Maravi

(TALKZIMBABWE) Zim trade union sues US company

Zim trade union sues US company
By: Times Live-TZG
Posted: Sunday, January 16, 2011 6:15 am

THE Zimbabwe Federation of Trade Unions has dragged an American company to court demanding severance packages for 33 employees who were sacked from the mining consultancy firm.

ZFTU recently petitioned the Labour Court, seeking an order compelling ASI to pay the 33 retrenched employees a total of $175,147. ASI was contracted by the government through the Reserve Bank of Zimbabwe to audit mines and mineral processing.

ZFTU accuses ASI of refusing to heed Labour and Social Welfare Minister Paurina Mpariwa's decision approving the employees' retrenchment, which was granted in July last year. ZFTU said ASI's failure to pay retrenchment packages would prejudice the retrenched employees' efforts to secure alternative work because their employment relationship with the mining auditing firm was agreed to have terminated on November 20 2009.

In its defence, ASI blamed the government for its failure to pay the retrenchment packages for its employees.

The consulting firm disclosed it had stopped auditing mines in Zimbabwe in February 2009 due to lack of operating capital as "our principal (RBZ) was unable to meet this obligation".

"It should be noted the company has not received payment for the services rendered for the past 24 months," reads part of ASI's letter written to the retrenchment board by Shepherd Takaendesa, the firm's human resources manager.

"Our principal, the Reserve Bank of Zimbabwe, has further indicated it is not in a position to fund this contract any longer, and has advised Alex Stewart International that the funds disbursed on November 20 were the last and no more would be disbursed.

"Also take note that the company had operated for two years, and, given the above scenarios, we feel the demands are not realistic.

"Hence we now seek your intervention in this matter."

Media reports recently indicated ASI was suing the central bank for $34.99-million over unpaid fees for services rendered between 2007 and 2009. ASI was engaged by the Apex bank to audit the production and export of gold and other platinum group metals.

The audit scope covered mineral assaying and financial auditing, including scrutiny of production costs and capital expenditures, environmental auditing, review of mining laws and regulations, information systems auditing, design and implementation of an integrated mining information system as well as analysis of historical data prior to commencement of the audit.

Times Live-TZG

Labels: LABOUR, MINING, ZFTU

posted by MrK @ 10:09 AM