ZESA HOLDINGS PVT LTD

versus

THE STATE

HIGH COURT OF ZIMBABWE

CHATUKUTA, MUSAKWA JJ

HARARE, 9 March & 11 June 2018

Criminal Appeal

A K Maguchu, for the appellant

T Mapfuwa, for the respondent

CHATUKUTA J: The appellant is a state enterprise operating in an industry involved in the generation, transmission and distribution of electricity. It was convicted, after contest of contravening s 6(1)(a) of the Labour Act [Chapter 28:01] in that it had paid its employees salaries which were lower than those specified under the Collective Bargaining Agreement, Zimbabwe Energy Industry, 2012 (Statutory Instrument 50 of 2012) (the Agreement). It was found to owe the employees $18 897 848, 34. It was sentenced to pay a fine of $400 and in default of payment its property be attached to satisfy the fine.

The Agreement which was published on 30 March 2012 was a culmination of negotiations between the Zimbabwe Energy Industry Employers’ Association (ZEIEA) (of which the appellant was a party) on one hand and the Zimbabwe Energy Workers’ Union and ZESA Technical Employees’ Association (referred to in the Agreement as “trade unions”) on the other with the aim of coming up with a singular uniform remuneration system. Prior to the promulgation of the Agreement, members of ZEIEA were grading their employees differently and paying them according to different grades. ZEIEA and the trade unions agreed, as set out in the Agreement, to a minimum basic salary of $275.00. Other benefits were payable for employees in their energy industry on grade A.1.1 with effect from I January 2012 to 31