Union sues NRZ over $500 000 contributions

court action

Mashudu Netsianda, Senior Reporter
THE National Railways of Zimbabwe (NRZ) has been taken to court by the Zimbabwe Amalgamated Railway Union (Zaru) for failing to remit nearly     $500 000 in workers’ contributions.

Zaru filed summons at the Bulawayo High Court citing NRZ as the defendant. The railway workers’ union is seeking an order compelling the NRZ to remit $493 253 with interest.

The union, through its lawyers, Majoko and Majoko Legal Practitioners, said despite demand, NRZ has neglected, failed or refused to pay the money.

According to papers before the court, NRZ was obliged in terms of the Labour Act to collect union dues from its employees and remit the money to Zaru.

“The defendant has collected union dues from the plaintiff’s membership, but has failed to remit the dues to plaintiff as and when defendant collected such dues. The defendant is, at the date of issue of summons, indebted to the plaintiff for union dues collected, but not remitted, in the sum of $493 253,” said Zaru in its summons.

NRZ is yet to respond to the summons. The struggling parastatal has failed to pay its workers for several months.

In May last year, the workers staged nationwide protests to force management to pay them their outstanding salaries.

The disgruntled workers downed tools, bringing to a halt operations including the transportation of imported wheat and drought relief maize.

NRZ is struggling to attract investment from the private sector, a situation which has seen it failing to stem its ballooning salary debt. The parastatal’s salary arrears continue to increase as the organisation’s fortunes continue to take a knock due to a subdued market.

The financially-troubled company seeks to raise $635 million to settle its debts and replace its antiquated equipment, most of which has outlived its lifespan.

— @mashnets.

 

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