Lesira Manufacturing (Pty) Ltd v Schulz and Others

The first respondent, an employee of Lesira Manufacturing (Pty) Ltd, referred a monetary dispute against the applicant to private arbitration under the auspices of the Arbitration Foundation of South Africa (AFSA). Following interlocutory proceedings, including a condonation application that was refused, the arbitration proceeded in the applicant’s absence and resulted in an award in favour of the employee on 23 October 2019. The applicant failed to comply with the award. The first respondent then applied to the Labour Court to have the award made an order of court (J2156/19). Although the applicant initially opposed and launched a review/counter-application, it withdrew that opposition. More than a year later, the applicant instituted a fresh review application (JR409/21), together with a condonation application for the late filing. The matters were ultimately consolidated and heard together.

The applicant’s review/counter-application was declared lapsed and archived; condonation for the late review was refused; the private arbitration award dated 23 October 2019 was made an order of court; and the applicant was ordered to pay the first respondent’s costs.

The judgment reaffirms the narrow scope of judicial intervention in private arbitration awards in South African labour law, emphasising that courts will not revisit the merits of private arbitration. It underscores the strict application of section 33 of the Arbitration Act, the inapplicability of the Sidumo test to private arbitrations, and the importance of promptness and full explanations in condonation applications. The case also illustrates the Labour Court’s power under section 157(3) of the LRA to make private arbitration awards orders of court.