- 21 workers were dismissed after halting work when their payslips left out overtime earnings.
- Judge Ramji found the dismissal substantively unfair and ordered reinstatement with full back pay.
- The court dismissed Northern Coal’s claim for R2.2 million in damages against the workers and their union.
The Labour Court has ordered Northern Coal to reinstate 21 dismissed workers with back pay, ruling that their dismissal for joining a brief, unprotected strike over missing overtime pay was substantively unfair.
The dispute began on 23 March 2023 at Northern Coal’s Mimosa colliery in Mpumalanga when night shift workers discovered their payslips excluded overtime worked during the February and March payroll cycle. Evidence presented to the court showed this omission would have led to significant pay shortfalls.
Lower-earning workers would have taken home R5,682 instead of R8,367. Higher-earning operators faced a drop from R16,083 to R10,301.
Acting Judge B Ramji highlighted the severity of this shortfall, noting that these are not individuals with reserves and many are breadwinners for families. Group HR manager Mandla Mabunda conceded that a short payment hurts and that even a 10 percent short payment hurts.
What led to the stoppage
After receiving their payslips, workers reported the error to shift supervisor Mandla Ndinisa. The court found Ndinisa repeatedly asked them to wait while he tried to resolve the payroll issue with management. Workers stayed in the toolbox area instead of heading to their workstations, leading to a stoppage from 6pm to about 10.30pm at night.
The company later charged the workers with participating in an unprotected strike, failing to obey ultimatums to resume work, and causing production losses. All 21 were dismissed effective 18 April 2023.
Judge Ramji found that while the stoppage was technically an unprotected strike, dismissal was too harsh given the circumstances. The court held it was spontaneous, peaceful, short-lived and directly caused by the employer’s payroll mistake.
As Judge Ramji put it, the strike was peaceful and not disruptive except to operations to a limited extent. The court noted that by all accounts, these are remarkably restrained and obedient workers.
Court finds dismissal disproportionate
In considering fairness, the court noted the workers had already endured another salary shortfall in December 2022, only rectified the next month. Judge Ramji accepted evidence that the March 2023 payroll omission would have had a serious financial impact.
The court also criticised management’s handling of the situation, finding that company leaders failed to address workers directly, either in person or by phone, despite the seriousness of the dispute.
Judge Ramji remarked that the company responded by keeping its promise to address their concerns. It is therefore surprising that it then dismissed all 21 workers and their shift supervisor, effectively escalating a dispute that could have been resolved amicably.
The judgment also stated that the facts of this case, considering previous judgments, render this dismissal substantively unfair.
R2.2 million damages claim dismissed
Northern Coal also pursued a claim for R2.2 million against the workers and the Association of Mineworkers and Construction Union (AMCU) for losses allegedly caused by the stoppage. The court dismissed that claim as well.
The court found no grounds to hold the union liable since there was no evidence that AMCU officials knew about the stoppage as it happened. The court also ruled it would not be just or equitable to impose liability on the workers, given their action was spontaneous, brief and triggered by incorrect payslips.
Judge Ramji concluded that it is not just and equitable to impute to the individual applicants a legal obligation to pay the company whatever it may have lost during the stoppage.
R2.2 million damages claim dismissed
The Labour Court ordered Northern Coal to reinstate the workers in the same or similar positions they held before dismissal. Reinstatement is effective from 18 April 2023, entitling them to full backpay from the date of dismissal until they return to work.
In closing, Judge Ramji said the Labour Relations Act cannot uphold its values if workers or employers are punished for peacefully speaking to, listening to, and trusting one another.
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