect of remuneration owing to them  
for services rendered.
3. The   respondent   falls   within   the   jurisdiction   of   the   Metal   and  
Engineering Bargaining Council. In  terms of  the  applicable  collective  
agreement the respondent is obliged to make payments to the council  
in respect of pension benefits, sick pay fund, administration expenses  
and a dispute resolution levy. Because the respondent found itself in

financial difficulty, it fell into arrears and did not pay the monies owing  
to the council for a substantial period. It also consistently underpaid the  
employees   and   failed   to   pay   them   their   annual   leave   bonus   (leave  
enhancement) as required by the collective agreement. In short, over a  
significant   period   of   time   the   respondent   acted   in   disregard   of   the  
collective   agreement   and   failed   significantly   to   meet   its   statutory  
obligations to its employees.
4. The council accordingly issued various compliance orders against the  
respondent   in   an   amount   of   approximately   R850   000.   The   negative  
implications   of   the   enforcement   of   such   an   order   prompted   the  
respondent to engage the first applicant (“NUMSA”) to find a solution.  
On   16   October   2002   NUMSA   addressed   a   letter   to   the   respondent  
effectively   agreeing   to   support   an   application   to   the   council   for   a  
retrospective   exemption   with   regard   to   some   of   the   amounts   owing.  
NUMSA’s concurrence was conditional  on the implementation of  the  
minimal wage as from January 2000, an adjustment in working hours  
and   an   undertaking   from   the   respondent   that   all   employees   would  
“receive their full bonuses and full holiday pay, calculated in terms of  
MEIBC on their actual rate”.
5. On  this  basis  the respondent  applied  to  the council   on  4  November  
2002 for an exemption for the period of 1 December 2000 to 31 August  
2002 in respect of the outstanding payments and attached proof of the  
employees   consent   to   the   arrangement.   On   9   December   2002   the  
council   addressed   a   letter   to   the   respondent   advising   it   that   the  
delegates of the Cape Regional Council had decided that the arrear  
pension   and   provident   fund   contributions   would   be   waived   for   the  
period for  the employees  who were  still  in employment  on condition

period for  the employees  who were  still  in employment  on condition  
that   each   one   signed   an   indemnity   form,   but   that   compliance   was  
required   in   respect   of   the   employees   no   longer   employed   by   the  
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company. In effect, the waiver amounted to a retrospective exemption  
and a license of exemption was issued to that effect on 9 December  
2002. It is not clear from the evidence what happened with regard to  
the other amounts owing to the council. Nevertheless, the employees  
who were still in employment at December 2002 forfeited 21 months of  
employer contributions to their pension fund. In addition they evidently  
had   been   paid   below   the   minimum   rate   and   had   not   received   their  
leave   enhancements   for   some   unspecified   time.   It   would   seem  
therefore that they agreed also to forgo these amounts in the interests  
of the ongoing viability of the respondent. Subsequent events suggest  
that   their   willingness   to   do   so   was   not   without   some   measure   of  
rankling legitimate grievance. 
6. For reasons not entirely evident, neither party presented its case as  
fully as might ordinarily have been expected. From the limited evidence  
before me it is safe to say that industrial relations at the respondent  
were   not   happy   and   appear   to   have   been   poorly   managed.   Around  
about   the  same  time  that   the   issues  of   underpayment  and  the  non­
payment   of  pension  benefits   were  under   discussion,   there   were  two  
work   stoppages.   Other   than   to   say   that   the   stoppages   related   to  
refusals to work overtime, no evidence was led regarding their nature,  
duration, cause or effects. The fact that no ultimatums were issued and  
that no immediate disciplinary action arose out of them suggests that  
they were of limited duration and of inconsequential effect.
7. On 13  December 2002 a dispute arose which related directly to  the  
issue of the respondent’s failure to pay leave enhancements. Again the  
details furnished in evidence are somewhat sketchy and incomplete. Dr  
Deon   Jordaan,   a   human   resources   consultant   employed   by   an

Deon   Jordaan,   a   human   resources   consultant   employed   by   an  
employers organization, testified on behalf of the respondent that the  
stoppage occurred as a result of an employee taking leave on that date  
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being issued with a pay slip which did not reflect payment of the leave  
enhancement bonus. The respondent originally had intended to close  
down   the   factory   for   the   year   end   on   13   December   2002,   but   an  
agreement was reached to work until 20 December 2002. This appears  
to have led to some confusion and disagreement about when the leave  
bonus would in fact be paid. When the bonuses were not paid on 13  
December, the workers refused to work on Saturday 14 December. Nor  
did they work on Monday 16 December, a public holiday. When some  
of the workers returned to work on Tuesday 17 December, the union  
intervened constructively and brokered an agreement. In order to make  
up for lost production, the workers agreed to work day and night shifts  
through to the end of Friday 20 December 2002. As I have said, the  
details of these stoppages are somewhat incomplete, making it difficult  
to pronounce upon the exact nature of the stoppages, the duration of  
them   on   the   days   in   question   and   the   precise   effects   on   the  
respondent’s   business.   Mr   Simon   Arries,   an   organizer   employed   by  
NUMSA, testified that on 6 December 2002 the union had agreed with  
Mr. Ismael Bham, a senior manager of the respondent, that the leave  
enhancement would indeed be paid on 13 December 2002. Arries thus  
confirmed   Jordaan’s   testimony   that   the   respondent’s   failure   to   pay  
essentially led to the subsequent stoppages. 
8. As   I   have   said,   on   17   December   2002   the   union   intervened   and   the  
workers went back to work some time on that day. On the same day  
Arries wrote a letter to Bham recording an agreement arising out of the  
union’s   intervention   in   the   stoppage.   Some   doubt   was   cast   upon   this  
letter   in   cross­examination,   due   to   the   fact   that   it   had   not   been  
discovered   until   the   commencement   of   the   trial   and   no   corroboration

discovered   until   the   commencement   of   the   trial   and   no   corroboration  
exists   of   it   ever   having   been   sent.   Arries   nonetheless   stood   by   his  
testimony that the letter reflected the agreement reached between the  
union and the respondent on 17 December 2002 regarding the stoppage  
4

on that date and the way forward regarding the payment of the leave  
bonus. The body of the letter reads as follows:
RE: WORK STOPPAGE RESOLUTION.
The   intervention   of   the   Atlantis   Local   Office   has   resulted   in   the   successful  
resolution of the work stoppage of even date. Workers have returned to work,  
by 12H30, based on the following commitments by management:­
1) Bonuses (Leave Enhancement Pay) and all other monies due will be paid  
on Friday, 20 December 2002.
2) A notice on a Pro Roof letterhead will be posted on the Notice Board with  
the content as per Point 1 above.
3) Management will consider knocking off early on Friday, 20 December 2002  
based on progress made in production.
4) Workers will receive dummy pay slips, by close of business Wednesday, 18  
December   2002,   indicating   the   amount   each   individual   will   receive   with  
regards to wages, leave pay and leave enhancement pay (bonus).
5) Management will consider dealing with the issue of Disciplinary Action in  
January 2003.
6) Management undertakes to deal with the Foreman, through its disciplinary  
procedure, who it is alleged has created the problem.
7) The union commits to educate its members with regards to the procedures  
to follow in the event of a grievance to avoid future unprocedural action.
We deem the above as a basis for future sound industrial relations and urge  
that management adhere to its commitments as we commit to do likewise.
9. Arries justified the agreement regarding dummy pay slips as  
being the best means, in the light of the respondent’s poor  
payment record, of assuring the workers that everything was  
on track concerning the payment of the leave bonuses. Mr  
Allie Chafeker, the respondent’s accountant, testified that he  
would not have authorized the use of dummy pay slips as it  
was not good accounting practice and impractical most of all  
5

because it would have involved 4 or 5 hours additional work.  
Arries, however, stuck by his testimony that Bham had given  
such   a   guarantee.   Bham,   unfortunately,   because   he   has  
become indisposed, did not give testimony on behalf of the  
respondent.   Chafeker,   presumably   because   he   was   in   no  
position   to   do   so,   did   not   deny   that   Bham   had   given   the  
guarantee. 
10. As it turns out, the dummy pay slips were not issued on 18  
December 2002. Then, when they were not paid the bonus  
towards   the   end   of   their   shift,   the   employees   working   the  
night shift of 19–20 December 2002 stopped work at 06H00  
instead of 07H00 and demanded to be paid the bonus. When  
the   morning   shift   employees   (due   to   take   over   at   07H00)  
arrived they joined their colleagues in refusing to work until  
the bonuses were paid. It was this stoppage that ultimately  
led to the individual applicants’ dismissal. 
11. The   key   actors   in   managing   the   events   surrounding   the  
dispute   that   day   were   Mr.   Mike   Louw   of   NUMSA   and   Mr.  
Ismael   Bham   of   the   respondent.   Neither   gave   evidence.  
Bham,   as   I   have   said,   was   indisposed.   No   reason   was  
advanced   for   Louw’s   unavailability.   Dr   Deon   Jordaan,   the  
respondent’s   consultant,   had   some   involvement,   but   being  
on holiday in Gauteng on the day in question was restricted  
at the time of the stoppage to advising the respondent and  
discussing matters with Louw telephonically. Arries attended  
the respondent’s premises for a short period with Louw, on  
the day in question, but had no direct dealings with Jordaan.  
The   only   other   witness   to   testify   was   Chafeker   who   had  
limited first hand knowledge of the events.
6

12.   Arries saw the cause of the strike as fairly straightforward:  
the   respondent   had   failed   to   pay   the   bonuses   for   the  
previous   years,   had   a   poor   record   with   regard   to   paying  
benefits   in   general,   had   reneged   on   an   agreement   to   pay  
bonuses   on   13   December   2002,   had   failed   to   honour   the  
agreement   to   issue   dummy   pay   slips   and   ultimately  
appeared to be reneging on the agreement to pay the bonus  
on 20 December 2002.
13. Both Chafeker and Jordaan testified that the respondent had  
every intention to pay the bonus at the end of the day shift on  
20 December 2002. Chafeker’s evidence on the point, to my  
mind,   was   not   entirely   satisfactory.   Initially   he   stated  
unequivocally   that   the   bonuses   were   put   into   the   pay  
envelopes in cash and were in fact paid at the end of the day  
shift  on  20  December 2002.   When  asked  whether  he  was  
aware   of   the   physical   payment   of   the   bonuses,   he   replied  
that the envelopes were completed in his office and paid. He  
later acknowledged that the striking workers who left early in  
response to an ultimatum, advising them of the termination of  
their employment, were in fact only paid their bonuses some  
time in January. He also conceded that it would have been  
possible to prepare the bonus pay packets on the previous  
day,   Thursday   19   December   2002,   and   tendered   no  
convincing explanation for why he had not done so. Nor did  
he justify the necessity for the night shift employees to wait  
for payment until after completion of the day shift. 
14. Jordaan   also   offered   no   plausible   explanation   for   why   the  
night  shift  employees  were  expected to  wait.   He  claims  to  
7

have told Louw telephonically that payment would be made  
at 17H00. His evidence is at variance on this point with how  
Arries   understood   the   situation.   While   accepting   that   the  
relationship   between   NUMSA   and   Jordaan   was   generally  
good,   Arries   could   not   confirm   whether   a   telephone  
conversation between Louw and Jordaan had indeed taken  
place on the morning in question. He confirmed that he and  
Louw   had   attended   a   meeting   with   Bham   on   the  
respondent’s premises, during which they advised Bham that  
in   terms   of   the   applicable   collective   agreement   the   bonus  
was required to be paid at the end of a shift. He and Louw  
then   left   the   respondent’s   premises,   after   being   there   for  
about an hour or two, when Bham indicated to them that he  
was unable to guarantee that the bonuses would in fact be  
paid. Arries admitted that he had no knowledge of whether  
Jordaan   had   in   fact   given   an   assurance   to   Louw  
telephonically that the bonuses would indeed be paid at the  
end of the day shift. 
15.   Jordaan,   on   holiday   at   Hartebeespoort   Dam,   had   the  
unenviable   task   of   managing   the   events   taking   place   at  
Atlantis. His version is that after speaking to the managing  
director and to Bham, he conveyed to Louw that the bonuses  
would in fact be paid. He claimed Louw told him that workers  
were not prepared to listen. He then drafted and sent by e­
mail   two  separate ultimatums  to be issued to  the workers,  
which were distributed to them. The first ultimatum issued at  
09H25 read as follows:
8

NOTICE
FIRST NOTICE
ULTIMATUM TO STRIKING EMPLOYEES OF
PRO ROOF CAPE (PTY) LTD
DATE: 20 DECEMBER 2002 TIME: 9:25
YOU   ARE   HEREBY   ADVISED   THAT   YOU   ARE   ENGAGED   IN   UNPROTECTED  
INDUSTRIAL ACTION IN THAT YOU HAVE NOT FOLLOWED THE PROCEDURES  
LAID DOWN BY THE LABOUR RELATIONS ACT.
YOU   HAVE   ALREADY   BEEN   GIVEN   A   VERBAL   ULTIMATUM   TO   RETURN   TO  
WORK BY 8H00 TODAY, BUT YOU HAVE CHOSEN TO IGNORE THIS.
YOU ARE HEREBY ADVISED THAT YOU ARE TO RETURN TO WORK BY 10H30  
ON 20 DECEMBER 2002.
THE   COMPANY   RESERVES   ITS   RIGHT   TO   TAKE   DISCIPLINARY   ACTION  
AGAINST YOU. SHOULD YOU FAIL OR REFUSE TO RETURN TO WORK BY THE  
ABOVE  TIME,  THEN  SUCH  DISCIPLINARY ACTION  COULD  RESULT  IN  YOUR  
DISMISSAL.
16. Prior to the stipulated time period expiring, another ultimatum  
was issued at 10H00 which read:
FINAL NOTICE
FINAL ULTIMATUM TO EMPLOYEES PARTICIPATING IN AN 
UNPROTECTED STRIKE AT
PRO ROOF CAPE (PTY) LTD
DATE : 20 DECEMBER 2002 TIME : 10:00
DESPITE   HAVING   BEEN   ISSUED   WITH   AN   ULTIMATUM   ON   17   AND   20  
DECEMBER   2002   TO   RETURN   TO   WORK   AS   PER   NORMAL,   YOU   HAVE  
IGNORED   THE   ULTIMATUM   AND   HAVE   PERSISTED   IN   CARRYING   ON   WITH  
YOUR   UNPROTECTED   ACTIONS.   MANAGEMENT   HAS   EXPLAINED   TO   YOU  
THAT   SHOULD   YOU   CONTINUE   WITH   THESE   ACTIONS,   YOU   ARE   PLACING  
9

YOUR JOB IN JEOPARDY AND YOU COULD FACE DISMISSAL AS YOU HAVE  
ALREADY   BEEN   ADVISED   THAT   DISCIPLINARY   ACTION   MAY   BE   TAKEN  
AGAINST YOU.
YOU ARE HEREBY BEING GIVEN A FINAL ULTIMATUM TO RETURN TO WORK  
BY 11H00 ON 20 DECEMBER 2002 AND IF YOU FAIL TO DO SO YOU WILL BE  
DISMISSED.
DURING THIS PROCESS YOU WERE AT ALL TIMES ASSISTED BY THE UNION  
OFFICIALS,   AND   THEY   INFORMED   YOU   THAT   THESE   ACTIONS   ARE  
UNPROTECTED.
17. When   the   workers   failed   to   comply   by   11H20   they   were  
issued   with   a   notice   terminating   their   employment   which  
stated: 
NOTICE
TO ALL EMPLOYEES
UNPROTECTED WORK STOPPAGE/STRIKE AT
PRO ROOF (PTY) LTD
DATE : 20 DECEMBER 2002 TIME : 11:20
ON 17 TH  AND  20 TH  DECEMBER 2002, THERE WAS AN UNPROTECTED  WORK  
STOPPAGE/STRIKE   BY   EMPLOYEES   OF   THIS   COMPANY.   YOU   WERE   ALL  
ADVISED THAT SUCH ACTIONS ARE NOT ONLY A CONTRAVENTION OF THE  
LAW, BUT ALSO OF THE COMPANY’S DISCIPLINARY CODE. SUCH ACTIONS  
ALSO   CAUSE   CONSIDERABLE   HARM   TO   THE   RELATIONSHIP   BETWEEN  
MANAGEMENT AND THE EMPLOYEES CONCERNED.
EMPLOYEES ARE HEREBY ADVISED THAT SUCH ACTIONS WILL NO LONGER  
BE TOLERATED. YOU ALSO CHOSE TO IGNORE THE FINAL ULTIMATUM TO  
RETURN TO WORK BY 11H15 OR FACE DISMISSAL.
SHOULD EMPLOYEES DECIDE TO TAKE THE LAW INTO THEIR OWN HANDS  
AND   RESORT   TO   ILLEGAL   ACTIONS,   THEN   MANAGEMENT   WILL   HAVE   NO  
10

OTHER OPTION BUT TO TAKE STRICT ACTION AGAINST THOSE OFFENDERS.  
TAKE NOTE THAT YOUR SERVICES ARE HEREBY TERMINATED IN TERMS OF  
THE FINAL ULTIMATUM ISSUED TO YOU AT 10H30.
18. What is noticeable in all three notices is the absence of any  
reference   to   the   bonus   issue.   The   tone   in   all   of   them   is  
adversarial   and   no   assurance   is   given   that   the   bonuses  
would   be   paid   at   the   end   of   the   day,   or   at   least   that   an  
attempt   would   be   made   to   that   end.   Accepting   Chafeker’s  
evidence that the bonuses could in fact have been paid by  
late   the   previous   day,   the   best   means   of   diffusing   the  
situation surely would have been to confirm the undertaking  
to   pay   in   the   written   notices   to   the   workers.   Insofar   as  
Jordaan   suggested   that   the   approval   of   the   managing  
director   was   required   in   this   regard,   and   that   he   was  
immediately   unavailable,   this   is   curiously   at   odds   with   the  
common   cause   fact   that   an   undertaking   had   been   given  
earlier in the week to pay the bonus on 20 December 2002.  
Unwittingly,   therefore,   it   would   seem,   Jordaan   in   effect  
corroborated Arries’ evidence that Bham could not give an  
assurance or guarantee of payment during the meeting on  
the   morning   of   20   December   2002,   and   possibly   thereby  
fueled a perception among the workers that the employer did  
indeed   intend   to   renege.   Even   allowing   for   the   telephonic  
undertaking   Jordaan   made   to   Louw,   given   the   employer’s  
history  of   non­payment  and  underpayment,   any  conclusion  
by the employees that they were about to be short changed  
yet again was understandable, if not reasonable. 
19. After receiving the third notice, the striking employees left the  
premises. It is common cause that the striker’s conduct was  
not   characterized   by   violent   or   unruly   behaviour.   They  
11

proceeded   with   the   action   calmly   and   with   a   measure   of  
restraint. The effect of the industrial action was the loss of  
production for the entire day shift and an hour of the night  
shift.   As appears  from  the union’s letter of 17 December,  
there was a possibility that the day shift, being the last shift  
of the year, had it been worked might have been a shortened  
one.
20. Some time later on 20 December 2002, Jordaan, presumably  
having   had   time   to   reflect   upon   the   possibly   precipitous  
nature   of   the   dismissal,   addressed   a   letter   to   Louw   at  
NUMSA’s offices. In it he said:
12

Met verwysing na die onbeskermde optrede deur u lede by Pro Roof Cape word ‘n  
vergadering voorgehou op die 7de Januarie 2003 on 09H00 te Pro Roof Cape ten  
einde die aangeleentheid te bespreek. Ten opsigte hiervan word u versoek om te  
bevestig dat u die vergadering sal bywoon.
Tydens die vergadering sal u ‘n geleentheid gegun word om aan te voer waarom die  
ontslag van u lede nie gefinaliseer moet word nie.
21. The letter is somewhat ambiguous. Consistent with the final  
notice it assumes that dismissals had in fact occurred, but  
leaves   open   the   opportunity   for   the   finalization   of   those  
dismissals. The union’s position is that the dismissals in fact  
and law were effected abruptly on 20 December 2002. The  
respondent,   however,   asserts   that   they   were   only   finalized  
after disciplinary hearings held on 13 and 14 January 2003.  
The   union’s   interpretation   seems   to   me   to   be   the   more  
accurate   version.   The   final   notice   issued   at   11H20   on   20  
December 2002 was unequivocal in the final sentence where  
it stated clearly and in bold: “take note that your services are  
hereby terminated in terms of the final ultimatum issued to  
you at 10H30”. The letter of later that day, as I have said,  
refers to the dismissals as a  fait accompli  that needed to be  
finalized. 
22. Despite   this,   hearings   were   indeed   held   in   mid   January,  
which resulted in the selective reinstatement of some of the  
workers   on   justifiable   grounds.   In   as   far   as   I   am   able   to  
ascertain from the limited evidence presented, none of the  
striking workers returned to work prior to the hearings of 13  
and 14 January 2003. 
13

23. The hearing was chaired by Jordaan. The charge sheets and  
his   decision   reflect   that   the   workers   were   charged   with  
participating   in   unprotected   strike   action,   perceived   as  
intermittent   from   14   December   to   20   December   2002.   As  
already   explained,   the   year­end   had   originally   been  
scheduled   for   Friday   13   December   2002   and   when   the  
bonuses were not paid on that date the workers engaged in  
a   stoppage.   As   part   of   the   agreement   to   recommence   on  
Tuesday 17 December, after the constructive intervention of  
the union, and in order to make up for lost production, the  
workers   agreed   to   work   day   and   night   shifts   through   to  
Friday 20 December 2002, which as seen ended prematurely  
when the bonus was not paid to the night shift workers.
24. In   his   decision   Jordaan   states   that   the   losses   from   the  
industrial action amount to R350 000 for the period. Neither  
he   nor   Chafeker   was   able   to   substantiate   that   loss  
convincingly or in any meaningful way during their testimony.  
Considering that total production time lost amounted to one  
short   shift,   the   figure   of   R350   000   appears   to   be  
exaggerated. Without proper substantiation and accounting it  
cannot be accepted as correct. 
25. Despite a somewhat confusing line of reasoning, Jordaan for  
all intents and purposes (taking into account the nature of the  
dispute, the timing of the action of 20 December 2002, the  
failure to heed the ultimatums and the degree of individual  
participation)   upheld   the   dismissals   of   some   of   the  
employees and reinstated others. Some weeks later, 9 of the  
dismissed   employees   who   had   not   been   reinstated   at   the  
hearing, were selectively re­employed pursuant to no clear  
14

objective  selection   criteria.   The   number   of   employees   who  
lost   their   employment  was   reflected   in  an  annexure   to   the  
statement   of   case   as   being   the   44   individual   applicants,  
admitted   to   be  such   by  the   respondent  in   its  response.  In  
Annexure   A   to   his   supplementary   heads   of   argument,  
submitted   after   the   close   of   the   trial,   the   applicants’   legal  
representative   however   reduced   this   number   and   has  
identified   22   applicants,   who   I   presume   to   be   those   in  
respect of whom relief is still sought.
26. As   far   as   I   can   ascertain   from   Jordaan’s   reasoning,   the  
dismissals were in response to the unprotected action of 20  
December 2002 though the other actions forming part of the  
history   of   the   dispute   were   an   important   consideration   in  
reaching his decision. 
27. The   respondent   has   attempted   to   make   something   of   the  
union’s   failure   to   participate   in   the   hearings   (conducted   in  
groups   of   5   with   each   employee   being   afforded   an  
opportunity   to   address   the   employer   individually).   The  
employees were however represented by shop stewards. For  
that reason, in my view, not much turns on the union’s non­
participation,   which   I   understand   it   justified,   rightly   or  
wrongly, on the basis of its reluctance to legitimize a process  
it considered illegitimate.
28. The   union,   on   behalf   of   its   members,   contends   that   the  
dismissal of the individual applicants was both procedurally  
and substantively unfair. 
29. Because   the   employees’   action   constituted   a   concerted  
15

refusal to work for the purpose of remedying a grievance or  
resolving a dispute in respect of their leave enhancements, I  
am   persuaded   that   their   conduct   indeed   amounted   to   “a  
strike”   as   contemplated   in   the   definition   of   that   term   in  
section   213   of   the   Labour   Relations   Act.   Moreover,   it   is  
obvious that the strike was not in accordance with section 64  
of the LRA in that the issue in dispute was not referred to the  
bargaining council, nor had a certificate been issued stating  
that   the   dispute   remained   unresolved.   In   addition,   the  
employees   did   not   give   48   hours   notice   of   the  
commencement   of   the  strike   to   the  employer.   Accordingly,  
the   action   was   indeed   an   unprotected   strike   and   to   that  
extent is deserving of censure. 
30. Section   68(5)   of   the   LRA   provides   that   participation   in   a  
strike that does not comply with the provisions of section 64,  
or   conduct   in   contemplation   or   in   furtherance   of   it,   may  
constitute a fair reason for dismissal. In determining whether  
or not such a dismissal is fair, this court is enjoined to have  
regard to the Code of Good Conduct in Schedule 8. Item 6(1)  
of   the   Code   provides   that   the   determination   of   the  
substantive   fairness   of   a   dismissal   in   the   circumstances  
should be done in the light of the facts of the case, including  
the   seriousness   of   the   contravention   of   the   Act,   attempts  
made to comply with the Act and whether or not the strike  
was in response to unjustified conduct by the employer. Item  
6(2)   deals   with   the   procedural   requirements   of   a   fair  
dismissal for striking workers and provides that prior to the  
dismissal   the   employer   should,   at   the   earliest   opportunity,  
contact a trade union official to discuss the course of action it  
intends to adopt. The employer should also issue ultimatums  
16

in   clear   and   unambiguous   terms   that   should   state   what   is  
required of the employees and what sanction will be imposed  
if   they   do   not   comply   with   the   ultimatum.   The   employees  
should be allowed sufficient time to reflect on the ultimatum  
and to respond to it, either by complying with it or rejecting it.  
It is generally accepted that the Code is not exhaustive and  
ought   not   to   be   applied   mechanistically.   Other   relevant  
considerations   include   the   duration   of   the   strike,   the   harm  
caused by the strike, the legitimacy of the strikers’ demands,  
the conduct of the strikers and the timing of the strike.
31. Although   the   issue   of   the   leave   enhancements   strictly  
speaking is a rights issue, one cannot get away from the fact  
that   in   this   instance   the   employer’s   conduct   regarding   the  
payment   of   remuneration   to   its   employees   fell   below   what  
might   reasonably   be   expected   and   this   contributed  
significantly to a loss of trust in its industrial relations with its  
workforce.   The   failure   to   pay   the   employees   significant  
amounts   due   to   them   contractually   and   statutorily   would  
naturally have led to a loss of trust and hostile perceptions  
towards   the   employer.   Even   accepting   that   the   employees  
were   not   entitled   to   assume   that   the   leave   enhancement  
would  be paid  on 13 December 2002, once the issue had  
reared  its head in the way it did,  it was incumbent on the  
respondent to ensure that bonuses were paid appropriately  
and timeously on 20 December 2002, in accordance with the  
agreement   previously   reached   with   the   union.   It   was  
common cause that there was no intention to pay the night  
shift  of 19­20 December 2002  at the end of the  shift.  The  
employer’s   inability   to   see   the   unreasonableness   of  
expecting the night shift employees to wait until the end of  
17

the day shift for their bonuses is an indication of the inexpert  
manner in which it conducted its industrial relations. Given  
what   had   gone   before,   its   actions   were   nothing   less   than  
provocative.   Moreover,   I   accept   Arries’   version   that   Bham  
was unable to give the guarantee that the bonuses would be  
paid at the end of the day shift. This, as I have indicated, was  
unwittingly corroborated by Jordaan in his evidence and is  
further supported by the fact the nothing in the three notices  
distributed to the workers gave any such guarantee. In the  
light   of   the   respondent’s   prior   reprehensible   conduct,   the  
entire situation could have been avoided had the respondent  
simply   given   a   written   guarantee   and   distributed   it   to   the  
workforce   immediately   in   response   to   the   stoppage   in   the  
early   morning.   Jordaan   claimed   that   he   gave   a   guarantee  
telephonically   to   Louw,   However,   this   is   at   odds   with   his  
testimony that he needed the authorization of the managing  
director, despite an earlier agreement having been reached.  
Had he indeed given that guarantee, the question has to be  
asked   why   that   was   also   not   communicated   in   the   written  
notices. In the premises, I am persuaded that the employer’s  
provocative   conduct   contributed   significantly   to   the   strike  
action and mitigates its unprocedural nature. 
32. The   employees’   conduct   on   the   other   hand,   though   not   in  
compliance   with   the   LRA,   was   not   violent   or   unruly.   They  
exercised restraint and limited their action to downing tools  
and refusing to work the shift, which they had agreed to in  
order to make up for lost production. It is evident that they  
were   aggrieved   that   their   bona   fides   and   cooperative  
approach to the employer was not being reciprocated. 
18

33. There is no cogent evidence as to the loss caused by the  
stoppage   and   it   accordingly   may   be   assumed   to   be   fairly  
minimal   in   the   circumstances.   The   strike   was   of   limited  
duration   and   there   was   no   damage   to   the   respondent’s  
premises or equipment. 
34. In   sum,   the   employees   showed   some   forbearance   and  
accommodation in relation to the employer’s illegal conduct.  
What   they   assumed   to   be   the   employer’s   reneging   on   20  
December was probably the final straw. Unquestionably, the  
demand of the strike was legitimate, albeit that it related to a  
rights dispute. Nor was the timing of the strike calculated to  
maximize harm. It was a responsive strike embarked upon in  
reaction to the employer’s unsatisfactory conduct. It endured  
for a mere few hours before the employees left the premises  
peacefully in response to the ultimatums and the notice of  
termination issued to them. 
35. Considering   that   the   employees   did   not   engage   in   any  
unacceptable behaviour, there does not seem to have been  
any justifiable reason for the employer to have proceeded to  
the dismissals at the pace it did. More time should have been  
allowed to reflect on the ultimatums once an undertaking had  
been given that the bonuses would be paid. The whole sorry  
affair could have been avoided by the provision of more time  
and information by the employer.
36. Although   the   respondent   can   be   commended   for   holding  
hearings   sometime   after   the   dismissals,   such   hearings  
essentially   amounted   to   an   exercise   in   selective   re­
instatement (or possibly an appeal – in which event it was  
19

inadvisable for Jordaan to have chaired them). However, the  
later   selective   re­employment   of   9   of   the   dismissed  
employees   who   were   not   selectively   re­instated,   on   the  
limited evidence available, seems to have been done without  
any ascertainable objective or fair criteria. This leads to the  
inference   that   the   employer   did   not   view   the   employees’  
conduct around the strike as sufficiently serious to justify the  
permanent non re­employment of all the strikers. 
37. In   the   premises,   I   am  persuaded  that  the  dismissal   of  the  
strikers   was   indeed   both   procedurally   and   substantively  
unfair. In terms of section 193 of the LRA the primary remedy  
in   such   instances   is   re­instatement.   The   respondent  
presented   no   evidence   or   argument   to   the   effect   that   the  
remedy in the event of a finding of unfair dismissal should be  
re­employment   or   compensation.   There   is   no   evidence   to  
suggest   that   the   circumstances   surrounding   the   dismissal  
were such that a continued employment relationship would  
be   intolerable.   Nor   is   there   any   evidence   that   it   is   not  
reasonably   practicable   for   the   employer   to   re­instate   the  
employees.   Accordingly,   the   remedy   of   re­instatement  
normally should apply. However, in his supplementary heads  
of argument, filed in writing some days after the conclusion  
of   the   trial,   the   applicants’   legal   representative   cryptically  
identified   that   certain   individual   applicants   would   prefer  
compensation rather than reinstatement. In terms of section  
193(2)(a)   of   the   LRA   it   is   not   obligatory   to   order   re­
instatement   in  respect   of   these  employees.   On   account   of  
the   manner   in   which   this   has   been   done,   there   is   no  
evidence and no submissions have been made regarding the  
amount   of   compensation   such   applicants   should   receive.

amount   of   compensation   such   applicants   should   receive.  
20

The order that follows takes account of this difficulty.
38. Considering   the   continuation   of   an   industrial   relationship  
between the parties, I am disinclined to make a costs order.
39. In the light of the foregoing, I make the following orders:
i.The dismissal of the individual applicants is declared  
to have been procedurally and substantively unfair.
ii.The respondent is directed to re­instate the following  
individual   applicants   on   the   same   terms   and  
conditions of employment that prevailed at the time  
of their dismissal on 20 December 2002: W Nete, D  
Ngadlela,   P   Mofekeng,   S   Dyantyi,   P   Ngqubeka,   I  
Dyanti, J Magijima, J Mofokeng, L Rigala, S Pheko,  
E Jankie, E Magawulana, and M Mxaba.
iii.The individual applicants in paragraph (ii) above are  
directed to report for duty on 10 August 2005. 
iv.The   respondent   is   directed   to   pay   the   applicants  
named in paragraph (ii) all back pay due to them for  
the period 21 December 2002 until 10 August 2005  
on or before 31 August 2005 together with interest at  
the prescribed rate.
v.The matter is postponed to a date to be determined  
by the Registrar for the purpose of determining the  
amount   of   compensation   payable   to   the   individual  
applicants   seeking   compensation   as   identified   in  
21

Annexure A of the Applicants’ Supplementary Heads  
of Argument filed on 6 May 2005.
vi.There is no order as to costs.
MURPHY, AJ
Date of hearing:  May 2005
Date of Judgement: 2 August 2005
Applicants’ legal representative: Mr. J Vuso of Nalane Manaka Inc
Respondent’s   legal   representative:   Mr.   W   Jacobs   of   Jacobs   and  
Associates
22