Amalgamated Society of Woodworkers of SA v Die 1963–Ambagsaalvereniging (1) 1967 (1) SA 586 (T)

Amalgamated Society of Woodworkers of SA v Die 1963–Ambagsaalvereniging (1) 1967 (1) SA 586 (T)

Issue: Whether a trade union, in terms of its constitution, can make donations to political parties.

Facts:

The Amalgamated Society of Woodworkers of SA (ASW) was a registered trade union in South Africa. The ASW's constitution allowed for the payment of donations to "any other society or institution whose objects in the opinion of the executive committee are calculated to benefit the trade union movement generally."

In 1963, the ASW's executive committee donated R16,218 to Die 1963-Ambagsaalvereniging (Die Ambagsaalvereniging), a political party that was formed to support the National Party government.

A group of ASW members challenged the ASW's donation to Die Ambagsaalvereniging, arguing that the donation was ultra vires (beyond the legal powers) of the ASW.

Held:

The Court held that the ASW's donation to Die Ambagsaalvereniging was ultra vires and invalid. The Court reasoned that the ASW's constitution did not authorize the ASW to make donations to political parties.

The Court also found that the ASW's donation to Die Ambagsaalvereniging was not calculated to benefit the trade union movement generally.

Key Facts:

• A trade union made a donation to a political party.
• A group of trade union members challenged the donation, arguing that it was ultra vires.

Reasons:

• The Court held that the trade union's donation to the political party was ultra vires and invalid.
• The Court reasoned that the trade union's constitution did not authorize the trade union to make donations to political parties.
• The Court also found that the trade union's donation to the political party was not calculated to benefit the trade union movement generally.

Conclusion:

The Court's decision in Amalgamated Society of Woodworkers of SA v Die 1963–Ambagsaalvereniging (1) 1967 (1) SA 586 (T) is a significant case in South African law. The Court's decision clarified the law relating to the powers of trade unions to make donations.