Chitungwiza Municipality has been spared the agony of raising $1,1 million towards employees’ outstanding allowances after High Court judge Justice Garainesu Mawadze set aside an arbitral award in favour of the local authority’s former 111 workers.
Mawadze dismissed arbitrator Susan Changawa’s award on Wednesday following an appeal by the local authority which argued that the $1 095 115 demanded by the workers would cripple its operations.
His ruling came barely three weeks after the Supreme Court ruled that allowances were not a right or entitlement. According to court papers, all the 111 Chitungwiza employees were employed in various capacities until sometime in November 2011, when the council resolved to temporarily suspend their allowances citing cashflow problems.
The workers were claiming medical, tool, technical, representation, retention, incentive, cycle, cell-phone and telephone, housing, transport, water and electricity allowances.
Other allowances included overtime, acting and responsibility, night duty and danger.
In his affidavit forming part of the court papers, Chitungwiza town clerk, George Makunde said, “It was applicant’s submissions that it is a public body, which should continue to operate without being crippled by an award like the one, which was being requested by the respondents.
“The payment of the monies will further lead to massive loss of employment of the employees as applicant’s coffers are currently dry. The applicant is under financial incapacity to comply with the arbitral award.”
Mawadze dismissed arbitrator Susan Changawa’s award on Wednesday following an appeal by the local authority which argued that the $1 095 115 demanded by the workers would cripple its operations.
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The workers were claiming medical, tool, technical, representation, retention, incentive, cycle, cell-phone and telephone, housing, transport, water and electricity allowances.
Other allowances included overtime, acting and responsibility, night duty and danger.
In his affidavit forming part of the court papers, Chitungwiza town clerk, George Makunde said, “It was applicant’s submissions that it is a public body, which should continue to operate without being crippled by an award like the one, which was being requested by the respondents.
“The payment of the monies will further lead to massive loss of employment of the employees as applicant’s coffers are currently dry. The applicant is under financial incapacity to comply with the arbitral award.”