THE chairperson handling a grievance procedure for a company that dismissed a transsexual employee, Christine Ehlers, gave her three alternatives to consider.

Dirk van de Waal testified in the Johannesburg labour court yesterday he suggested to Bohler Uddeholm in Isando that Ehlers be separated from the rest of the sales staff by offering her a freelance position.

Two other alternatives were that she be declared redundant and take a severance package, or keeping the status quo.

"(We'd) see what happened next and that would result in a disciplinary procedure and somebody would be dismissed," Van de Waal said.

"I was not convinced that it would not be the employee that would be fired."

Van de Waal said he did not have a "hire and fire" mandate, but was just there to advise on a grievance that Ehlers laid against a colleague, Fatima Lage, who she said called her "immoral".

Ehlers took the company to court, claiming she was unfairly dismissed for undergoing a sex change in 2008.

Several of Ehlers's colleagues testified that she made it unbearable for them to work with her, as she had severe mood swings and started becoming aggressive in the office.

Van de Waal said Ehlers told him she had an agreement with the company to work as a male.

He said he got the impression that Ehlers would provoke situations in the office.

"They all saw her as the instigator of the conflict," he said.

He felt the company had a problem dealing with conflict between employees.