Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

meibcThe Star reports that the practice of companies dismissing employees through alleged fraudulent liquidation scams is playing itself out in a case before the Metal and Engineering Industries Bargaining Council (MEIBC).  

Thirty-four former employees of Unique Storage Equipment (USE) in Alberton are taking on Tim van Wyk for supposedly liquidating his company and firing his employees, only to re-register it using another trading name – allegedly with the same assets as the “liquidated” firm.  The National Union of Metalworkers of SA (Numsa) asserts that the scam of liquidating companies in order to get rid of employees is common within the metal and engineering industries.  In June last year, Van Wyk told employees he was undergoing voluntary liquidation and would be retrenching staff, but workers realised that their former employer was allegedly still trading under another name – Algoran Alrode Properties.  A default judgment was issued by MEIBC commissioner Mohamed Raffee in February, where Van Wyk was ordered to reinstate the employees and pay them their salaries, backdated to when they were dismissed.  A variation ruling was handed down by Raffee in March relating to the respondent company as USE had allegedly been liquidated.  Van Wyk had also wanted the default judgment rescinded.  Now evidence has emerged of deliveries still being made using the USE trading name.  The workers believe this will strengthen their case for reinstatement and reimbursement.

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