Article 69/2021

Labour Edge

What are the requirements to be met for s200B of the LRA to be applicable?


The labour appeal court, in Association of Mineworkers and Construction Union and Others v Buffalo Coal Dundee (Pty) Ltd and Another [2018] 9 BLLR 837 (CC), considered this section of the LRA thus:

‘[28]   The party who wants to invoke s200B must not only show that the persons are carrying on or conducting an associated or related business but also that the intent or effect of doing so is or was to directly or indirectly defeat the purpose of the Act or any employment law. In this matter, the appellants succeeded in showing that the respondents carried on associated or related business. They failed to prove that there was an intention to directly or indirectly defeat the purpose of the Act or any other employment law neither did they prove that the effect of the business arrangement was to indirectly or directly undermine the purpose of the Act or any other employment law. It therefore matters not, for the purposes of this judgment, whether s200B has a retrospective effect or not. We therefore do not have to decide that point.’

The purpose of this article is to highlight some of the principles underlying the legal position that the admission of trade union members outside such trade union’s scope is ultra vires and invalid.

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?