Ekurhuleni city manager guilty of contempt, must adjust workers salary in line with 2017 order

A senior official from the City of Ekurhuleni Metropolitan Municipality has been held accountable for her failure to comply with an earlier arbitration award directing the placement of municipal staff on proper salary scales. 

On 20 March 2024, the Labour Appeal Court found Dr Imogen Mashazi, the accounting officer, guilty of contempt of court in a battle which has its roots in a 2018 arbitration award. 

As detailed in the court's ruling at the time, the municipality had been ordered to adjust the salaries of members of the South African Municipal Workers Union (SAMWU), the largest trade union representing local government workers in South Africa, by 1 April 2017. However, it failed to meet compliance deadlines, prompting legal action from the union. 

The backdrop to the case lies in a history of non-compliance with court orders. Following the issuance of the arbitration award, which required significant salary adjustments across multiple employee grades, the City of Ekurhuleni, led by its executives, filed a review application on 19 June 2018 against the award.  

This application was not pursued, leading to the award being certified by the Commission for Conciliation, Mediation and Arbitration on 21 August 2018. The municipality's lack of action ignited a contempt application from SAMWU, escalated by further inactions that led to the latest court judgment. 

The Labour Court had initially ruled against holding Mashazi in contempt; however, subsequent reviews by the Labour Appeal Court revealed a deeper narrative of wilfulness and mala fide negligence on her part. In her decision, a judge stated, "No municipality or municipal manager may elect not to comply with a court order."  

During the appeal, the court examined crucial arguments around the service of documents and responsibilities tied to statutory roles. Mashazi argued that she had not been personally served with the initial contempt proceedings. However, the court determined that her role as the municipality's accounting officer inherently placed her in a position of responsibility concerning compliance with the arbitration award. The court noted, "When a party wilfully disobeys an order of court and acts mala fide, the order holding such a party in contempt is manifestly justified."  

Subsequently, the appeal against the finding of contempt was dismissed, with costs ordered against both the municipality and Mashazi, stating that her failure to adhere to the court order was "unacceptable." The municipality now faces not only the original obligation to adjust worker salaries retrospectively to 2017 but also significant legal costs.  

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