Civil and Power Generation Projects (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration and Others

The applicant, a construction company working on the Eskom Medupi Power Station project, was bound together with NUMSA and its members by a Project Labour Agreement (PLA). The PLA provided for a monthly accruing project bonus payable subject to compliance with certain conditions, including a prohibition on unprotected strike action. In October 2014, NUMSA members employed by the applicant participated in rolling unprotected strike action. Relying on clause 13.25 of the PLA, the applicant withheld payment of the entire accrued project bonus for the relevant year (December 2013 to November 2014). NUMSA referred a dispute to the CCMA, contending that only the bonus for the month of the strike (October 2014) could be forfeited. The CCMA commissioner agreed with NUMSA. The applicant then brought a review application in the Labour Court under section 145 of the LRA.

The arbitration award was reviewed and set aside. It was substituted with an order that the NUMSA members forfeited their entire accrued project bonus for the relevant year as a result of their participation in rolling unprotected strike action.

The case is significant for clarifying the approach to interpreting collective agreements in labour law, particularly in the context of unprotected strike action. It confirms that material errors of law in interpretation can render an arbitration award reviewable and that unprotected strike action may legitimately attract severe contractual consequences where clearly stipulated in a collective agreement.