TN, workers fight over unpaid salaries

Published: 10 March 2014

TN Harlequin Luxaire, the furniture arm of Lifestyle Holdings, is locked in a bitter labour dispute with about 40 workers over outstanding salaries and benefits.

In the matter, which has spilled into arbitration, the affected workers said they were owed salaries, commissions and back pay dating back to August last year.

The workers further alleged that their employer was closing branches, sending workers home without any salaries or a retrenchment package.

The struggling furniture arm, part of Tawanda Nyambira's expansive business empire, is laying off workers citing a slump in business.

Nyambirai told the Zimbabwe Mail last month that TN Harlequin Luxaire employed in excess of 1 400 workers which could no longer be sustained as average sales were way below expected figures.

"To survive we must reduce our operating expenditure and align them to our sustainable revenue levels. That is why we are retrenching and closing those branches that have high costs occupancy," Nyambirai said.

So far, the company is said to have closed branches in Kariba, Chinhoyi, Mvurwi, Gwanda, Beitbridge, 4th St and Angwa in Harare, Hwange, Masvingo, Victoria Falls, Redcliff, Chitungwiza while the closure of two other branches was pending. Only two branches, one at the Harare Show grounds and Southerton, are reportedly still operational.

The workers said they were owed an average of $2 000. In areas where the company has closed branches, the employer is being accused of moving furniture, and shooing workers home, empty handed.

"All affected workers have been send home and do not know their fate pending retrenchment. In other branches, such as Kariba, assets have been moved," said one worker.

In Karoi, workers have refused the employer access to the furniture until their outstanding salaries and benefits are settled.

An official with the Commercial Workers Union, representing the workers, but cannot be named said conciliatory efforts between the workers and the employer had failed to yield results, forcing the case to go for arbitration.

He said the employer accepted liability, but has failed to execute a payment plan.

"The workers are suffering and the employer has done nothing towards their cause. I can confirm that the employer is not sincere in coming up with a payment plan. We had agreed during conciliation that they do so but no plan was executed. Instead, the employer was asking for more time to which we objected," said the official.

An arbitral award on the case is expected soon.

Lifestyles Holdings CEO Nyambirai said any restructuring that involves the retrenchment of employees was bound to be a painful and protracted exercise, but he would not be doing the company any good, if he managed the process through the media.

"We have a duty of privacy and confidentiality towards our employees. They owe us the same duties. We will not breach our duties by disclosing what is going on in this painful process," Nyambirai said.

He said the questions by The Zimbabwe Mail were calculated to influence the outcome of he restructuring and the outcome of some cases that are before the courts.
- zimmail