THE High Court has ruled in favour of the Cotton Marketing Workers Union of Zimbabwe after it sued the Cotton Company of Zimbabwe (Cottco) for failing to remit US$432 408,83 in union dues collected from employees.
The union, which represents workers in the cotton industry, said Cottco was deducting membership subscriptions from employees through a check-off system since 2022 but did not transmit the money to the organisation.
Union membership fluctuates depending on the season, with the highest subscriptions recorded during cotton farming and harvesting periods.
On October 16, 2024, the union issued summons against Cottco seeking payment of US$432 408,83 that had been deducted from workers’ salaries but not remitted.
Cottco entered an appearance to defend the claim, disputing that the union was improperly registered and arguing that it had failed to provide consistent membership data and valid written authorisation from subscribing members.
The company also denied owing the claimed amount, citing alleged discrepancies in the calculation of dues and arguing that the claim had no legal basis because it was denominated in United States dollars without provision for payment in local currency.
However, the union argued that written communication between the parties showed that Cottco had acknowledged the debt and even proposed a payment plan.
One such letter, dated July 23, 2024, outlined a schedule to clear the outstanding amount. Cottco paid US$5 000 on September 4, 2024, in accordance with the proposed plan.
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The dispute centred on whether the payment plan constituted an enforceable acknowledgement of debt or was part of privileged settlement negotiations.
In his ruling, High Court judge Justice Regis Dembure said Cottco had made an unequivocal acknowledgement of liability.
“It has not been expressed that they did not have the authority to act for the defendant. As at 23 July 2024, the defendant expressly acknowledged owing the plaintiff the sum of US$405 000 plus ‘remaining balance’.
“Accordingly, the defendant should be stopped from seeking to deflect from its previous undertaking. In my view, the legal issues are dispositive of the matter and a trial may not be necessary in the circumstances,” he said.
Justice Dembure said Cottco clearly accepted responsibility for the unremitted union dues.
“It was either that the defendant deny liability and stand on that course or accept indebtedness and be bound by it. It cannot do both.
“Accordingly, the fact that the defendant would later seek to appear as if it was not aware of its earlier communications in its letter written after the letter of demand by the legal practitioners cannot assist the defendant’s case.
“It cannot blow hot and cold. Once it had earlier accepted liability, it could not turn and deny liability for what it had accepted.”
The judge ruled that the payment plan proposed by Cottco was enforceable and admissible as evidence in court.
