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WORKERS of struggling beef processor Cold Storage Company last week made an application to the High Court to register an arbitral award of more than $453 000 which is outstanding wages, as the company’s problems continue mounting.
The workers’ committee chairman, Mr Jacob Mafurise made the application to the High Court in terms of the Labour Act after CSC failed to honour a consent arbitral award.
In terms of the consent arbitral award which was reached by mutual agreement, CSC and the employees had agreed that the total amount owed workers as of April 2013 was $513 110. According to the court papers CSC was to pay employees $30 000 per month effective October 2013.
The agreement added that the payments were to be financed from every second container exporting hides which would have the effect of increasing the amounts paid monthly.
In addition the employees inserted a clause which allowed them to revert to arbitration in the event that the company failed to honour the wage agreement.
“This agreement does not affect the existing payment plan for wages owed prior to this claim. The workers still reserve the right to revert to arbitration in the event that CSC fails to honour the agreement,” read part of the consent arbitral award.
In May 2014, the CSC workers’ committee re-approached the arbitrator after the company reneged on its commitment to settle the worker’s salaries.
Mr Mafurise alleged that CSC had only paid workers $60 000 of the outstanding wages which amounted to $513 110 in two instalments. According to the arbitration award CSC confirmed in writing that they had only paid $60 000 to the workers. However, they did not state their reasons.
“At law Section 13 of the Labour Act, requires all payments to be made promptly when due either weekly or monthly as the case may be.
“Given failure by the respondent to adhere to the consent arbitral award issued on October 15, 2013 and failure by the parties to re-engage and at least spruce up the award by agreeing on new terms and conditions I am left with no option but to award accordingly. CSC is hereby ordered to pay off $453 110 which is the total for outstanding wages for the period under review,” read part of the final arbitration award.
According to a founding affidavit by Mr Mafusire, for the arbitration award to be enforceable it has to be registered as an order of the High Court.
“I am advised by my legal representative and believe same to be true that for an arbitral award to be binding it should be registered with this honourable court lest it be a brutum fulmen(empty threat),” said Mr Mafusire through his founding affidavit.
The CSC are still yet to file their answering affidavit to the High Court.
Online Reporter