SHURUGWI Town Council has agreed to pay the 46 workers it fired last year on three months’ notice their statutory terminal benefits after the workers, through the Zimbabwe Urban Council Union (ZCWU), took the matter to a conciliator.
Council will now pay the employees their 2014 bonuses, three months’ notice pay, leave days and overtime in a staggered payment plan which will commence on February 26 and end on June 17 after a certificate of settlement was granted.
The workers are owed about US$200 000 by the local authority.
ZCWU board of trustees member, Kudakwashe Munengiwa, said the workers had accepted Shurugwi’s payment plan.
“We have agreed on the many issues and the employer, starting next month, would ensure that they comply with the conciliator’s ruling,” he said.
However, no agreement could be reached in respect of payment of two weeks’ salary for each year served as the local authority argued that the matter was still before the courts after the Employers’ Confederation of Zimbabwe challenged the ruling.
Shurugwi Town Council chairman, Tsungai Makore, said council has already started paying the former workers.
“In terms of monies owed to former employees…we have managed to pay off some of their dues. In terms of back pay, we have paid out US$79 585 and cash in lieu in respect of leave days we have paid US$29 935.
“Outstanding overtime and three months’ notice, which amounts to US$101 441, will be paid between February and June,” said Makore.
Shurugwi terminated contracts of the employees last year as it grappled with an unsustainable wage bill, which was chewing up to 80 percent of revenue.
The mining town employs about 150 workers.
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