National Education, Health and Allied Workers Union (NEHAWU) v Minister of Public Service and Administration and Others

Following a national public sector strike in March 2023, NEHAWU and other unions concluded a settlement agreement with the Department of Public Service and Administration (DPSA) and government under the auspices of the Public Service Coordinating Bargaining Council (PSCBC). The settlement dealt with residual wage-related demands arising from the 2022/2023 wage dispute and obliged the employer to table, positively deal with, and conclude those matters as part of the 2023/2024 wage negotiations. On 21 November 2023, the Labour Court made the settlement agreement an order of court under section 158(1)(c) of the Labour Relations Act. NEHAWU later alleged that the Minister of Public Service and Administration, DPSA, and the Head of Department failed to comply with clause 1.3.3 of the settlement agreement by allegedly refusing its proposals, and launched contempt proceedings seeking punitive and coercive relief. The respondents opposed the application, contending that they had engaged in good faith, tabled counter-proposals, and that their final offer was accepted by the majority of unions in the PSCBC.

The application for contempt of court was dismissed with costs.

The judgment clarifies that an obligation in a settlement agreement to 'positively deal with' proposals in collective bargaining requires good-faith engagement, not capitulation. It reinforces the high threshold for contempt of court in labour matters and affirms the centrality of the principle of majoritarianism in public sector collective bargaining under the Labour Relations Act.