The Registrar of Labour Relations has noted the recent judgement of the Labour Court concerning the Public Servants Association (PSA).

While the Registrar has the utmost respect for the Labour Court and the judicial process, we respectfully disagree with the judgement, both on the legal principles applied and on the factual findings made. Our concerns are based on the following considerations:

The Registrar is of the view that the Labour Court did not adequately give effect to the findings and legal reasoning of the Labour Appeal Court (LAC), which are binding on the Labour Court. The Registrar maintains that the Labour Court does not have the authority to disregard or depart from the ratio decidendi and findings of the LAC.

The Labour Appeal Court expressly found that the PSA's contention that the PSA and PSA NPC operate as one and the same entity overlooks the fundamental legal principle that a company is a separate juristic entity from a trade union.

The LAC held that a trade union is an association of employees whose principal purpose is to regulate relations between employees and employers, as contemplated in section 95 of the Labour Relations Act (LRA). The Court further clarified that, in terms of the applicable statutory framework, the affairs of a non-profit company are managed by a board of directors, whereas a trade union is led by office bearers as envisaged by the LRA.

The LAC further found that the PSA had failed to submit audited financial statements of the trade union as required by section 96(1)(b) of the LRA and agreed with the Registrar's position that the current board of directors of the PSA NPC are not office bearers as contemplated by the Act.

The Registrar presented substantial evidence before the Labour Court demonstrating that the PSA continues to be managed by a board of directors and a general manager rather than office bearers as required by the LRA.

The Labour Court did not set aside the Registrar's notice of intention to cancel registration but merely suspended its operation pending the outcome of the appeal.

The Registrar is of the view that the Court failed to properly consider the uncontested evidence demonstrating that the PSA continues to be governed through a board of directors and a general manager, contrary to the requirements of the LRA.

It is important to clarify that the Registrar has not cancelled the registration of the PSA. The Registrar merely issued a notice of intention to cancel registration in accordance with the provisions of the Labour Relations Act.

The suggestion that the Registrar adopted a "high-handed" approach is not supported by the evidence. The Labour Appeal Court recognised that the Registrar engaged with the PSA on these matters, including a meeting held on 08 February 2022. In addition, evidence was presented that the Registrar wrote to the PSA on 19 April 2022 regarding the compliance concerns. While the PSA disputed receipt of the correspondence, no response was received.

For more than three years, the compliance concerns raised by the Registrar have remained unresolved. Consequently, allegations that the Registrar acted maliciously are unfounded and unsupported by the evidence presented before the courts. Such assertions unjustifiably impugn the integrity and character of the Registrar.

The Registrar notes that the Labour Court accepted that the PSA NPC had locus standi to bring the application and characterised the Registrar's concerns as "petty."

The Registrar respectfully disagrees with this finding. The Labour Relations Act recognises office bearers, and not boards of directors, as those authorised to lead and act on behalf of a trade union. This legal position was confirmed by the Labour Appeal Court.

The Registrar further disagrees with the Labour Court's conclusion that there was no proper analysis of the relevant issues or that the Registrar had adopted a predetermined position concerning the PSA.

The appeal process remains underway and is expected to be heard in due course.

The Registrar is currently consulting on the broader implications of the Labour Court judgement, particularly in light of concerns that the judgement may have the unintended effect of condoning non-compliance with key provisions of the Labour Relations Act governing the registration, governance and accountability of trade unions.

The Registrar of Labour Relations remains committed to upholding the Constitution, the Labour Relations Act, and the rule of law. The office will continue to execute its statutory mandate objectively, fairly and without fear, favour or prejudice, while respecting the independence of the courts and the judicial process.

For media inquiries, please contact:

Teboho Thejane

Departmental Spokesperson

082 697 0694/ teboho.thejane@labour.gov.za

-ENDS-

Issued by: Department of Employment and Labour

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