Ngcaba loses labour dispute case against Dimension Data

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Andile Ngcaba, founder and chairman of Convergence Partners.
Andile Ngcaba, founder and chairman of Convergence Partners.

Ex-Dimension Data chairman Andile Ngcaba has lost an unfair labour practice dispute with his former employer.

In August, Ngcaba announced he was taking his former paymaster to the Commission for Conciliation, Mediation and Arbitration (CCMA) over alleged "discrimination and unfair remuneration practices".

However, in a statement issued by Dimension Data yesterday, Ngcaba lost his CCMA case in which he alleged Dimension Data had committed unfair labour practices by failing to provide him with remuneration and benefits equivalent to the other senior executives of Dimension Data.

The businessman had alleged he learnt in May 2016 that executive directors, including his juniors, were benefiting from a long-term incentive scheme, from which he was excluded.

He argued that by being excluded from the scheme, this amounted to institutional racism.

The matter was heard by the CCMA on 14 November and the ruling was made public yesterday.

The commissioner found the delay of 15 months in referring the alleged unfair labour practice to the CCMA was "wanting and not reasonable at all".

According to Dimension Data, the commissioner also found Ngcaba's prospects of success are slim.

"Dimension Data is delighted with the CCMA's ruling," the systems integrator says in a statement.

In July, Ngcaba's Convergence Partners exited its investment in Dimension Data Middle East and Africa (DDMEA). Ngcaba then stepped down as chairman.

Convergence Partners first invested in Dimension Data in 2004 as part of the original Dimension Data B-BBEE transaction and remained invested until June 2017.

The contractual investment term ended in September 2016, and Convergence Partners and DiData negotiated a consensual exit to the investment.

Although Convergence Partners exited its DDMEA investment, Dimension Data and Convergence remain co-investors in a number of businesses across SA and the rest of the African continent.

Ngcaba could not be reached for comment by the time of publication.

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