Another failed labour dispute is set to cost Endumeni Municipality R1 042 673, following an arbitration ruling handed down by the South African Local Government Bargaining Council.
This ruling adds to the municipality’s financial woes, coming just months after a separate October 2024 Bargaining Council decision that already dealt a blow of nearly R1-million to its budget.
The latest case centres on the 2023 dismissal of Sifiso Mhlungu, the former municipal human resources manager. While the council found the dismissal to be procedurally fair, it ruled that it was substantively unfair, meaning the decision lacked valid reasoning despite being carried out through the correct process.
Mhlungu is to be reinstated retrospectively from November 2023 and is due back at work at the end of the week. The municipality has 14 days to pay him out.
Charges were brought against Mhlungu related to misconduct and negligence carried out in his duties as HR manager. However, the hearing found that in one instant, an employee had been served with a suspension notice before Mhlungu was appointed – hence, there was no case.
The arbitrator decided not to award costs as Mlungu was returning to work and believed that this would not be ‘conducive to a healthy working environment’.
It is unclear if the municipality has paid the money it was ordered to pay to the fired corporate services manager, Sakhele Zulu.
Commissioner P van Zyl had ruled that the case against Zulu was procedurally unfair and he awarded Zulu 11 months’ salary, amounting to over R996 972. He had previously taken further legal action after the municipality failed to meet the payout deadline, but there has been no further news if he has received the money.
The municipality is yet to comment on the ruling.
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