Motor industry employers lose appeal over backdated pay

Employers in Zimbabwe's motor industry have been ordered to pay workers two years' backdated salary increments after the Labour Court of Zimbabwe dismissed their appeal against an arbitral award.

The dispute dates back to January 2024, when employees demanded a 30% increase in basic wages and a 50% rise in transport and housing allowances. The Motor Industry Employers Association of Zimbabwe (MIEAZ) opposed the proposal, arguing that wage adjustments should be negotiated at plant level.

After failing to reach an agreement and declaring a wage deadlock, the matter was referred to the Ministry of Public Service Labour and Social Welfare for compulsory arbitration.

In a determination issued on February 11, 2025, arbitrator Bianca Chipokosha awarded a 10% minimum wage increase and a 20% increment on transport and housing allowances. The award stipulated that the increments be paid in three equal instalments starting in February 2025.

MIEAZ, represented by lawyer Caleb Mucheche of Mucheche and Partners, challenged the ruling at the Labour Court, seeking to overturn the arbitral award.

In its appeal, the employers argued that the arbitrator had erred in law by backdating the wage and allowance increases to July 2024, thereby unlawfully imposing conditions of service.

"The arbitrator grossly erred and seriously misdirected herself on a point of law by unilaterally imposing a 10% wage increment and 20% increment on transport and housing allowance since July 2024, thereby arbitrarily and unlawfully creating conditions of service for employer and employee parties," the appeal read.

However, the employees, represented by Albert Chambati of Chambati, Mataka and Makonese Attorneys-at-Law, opposed the appeal, arguing that it lacked merit and was inconsistent with the facts presented before both the arbitrator and the court.

They submitted that an appeal on a question of law does not lie to the Labour Court for every decision of an arbitrator, and that the court may only interfere where factual findings are shown to be illogical, grossly unreasonable or amounting to a gross misdirection in law.

Presiding over the matter, Justice Bridget Chivizhe dismissed the appeal, ruling that the arbitrator had acted within her mandate and that the agreed terms of reference were lawful.

"It is apparent that the arbitrator's factual findings were well-reasoned. The appellant's allegation that she paid 'lip service' to the employer's financial inability to pay the amounts awarded is not supported by the record," Justice Chivizhe said.

The court further ruled that backdating the increments to January 2024 formed part of the agreed terms of reference. While employees addressed the issue in their submissions before the arbitrator, the employers did not respond to it.

"In the result, it is ordered that the appeal be and is hereby dismissed with costs for lack of merit. The arbitral award per Honourable Bianca Chipokosha dated February 11, 2025, is upheld," Justice Chivizhe ruled.