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Lukhanji Municipality v Nonxuba NO and Others (LP98/04 ; P98/04) [2006] ZALC 25 (25 August 2006)

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IN THE LABOUR COURT OF SOUTH AFRICA

HELD IN PORT ELIZABETH



Case Number: P 98 / 04


In the matter between:

Lukhanji Municipality Applicant


and


Nonxuba N.O First Respondent


South African Local

Government Bargaining Council Second Respondent


SAMWU obo Seboni Third Respondent


JUDGMENT


CELE AJ


INTRODUCTION


[1] This is an application in terms of section 145 of the Labour Relations Act 66 of 1995 (“The Act”) to review and set aside an arbitration award dated 25 February 2004 issued by the first respondent, while he was acting under the auspices of the second respondent. The third respondent which is acting on behalf of its member Mr Seboni, in whose favour the award was issued opposed the application.

Background Facts


[2] Mr Seboni commenced employment with the applicant in 1994. He took a position of a Road Traffic Inspector, with the duties of a testing officer and therefore a qualified Inspector of drivers’ and learners’ licences. At the times relevant to this matter, he worked under the Chief Traffic Officer, Mr Edmund Vincent Winnaar and they were both based at the applicant’s municipality in Queenstown, Eastern Cape. One Ms Yolanda Delport worked with them as a cashier and a clerk.


[3] The basic testing procedure for a driver’s licence used by the applicant was that a candidate completed an application form, BL1, by supplying his or her personal particulars and handed the form to the clerk. The candidate had to pay an appropriate fee to book for a drivers test. A receipt would be issued by the cashier. At the bottom of the receipt a stamp would be affixed leaving imprinted information for candidates about the requirements for a drivers licence which he or she had to bring on the test date, which would also be endorsed within an allotted space of the stamped information. The candidate would thus have been given a date and time on which the driving test would be conducted. On the scheduled date and time the candidate would arrive at the premises of the applicant. The testing officer had to collect the application form from the clerk and had to call out the name of the applicant. Testing of the candidate then began and had to include the actual driving of a motor vehicle of a class for which the licence ought to be issued. The testing officer had to endorse in the appropriate portion of the application form whether the candidate passed or failed and had to hand the application form to the candidate who passed. The candidate had to take the form and the test sheet to the cashier where a prescribed fee had to be paid and the process for the issue of a drivers licence began.

[4] On 16 April 2002, one Mr Mamei Sepete was scheduled to do a driver’s licence test at 14H45 for a C1 class motor vehicle which was a code 10 truck. On his arrival at the test centre, Mr Sepete handed a letter addressed to Mr Seboni to Ms Delport. Soon thereafter Mr Seboni came to Ms Delport’s office, took an application form for a driver’s licence and called out the name of Mr Sepete. Both Mr Seboni and Mr Sepete left that section of the establishment and proceeded towards Mr Seboni’s office. Sometime later Mr Sepete returned to Ms Delport with a test sheet and the driver’s application form which had entries completed by Mr Seboni. One such entry was C1 which was understood to mean that Mr Sepete had undergone a motor vehicle test and had passed the test, whereafter a C1 motor vehicle driver’s licence was to be issued to him. Ms Delport received R 100 = 00 from Mr Sepete for the issue of a driver’s licence to him. Ms Delport began to process the issue of a driver’s licence but soon communicated to Mr Sepete that the computer she was using was giving her problems. Mr Sepete was made to wait for a while.


[5] While Mr Sepete was waiting at Ms Delport’s room, he was approached by members of the South African Police Services (SAPS) holding ranks of inspectors. They were Mr Gregory Heath and Mr Mark Van Erden. Also in attendance was a Mr Judeel, a prosecutor in the subsequent disciplinary enquiry. Mr Sepete was taken to an adjacent room where he was interrogated. He informed the members of the SAPS that he had not undergone a driving test even when a drivers licence was about to be issued to him. Mr Seboni was brought to him and Mr Sepete identified him as the testing officer who had completed a portion of his driver’s application form which Mr Sepete had finally handed to Ms Delport. Both Mr Sepete and Mr Seboni were then taken to the local police station where further interrogation of Mr Sepete took place. No driver’s licence was finally issued to Mr Sepete pursuant to the activities of that day.


[6] The applicant subsequently charged Mr Seboni with the following acts of misconduct:


1.Providing false information on the test sheet of Mr Sepete on 16 April 2002;


  1. Fraudulently authorising a driver’s licence to Mr Sepete without the necessary tests being conducted;


  1. Not following rules on 16 April 2002, allegedly tested Mr Sepete at times which were not according to his appointment time;


  1. Not following rules on 16 April 2002 by providing incorrect information on the test sheets;


  1. Issuing code C1 drivers licence while the registration number of the vehicle provided on the test is that of a light motor vehicle, code B.” (sic)


[7] On 03 May 2002 the disciplinary proceedings commenced but were postponed at the instance of Mr Seboni to 10 May 2002. On 10 May 2002 Mr Mnyengeza who was the third respondent’s official, representing Mr Seboni, made an unsuccessful objection to Mr Hoko, the applicant’s councillor, for chairing the hearing and for Mr Judeel for being a prosecutor. Mr Judeel was seen as both the prosecutor and the complainant. The hearing proceeded and the applicant called six witnesses. Mr Mnyengeza cross-examined all six witnesses. However, when the case of Mr Seboni was to be opened, he was not called to testify. Mr Judeel addressed the hearing by asking that Mr Seboni be found guilty as charged while Mr Mnyengeza asked for his acquittal. Mr Seboni was found to have committed all five acts of misconduct with which he was charged.


[8] On 03 May 2002 the applicant dismissed Mr Seboni who then referred the dispute about an unfair dismissal to the second respondent for conciliation. When the dispute could not be resolved, Mr Seboni referred it to arbitration, the hearing of which was presided by the first respondent, as the arbitrator. The first respondent found the evidence of Mr Seboni to have been substantively unfair whereafter he ordered the applicant to compensate and to re-instate Mr Seboni. That culminated in the applicant lodging the present application.


The arbitration hearing


[9] The transcript of the arbitration proceedings was of a very poor quality, necessitating a reconstruction of the record of such proceedings. The hand written notes of the first respondent were used in the reconstruction process and are on file. While the end product is of great help, it is always advisable that the second respondent should take measures to ensure that mechanical recordings are properly done. No doubt this step will obviate a delay in the proceedings while avoiding a dispute of facts. To the proceedings, I now return.


[10] Mr Judeel represented the applicant while Mr Mdunyana appeared for Mr Seboni. The case of the applicant was presented through its four witnesses, Mr Hoko, Mr Winnaar, Ms Delport and Mr Sepete. Before Mr Mdunyana could call Mr Seboni to testify, Mr Judeel raised an objection. He pointed out that Mr Seboni had decided not to testify at the disciplinary hearing and therefore was precluded from testifying at the arbitration hearing. Mr Mdunyana opposed the objection. The first respondent ruled in favour of Mr Seboni testifying, holding that arbitration proceedings were a de novo hearing. Mr Seboni testified and thereafter called Mr Mnyengeza as his witness. The case of the applicant was to the following effect:






















[11] That basically closed the case of the applicant. The testimony given by Mr Seboni and Mr Mnyengeza, in rebuttal, was to the effect that:








[12] That closed the case of Mr Seboni. I will proceed to the arbitration award.


The arbitration award.


[13] The first respondent analysed the evidential material before him and made, inter alia, the following findings:





  1. Fraudulently authorising a driver’s licence to Mr Sepete without the necessary tests being conducted;


2. Providing false information on the test sheet of Mr Sepete on 16 April 2002,

dismissal offences as they border on the employee and consequently render the employment relationship intolerable.







[14] The first respondent proceeded to make an order which included the compensation of Mr Seboni and his re-instatement by the applicant.


Ground for review


[15] The applicant alleges that the first respondent committed a gross irregularity and issued an award which was neither justifiable nor rational.


Submissions by the parties


[16] Mr Hertle appeared for the applicant and Mr Nyangiwe appeared for the third respondent. The applicant submitted a number of circumstances in which it alleges that the first respondent committed a gross irregularity and also that he issued an award which was not justifiable or rational. Three of such circumstances are that:

  1. the factual findings made by the first respondent did not correspond with evidence properly placed before him,


  1. the first applicant erred in finding that the applicant failed to discharge the onus to prove the fairness of the dismissal;


  1. the award was not justifiable in relation to the reasons given for it.


[17] The respondent submitted that the applicant failed to prove that Mr Seboni committed any fraud. He pointed out that the applicant had the onus of proving its case and the first respondent correctly decided that the applicant failed to discharge such onus.


Analysis


[18] Section 145 (1) and (2) (a) (ii) of the Act permits the reviewing of an arbitration award in circumstances where the commissioner has committed a gross irregularity.


[19] It is trite that it is not merely a high-handed arbitrary conduct which is described as a gross irregularity. Behaviour which is described as perfectly intentional and bona fide, though mistaken, may come under that description. The crucial question is whether it has prevented a fair trial of the issues. See Goldfield Investment (Pty) Ltd and another v City Council of Johannesburg and another 1938 TPD at 560.


[20] Among various decisions which Mr Nyangiwe has referred me to, is the case of, Smith v Commissioner for Conciliation Mediation and Arbitration & Others (2004) 25 ILJ 1072 (LC). In relation to a gross irregularity, Ntsebeza AJ had this to say in paragraphs 7 and 8:


[7] An arbitrator commits a gross irregularity if in inter alia; his/her conduct is such that an inference can be drawn therefrom that the aggrieved applicant did not get a proper hearing. If for example a commissioner commits a very serious mistake in a manner that also reflects that he/she cannot be said to have applied his or her mind, his/her award is reviewable. See County Fair Foods (Pty) Ltd CCMA (1999) 20 ILJ 2609 (LAC).)

A commissioner, furthermore, exceeds his/her powers if he/she makes findings that are not justified by evidence. If that is such that it leads him/her to draw inappropriate inferences, it would render an award reviewable.


[8] However, a mistake, however gross, is not misconduct. It must be so gross or manifest that it could have been made without misconduct before a court could justify drawing an inference that an arbitrator misconducted himself or herself. (See Hyperchemicals International (Pty) Ltd & another v Maybaker Agrichem (PTY) Ltd & another 1992 (1) 20 ILJ 412 (LC); [1999] 1 BLLR 92 (LC).)”


[21] At the very outset, I find no fault on the findings reached by the first respondent on counts 3 to 5; save to say though that the evidence pertaining to these counts were relevant in determining counts 1 and 2.


[22] A consideration of the merits and demerits of the application before me inevitably entails the examination of those facts which were properly made available to the first respondent. The first respondent was presented with uncontested evidence of Mr Sepete that:



[23] The first respondent did not evaluate this evidential material at all. In that respect, he failed to apply his mind to the evidential material which, by the nature of his duty, he was called upon to consider. Had he applied his mind to this evidence, he would probably have found that the presentation of a letter from a driving school, was highly suggestive of the absence at the test centre, of a driving school instructor with a truck, to present Mr Sepete for the driving test.


[24] The interrogation of Mr Sepete by the members of the SAPS is also not without significance. It provided an opportunity for the identification of the truck with which Mr Sepete allegedly tested. Mr Seboni was similarly confronted by the police. Yet the evidence about the in loco identification of the truck used for the test is conspicuous in its absence. The only reasonable inference to draw from this fact is that there was never such a truck at the test station which Mr Sepete was tested on. Again, the first respondent failed to apply his mind to this evidence and to draw the necessary inference from it.


[25] The alleged mistake committed by Mr Seboni in writing an incorrect registration number of a vehicle used to test Mr Sepete, is of a curious nature. According to his evidence the test began in the yard. That is where the truck would be parked. All he had to do was to copy the registration number of the vehicle used from the vehicle itself, as and when it was in front of him. The first respondent decided not to evaluate this evidential material when he was enjoined with a duty to do so. Again he failed to apply his mind to such evidential material as was properly available to him.


[26] The decision of this court in Moodley v Illovo Gladhouse & others (2004) 2 BLLR 150 (LC), which Mr Nyangiwe also made reference to is apposite in demonstrating the errors of the first respondent. In relation to that case, Ntsebeza AJ observed in paragraph 21 thus:


…. I cannot see that I can interfere merely on an assessment of whether she misdirected herself by reason of the fact that she considered whether the witnesses were credible before determining what the probabilities were in the light of their testimonies (See R v Dhlumayo 1948 (2) SA 677 (A)).”


[27] The commissioner in the Moodley case assessed the credibility of the witnesses and thereafter determined the probative value of the evidence. In casu, the first respondent assessed credibility only when he was faced with the two irreconcilable versions of whether Mr Sepete did or did not do the driver’s test. The decision in Stellenbosch Farmers’ Winery Group Ltd and another v Martell ET CIE and others 2003 (1) SA 11 (SCA) provides an informative guide in resolving factual disputes of this nature. Nienaber JA said in paragraph 5:


“…. To come to a conclusion on the disputed issues a court makes findings on (a) the credibility of the various factual witnesses; (b) their reliability; and (c) the probabilities. As to (a), the court’s finding on the credibility of a particular witness will depend on its impression about the veracity of the witness. That in turn will depend on a variety of subsidiary factors, not necessarily in order of importance, such as (i) the witness’ candour and demeanour in the witness-box, (ii) his bias, latent and blatant, (iii) internal contradictions in his evidence, (iv) external contradictions with what was pleaded or put on his behalf, or with established fact or with his own extracurial statements or actions, (v) the probability or improbability of particular aspects of his version, (vi) the calibre and cogency of his performance compared to that of other witnesses testifying about the same incident or events. As to (b), a witness’ reliability will depend, apart from the factors mentioned under (a) (ii), (iv) and (v) above, on (i) the opportunities he had to experience or observe the event in question and (ii) the quality, integrity and independence of his recall thereof. As to (c), this necessitates an analysis and evaluation of the probabilities and improbability of each party’s version on each of the disputed issues. In the light of its assessment of (a), (b) and (c) the court will then, as a final step, determine whether the party burdened with the onus of proof has succeeded in discharging it. The hard case, which will doubtless be the rare one, occurs when court’s credibility findings compel it in one direction and evaluation of the general probabilities in another. The more convincing the former, the less convincing will be latter. But when all factors are equipoised probabilities prevail.”


[28] While a commissioner may conduct the arbitration in a manner that the commissioner considers appropriate in order to determine the dispute fairly and quickly, and that he or she must deal with the substantial merits of the dispute with the minimum of legal formalities, (Sec 138), the technique in solving disputes is equally applicable to him or her.


[29] The recordal of the proceedings supports the finding of the first respondent that Mr Sepete and Mr Seboni were not satisfactory witness. In my view however, the first respondent erred in not taking the investigative task further by determining the total probabilities of the facts which he was dealing with. There exists a great likelihood that, had he done so, he would have found that there is a preponderance of probabilities in support of the evidence of Sepete, the short comings in his testimony notwithstanding.


[30] In my view, the errors committed by the first respondent are so manifest that they could not have been made without misconduct. In respect of counts 1 and 2, the first respondent denied the parties a fair trial of the issues and thus committed a gross irregularity.


[31] Counts 1 and 2 are by their very nature, when put together, a serious transgression which no doubt adversely tampers with the employer – employee relationship. It diminishes the trust which an employer would be entitled to bestow on an employee in the execution of a public duty. The transgression compromises the integrity of the examination process for driver’s licences.


[32] Accordingly, the following order will issue;


1. The award of the first respondent in case number S/LUK/7/2003, dated 5 January 2004 is reviewed and set aside.


2. The award of the first respondent as aforesaid, should have been that Mr Seboni was not unfairly dismissed by the applicant.


3. Mr Seboni is not entitled to any relief in this matter.


  1. No costs order is made.



CELE AJ


________________

Acting Judge of the Labour Court




Date of hearing : 14 February 2006

Date of Judgment: 25 August 2006


Appearances

For the Applicant : Advocate B Harte

Instructed by : Bowes McDougall

For the Respondent: Advocates’: X Nyangiwe and C Cossle

Instructed by : Maqina Zani & Associates




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