Covid retrenchments overturned as 13 workers win their jobs back

The Durban Labour Court has ordered SA Cargo Services to reinstate 13 workers dismissed during the Covid-19 pandemic, finding the retrenchments were substantively unfair and not properly justified. SA Cargo Services is a Durban-based logistics company involved in cargo handling, warehousing and port operations around the Durban harbour. The workers, represented by the National Union of Metal Workers of South Africa (Numsa), were retrenched in October 2020 after refusing to accept changes to their pay and working conditions.

SA Cargo had argued that a sharp decline in business due to Covid-19 made the dismissals necessary, citing reduced cargo volumes and financial strain. However, the court found that the company failed to present sufficient and reliable evidence to support this claim. Judge K Allen-Yaman said the company’s case lacked the necessary detail to justify such drastic action.

“Given the dearth of information provided, this court is unable to find on the basis of such evidence as was adduced that the decision to retrench the employees in October 2020 was operationally justifiable,” Allen-Yaman said. The court also found that the company did not properly consider alternatives to retrenchment, including proposals made by workers during consultations, such as foregoing wage increases and other cost-cutting measures. It is accordingly the finding of this court that SA Cargo failed to prove that the dismissals of the employees was for a substantively fair reason based on its operational requirements. The court further found that the dismissals were based on the employees’ refusal to accept changes to their terms and conditions of employment, rather than objective selection criteria.