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Davies halts NCR labour dispute

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Dr. Rob Davies, minister of labour in Durban Picture: WEF, Benedikt von Loebell
Dr. Rob Davies, minister of labour in Durban Picture: WEF, Benedikt von Loebell

Trade and Industry Minister Rob Davies has stepped in and stopped the National Credit Regulator (NCR) from continuing with a court
case in which a senior analyst won a labour dispute with the agency on three occasions.

The NCR’s core mandate is to regulate the consumer credit industry.

In November last year, the NCR charged Thandile Gubevu with with disrespectful behaviour, insubordination and a breach of standard rules and procedures.

Included in the evidence against him, said Gubevu, was that he had paged through a magazine during a meeting.

An internal disciplinary ruled in Gubevu’s favour but the NCR still fired him. Then he went to the High Court and the judge order his reinstatement. However, NCR did not reinstate him and instead said it would appeal. After further delays, Gubevu went back to court to enforce the order, which the NCR opposed the application and lost.

The question of whether the NCR had “the right to interfere with a finding made by an independent chairperson in a disciplinary inquiry”, was subsequently argued before a high court and again Gubevu won.

Davies’ intervention resulted in the NCR settling with Gubevu and abandoning its plans to appeal before a full bench of the high court.

The minister’s office confirmed that he met NCR CEO Nomsa Motshegare in August to discuss Gubevu’s case.

City Press learnt that the entire process would have cost the NCR in excess of R1 million, starting from the professional fees of the company that conducted the disciplinary hearing, the senior counsel fees in court, a cost order against the NCR and ultimately the settlement with Gubevu.

The agency had a budget of R131 million in the financial year ending February this year.

It is important to use alternative, cost-effective mechanisms in dispute resolution
Sidwell Medupe, labour ministry spokesperson

But former and current employees of the NCR told similar stories to that of Gubevu, including that the regulator was run on the basis of “intimidation, rumours and gossip”.

Davies said he had not been alerted to any potential issue of discontent at the NCR except for Gubevu’s case.

NCR company secretary Lesiba Mashapa said there were no NCR governance problems.

“The NCR has a well-functioning audit and risk management committee and an independent internal audit function which provide oversight.”

The yearly audit performances of the NCR were outstanding, Mashapa said, adding that the regulator, “like any other employer, has the responsibility to maintain discipline and orderly behaviour in its working environment in accordance with its policies and procedures”.

The NCR would not discuss details of specific employees because of employer-employee confidentiality.


Setumo Stone
Political journalist
City Press
p:+27 11 713 9001
w:www.citypress.co.za  e: setumo.stone@citypress.co.za
      
 
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