ABR224

1. ABR224 • Lecture 13 • Discipline and Dismissal • Operational requirements (retrenchments)

2. Lecture 16 You need to follow the studyguide re the sections to be studied in the handbook Dismissal: Operational requirements Additional non compulsory reading: WL (2009:270-293); PLL (2005: 177-195) Country Fair Foods v OCGAWU & another [2003] 7 BLLR 647 (LAC); Wanda & Others v Toyota SA Marketing, a division of Toyota SA Motors [2003] 3 BLLR 268 (LAC)); Tiger Food Brands Ltd t/a Albany Bakeries v Levy No & Others (2007) 28 ILJ 1827 (LC); Mthombeni v Air Traffic & Navigation Services Ltd (2008) 29 ILJ (LC) 188(LC); Unitrans Zululand (Pty) Ltd v Cebekhulu[2003] 7 BLLR 688 (LAC); Scheme Data Services (Pty) Ltd v Myhill NO (2009) 30 ILJ 399 (LC); National Union of Metalworkers of SA & others v Genlux Lighting (Pty) Ltd (2009) 30 ILJ 654 (LC); Schatz v Elliott International (Pty) Ltd & another (2008) 29 ILJ 2286 (LC); BMD Knitting Mills (Pty) Ltd v SACTWU [2001] 7 BLLR 705 (LAC).

3. Theme 16 (Learning outcomes) • Discuss the requirements for the substantive and procedural fairness of dismiss due to an employer’s operational requirements • Give an indication of the way in which disputes regarding unfair dismissals should be dealt with • Discuss the possible remedies in the case of unfair dismissals. • Distinguish between a section 189 and 189A process. • Briefly discuss the transfer of a contract of service with reference to section 197 and 197 A of the LRA

4. Theme 16 (Introduction) • Commonly referred to as retrenchments. • Operational requirements refer to circumstances such as technological changes in company which result in posts becoming redundant, downturn in economy necessitating retrenchments and closure, relocation/sale and transfer of business. • Sect 189 governs minor and major retrenchments and sect 189A also governs major retrenchments. (LRA)

5. Sect 189 • If employer contemplates dismissing one/more employees for reasons based on its operational requirements, consultation must take place. • Hierarchy of consulting parties with whom employer must consult is as follows: • Any person who has been identified as consulting party in collective agreement/workplace forum. • Any registered trade union whose members are likely to be affected by proposed dismissals or any registered union whose members are likely to be affected by proposed dismissals as well as a workplace forum, or only a registered union if no workplace forum exists. • If no such trade union, employees likely to be affected or their representatives. • Employer must issue written notice to other consulting party, inviting it to consultation.

6. . Notice must disclose all relevant info, including: • Reason for proposed dismissals. • Alternatives considered before proposing dismissals and reasons for rejecting alternatives. • Number of employees likely to be affected and job categories in which they are employed. • Proposed method for selecting which employees to dismiss. • Time when, or period during which, dismissals will take effect. • Severance pay proposed. (Sect 41 of the BCEA deals with this aspect. If employee unreasonably refuses offer of employer i.r.o. alternative employment in company or with other employer, employee forfeits right to severance pay. Severance pay is usually one week’s salary for every year of continuous service.) • Any assistance the employer proposes to offer. • Possibility of future re-employment • Number of employees employed by employer. • Number of employees dismissed for operational requirements during preceding 12 months.

7. Sect 189A • Applicable to employers employing more than 50 employees and who contemplate dismissing number of employees for operational reasons. • Applies if employer contemplates dismissing: • 10 employees where employer employs 50-200 employees • 20 employees where employer employs 201-300 employees • 30 employees where employer employs 301-400 employees • 40 employees where employer employs 401-500 employees • 50 employees where employer employs more than 500 employees • Consulting parties may request CCMA to appoint facilitator to assist parties in consultation. • If consulting party does not follow fair procedure, Labour Court may be approached for an order. • Dismissed employee must be paid a severance package (at least one week’s remuneration for each completed year of continuous service) additional to salary.

8. Jurisidiction • CCMA has jurisdiction to concilliate dispute. • Labour Court has jurisdiction to adjudicate matter. • Normally only the Labour Court will have jurisdiction to arbitrate matter (after concilliation has failed) • except if it was only 1 employee who was retrenched or if parties have consented to jurisdiction of CCMA.