Transport and Allied Workers Union of South Africa v PUTCO Limited

PUTCO Limited, a bus operator, participated in industry-wide wage negotiations at the South African Road Passenger Bargaining Council. In April 2013, wage negotiations deadlocked and majority unions (SATAWU and TOWU) issued strike notices. TAWUSA, a minority union representing about 26% of PUTCO’s employees, was no longer a member of the Bargaining Council and expressly informed PUTCO that its members would not participate in the strike. PUTCO nevertheless issued a notice purporting to lock out all employees, including TAWUSA members, in support of its wage proposals at the Bargaining Council. TAWUSA contended that it was not party to the dispute giving rise to the strike and that no demand had been made to it, rendering the lock-out unlawful.

The appeal was upheld. The order of the Labour Appeal Court was set aside and replaced with an order dismissing PUTCO’s appeal with costs. PUTCO was ordered to pay TAWUSA’s costs in the Constitutional Court, including the costs of two counsel.

This case clarifies the limits of an employer’s power to resort to lock-outs under the Labour Relations Act, particularly in the context of bargaining councils and minority unions. It affirms that majoritarianism does not justify locking out non-party unions and reinforces procedural and substantive protections linked to collective bargaining and fair labour practices under section 23 of the Constitution.