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
Powers of the Information Regulator and how the Department of Justice could have avoided a R5 million fine
There has been great anxiety amongst organisations since the Protection of Personal Information Act 4 of 2013 (POPIA) came [...]
The extent of an arbitrator’s jurisdiction
In the recent decision of Dis-Chem Pharmacies Limited v Dainfern Square (Pty) Ltd & Others[1] the Supreme Court of [...]
Exercising due caution with regard to open source software in private equity transactions
Private equity investors play a role in supporting the growth and development of companies in South Africa. When a [...]
Proposed draft legislation to replace Practice Note 31 of 1994
An indispensable requirement for the claiming of an income tax deduction is that the taxpayer must be carrying on [...]
Powers of the Information Regulator and how the Department of Justice could have avoided a R5 million fine
There has been great anxiety amongst organisations since the Protection of Personal Information Act 4 of 2013 (POPIA) came [...]
When is an instruction to work overtime unlawful and unenforceable?
and Nombulelo Bashe, Candidate Attorney AMCU obo Mkhonto v CCMA and Others (JR 2266/17) [2023] ZALCJHB (13 February 2023) Insubordination [...]