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A BID by 243 security guards to get over $5 million in alleged salary arrears and benefits from Marange Resources after termination of employment contracts has failed after an arbitrator rejected the claim.The dispute had been referred for arbitration after conciliation failed.
The arbitrator, a K Sengula, turned down the relief sought by the claimants.
He ruled that the guards were paid all they were owed, including terminal benefits and thus non-payment of damages in lieu of reinstatement did not mean that the employer-employee relationship still existed.
“In the final analysis, I hereby dismiss the claimants’ claim of non-payment of arrear salaries and benefits in its entirety for want of merit,” ruled Sengula.
The guards had their contracts terminated and were paid severance packages after Marange Resources reportedly transferred internal security personnel to National Eye Security.
The firm, owned by businessman Tapson Madzivire, provides security services to Marange Resources. The guards successfully challenged the decision.
Sengula noted in his judgment that another arbitrator, Dr NT Sambureni, ordered reinstatement and said if that was impossible the parties were to approach him for quantification of damages, which the guards did.
“Arbitrator Dr Sambureni was also clear that the claimants did not claim for damages of loss of employment hence it was not an issue before him. This at the end of the day was an omission on the claimants’ part,” said Sengula.
Dr Sambureni, whose decision was upheld by the Labour Court, quantified backpay at $353,983,50, saying the backpay was applicable whether or not the employer reinstated affected workers.
Marange Resources contested this decision and lost at the Labour Court.
The guards approached the Ministry of Labour claiming non-payment of arrear salaries and benefits.
The matter was referred for conciliation and subsequent arbitration.
Advocate Thabani Mpofu, instructed by Itayi Ndudzo and Steven Zvinavakobvu represented Marange Resources while R Matindindi of Matsikidze and Mucheche Legal Practitioners represented the guards.
Online Reporter