Page 3 - Business Sense
P. 3

PAYING IT FORWARD





                usa Makhunga’s        2007 as a property management,   profits while serving a meaningful
                passion for people    investment and services business.   purpose and giving back to society. 
        Mand society has been         A warehouse and logistics
        driven by the need to “pay it   component is located at Pran Park   As president of the Durban
        forward”. He believes that he   at Dube TradePort. A location,   Chamber of Commerce and
        would not have achieved as    which Makhunga says, provides a   Industry (DCCI), Makhunga is
                                                                    practices and ensuring that local  COLLECTIVE MISCONDUCT
        much as he has done in his life   competitive advantage as it ticks   committed to ethical business
        if he was not assisted by the   off all the factors a distribution
        generosity of other people.   centre covering the RSA steel   business leaders and government
                                      manufacturing market would    work together to stimulate the            Patrick Deale, Labour   renders the act of the principal
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          Makhunga says, “I realise   require, including proximity to the   city’s economy.                    Lawyer & Mediator,   offenders the act of all.  But the
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        that if people had not provided   ports of entry.            “My role as president has                  Deale Attorneys   court   has warned employers that
        opportunities for growth, I                                 allowed me to develop many                                  the doctrine of common purpose
        would not have made it, career   The desire to assist people in the   insights into the leadership     W        hat’s   must not be used as an excuse
        wise.  We all need just that one   communities Makhunga grew up   challenges in the business sector.            the     for collective punishment, or to
        person who believes in our set   in is apparent in his co-founding   Getting involved at a high level                   be confused with the concept of
        vision and declared commitment   of the Nothani Education Trust                                       difference between   “collective guilt”.
        to it, to make it a bit further.   (www.nothani.org.za). This   has allowed me to obtain a               collective and   Derivative Misconduct
                                                                    national perspective of current
        “This past assistance has seen   organisation contributes to efforts                                      derivative     The doctrine of derivative
        Makhunga become a trained     aimed at helping communities   macro-economic issues in South               misconduct    misconduct holds that the
        teacher and now a businessman,   and individuals in Zululand to   Africa. Of significance it is           and why is it   dismissal of an employee is
        who has worked in many        work themselves out of poverty.   necessary to balance business and         important to   derivatively justified in relation
        industries including education,   Currently this effort is focused   societal needs; these needs should  distinguish between them?    to the primary misconduct
        manufacturing, mining, retail,   on funding for five students who   be as one, while often they pull in   PRASA Case    committed by unknown others,
        banking and consulting.       can’t afford university study. Each  different directions. In addition,   PRASA  had to pay a high price for  where an employee, innocent of
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                                      qualifying student is provided a   when balancing people’s needs
          Makhunga founded the HR     full scholarship for the duration   and that of profit, we often walk a   failing to make the distinction after   actual perpetration of misconduct,
        Matters company in 2002 as    of their study period. The funding  tight rope.”            it fired 700 employees for derivative   consciously chooses not to
        an outsource human resources   criteria is set at students from a                         misconduct. They suspected NTM   disclose information known to
        solutions outfit servicing small,   household who have less than   “Currently, I find that South   members for burning train coaches   that employee pertinent to the
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        medium and large business,    a R6000 per month income,     Africans are working in different   during a strike about organisational   wrongdoing.  The concept is
        focusing on talent acquisition,   although this is about to change   directions and it is really important   rights. Their suspicions arose from   based on the principle that an
        training, consulting and HR   seeing they are competing with   that everyone works together and   comments officials made at union   employee owes a duty of good
        administration.   This has been   NSFAS with the new free tertiary   presents a coherent message. This   meetings which the company   faith to an employer. The employee
        the family focus for the past 13   education arrangement. Of   is especially relevant when trying   interpreted as inciting employees to   breaches the duty if he or she fails
        years as he runs this business   importance the students are each   to attract foreign investors, we are   burn trains.    to disclose information he or she
        with his wife, Nozipho.       assigned a mentor to ensure that   singing off different hymn sheets.”   The company sent a notice to   has about activities of others which
                                                                                                                                undermines the employer’s business
          He said that although there had   they are able to stay focused and   Makhunga commented further   striking employees alleging that   interests.
        been challenges, the decision   succeed in their chosen field of   that the opportunity to interact   they were jointly and severally
                                                                                                  responsible for the damage. The
        to change his career by joining   study. This ensures their assisted   with people from the global   notice invited them to make written   Essential Elements
        commerce was a risk that      graduates have the needed     chamber movement has allowed   representations why they should not   In the PRASA case, the Labour
        has paid off handsomely in    social capital to facilitate finding   him the occasion to see how other  be dismissed.    Court found the dismissals were
        terms of personal growth and   opportunities after university   countries perceive the work of                          substantively and procedurally fair.
        development.                  which is a struggle for people                               The union’s lawyers provided a   But the Labour Appeal Court (LAC)
                                      coming from poor backgrounds   business chambers.           collective response to the notice in   disagreed and found the dismissals
          One of Makhunga’s strengths   with zero networks to plug into.  “This is especially relevant   which they denied their members   unfair. This was because PRASA
        is his entrepreneur spirit. He                              where these activities are    were responsible.  It advised   had failed to prove the essential
        explains, “My mom and my aunt   Makhunga commented, “I am                                 that their members offered their   elements required for dismissals on
        could not afford to provide much   passionate about the importance   integrated into the local   assistance to identify the culprits.   the basis of derivative misconduct.
                                                                    economic strategy. This has
        beyond the necessities when I was   of education and vocational skills                    The company rejected this response   In summary:
        young, so I learnt to ‘hustle’ at an   development to the extent I think   really opened my eyes to the   and dismissed striking employees
        early age. At school sports days I   the two could well be the panacea   work achieved by business   who had not submitted individual   1.  The information or knowledge
        would sell oranges. I was one of   of all societal ills.”   chambers. The DCCI provides   explanations.                    that the employee fails
        a few people who had a camera   In the past, Makhunga has   national and international                                     to disclose must be “actual
        so l took photographs and would   been involved with the founding   platforms to facilitate inclusive   Collective Guilt      knowledge”.
        send the spool from Zululand to   of Mothers-to-Mothers-to-Be   and fair trade and I encourage   The doctrine of collective guilt   2.  The non-disclosure must be
        Durban to be printed and then   (M2M2B) mentoring programme.   other businesses  to be part of   involves punishing an entire group   deliberate.
        sell the prints.” And he would full   This programme addresses the   this movement.”      for the misconduct of some of its   3.  The seriousness of the primary
        local school and township halls   needs of pregnant women and   In addition, South Africa has   members, even though there is      misconduct and the rank of
        with people, at a fee, to watch   mothers living with HIV. The   much unfinished business and   no evidence to prove common      the employee who discloses it,
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        hired movie reels, ‘bioscopes’, of   programme recognises that   it is necessary to get business   purpose . The courts have rejected      at most affects the gravity of
        cowboys, Tarzan and school set   these women need support and   and authorities to work together   this doctrine as being repugnant      the non-disclosure.
        books, he reminisces with a smile.  education and that the best   to address issues of inequality,   to our law. It runs counter to   4.  The employee need not have

          Makhunga added that if it was   people to provide these services   poverty and slow economic   the principles of natural justice      a common purpose with the
                                                                                                                                  perpetrator.
                                                                                                  which recognises that a person
        up to him, be it at home, school   are fellow mothers living with   growth. Of note the SDGs   is presumed to be innocent until   5.  An explanation for the non-
        and in society in general, youth   the HIV virus. The model   provide many opportunities   proved guilty.                  disclosure is not a defence to
        would be encouraged to get out   advances six of the 17 United   where business can take the lead                          the charge, but it may be used as
        there early, to earn or learn  to   Nations Sustainable Development   and work together in promoting   Common Purpose      a mitigating factor. n
        trade because in the end, the   Goals (SDGs) that most directly   socio economic development in   The doctrine of common purpose
        exchange of goods or services   affect women and children’s   society with its members and   imputes liability for an act of the   January 2019
        will exist forever where there is   health, development, and   other key stakeholders. These   perpetrator of a criminal act to   *1  NTM
        more than one human being,    economic security.            goals are significant in that the   those who associate themselves   2  Grogan Dismissal 2nd ed. 335
                                                                                                                                3  Grogan 334
        laws or no laws.  Those endowed   “I get immense fulfilment from   DCCI’s vision is: “In Business for  with the act before or during its   4  NSGAWU v Coin Security [1997] 1 BLLR
        with these learned skills will   the philanthropy work I do or have   a Better World”.    commission. The courts have   85 (IC)
        survive no matter where they find   done, with my friends and business   Makhunga concluded, “We   accepted this principle. It is not   5  Western Platinum Refinery Ltd v Hlebela
        themselves.                   associates,” he commented. In   each have a responsibility to help   necessary to show that each   and others

          This entrepreneurial acumen saw   addition to philanthropic work,   South Africa grow – we can’t   party performed a specific act to   Offices in KZN and Johannesburg
                                                                                                  achieve the common objective or
        the HR Matters company establish   Makhunga enjoys motivating   always leave assisting others to   contributed causally to the outcome   C: 083 375 8771
                                                                                                                                E: patrick@deale.co.za
        HR Matters Properties (HRMP) in   other local businesses to generate   the next guy.”  n  – association in the common design   www.deale.co.za



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