CSC loses labour case

Published: 29 May 2014

THE Labour Court has ordered ailing meat processing firm, Cold Storage Company (CSC) to pay over $450,000 in outstanding salaries to 209 employees after efforts to reconcile the two parties failed.

CSC has been battling to pay salaries to its employees since 2009. The arrears are for the period 2009 to July 2013. Last October the employees got a consent award paving way for CSC to pay the then outstanding $513,000 but it failed to settle the debt.

However, after the company failed to meet its obligations, the employees wrote to the arbitrator in March this year indicating that CSC had only paid $60,000.

"Given the failure by the respondents to adhere to the consent award issued on October 15, 2013 and the failure by parties to re-engage and at least spruce up the award or agree on new terms and conditions I'm left with no option by (sic) to award accordingly," reads part of the order issued by arbitrator, Peter Chirongoma in a matter involving CSC and John Mafusire and others.

"The respondent is hereby ordered to pay $453,110,00 which is the total outstanding wages for the period under review."

He said according to Section 13 of the Labour Act, all payments should have been made promptly when due either weekly or monthly but this was not the case.

Prior to the award the arbitrator convened two meetings to try and iron out the differences.

"Notifications for parties to attend proceedings were set for April 23 and all parties duly attended. Proceedings were adjourned to Wednesday April 30, starting at 1100hrs to allow parties to forge an agreement. Respondent failed to attend proceedings on the date in question," the arbitrator said.

He added: "On being contacted, respondent indicated that they had forgotten to fulfil the appointment, but also noted that no agreement had been reached and that I could proceed to determine the matter.

"Respondent however confirmed in writing that only $60,000 had been paid in two months and that there was a balance of $453,110,00. Respondent does not dispute that they failed to honour the letter and spirit of the Consent Award dated October 15, 2013. Parties to the dispute were given an opportunity to settle the dispute in the best interest of themselves and initially agreed to consent to which the respondent failed to implement."

A fortnight ago employees at the meat processing firm staged a demonstration demanding their outstanding salaries. It is understood that most employees are owed about $10,000 in unpaid salaries spanning over three years.
- chronicle

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