Business / Companies
RioZim workers, ZDAMWU challenge High Court ruling on corporate rescue application
2 hrs ago |
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The Zimbabwe Diamond and Allied Mineral Workers Union (ZDAMWU) has filed an appeal at the Supreme Court challenging a High Court ruling which dismissed its corporate rescue application for RioZim (Pvt) Ltd under case HCH 1945/25.
In a statement dated 13 January, the union said that in 2025 it jointly filed for corporate rescue together with two RioZim employees, Precious Mwanza and Owen Kapeta, both ZDAMWU members. The application was motivated by the company’s failure to pay workers and other creditors, as well as concerns over statutory obligations.
ZDAMWU said the company owed the union statutory deductions, making it a creditor with a vested interest in the company’s viability. It added that workers were owed more than eight months’ salaries, while RioZim also owed strategic service providers such as ZESA, MIPF and NSSA. The union said workers’ pensions, medical aid and funeral policies were under threat due to non‑remittance of deductions.
According to the union, the High Court did not address the merits of the corporate rescue application but dismissed it on the basis that ZDAMWU and its members lacked locus standi to bring such proceedings. The union said it disagreed with the ruling, arguing that the judgment was not in line with the spirit of corporate rescue, which seeks to balance the interests of creditors, shareholders and employees, and to preserve businesses in a manner that benefits all stakeholders.
ZDAMWU said corporate rescue is designed to revive financially distressed companies in a cooperative manner rather than through liquidation, and to enable creditors to recover more than they would under insolvency. The union insists it has standing because it represents workers at RioZim and is owed union dues, making it a creditor under the Insolvency Act.
The union said the High Court’s characterisation of ZDAMWU as a “busy body” was a misdirection, arguing that trade unions have a legal mandate to protect the rights and interests of their members at any workplace where they are represented.
ZDAMWU said it will continue fighting for workers’ rights and awaits the outcome of its Supreme Court appeal, filed under case number SC18/26.
In a statement dated 13 January, the union said that in 2025 it jointly filed for corporate rescue together with two RioZim employees, Precious Mwanza and Owen Kapeta, both ZDAMWU members. The application was motivated by the company’s failure to pay workers and other creditors, as well as concerns over statutory obligations.
ZDAMWU said the company owed the union statutory deductions, making it a creditor with a vested interest in the company’s viability. It added that workers were owed more than eight months’ salaries, while RioZim also owed strategic service providers such as ZESA, MIPF and NSSA. The union said workers’ pensions, medical aid and funeral policies were under threat due to non‑remittance of deductions.
According to the union, the High Court did not address the merits of the corporate rescue application but dismissed it on the basis that ZDAMWU and its members lacked locus standi to bring such proceedings. The union said it disagreed with the ruling, arguing that the judgment was not in line with the spirit of corporate rescue, which seeks to balance the interests of creditors, shareholders and employees, and to preserve businesses in a manner that benefits all stakeholders.
ZDAMWU said corporate rescue is designed to revive financially distressed companies in a cooperative manner rather than through liquidation, and to enable creditors to recover more than they would under insolvency. The union insists it has standing because it represents workers at RioZim and is owed union dues, making it a creditor under the Insolvency Act.
The union said the High Court’s characterisation of ZDAMWU as a “busy body” was a misdirection, arguing that trade unions have a legal mandate to protect the rights and interests of their members at any workplace where they are represented.
ZDAMWU said it will continue fighting for workers’ rights and awaits the outcome of its Supreme Court appeal, filed under case number SC18/26.
Source - Byo24news
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