Article 49/2021

Labour Edge

How did the labour court recently, in Civil and Power Generation Products (Pty) Ltd v CCMA and Others (2019) 30 SALLR 170 (LC), deal with the issue as to whether or not the requirement of reasonableness (when reviewing an arbitration award) has been met?

In Duncanmec (Pty) Ltd v Gaylard NO and Others 2018 (6) SA 335 (CC); (2018) 39 ILJ 2633 (CC); [2018] 12 BLLR 1137 (CC), at paragraphs [42]–[43], the court succinctly summarised the test as follows:

‘This test means that the reviewing court should not evaluate the reasons provided by the arbitrator with a view to determine whether it agrees with them. That is not the role played by a court in review proceedings. Whether the court disagrees with the reasons is not material.

The correct test is whether the award itself meets the requirement of reasonableness. An award would meet this requirement if there are reasons supporting it. The reasonableness requirement protects parties from arbitrary decisions which are not justified by rational reasons.’

To what extent is the practice manual of the labour court binding on all parties and the labour court?

The institution of review proceedings does not suspend the operation of an arbitration award unless security is furnished to the satisfaction of the court in terms of s145(8) of the LRA.  On what basis did the labour appeal court recently resolve the conflict between various labour court judgments interpreting the stay of enforcement of arbitration awards pending review proceedings?

What are the requirements to be met for s158(1)(c) of the LRA to be applicable (dealing with the jurisdiction of the labour court) to make an arbitration award or settlement agreement an order of court?