Business / Companies
Zesa fined $400 for failing to pay workers
09 Apr 2013 at 02:57hrs | Views
The Zimbabwe Electricity Supply Authority has been convicted and fined $400 for non-compliance with an agreement it made with its employees.
The power utility had been brought to court over a debt of close to US$19 million it owes its employees dating back to January last year.
The company was being charged for contravening Chapter 28.02 of the Labour Act, which protects employees' rights to fair labour practice.
Magistrate Ms Anita Tshuma ordered the power utility to pay the fine by today.
Failure to pay the fine, Zesa's property worth $400 will be attached.
In passing the sentence, Ms Tshuma ruled that the non-compliance by Zesa was deliberate.
The power utility was being represented by its legal advisor and corporate secretary Mr Garikai Churu.
In mitigation the company's lawyer Mr Abraham Maguchu of Dube, Manikai and Hwacha legal practitioners said the non-compliance with the agreement was not deliberate but it was with regard to interpretation of the Statutory Instrument 12 of 2012.
Mr Maguchu said Zesa could not afford to pay any amounts greater than what it is paying since the company was experiencing financial problems.
In aggravation the State led by Mr Oscar Madhume said the non-compliance by Zesa had a negative impact on its employees.
The court heard that from January 1 last year to an unknown date, a collective bargaining agreement for the Zimbabwe Energy Industry was gazetted.
Zesa was to pay its employees prescribed salaries and wages which were to be effected on January 1 of the same year. However, it never paid the money and the total value in question is US$18 897 848 which was accrued for more than 7 000 workers.
Representing the Zimbabwe Electricity Workers' Union (Zewu), Mr Joseph Charlie argued that their employer had failed to observe the employees' right to fair labour practice.
The power utility had been brought to court over a debt of close to US$19 million it owes its employees dating back to January last year.
The company was being charged for contravening Chapter 28.02 of the Labour Act, which protects employees' rights to fair labour practice.
Magistrate Ms Anita Tshuma ordered the power utility to pay the fine by today.
Failure to pay the fine, Zesa's property worth $400 will be attached.
In passing the sentence, Ms Tshuma ruled that the non-compliance by Zesa was deliberate.
The power utility was being represented by its legal advisor and corporate secretary Mr Garikai Churu.
In mitigation the company's lawyer Mr Abraham Maguchu of Dube, Manikai and Hwacha legal practitioners said the non-compliance with the agreement was not deliberate but it was with regard to interpretation of the Statutory Instrument 12 of 2012.
Mr Maguchu said Zesa could not afford to pay any amounts greater than what it is paying since the company was experiencing financial problems.
In aggravation the State led by Mr Oscar Madhume said the non-compliance by Zesa had a negative impact on its employees.
The court heard that from January 1 last year to an unknown date, a collective bargaining agreement for the Zimbabwe Energy Industry was gazetted.
Zesa was to pay its employees prescribed salaries and wages which were to be effected on January 1 of the same year. However, it never paid the money and the total value in question is US$18 897 848 which was accrued for more than 7 000 workers.
Representing the Zimbabwe Electricity Workers' Union (Zewu), Mr Joseph Charlie argued that their employer had failed to observe the employees' right to fair labour practice.
Source - TH
