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ALERT
IN THIS
ISSUE
1 | EMPLOYMENT ALERT 30 November 2015
EMPLOYMENT
30 NOVEMBER 2015
CAN UNIONS STILL WASH THEIR HANDS OF
THE UNLAWFUL CONDUCT OF THEIR MEMBERS
DURING A STRIKE?
Our labour law jurisprudence has evolved to recognise the relationship of
guardianship between unions and their members. However, obligations arising from
the union and member relationship, such as ensuring compliance with picketing rules,
continue to be the subject of disputes before our courts, as was seen in the recent
case of in Verulam Sawmills (Pty) Ltd v AMCU (J1580/15) [2015] ZALCJHB 359.
In this case, the Association of
Mineworkers and Construction Union
(AMCU) engaged in a protected strike and
concluded a picketing rules agreement
in terms of s69 of the Labour Relations
Act, No 66 of 1995 (LRA) with Verulam
Sawmills (Employer) prior to the strike. The
agreement provided for an appointment of
a strike control convenor by AMCU.
During the course of the strike, the
striking employees (Employees) engaged
in conduct which violated the picketing
rules agreement. This led to the Employer
shutting down its operations. The
Employer wrote several letters to the
strike control convenor highlighting the
violation of the picketing rules. The strike
control convenor’s response was that the
Employees were addressed by an AMCU
official to comply with the picketing rules.
In response, the Employer wrote a letter
narrating all the events of breach of the
picketing rules agreement.
The Employer approached the Labour
Court for an urgent interdict and a punitive
cost order. An initial order was granted
compelling AMCU to comply with the
picketing rules and the parties agreed that
costs be reserved.
In Tsogo Sun Casinos (Pty) Ltd t/a
Montecasino v Future of SA Workers Union
& Others (2012) 33 ILJ 998 (LC), the Labour
Court expressed its displeasure against
unions that refuse to take all reasonable
steps to prevent unlawful conduct by its
members. Further, in Xstrata SA (Pty) Ltd
v AMCU & Others (J1239/13) [2014] the
Labour Court held that the perception
that a union has no obligation to control
its members during violent and unlawful
activities cannot be sustained. The court
found that there are four legal grounds
upon which a union is obliged to police its
members during a strike:
(i) section 17 of the Constitution;
(ii) the guardianship relationship between
the union and its members;
(iii) the collective bargaining relationship
between unions and employers; and
(iv) the process of engagement between
the parties.
Returning to the present case in
discussion, the court, pursuant to the
continued breach of the picketing rules by
the union, held that AMCU’s accountability
and potential liability for breach was
founded upon the picketing agreement
between the parties. Furthermore, the
court held that AMCU did not take all
reasonable steps to prevent the unlawful
conduct. The court looked at the strike
control convenor’s failure to investigate the
breach and the duty to maintain a positive
engagement with the Employer. It is this
failure that warranted the granting of a
punitive cost order.
This case reinforces the court’s attitude
towards union liability. Unions can no
longer simply wash their hands of the
unlawful conduct of their members.
Unions have to show that they took all
reasonable steps to address and prevent
unlawful conduct by its members. Their
failure to do so may, as seen in this and
other cases, result in harsh orders for costs
against the union.
Fiona Leppan and Bheki Nhlapho
This case reinforces the
court’s attitude towards
union liability. Unions
can no longer simply
wash their hands of the
unlawful conduct of
their members.
Our labour law jurisprudence has evolved to recognise the relationship of guardianship
between unions and their members. However, obligations arising from the union and
member relationship, such as ensuring compliance with picketing rules, continue to be
the subject of disputes before our courts, as was seen in the recent case of in Verulam
Sawmills (Pty) Ltd v AMCU (J1580/15) [2015] ZALCJHB 359.
CAN UNIONS STILL WASH THEIR HANDS OF
THE UNLAWFUL CONDUCT OF THEIR MEMBERS
DURING A STRIKE?
2 | EMPLOYMENT ALERT 30 November 2015
The court, pursuant to the continued
breach of the picketing rules
by the union, held that AMCU’s
accountability and potential liability
for breach was founded upon
the picketing agreement
between the parties.
CHAMBERS GLOBAL 2014 - 2015 ranks our Employment practice in Band 2: Employment.
Aadil Patel ranked by CHAMBERS GLOBAL 2015 in Band 2: Employment.
Hugo Pienaar ranked by CHAMBERS GLOBAL 2014 - 2015 in Band 2: Employment.
Fiona Leppan ranked by CHAMBERS GLOBAL 2015 in Band 4: Employment.
3 | EMPLOYMENT ALERT 30 November 2015
5We are the No.1 Law firm for
client service excellence
FIVE YEARS IN A ROW
WE SECURED THE BIG
#NO1DEALPARTNER
2014
No. 1 LAW FIRM
by M&A DEAL COUNT in
Africa and the Middle East
No. 1 AFRICAN LAW FIRM
by M&A DEAL VALUE
with 9.2 Billion USD
worth of deals
1st in M&A Deal Flow, 1st in M&A Deal Value,
1st in General Corporate Finance Deal Flow,
Legal Advisor - Deal of the Year.
1st in M&A Deal Flow, 1st in General Corporate
Finance Deal Flow,1st in General Corporate Finance
Deal Value, 1st in Unlisted Deals - Deal Flow.
1st in M&A Deal Flow, 1st in M&A Deal Value,
1st in Unlisted Deals - Deal Flow.
2014RANKED #1 BY DEALMAKERS
FOR DEAL FLOW 6 YEARS IN A ROW
1st in M&A Deal Flow, 1st in M&A Deal Value,
1st in General Corporate Finance Deal Flow.
2013
2012
2011
HIGHEST
RANKING
of Client Satisfaction
amongst African Firms
2013
Employment
Retrenchment Guideline
CLICK HERE TO FIND OUT MORE
Answering your pertinent questions around consultations, large-scale
retrenchments, facilitation vs non-facilitation, selection criteria, voluntary
separation packages and vacancies-bumping.
NEW
RELEASE
Aadil Patel
National Practice Head
Director
T +27 (0)11 562 1107
E aadil.patel@cdhlegal.com
Gillian Lumb
Regional Practice Head
Director
T +27 (0)21 481 6315
E gillian.lumb@cdhlegal.com
Mohsina Chenia
Director
T +27 (0)11 562 1299
E mohsina.chenia@cdhlegal.com
Fiona Leppan
Director
T +27 (0)11 562 1152
E fiona.leppan@cdhlegal.com
Hugo Pienaar
Director
T +27 (0)11 562 1350
E hugo.pienaar@cdhlegal.com
Samiksha Singh
Director
T +27 (0)21 481 6314,
E samiksha.singh@cdhlegal.com
Gavin Stansfield
Director
T +27 (0)21 481 6313
E gavin.stansfield@cdhlegal.com
Michael Yeates
Director
T +27 (0)11 562 1184
E michael.yeates@cdhlegal.com
Faan Coetzee
Executive Consultant
T +27 (0)11 562 1600
E faan.coetzee@cdhlegal.com
Kirsten Caddy
Senior Associate
T +27 (0)11 562 1412
E kirsten.caddy@cdhlegal.com
Nicholas Preston
Senior Associate
T +27 (0)11 562 1788
E nicholas.preston@cdhlegal.com
Ndumiso Zwane
Senior Associate
T +27 (0)11 562 1231
E ndumiso.zwane@cdhlegal.com
Anli Bezuidenhout
Associate
T +27 (0)21 481 6351
E anli.bezuidenhout@cdhlegal.com
Khanyisile Khanyile
Associate
T +27 (0)11 562 1586
E khanyisile.khanyile@cdhlegal.com
Katlego Letlonkane
Associate
T +27 (0)21 481 6319
E katlego.letlonkane@cdhlegal.com
Thandeka Nhleko
Associate
T +27 (0)11 562 1280
E thandeka.nhleko@cdhlegal.com
Jaydev Thaker
Associate
T +27 (0)11 562 1281
E jaydev.thaker@cdhlegal.com
Sihle Tshetlo
Associate
T +27 (0)11 562 1196
E sihle.tshetlo@cdhlegal.com
OUR TEAM
For more information about our Employment practice and services, please contact:
BBBEE STATUS: LEVEL TWO CONTRIBUTOR
This information is published for general information purposes and is not intended to constitute legal advice. Specialist legal advice should always be sought in
relation to any particular situation. Cliffe Dekker Hofmeyr will accept no responsibility for any actions taken or not taken on the basis of this publication.
JOHANNESBURG
1 Protea Place, Sandton, Johannesburg, 2196. Private Bag X40, Benmore, 2010, South Africa. Dx 154 Randburg and Dx 42 Johannesburg.
T +27 (0)11 562 1000 F +27 (0)11 562 1111 E jhb@cdhlegal.com
CAPE TOWN
11 Buitengracht Street, Cape Town, 8001. PO Box 695, Cape Town, 8000, South Africa. Dx 5 Cape Town.
T +27 (0)21 481 6300 F +27 (0)21 481 6388 E ctn@cdhlegal.com
©2015 0828/NOV
EMPLOYMENT | cliffedekkerhofmeyr.com

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Employment-Alert-30-November-2015

  • 1. ALERT IN THIS ISSUE 1 | EMPLOYMENT ALERT 30 November 2015 EMPLOYMENT 30 NOVEMBER 2015 CAN UNIONS STILL WASH THEIR HANDS OF THE UNLAWFUL CONDUCT OF THEIR MEMBERS DURING A STRIKE? Our labour law jurisprudence has evolved to recognise the relationship of guardianship between unions and their members. However, obligations arising from the union and member relationship, such as ensuring compliance with picketing rules, continue to be the subject of disputes before our courts, as was seen in the recent case of in Verulam Sawmills (Pty) Ltd v AMCU (J1580/15) [2015] ZALCJHB 359.
  • 2. In this case, the Association of Mineworkers and Construction Union (AMCU) engaged in a protected strike and concluded a picketing rules agreement in terms of s69 of the Labour Relations Act, No 66 of 1995 (LRA) with Verulam Sawmills (Employer) prior to the strike. The agreement provided for an appointment of a strike control convenor by AMCU. During the course of the strike, the striking employees (Employees) engaged in conduct which violated the picketing rules agreement. This led to the Employer shutting down its operations. The Employer wrote several letters to the strike control convenor highlighting the violation of the picketing rules. The strike control convenor’s response was that the Employees were addressed by an AMCU official to comply with the picketing rules. In response, the Employer wrote a letter narrating all the events of breach of the picketing rules agreement. The Employer approached the Labour Court for an urgent interdict and a punitive cost order. An initial order was granted compelling AMCU to comply with the picketing rules and the parties agreed that costs be reserved. In Tsogo Sun Casinos (Pty) Ltd t/a Montecasino v Future of SA Workers Union & Others (2012) 33 ILJ 998 (LC), the Labour Court expressed its displeasure against unions that refuse to take all reasonable steps to prevent unlawful conduct by its members. Further, in Xstrata SA (Pty) Ltd v AMCU & Others (J1239/13) [2014] the Labour Court held that the perception that a union has no obligation to control its members during violent and unlawful activities cannot be sustained. The court found that there are four legal grounds upon which a union is obliged to police its members during a strike: (i) section 17 of the Constitution; (ii) the guardianship relationship between the union and its members; (iii) the collective bargaining relationship between unions and employers; and (iv) the process of engagement between the parties. Returning to the present case in discussion, the court, pursuant to the continued breach of the picketing rules by the union, held that AMCU’s accountability and potential liability for breach was founded upon the picketing agreement between the parties. Furthermore, the court held that AMCU did not take all reasonable steps to prevent the unlawful conduct. The court looked at the strike control convenor’s failure to investigate the breach and the duty to maintain a positive engagement with the Employer. It is this failure that warranted the granting of a punitive cost order. This case reinforces the court’s attitude towards union liability. Unions can no longer simply wash their hands of the unlawful conduct of their members. Unions have to show that they took all reasonable steps to address and prevent unlawful conduct by its members. Their failure to do so may, as seen in this and other cases, result in harsh orders for costs against the union. Fiona Leppan and Bheki Nhlapho This case reinforces the court’s attitude towards union liability. Unions can no longer simply wash their hands of the unlawful conduct of their members. Our labour law jurisprudence has evolved to recognise the relationship of guardianship between unions and their members. However, obligations arising from the union and member relationship, such as ensuring compliance with picketing rules, continue to be the subject of disputes before our courts, as was seen in the recent case of in Verulam Sawmills (Pty) Ltd v AMCU (J1580/15) [2015] ZALCJHB 359. CAN UNIONS STILL WASH THEIR HANDS OF THE UNLAWFUL CONDUCT OF THEIR MEMBERS DURING A STRIKE? 2 | EMPLOYMENT ALERT 30 November 2015 The court, pursuant to the continued breach of the picketing rules by the union, held that AMCU’s accountability and potential liability for breach was founded upon the picketing agreement between the parties.
  • 3. CHAMBERS GLOBAL 2014 - 2015 ranks our Employment practice in Band 2: Employment. Aadil Patel ranked by CHAMBERS GLOBAL 2015 in Band 2: Employment. Hugo Pienaar ranked by CHAMBERS GLOBAL 2014 - 2015 in Band 2: Employment. Fiona Leppan ranked by CHAMBERS GLOBAL 2015 in Band 4: Employment. 3 | EMPLOYMENT ALERT 30 November 2015 5We are the No.1 Law firm for client service excellence FIVE YEARS IN A ROW WE SECURED THE BIG #NO1DEALPARTNER 2014 No. 1 LAW FIRM by M&A DEAL COUNT in Africa and the Middle East No. 1 AFRICAN LAW FIRM by M&A DEAL VALUE with 9.2 Billion USD worth of deals 1st in M&A Deal Flow, 1st in M&A Deal Value, 1st in General Corporate Finance Deal Flow, Legal Advisor - Deal of the Year. 1st in M&A Deal Flow, 1st in General Corporate Finance Deal Flow,1st in General Corporate Finance Deal Value, 1st in Unlisted Deals - Deal Flow. 1st in M&A Deal Flow, 1st in M&A Deal Value, 1st in Unlisted Deals - Deal Flow. 2014RANKED #1 BY DEALMAKERS FOR DEAL FLOW 6 YEARS IN A ROW 1st in M&A Deal Flow, 1st in M&A Deal Value, 1st in General Corporate Finance Deal Flow. 2013 2012 2011 HIGHEST RANKING of Client Satisfaction amongst African Firms 2013 Employment Retrenchment Guideline CLICK HERE TO FIND OUT MORE Answering your pertinent questions around consultations, large-scale retrenchments, facilitation vs non-facilitation, selection criteria, voluntary separation packages and vacancies-bumping. NEW RELEASE
  • 4. Aadil Patel National Practice Head Director T +27 (0)11 562 1107 E aadil.patel@cdhlegal.com Gillian Lumb Regional Practice Head Director T +27 (0)21 481 6315 E gillian.lumb@cdhlegal.com Mohsina Chenia Director T +27 (0)11 562 1299 E mohsina.chenia@cdhlegal.com Fiona Leppan Director T +27 (0)11 562 1152 E fiona.leppan@cdhlegal.com Hugo Pienaar Director T +27 (0)11 562 1350 E hugo.pienaar@cdhlegal.com Samiksha Singh Director T +27 (0)21 481 6314, E samiksha.singh@cdhlegal.com Gavin Stansfield Director T +27 (0)21 481 6313 E gavin.stansfield@cdhlegal.com Michael Yeates Director T +27 (0)11 562 1184 E michael.yeates@cdhlegal.com Faan Coetzee Executive Consultant T +27 (0)11 562 1600 E faan.coetzee@cdhlegal.com Kirsten Caddy Senior Associate T +27 (0)11 562 1412 E kirsten.caddy@cdhlegal.com Nicholas Preston Senior Associate T +27 (0)11 562 1788 E nicholas.preston@cdhlegal.com Ndumiso Zwane Senior Associate T +27 (0)11 562 1231 E ndumiso.zwane@cdhlegal.com Anli Bezuidenhout Associate T +27 (0)21 481 6351 E anli.bezuidenhout@cdhlegal.com Khanyisile Khanyile Associate T +27 (0)11 562 1586 E khanyisile.khanyile@cdhlegal.com Katlego Letlonkane Associate T +27 (0)21 481 6319 E katlego.letlonkane@cdhlegal.com Thandeka Nhleko Associate T +27 (0)11 562 1280 E thandeka.nhleko@cdhlegal.com Jaydev Thaker Associate T +27 (0)11 562 1281 E jaydev.thaker@cdhlegal.com Sihle Tshetlo Associate T +27 (0)11 562 1196 E sihle.tshetlo@cdhlegal.com OUR TEAM For more information about our Employment practice and services, please contact: BBBEE STATUS: LEVEL TWO CONTRIBUTOR This information is published for general information purposes and is not intended to constitute legal advice. Specialist legal advice should always be sought in relation to any particular situation. Cliffe Dekker Hofmeyr will accept no responsibility for any actions taken or not taken on the basis of this publication. JOHANNESBURG 1 Protea Place, Sandton, Johannesburg, 2196. Private Bag X40, Benmore, 2010, South Africa. Dx 154 Randburg and Dx 42 Johannesburg. T +27 (0)11 562 1000 F +27 (0)11 562 1111 E jhb@cdhlegal.com CAPE TOWN 11 Buitengracht Street, Cape Town, 8001. PO Box 695, Cape Town, 8000, South Africa. Dx 5 Cape Town. T +27 (0)21 481 6300 F +27 (0)21 481 6388 E ctn@cdhlegal.com ©2015 0828/NOV EMPLOYMENT | cliffedekkerhofmeyr.com