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Article 83/2021

Labour Edge

In terms of s142A(2) of the LRA, the CCMA has the power to make a settlement agreement an arbitration award for the purpose of enforcement thereof, in terms of s143(1) of the LRA.  On the other hand, in terms of s158(1)(c) of the LRA, the labour court may make an arbitration award or any settlement agreement an order of court.  What are some of the differences between the approaches adopted in the aforesaid statutory provisions, recently identified by the labour court in National Union of Metalworkers of SA obo Kubane and Others v Kewberg Cables and Braids (Pty) Ltd (2019) 30 SALLR 218 (LC)?


In Kewberg Cables, the following was stated:

  1. the labour appeal court, in Fleet Africa (Pty) Ltd v Nijs (2017) 38 ILJ 1059 (LAC), however, sought to draw a clear distinction between s142A and s158(1)(c) in this proper context, where the court said the following:

‘[25]   The distinction between s158(1A) and s142A(1) is obvious. There is no way that these two amendment provisions can or should be read together as if they are mutually inclusive. Whilst, on the one hand, s158(1A) is concerned with the labour court making “any settlement agreement” an order of the court, on the other, s142A(1) pertains to the situation where the CCMA makes any “settlement agreement” an arbitration award. In other words, s142A(1) merely adds to the powers of the CCMA; whilst s158(1A) elaborates on the powers of the labour court in terms of s158(1)(c).’;

  1. the above dictum in Fleet Africa illustrated that proceedings before the CCMA under s142A are based upon a different cause of action to proceedings before the labour court under s158(1)(c) of the LRA. The one cannot operate to the exclusion of the other. In any event, it is all about enforcement. Section 142A leads to s143 and enforcement of the settlement agreement like it was an order of the labour court;
  2. s158(1)(c) leads to enforcement of the settlement agreement as an actual order of the labour court; and
  3. either way, enforcement of the payment of a monetary amount is done by way of execution through the sheriff, and enforcement of an obligation to act is done by way of contempt proceedings in the labour court. The only similarity between the two provisions is the enforcement aspect, but the basis giving rise to competent enforcement is different.

Precautionary suspensions

In the public sector, the Senior Management Service Handbook (SMS Handbook) directly addresses precautionary suspensions and the 60-day time limit.

Clause 2.7(2)(c) of the SMS Handbook provides that ‘If a member is suspended or transferred as a precautionary measure, the employer must hold a disciplinary hearing within 60 days. The chair of the hearing must then decide on any further postponement.’

Regulation 6 of the Local Government: Disciplinary Regulations Senior Managers, 2010 (Regulations) provides for the precautionary suspension of senior municipal employees and Regulation 6(6)(a) provides: ‘If a senior is suspended, a disciplinary hearing must commence within three months after the date of suspension, failing which the suspension will automatically lapse.’

What are the principles governing a determination of the question as to whether or not a senior municipal employee’s suspension automatically lapses in terms of the aforesaid Regulation 6(6)(a)?

Obviously, the answers to the aforesaid question are very relevant in the private sector where, firstly, a collective agreement regulates a similar process or, alternatively, such contractual rights have been created between the parties, to be enforced in terms of s77(3) of the BCEA.

In the previous article, we dealt with the consequences of a plant level collective agreement with a definite beginning and end date. We indicated to you that, in line with s23(2) of the LRA, and an analysis of the relevant case law, that, once such a collective agreement reaches its expiry date, it expires and is no longer of any force or effect. In this article, we deal with the scenario where a plant level collective agreement is concluded for an indefinite period and the employer gave notice to terminate same.

What are the consequences when a party to a plant level collective agreement, concluded for an indefinite time period, gives notice to terminate such collective agreement?

In terms of s23(2), a collective agreement binds, for the whole period of the collective agreement, every person so bound in terms of s23(1)(c) (the members of a registered trade union and the employers who are members of a registered employers’ organisation who are a party to the collective agreement, if the collective agreement regulates the terms and conditions of employment, or the conduct of the employers and employees) who was a member at the time it became binding, or who becomes a member after it became binding (irrespective of whether or not that person continues to be a member of such trade union or employers’ organisation for the duration of the collective agreement).

What is the relevant case law development as to a plant level collective agreement that has an expiry date, i e does such collective agreement continue to be of force and effect after such expiry date?