News / National
Workers get residential stands as salary compensation
21 Sep 2015 at 09:38hrs | Views
Mutare's prominent businessman, Hlanganiso Matangaidze who owns Matan Holdings Group of companies, has serviced and allocated residential stands to former employees at his subsidiary; Gulliver's Night Club, as salary arrears compensation following the club's closure in August last year.
The businessman, through one of his construction firm, Pillarton Enterprises (Pvt) Ltd, purchased land of about 4200 square metres in the city's Hobhouse Township where he serviced over 20 stands.
A total of 14 former employees at Gulliver's Night Club were offered the serviced stands which are 300m2 and were valued at $4 500 each.
One of the club's former employees, Michael Karira, who successfully entered into the agreement, confirmed that he had already started developing the stand he was allocated.
"I consented to the agreement and I was given an offer letter of the stand on the 1st of March which I am currently developing," he said.
The workers said that the arrangement was facilitated to offset salary arrears they were owed by the company for the period November 2012 to August 2014 during which they went for the total 9 months without receiving any remuneration.
However, some of the workers complained that their cash in lieu of salary arrears for the period failed to offset the total cost of the stands alleging that they were then requested to top up the difference to get a stand.
"We appreciated the gesture by the company, but it benefited some whilst some of us felt prejudiced. Yes, we were all offered the stands but some of our colleagues who had lower grades failed to offset the required amount for the stands and they were requested to make some top ups.
The irony in the arrangement was that the company denied to consider other wage arrears accrued beyond the period they considered and demanded cash to top up the difference," said an employee who decided to remain anonymous.
The Zimbabwe Hotels and Catering Workers Union (ZHCWU) Eastern Regional Officer, Eria Mwandipe confirmed the development saying he appreciated the employer's gesture with mixed feelings.
"Whilst I appreciate that a stand is a long term benefit and a form of a dignified compensation, I should also hasten to comment that the arrangement fell far short from what is required by the law. The Labour Act stipulated that remuneration payable in money shall not be paid to an employee by way of promissory notes, vouchers or in any form other than legal tender. At that end, you would realise that some employees will be forced to dispose of the stand because what they needed is money," he said.
Contacted for a comment, Matan Holdings Manager identified only as Mubvumbi said availing stands to the employees was the most convenient way to compensate the workers since the entity they worked for had long ceased operations.
"We serviced the stands and offered all the employees. The company did everything and surrendered the respective stands to the workers. We only requested a little fee from the workers to cater for legal expenses. I can confirm that some workers have already constructed structures' whilst some of them unfortunately opted to dispose the stands to other home seekers," he said.
Mubvumbi could not be drawn to disclose at how much did the employer serviced the stands.
The businessman, through one of his construction firm, Pillarton Enterprises (Pvt) Ltd, purchased land of about 4200 square metres in the city's Hobhouse Township where he serviced over 20 stands.
A total of 14 former employees at Gulliver's Night Club were offered the serviced stands which are 300m2 and were valued at $4 500 each.
One of the club's former employees, Michael Karira, who successfully entered into the agreement, confirmed that he had already started developing the stand he was allocated.
"I consented to the agreement and I was given an offer letter of the stand on the 1st of March which I am currently developing," he said.
The workers said that the arrangement was facilitated to offset salary arrears they were owed by the company for the period November 2012 to August 2014 during which they went for the total 9 months without receiving any remuneration.
However, some of the workers complained that their cash in lieu of salary arrears for the period failed to offset the total cost of the stands alleging that they were then requested to top up the difference to get a stand.
The irony in the arrangement was that the company denied to consider other wage arrears accrued beyond the period they considered and demanded cash to top up the difference," said an employee who decided to remain anonymous.
The Zimbabwe Hotels and Catering Workers Union (ZHCWU) Eastern Regional Officer, Eria Mwandipe confirmed the development saying he appreciated the employer's gesture with mixed feelings.
"Whilst I appreciate that a stand is a long term benefit and a form of a dignified compensation, I should also hasten to comment that the arrangement fell far short from what is required by the law. The Labour Act stipulated that remuneration payable in money shall not be paid to an employee by way of promissory notes, vouchers or in any form other than legal tender. At that end, you would realise that some employees will be forced to dispose of the stand because what they needed is money," he said.
Contacted for a comment, Matan Holdings Manager identified only as Mubvumbi said availing stands to the employees was the most convenient way to compensate the workers since the entity they worked for had long ceased operations.
"We serviced the stands and offered all the employees. The company did everything and surrendered the respective stands to the workers. We only requested a little fee from the workers to cater for legal expenses. I can confirm that some workers have already constructed structures' whilst some of them unfortunately opted to dispose the stands to other home seekers," he said.
Mubvumbi could not be drawn to disclose at how much did the employer serviced the stands.
Source - online
