adminBrighton Gumbo Business Reporter
THE Cold Storage Company (CSC) yesterday dismissed 26 workers in Bulawayo after serving them with three months termination of contract notices in line with the recent Supreme Court ruling that has resulted in widespread job losses countrywide. Both private and public companies have used the July 17 ruling that exploited the gap in the Labour Act that gives both employers and employees the same legal status under common law. The position allows companies to lay off workers on three months’ notice without going through the expensive retrenchment process.
Shocked workers besieged management offices at the company’s premises seeking an explanation after receiving the letters. “This letter serves to advise you that the Cold Storage Company Limited has decided to exercise its rights under common law and provisions of your employment contract to terminate your employment on notice,” read one of the letters signed by the company’s human resources manager, a T Mrerwa.
“Accordingly, as provided for under Section 12(4) of the Labour Act, you are hereby given three months notice of termination of your contract of employment. The notice period shall run from 1 September 2015 to 30 November 2015.”
The termination of employment is with effect from November 30, 2015.
The notices gave affected workers leave of absence from work on full benefits with immediate effect subject to cash payment in lieu of notice. “This, therefore, means that you are not required to report for duty for the rest of the month of August and the duration of the notice period,” read the notice.
The terminal dues comprise three months salary in lieu, cash in lieu of leave, outstanding salary payments and CSC pension fund withdrawal benefits.
Shepherd Furusa, a workers’ committee member, said affected employees were not worried about losing jobs but wanted their payment for service rendered.
“We were served with these notices today. They state that our contracts have been terminated. We don’t reject the move by the company but our main worry is that the company should give us our outstanding money so that we can take something to our homes as it owes us a lot of money dating back to 2009,” said Furusa.
Workers’ union leader, Jacob Mafusire, said the affected workers had suffered a lot at CSC. “I’ve served the organisation for 37 years and I am now fired on notice. What criteria was used in the termination process,” he said.
“We feel this dismissal is unfair as the company still owes us large sums of money.”
Senior officers at CSC declined to comment referring questions to chief executive officer Ngoni Chinogaramombe who was not around.
Bongani Ndlovu
Online Reporter