News / National
Court awards Zimdollar $45 billion severance packages but at what exchange rate
13 Apr 2012 at 15:35hrs | Views
GWERU Six workers from a catering company who won a Labour Court case over severance packages in January are yet to be paid following a dispute over the conversion of the defunct Zimbabwe dollar to United States dollars.
The court ruled that the six be paid amounts ranging between Z$45 billion and Z$65 billion or alternatively, the parties resume negotiations for an acceptable exchange rate.
The award was granted based on the Zimbabwean dollar which was scrapped in 2009.
In January, the Brytheville Investments workers were awarded Z$360 billion, the legal tender used when the matter first went to court six years ago. At the end of January, Gweru Labour Court judge Justice Maxwell Takuva ordered the firm to reach an agreement with former employees on the exchange rate to be used.
It is reported that the company's lawyers, Jumo & Partners, were finding it difficult to come up with a proper exchange rate.
The 2008 exchange rate was Z$30 000 to US$1 in April 2008 which means that for a worker who was awarded a Z$60 billion package should now get about US$2 million dollars.
But the following month in May 2008 the exchange rate was Z$500 million to US$1.
The court ruled that the six be paid amounts ranging between Z$45 billion and Z$65 billion or alternatively, the parties resume negotiations for an acceptable exchange rate.
The award was granted based on the Zimbabwean dollar which was scrapped in 2009.
In January, the Brytheville Investments workers were awarded Z$360 billion, the legal tender used when the matter first went to court six years ago. At the end of January, Gweru Labour Court judge Justice Maxwell Takuva ordered the firm to reach an agreement with former employees on the exchange rate to be used.
It is reported that the company's lawyers, Jumo & Partners, were finding it difficult to come up with a proper exchange rate.
The 2008 exchange rate was Z$30 000 to US$1 in April 2008 which means that for a worker who was awarded a Z$60 billion package should now get about US$2 million dollars.
But the following month in May 2008 the exchange rate was Z$500 million to US$1.
Source - newsday
