Johannesburg City Parks v Mphahlani NO and Others

The employee, Mr F Maguvhe, was dismissed by Johannesburg City Parks following a disciplinary enquiry. His union, SAMWU, referred an unfair dismissal dispute to the South African Local Government Bargaining Council (SALGBC). Johannesburg City Parks objected to the SALGBC’s jurisdiction on the basis that it did not fall within the council’s registered scope and that a demarcation dispute concerning this issue was pending before the CCMA in terms of s 62 of the Labour Relations Act 66 of 1995. Despite being informed of the pending demarcation dispute, the arbitrator appointed by the SALGBC proceeded with arbitration in the absence of Johannesburg City Parks and issued a default award in favour of the employee. Attempts to review and appeal the award in the Labour Court and Labour Appeal Court failed, leading to an appeal to the Supreme Court of Appeal.

The appeal was upheld with costs. The orders of the Labour Appeal Court and Labour Court were set aside. The arbitration award issued under the auspices of the SALGBC was reviewed and set aside, and SAMWU was ordered to pay the costs of the application.

This case authoritatively clarifies that arbitrators and bargaining councils lack jurisdiction to proceed with arbitration when a demarcation dispute affecting jurisdiction is pending before the CCMA. It reinforces the exclusive role of the CCMA in resolving demarcation disputes and prevents parallel or premature arbitration proceedings, thereby promoting certainty and coherence in South African labour dispute resolution.