Legal updates and opinions
News / News
An employer’s right to use replacement labour where a lockout has been instituted
and Nyeleti Baloyi, Candidate Attorney
On 18 April 2023, the Constitutional Court delivered a judgment on the interpretation of section 76(1)(b) of the Labour Relations Act 66 of 1995 (“LRA”) in NUMSA v Trenstar (Pty) Ltd [2023] ZACC 11.
NUMSA’s members embarked on a strike in the form of a total withdrawal of labour that continued for several weeks. On Friday, 20 November 2020, NUMSA notified Trenstar that it decided to suspend its strike and their members will return to work on Monday, 23 November 2020, but indicated that it does not withdraw its demand (which was the cause of the strike). Shortly after receipt of this notification Trenstar gave 48 hours’ notice of its intention to lock out all NUMSA members. On Monday 23 October 2020, Trenstar proceeded to lockout NUMSA’s members and made use of replacement labour.
The issue to be decided was whether an employer may institute a lockout when at the time it was instituted, employees had already suspended their strike. The Labour Court and the Labour Appeal Court both held that an employer may do so and the lockout would be regarded as a defensive lockout entitling the employer to make use of temporary labour.
The Constitutional Court differed in its approach and upheld NUMSA’s appeal by finding that Trenstar could not lawfully make use of temporary labour as at the time that the lockout actually began, NUMSA’s members were not on strike. The Court reasoned that suspending a strike merely means that the employees do not waive their unconditional right to strike which previously accrued to them, it does not mean that they continue to strike.
The right to make use of temporary labour as provided for in the LRA applies only when the use of temporary labour is in response to a strike (defensive lockout). If employees have suspended their strike, no strike action takes place, and no temporary labour may be used.
The NUMSA decision was simply an issue of timeline. The decision does not detract from employer’s ability to make use of temporary labour. The judgment should thus not cause any concern to employers who seek to exercise their collective bargaining power by locking-out. It merely confirms that the decision to lock-out and use temporary labour should flow as a consequence of an ongoing strike (defensive lockout).
For legal advice on labour disputes visit our practice area.
Latest News
Tainted treats, spoiled foods and potential dangers…are there any legal safeguards for consumers?
In recent weeks gone by, there have been numerous food poisoning cases reported[1] resulting in serious health issues and, in [...]
It is not only diamonds that are forever – a snapshot of forever and hazardous chemicals
A recent study conducted by the Manchester Metropolitan University revealed that the processes intended to decontaminate noxious liquid landfill waste [...]
Going nowhere fast, proposed amendments to the direct marketing regulations under the CPA published, and your comments are sought!
On October 28, 2024, the Department of Trade, Industry and Competition (dtic) published draft amendments to the regulations under the [...]
The Collection of Premiums on Behalf of Insurers – A Look at the Impact of The Exemption of Juristic Representatives from Section 13(1)(C) of FAIS
and Khanyisa Tshoba, Candidate Attorney Introduction: In practice the need may arise for an insurer to appoint a third party [...]
The effects of the CPA Amendment Act, 2017
and Elia Chitata - Candidate Attorney With the introduction of the Restitution of Land Rights Act 22 of 1994, which [...]
Section 22 – A Springboard into Business Rescue
and Caitlin Steytler – Candidate Attorney In August 2024, Statistics South Africa revealed that 1020 entities filed for liquidation in [...]