JDG Trading v Sadiki and Others (JR925/02) [2005] ZALC 101; (2006) 27 ILJ 1152 (LC) (12 December 2005)

55 Reportability

Brief Summary

Labour Law — Review of arbitration award — Application for review of dismissal of employee for breach of banking procedures — Employee exchanged postdated cheque for cash, leading to dismissal — Arbitrator finding dismissal was harsh and not substantively fair, considering employee's clean record and lack of dishonesty — Court dismissing review application, finding no irrationality in arbitrator's decision.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT BRAAMFONTEIN
   
CASE NO:  JR925/02 
In the matter between 
JDG TRADING Applicant
and
G SADIKI                                                                        1 ST 
Respondent
THE COMMISSION FOR CONCILIATION,
MEDIATION AND ARBITRATION                                                 2 ND 
Respondent
BLIGNAUT, FRANSA                                                 3 RD 
Respondent
J U D G M E N T
REVELAS   J :   
[1] This is an application for review in terms of section 145 of the  
Labour Relations Act 66 of 1995 (“the Act”).     The applicant,  
the former employer of the third respondent, seeks to review an  
arbitration   award   made   by   the   first   respondent   ("The  
Arbitrator"), in favour of the third respondent.

[2] The third respondent was dismissed by the applicant for breach  
of certain procedures and what it argues was dishonesty.   It is  
common   cause   in   this   matter   that   the   applicant   exchanged   a  
postdated cheque, signed by her husband, for R2 000,00 cash,  
from the applicant and instructed her colleagues not to do the  
banking  on  the   Monday  as  the   cheque  was  postdated   for  the  
coming Tuesday.
[3] Since she had acted in this manner in front of her co­employees  
inter alia , a certain Ms Lufono, she was reported, charged and  
dismissed at a disciplinary hearing.   
[4] It   is   also   confirmed   that   in   terms   of   the   applicant's   banking  
procedures, banking of all cash received, be effected daily in  
terms of a written process.     In addition there was also a strict  
policy with regards to which cheques may be accepted and how  
all cheque transactions should be treated.   The third respondent  
was fully trained in, and fully aware of the provisions of such  
policies and procedures. This was one of the main reasons why  
the applicant felt, the third respondent should be dismissed.
[5] The third respondent required some funds for personal purposes,  
being to purchase cattle, and the sum involved was R2 000, 00.  
The   third   respondent   removed   this   sum   in   cash   from   the  
company funds on Saturday 12 May.   I have already stated that  
the sum was replaced by a postdated cheque, signed by the third  
respondent’s   husband   for   the   same   amount   dated   for   the  
Tuesday which was 15 May 2001.
[6] The   arbitrator   held   that   although   aggravating   circumstances  
were not presented in evidence, and at the disciplinary hearing,

that could not be held as fatal against the employer's case in as  
far as procedural fairness is concerned, as long as guidelines by  
Schedule   8   (Code   of   Good   Practice   were   followed,   and   they  
were.
[7] With regard to substantive fairness, it had been conceded from  
the beginning that the employee exchanged the postdated cheque for  
cash. In respect to substantive fairness, the Arbitrator found as follows:
"Having considered the facts globally, I determine the  
following:
1. That the consistency plea could not stand  
against   the   employer   as   same   is   based   on  
hearsay and no proof that the employee took an  
active initiative to have somebody discipline.
2. That I determined under the circumstances that  
the sanction of dismissal is harsh, taking the following into  
consideration.
2.1 The   transaction   was   not   done  
secretly   and   the   employee   was   always  
open about it.  (No act of dishonesty took  
place).
2.2 The   personal   circumstances,   for  
example,   service   with   a   clean   record  
proves that the employee could improve to  
avoid   transgressions   if   given   a   second  
chance."
[8] In essence, the applicant's case was that employers, rather than  
arbitrators, should give employees a second chance when they  
misconduct themselves.   That may be so, but in this particular

matter, there are other factors which I have to (and which the  
arbitrator did) take into account.
[9] In   this   application   for   review,   I   had   to   consider   whether   the  
arbitrator's   ultimate   conclusion   was   connected   to   the   facts  
before him or her. In this case, the applicant committed a serious  
breach of the applicant’s banking procedures. It is so, that in  
most   such   cases,   employers   would   be   quite   entitled   to,   and  
would   indeed   decide   to   dismiss   such   an   employee.       Other  
employers might take into account, as the arbitrator had done in  
this matter, that the employee had a long, clean service record  
and   that   she   had   not   acted   deceitfully.   The   arbitrator   also  
considered the suggestion that there was bad blood between Ms  
Lufono and the third respondent, before this incident.
[10] Argument was also presented on behalf of the applicant, that the  
third respondent had acted dishonestly, asking that the banking  
be held over until the Tuesday.     That may be an aggravating  
factor to some extent, but it is clearly not indicative of patent  
dishonesty as one would find in fraud or theft, as she did so  
openly. In these circumstances, the arbitrator’s finding was one  
of   a   reasonable   range   of   outcomes   and   is   not   irrationally  
disconnected to the facts.
[11] Even if I am wrong in finding that the Arbitrator did not act  
irrationally, there is a further factor which persuades me that this  
application for review should be dismissed, and that is that the  
applicant filed and served its review application in June 2002.  
The arbitration award is dated 14 May 2002.     The applicant  
therefore   brought   its   application   for   review   well   in   time.  
However,   thereafter   the   applicant   and   his   attorney   rested   on

their laurels and this review came before the court for hearing  
for the first time on 12 December 2005.   The previous time the  
matter was set down for hearing, was on 8 December 2005, but  
this time it was set down by the third respondent who wished  
the application for review to be dismissed due to the applicant's  
failure to expeditiously prosecute its review.
[12] I   am   not   convinced   by   any   of   the   reasons   presented   by   the  
applicant's attorney that there is an excuse for a delay of more  
than three years to persue a review application.     It has led to  
undue prejudice.     The Labour Court also has to take a stand  
against the employers who bring review applications and then  
embark on delaying tactics.     There is no time limit specified,  
during which a litigant should produce the record of arbitration  
proceedings in a review application, and that is where, in the  
court's experience, most delays occur. These type of abuses are  
used by several employers to avoid liabilities in terms of the  
awards that are made against them. It is with growing concern  
that   I   have   noticed   how   long   a   review   application   can   be  
dragged out by simply doing nothing about serving a record.  
Strong   reliance   is   usually   placed   on   alleged   defects   of   the  
CCMA’s administration and case management. Without going  
into the appropriateness or  otherwise, of such an assertion, it  
would appear that any form of mismanagement at the CCMA is  
manipulated to the advantage of those who wish to delay review  
proceedings.
[13] The application is therefore dismissed with costs.
_________________________
Judge Elna Revelas

Judge of the Labour Court
Date of Hearing: 08 December 2005
Date of Judgment: 12 December 2005
On behalf of the applicant:
Adv. W Hutchinson instructed by Snyman Attorneys
On behalf of the respondent:
Mr A Naude of Coxwell Steyn Vise and Naude Attorneys