Ruling on breather for union awaited

THE CHEMICAL Energy Paper Printing Wood and Allied Workers Union (Ceppwawu) will find out next week whether it will be given a chance to get its house in order or be placed under administration.

The union has been handed a lifeline by acting labour registrar Malixole Ntleki, who in Labour Court papers has requested that he be allowed to make amendments to the original application made by the Department of Labour against the union.

Newly reinstated labour registrar Johan Crouse, who was removed from the position in July for apparently defying orders not to pursue the Ceppwawu litigation, had wanted the court to give him the powers to place the union under administration.

Ntleki said in court papers that he he was of the opinion “it would not be prudent to place the first applicant (Ceppwawu) under administration”.

He has instead suggested an alternative remedial action for the union, which had failed to convene regular constitutional meetings, among other contraventions.

“Conditions of withdrawal are that the first respondents (Ceppwawu) convene and hold the relevant meetings to enable itself to provide to the applicant proper audited financial statements for the years ending on December 2010, December 2011, December 2012, December 2013 and December 2014,” Ntleki explained.

He added that the conditions would have to be adhered to within three months, failing which, the union would be placed under administration.

Ntleki said he was wary about the implications of a situation where the court would be seen to trample over the rights of the executive arm of the government if it refused to grant them relief.

He also said: “I submit that, in my view, the original relief sought was aimed at granting the administrator powers beyond those allowed by the constitution, including running the organisation in a way that would be in total disregard of its constitution. “The proposed amendment seeks to rectify that.”

The matter has split the union, with its deputy general secretary and national treasurer pushing for the union to be placed under administration, while the rest of the leadership preferred an opportunity to recover.

Ceppwawu is embroiled in a financial battle with its fund and investment manager, Isaac Shongwe, who claimed R1.2 billion of the union’s investment payout which matured in June.

While some leaders sup- ported his claim, others challenged the 27.5 percent claim of their total dividends.

Just this week, the union marched to Shongwe’s offices, joined by Cosatu president S’dumo Dlamini and the SACP’s Solly Mapaila, demanding his resignation from their investment company and development trust.

The dispute has resulted in regular collapse of the union’s constitutionally mandated meetings, and the abandoning of all financial accountability dating back to 2010.

The acting labour registrar made reference to these battles in his amended application when he was arguing why the faction should not oppose his withdrawal.

“In essence, the second to seventh respondents want to use the court process to fight their battle against the other factions,” the court papers said.

The department said it would also appeal against last week’s Labour Court judgment that reinstated Crouse to his former position.

Wary of court to be seen to trample on executive arm