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South African Law • Jurisdictional Corpus
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Peoples Own Savings Bank v Gift Chimanikire and Others

CitationHH 30-2005, HC 9050/02
JurisdictionZW
Area of Law
Labour LawAdministrative Law
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Constitutional Law

Facts of the Case

The applicant was a statutory corporation established by Act of Parliament in 2001, previously a unit within the Posts and Telecommunications Corporation (PTC). The respondents were the president, secretary, and registered trade union (Zimbabwe Post and Telecommunication Workers Union) representing workers of the former PTC, including workers who became employees of the applicant. After its establishment, the applicant considered itself part of the Banking Industry and in June 2001 invited its staff to a Collective Bargaining Agreement meeting, bypassing the third respondent union. The applicant also sought to stop deducting union dues from its staff under the check-off system. The respondents objected, alleging unfair labour practices. The Minister of Public Service, Labour and Social Welfare refused to authorize the applicant's decision to stop deducting dues. The applicant appealed to the Labour Court, which upheld the Minister's decision on 3 May 2004. The applicant had also filed this High Court application on 9 October 2002 seeking to restrain the respondents from representing its staff's interests.

Legal Issues

  • Whether the High Court retained jurisdiction over the application filed before the 2002 amendment to the Labour Act granting exclusive jurisdiction to the Labour Court
  • Whether the matter was res judicata given the prior determination by the Labour Court
  • Whether the applicant had locus standi to interfere in the contractual relationship between the trade union and its members
  • Whether an employer can dictate which trade union its employees should belong to
  • Whether employees' constitutional right to freedom of association entitles them to remain members of a trade union even after their employer moves to a different industry

Judicial Outcome

1. The application is dismissed. 2. The determination by the Minister of Labour made on 2nd July 2002 is hereby made an order of this court. 3. The applicant is to pay the respondent's costs.

Ratio Decidendi

An employer has no locus standi at common law to interfere in the contractual relationship between a trade union and its members. An employer cannot dictate which trade union its employees should belong to, as employees have a constitutional right to belong to a trade union of their choice. The right given to employers by the Labour Act to make representations during the registration of a trade union does not amend the common law of contract generally and does not give employers the right to terminate or interfere with the membership of their staff in a properly registered trade union. Where the same issue between the same parties has been necessarily decided by a competent tribunal (in this case the Minister and the Labour Court on appeal), the exceptio rei judicata applies to prevent re-litigation of that issue.

Obiter Dicta

The court observed that even if the matter was not disposed of by the exceptio rei judicata, the application would still have been dismissed on the merits. The court used an illustrative example of a brick-layer choosing to join a teachers' trade union to demonstrate the extent to which labour law protects workers' rights to belong to trade unions of their choice. The court also noted that it was unnecessary to deal with procedural issues raised by the respondents regarding the authority of the deponent and the alleged failure to cite individual employees who were members of the third respondent. The court discussed the principles against retrospectivity and ouster of jurisdiction in relation to the 2002 amendment to the Labour Act, agreeing with counsel that the amendment did not apply to applications filed before its promulgation.

Legal Significance

This case is significant in Zimbabwean labour law as it affirms the constitutional right of workers to freedom of association and their right to belong to a trade union of their choice. It establishes that employers cannot interfere in the contractual relationship between a trade union and its members merely because the employer has moved to a different industry. The judgment reinforces the principle that trade union membership is a matter of contract between the union and its members, and that employers lack locus standi at common law to terminate or interfere with such membership. The case also demonstrates the application of the exceptio rei judicata principle in labour disputes and clarifies the extent of employer rights in relation to trade union representation.

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