NEC sues CMED over outstanding $67 000 subscriptions

THE National Employment Council (NEC) for the Motor Industry has dragged the government’s vehicle fleet manager, CMED, to the High Court seeking to recover over $67 000 in outstanding monthly contributions.


According to NEC’s summons filed at the High Court, CMED last paid its monthly contributions to the council almost two years ago in breach of terms of the Collective Bargaining Agreement (CBA) for the motor industry.

In its declaration filed under case number HC1703/16, the NEC said in terms of section 51(1) of the CBA for the motor industry, each employer member in the industry was statutorily obliged to make contributions to the organisation every month.

“The defendant (CMED) is a member of the plaintiff (NEC) organisation and is an employer in the motor industry with employees at various branches across the country. As an employer in the motor industry, defendant is governed by the Collective Bargaining Agreement which is SI (staturoty instrument) 35/2011,” the NEC said.

NEC further said the contributions were currently pegged at $2 per employee per month, which amount was being deducted from the employees’ salary and a similar amount being contributed by the employer of which CMED was reneging on its obligations.

“The defendant at its various branches in Marondera, Chinhoyi, Harare and Bindura has failed to fulfil its statutory obligations and pay its monthly subscriptions during the period between November 2013 and December 2015, which has resulted in a total amount of $67 038,18 being due and outstanding,” it said.

“The defendant has, on several occasions, despite demands, failed and/or refused to pay the outstanding amount.

Wherefore, plaintiff’s claim against defendant is for payment in the sum of $67 038,18 together with interest thereon, calculated at the prescribed rate from the date of issue of the summons to the date of payment in full.”

The government’s parastatal has since filed an appearance to defend notice and is prepared to challenge the NEC’s claim.

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