W G Davey (Pty) Ltd v National Union of Metalworkers of South Africa

W G Davey (Pty) Ltd, an engineering manufacturer, dismissed nineteen NUMSA-member employees in August 1992 following their participation in a national strike in the steel and engineering industry. After an interim court interdict declared the strike unlawful due to ballot irregularities, the employer issued an ultimatum requiring employees to return to work by 7 am on 28 August 1992 or face dismissal. Although NUMSA’s National Strike Committee later recommended a return to work on 31 August 1992, and most employees returned on that date, the employer refused to extend the ultimatum deadline and dismissed those who did not strictly comply, including employees who returned late on 28 August or attended a union meeting to consider the recommendation. NUMSA challenged the dismissals as an unfair labour practice under the Labour Relations Act 28 of 1956.

The appeal was dismissed with costs. The order of the Labour Appeal Court was largely upheld, confirming reinstatement of the dismissed employees with retrospective effect and compensation, subject to amendments regarding dates and the deduction of remuneration earned by employees during the period between dismissal and reinstatement.

This case is a leading authority in South African labour law on the distinction between the fairness of an ultimatum and the fairness of a dismissal. It affirms that even where an ultimatum is fair, an employer must still act reasonably and consider developments arising thereafter. The judgment reinforces the principle that dismissal is a last resort and that inflexible reliance on ultimatums, especially in the context of collective labour disputes, may constitute an unfair labour practice.