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Can a National Employment Council (NEC) sue for NEC Levies?

A NEC Levy also known as a Council Due is the principal method by which National Employment Councils (NECs) raise money in Zimbabwe. The rate of payment and method of calculation of the NEC Levies is generally spelt out in a Collective Bargaining Agreement (CBA).

It follows that for a NEC to be able to properly and effectively execute its statutory obligations to advance social justice and democracy in the workplace to its members it requires sufficient resources and revenue. In order to put a NEC in a position to render the required services within the undertaking or industry and in the area in respect of which it is registered, parties to a NEC should make regular payments of NEC Levies.

It is an inherent feature of the NECs registered in Zimbabwe to raise funds from members by the levying of NEC Levies. Resultantly, where a party to CBA fails to deduct NEC Levies for the wage or salary of an employee, a NEC is legally empowered to take action to recover the NEC Levies including interest and costs. The High Court in National Employment Council for the Communications and Allied Services v Econet Wireless (Pvt) Ltd HH 384-26 at para 17 – 18 held that:

“A sectoral giant is not licensed to behave as through labour legislation binds only the smaller players and reaches the largest one by invitation. The law does not recognise a hierarchy of obedience in which the biggest actor may wait upon bespoke comfort before entering the common regime. The record reveals a posture of exceptionalism. The law recognizes none.

The CBA and NEC constitution reinforce the applicant’s clear right. The papers place before the court the dues clause in section 33(3) of the CBA, to the effect that each employee pays 1% basic wage or salary and the employer contributes a like 1% for the same employee. The NEC constitution further provides that the council’s operations are financed by levies on employers and employees, that employers pay a levy equal to the employee levy, and that the council may sue for and recover outstanding levies and other dues.”

It is common cause that a CBA is a binding contract once registered and that it regulates labour and employment within a particular industry or undertaking. It is only binding to parties to the agreement and the employees and employers who are members of the parties concerned. see Tapedza & Others v Zimbabwe Energy Regulatory Authority & Another 2020 (1) ZLR 446 (S). Thus, NECs can only sue for the recovery of NEC Levies in Zimbabwe within their undertaking or industry. Therefore, knowing the character of a trade or industry is important. see Border Timbers (Pvt) Ltd v Minister of Higher Education 2000 (2) ZLR 77 (SC).

Below is a list of nearly all NECs which have been registered by the Registrar of Labour which have an obligation to recover NEC Levies from employers and employees within their undertaking or industry:

• NEC for the Agriculture Industry

• NEC for the Air Transport Industry

• NEC for the Banking Undertaking

• NEC for the Brick-Making and Clay Products

• NEC for the Catering and Hotels Industry

• NEC for the Cement and Lime and Allied Industry

• NEC for the Ceramics and Associated Products Industry

• NEC for the Chemicals, Fertilisers, Battery and Plastics Manufacturing Industries

• NEC for the Cigarette and Tobacco Manufacturing Industry

• NEC for the Cleaning and Hygiene Services Industry of Zimbabwe

• NEC for the Clothing Industry

• NEC for the Commercial Sectors of Zimbabwe

• NEC for the Communications and Allied Services

• NEC for the Construction Industry of Zimbabwe

• NEC for the Cotton Industry

• NEC for the Detergents, Edible Oils and Fats Industry

• NEC for the Electronics Communications, Radio, TV Manufacturing and Allied Industry

• NEC for the Engineering and Iron and Steel Industry

• NEC for the Ferro Alloy Industry in Zimbabwe

• NEC for the Food and Allied Industries

• NEC for the Funeral Industry

• NEC for the Furniture Industry in Zimbabwe

• NEC for the Insurance and Pensions Industry

• NEC for the Leather, Footwear, Sports Equipment, Animal Skin Processing and Taxidermy, Leather Goods, Travel and Canvas Goods Manufacturing Industries

• NEC for the Lumber Milling, Timber Processing and Trading Industry

• NEC for the Medical and Allied Industry

• NEC for the Mining Industry

• NEC for the Motor Industry

• NEC for the Municipals and Allied Institutions

• NEC for the Printing, Packaging and Newspaper Industry

• NEC for the Pulp and Paper Manufacturing Industry

• NEC for the Rural District Councils

• NEC for the Security Industry of Zimbabwe

• NEC for the Soft Drinks Manufacturing Industry

• NEC for the Sugar Milling Industry

• NEC for the Textile Manufacturing Industry

• NEC for the Tourism and Hospitality

• NEC for the Transport Operating Industry

• NEC for the Undertaking of Grain Marketing Board

• NEC for the Undertaking of the Zimbabwe National Water Authority

• NEC for the Water Institutions and Ice Blocks Manufacturing Industry

• NEC for the Welfare and Educational Institutions

• NEC for the Zimbabwe Energy Industry

• NEC for the Zimbabwe Schools Development Associations