adminincrease its staff salaries.
Contesting the arbitral award compelling the company to pay its workers an increment and salary arrears in excess of US$2 million, Zimpost argues that its business has been dwindling since 2005 as most clients have resorted to electronic billing and self-delivery of bills to customers.
Zimpost argues that the decision by the arbitrator Mr Modeccai Mahlangu in 2010, which was also confirmed by the High Court, was in conflict with public policy and that it had an effect of driving the company into insolvency.
In the interim, the Supreme Court yesterday remitted the challenge back to the High Court for determination on the appropriateness of the arbitral award. This was after Advocate Thabani Mpofu instructed by Mr Obey Shava, successfully argued the matter in the Supreme Court.
Deputy Chief Justice Luke Malaba, sitting with Justices Ben Hlatshwayo and Anne-Mary Gowora, granted relief to Zimpost, a development that might save the company’s property from attachment.
Challenging the payment of minimum salary increase from US$150 to US$450 per month, Zimpost argued before the arbitrator that technology had booted it out of business.
The company submitted that mail volumes around 2009 declined by 37,2 percent resulting in substantial decline in revenue. “This is a result of the technological changes in Zimbabwe resulting in many other cheaper and quicker modes of communication between companies and individuals,” read Zimpost’s summary of defence in the arbitration proceedings.
Online Reporter