News / National
Zim central bank ordered to pay US$4,5m salary arrears
12 Jan 2012 at 05:15hrs | Views
THE Reserve Bank of Zimbabwe has been ordered to pay its 237 non-managerial workers US$4,5 million in salary arrears within three months.
Between 2009 and August last year, the arrears had risen to US$4585 185,05.
Through their lawyer, Mr Rodgers Matsikidze of Matsikidze and Mucheche Labour Chambers, the workers took the labour dispute for arbitration after failing to reach an agreement with the central bank.
Arbitrator Ms E Maganyani ruled in favour of the workers.
"Having considered all the evidence and arguments of the parties, I hereby order that the Reserve Bank of Zimbabwe pay a total of US$4 585 185,05 to the 237 non-managerial workers listed . . . " said Ms Maganyani.
"RBZ shall issue pay slips to the 237 non-managerial employees backdated to March 1 2009.
"The order should be complied with within three months of receiving this award."
The award was handed down on January 3 this year.
Ms Maganyani indicated that RBZ was not exempted from paying debts within stipulated periods.
"RBZ was wrong at law when it argued that under the State Liabilities Act, its debts fall under that of the State and that an order directing the central bank to pay the debt within a specified period would not be enforceable," she said.
"It should be noted that the Labour Act applies to both the RBZ employees and the employer and that the legislature intends for those covered by the Labour Act including RBZ to be bound by its provisions."
During the arbitration hearing RBZ agreed that it owed the workers but argued that it did not have the money to pay them. The central bank said it would only pay when the funds were available.
Between 2009 and August last year, the arrears had risen to US$4585 185,05.
Through their lawyer, Mr Rodgers Matsikidze of Matsikidze and Mucheche Labour Chambers, the workers took the labour dispute for arbitration after failing to reach an agreement with the central bank.
Arbitrator Ms E Maganyani ruled in favour of the workers.
"Having considered all the evidence and arguments of the parties, I hereby order that the Reserve Bank of Zimbabwe pay a total of US$4 585 185,05 to the 237 non-managerial workers listed . . . " said Ms Maganyani.
"RBZ shall issue pay slips to the 237 non-managerial employees backdated to March 1 2009.
The award was handed down on January 3 this year.
Ms Maganyani indicated that RBZ was not exempted from paying debts within stipulated periods.
"RBZ was wrong at law when it argued that under the State Liabilities Act, its debts fall under that of the State and that an order directing the central bank to pay the debt within a specified period would not be enforceable," she said.
"It should be noted that the Labour Act applies to both the RBZ employees and the employer and that the legislature intends for those covered by the Labour Act including RBZ to be bound by its provisions."
During the arbitration hearing RBZ agreed that it owed the workers but argued that it did not have the money to pay them. The central bank said it would only pay when the funds were available.
Source - Court Reporter
