Article 17/2022

What are the consequences of agreement reached in respect of selection criteria to be used during a restructuring exercise?

What are the consequences of agreement reached in respect of selection criteria to be used during a restructuring exercise?

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Selection criteria must either be agreed upon or fair and objective.  Agreement is to be reached between the consulting parties (what s189(7) of the LRA means is that, where the consulting parties have agreed upon the selection criteria, the employer is obliged to use the agreed selection criteria to select employees to be dismissed, even if such criteria are not objective).

The consulting parties, for the purposes of s189(7) of the LRA, are the parties as set out in s189(1) of the LRA.

Within the hierarchy of the consulting parties provided in s189(1) of the LRA, once agreement has been reached with the true consulting party, no further agreements are required in respect of any of the other entities mentioned in such section.

Aunde South Africa (Pty) Ltd and Others v National Union of Metalworkers of South Africa [2012] 10 BLLR 945 (LAC)

Ketse v Telkom SA (Soc) Ltd and Others [2015] 4 BLLR 436 (LC)

NUMSA v South African Airways [2017] 9 BLLR 867 (LC)

AMCU v Royal Bafokeng Platinum Ltd and Others (2020) 31 SALLR 1 (CC); (2020) 41 ILJ 555 (LC)

How did the labour court, in Simunye Workers Forum v Registrar of Labour Relations, per Van Niekerk J, in terms of s111(3) of the LRA, on appeal, deal with the decision of the registrar refusing the application of the aforesaid trade union?

How do procedural fairness requirements relating to dismissals based upon misconduct (as well as incapacity), contained in the 1995 LRA, differ from the environment that preceded this Act?

The purpose of this article is to, firstly, analyse the latest developments in the above regard and, secondly, to determine some of the principles so applicable to each potential type of suspension.