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Ally Fashions vs National Bargaining Council

This case was dealt with under the compliance proceedings of the National Bargaining Council for the Clothing Manufacturing Industry (NBC) against Mr Z Ally of Ally Fashions, a clothing company in the Western Cape .

The background to this matter is that Mr Ally had for years led the campaign against the bargaining council, among CMT operators in the Western Cape . He had refused to register his company with the NBC and to pay NBC levies and provident fund contributions. The NBC then took up a compliance case against him. The case was heard in the Labour Court on 26 August 2005 . Mr Ally was found guilty of contempt of court for having failed to comply with a compliance arbitration award against him. He was committed to 60 days in prison without the option of a fine, suspended on the condition that he complies with the compliance arbitration award within 14 days after the court order and pay the arrears in NBC levies and provident fund contributions. He was further fined R5000 or committed to prison for 30 days and ordered to pay the legal costs.

The Ally Fashions vs NBC case is extremely important, since it was the first of its kind. It gave precedent-setting teeth to our compliance campaign in the clothing industry. Since the court order, Mr Ally has registered his company with the NBC and had made arrangements to pay the provident fund and levy arrears.