PRESS RELEASE: Labour Appeal Court rejects the Metal and Engineering Industry Bargaining Council’s (MEIBC) Application for Leave to Appeal
29 May 2015
In December 2014 the Labour Court in Johannesburg declared the extension of the 2011-2014 Metal and Engineering Industry Bargaining Council (MEIBC) Agreement unlawful and consequently null and void.
In April 2015 the Labour Court in Johannesburg rejected an application for leave to appeal by the MEIBC against the initial December 2014 judgement.
Consequently the MEIBC petitioned the Labour Appeal Court (LAC) for leave to appeal the initial judgement by Watt Pringle AJ.
The National Employers’ Association of South Africa (NEASA) was notified on 29 May 2015 that the LAC has also rejected this petition to grant leave to appeal.
In its initial judgement the Labour Court found, amongst others, that the MEIBC has misled the Minister of Labour, by presenting to her an agreement, for the purpose of extension to parties who were not signatories to that agreement, which technically did not even exist. That in itself amounts to fraud.
‘This judgement confirms the complete and utter unlawfulness in which the MEIBC makes decisions which directly impacts on the sustainability of business. This agreement has caused many businesses to become uncompetitive and close their doors. It resulted in thousands of employees losing their jobs. This happened while job creation should receive the highest priority in South Africa’, Gerhard Papenfus, Chief Executive of NEASA said.
In the meantime NEASA has launched proceedings in the Labour Court to also set aside, on similar grounds, the extension of the completely flawed 2014-2017 MEIBC main agreement to the Metal Industry.
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