Back to work after unlawful layoff

Johannesburg - After a year and a half as a “ghost employee”, the registrar of labour, Johan Crouse, returned to work this week.

Crouse was a casualty in a long and bizarre battle within the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (Ceppwawu), which is affiliated to labour federation Cosatu.

Labour Minister Mildred Oliphant kicked him out of the registrar’s position in 2015 because he applied to court to have the troubled union placed under administration for failing to adhere to almost all the conditions of its registration – notably, its failure to submit audited financial statements for a period of five years and to prove that it held the obligatory meetings that come with being a registered union.

On Wednesday, the Labour Appeal Court ruled that Oliphant’s action had been irrational and invalid, and recommended that Crouse be reinstated.

The ruling hinted strongly that a case could have been made against Oliphant’s political meddling.

Ceppwawu is still likely to feature near the top of Crouse’s to-do list as internecine legal battles between factions of the union’s leadership continued unabated after he was canned.

Following this week’s ruling, Crouse told City Press that he had “hung around” the labour department for the past 18 months, with no specific job title.

“I got paid and I helped people with the kind of things I know and used to do,” he said.

On the day of the ruling, Crouse’s lawyers wrote to Oliphant saying he would be at work the next morning.

On Friday, the department of labour had not formally responded to his lawyers.

However, Crouse confirmed that Malixole Ntleki, who had replaced him as acting registrar, handed over documents – including the Ceppwawu file.

“I will be looking at what transpired and then decide on a plan of action, if necessary,” said Crouse.

“If there is no significant change, the matter will be pursued.”

Lawfare

Crouse originally gave Ceppwawu notice that it would be deregistered in 2014.

The union had failed to produce financial statements since 2009, and had stopped following its own Constitution’s procedures for electing leaders.

Various judgments since then have noted the “litany” of breaches of the Labour Relations Act by the union, as well as the apparently greedy squabbling to control union funds.

In 2015, amendments to the act gave the registrar a new way to deal with the matter – putting the union under administration.

“I did not want to deregister the union. I wanted to put them under rescue, with oversight,” said Crouse.

Ceppwawu would have been the first major union to undergo the process, which is analogous to business rescue for a company.

“A faction in the union was happy with this, but it all stopped when the minister got involved,” said Crouse.

Crouse lost his registrar post in July 2015 after Oliphant alleged “gross insubordination” related to his application to put Ceppwawu under administration.

His replacement, Ntleki, then went to court to amend Crouse’s application. He gave Ceppwawu an extra 90 days to come up with its missing financials and hold the meetings required by its Constitution.

This became an order of the court on October 9 2015. But three months later, a new round of legal battles made this deal academic.

A slew of court applications and counter-applications that ensued throughout 2016 has left the status of Ceppwawu uncertain.

So, what happens now?

“I will have to reinvestigate,” said Crouse.

“It is a mess. If the minister says we should not intervene, that is not in the interest of anyone.”

At last count, Ceppwawu had 66 000 members and about R6 billion in members’ funds held by Ceppwawu Investments.

The R6 billion has featured prominently in the union’s long-running battles, which have split its leadership down the middle.

On one side is general secretary Simon Mofokeng and union president Thamsanqa Mhlongo, along with about half of the 48-strong national executive committee (NEC).

On the other side is deputy general secretary Samuel Chief Seatlholo, treasurer Thulasizwe Sibande and the other half of the leadership.

In January last year, with the deadline for filing financials closing in, the Mofokeng faction allegedly falsified resolutions of the union’s NEC by approving the outstanding financial statements as well as suspending and expelling its rivals.

Among the expelled rivals were Ceppwawu treasurer Sibande, who would have had to sign off on the financials.

Court cases dealing with this alleged fraud were held throughout 2016, giving Ceppwawu an excuse to continue its noncompliance with the acting registrar’s deal to submit its financials on time.

Financials were submitted at some point, but it is uncertain whether they have been legitimately signed off and audited.

In December, the DA’s shadow minister of labour, Ian Ollis, submitted a written parliamentary question to Oliphant about the matter.

He asked her to clarify whether Ceppwawu’s reporting to the registrar was up to date and compliant with the application originally made by Crouse.

The answer is expected soon.