Mall developer gets interdict

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Published Oct 19, 2012

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A Burgersfort ward councillor and local ANCYL officials were on Friday interdicted from interfering with the construction of a mall in the Mpumalanga town.

The High Court in Pretoria granted an urgent interdict to Beckers Building Contractors and Resilient Properties, interdicting six Burgersfort residents and a group known as the Platinum Forum from trespassing on the property and interfering with their work.

The respondents include the ANC Youth League secretary and chairman of ward 18 in Burgersfort, the ward 18 councillor in the Greater Tubatse municipality, a local business co-ordinator, and a woman acting as the liaison officer between the building contractor and local residents.

They may not claim any moneys from the contractor as compensation for persuading workers not to strike. They may not disrupt the contractor's business in any manner.

The contractor's managing director Barend Becker said in an affidavit that they had entered into contracts with local sub-contractors and had hired local workers.

The community liaison was appointed to help hire local labourers and sub-contractors, and participate in any steering committee established by the local municipality.

A local business co-ordinator was appointed for a monthly fee of R6000 to find local sub-contractors. Becker said although agreements were in place and the project started in May this year, it was plagued by industrial unrest.

In July the local sub-contractors brought all work to a halt, demanding their contracts be re-negotiated. The company was forced to agree to a 48 percent wage increase for sub-contractors, and a 20 percent increase for local labourers.

A further strike was averted later that month but a group, including two local ANCYL members, approached the company in August informing them workers wanted further increases.

The company was forced to pay R105 000 for “protection from any unprotected strikes”, which Becker said amounted to extortion.

“(We) were astounded by the influence this group exercised over the local labourers and... sub-contractors and for the time being the project seemed to be under control, and there was no labour unrest or rumours of strikes after payment was made,” Becker said.

Workers again went on strike later in August. At a subsequent meeting the business co-ordinator, local ward councillor and ANCYL chairman demanded a further R105 000 to “close the chapter”. Becker understood this was to protect them from further industrial action.

“Due to the ongoing threat and reality of unprotected strikes (we) had no choice but to pay the extortion money for the so-called protection by these individuals,” he said.

Local employees and sub-contractors however embarked on a full-scale strike in September. The company was approached by a group under the leadership of the local African National Congress Youth League secretary, who had by then become a sub-contractor in his own right.

The group was threatened with further strike action if their list of demands was not met.

“This was clearly aimed at extortion and in order to exert unlawful pressure on the applicant to become part of a scheme to benefit these individuals in their personal capacities,” Becker said.

Contractors and labourers who wished to continue with the development were intimidated, which resulted in stop-start work.

They were seriously hampered in their efforts to meet their contractual obligations, in terms of which the project had to be concluded by May next year.

The company had already suffered irreparable losses which threatened its financial viability, and risked paying prohibitively expensive penalties, he said.

The respondents were given until November 26 to supply reasons why a permanent interdict should not be granted against them. - Sapa

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