Publications
Partners
According to the trade union the Germiston company would deliver cheques, ranging from R1 300 to R212 000, to individual applicants on Thursday at Numsa Wadeville local offices.
Numsa said the victory against the company came as a result of a merger in terms of the Competition Act. The business of Hendred Fruehauf was sold to Madikor Drie as a going concern with effect from December 2, 2001.
Subsequent on the sale, the buyer retrenched 53 Numsa members effective from May 1.
"Despite there being an existing collective agreement, which regulated the amount of severance pay to be paid and despite the Labour Relations Act 66 of 1995 (as amended), stipulating that collective agreements are transferred to the new employer in these circumstances, Madikor advised Numsa that they would not make payment of severance pay in terms of the agreement."
The union said despite its objections, Madikor made payment of the minimum severance payment allowed by law.
"Numsa members who remained in the employment of the company embarked upon strike action to force the company to pay the retrenched workers in accordance with the agreement.
Numsa also objected to the merger on the basis of the number of retrenchments and the refusal of the company to pay in terms of the collective agreement.
"Despite this the Competition Commission allowed the merger as the Act does not allow them to interfere in labour issues."
Numsa said it believed that there was a weakness in the competition legislation, which should be amended to protect employees during and after a merger.
The company attempted to obtain an interdict against the strike and, by agreement, the strike was called off. The question of severance pay was referred to private arbitration and was heard on November 28.
The private arbitration award was given on February 7 in favour of Numsa.
"Despite this award, the company continued to refuse to pay the amount owing. It became necessary, finally, to obtain a court order requiring payment."
Numsa said the full amount ordered by the court has, however, not been paid. As the order has not been fully complied with, application has now been made to have the directors of the company arrested for contempt of court.
