Source: Malaba ruling sparks outrage among firms – The Zimbabwe Independent March 29, 2018
BUSINESS leaders have expressed outrage over the ruling by Chief Justice Luke Malaba yesterday that obliges employers to compensate workers they dismissed on three months’ notice three years ago, a development which they say will seal the fate of already struggling companies.
By Kudzai Kuwaza
Dismissing a challenge by Greatermans Stores yesterday, Malaba said the amendments to the labour laws that compel employers to go the retrenchment way if the parties are not in agreement apply in retrospect. Thousands of workers, whose contracts were terminated on notice as a result of the Supreme Court ruling of July 2015, will now be paid damages for loss of employment. A ruling by the late Chief Justice Godfrey Chidyausiku allowed employers to dismiss workers on three months’ notice without a retrenchment package resulting in the loss of thousands of jobs.
According to a survey by the Employers’ Confederation of Zimbabwe, 9 115 workers lost jobs as a result. Trade unions estimate that 30 000 workers lost jobs.
The judgement comes at a time when business is weighed down by a number of constraints among them a debilitating liquidity crunch, severe cash shortages and capacity utilisation of less than 50%. This could further cripple the operations of companies that dismissed workers resulting in the loss of more jobs.
Zimbabwe National Chamber of Commerce president Divine Ndhlukula said the latest judgement flies in the face of President Emmerson Mnangagwa’s mantra that Zimbabwe is open for business.
“This is actually bad news for business,” Ndhlukula said. “Business is grappling with many operational issues. Companies are already steeped in debt and, because of foreign currency shortages, they are buying forex at a premium to prevent businesses from shutting down and now this. It is a surprise and it flies in the face of Zimbabwe being open for business and Ease of Doing Business reforms.”
The ZNCC president said that they are also affected by steep labour costs which are higher than those of their peers in the region, adding that the development will threaten a lot of jobs.
“As a business leader, I am quite disappointed,” Ndhlukula said.
Emcoz president Matthew Chimbghandah concurred with Ndhlukukla. “The ruling just pours cold water over what the President has been preaching about being open for business,” Chimbghandah said. “It is a huge albatross across the necks of employers.”
Malaba’s ruling comes after remarks he made last year supporting retrospective application of the law.
In his presentation at a judges’ symposium, Malaba said that parliament was within its rights to apply the law retrospectively.
“In any event, nothing in the constitution bars the legislature from enacting retrospective legislation,” Malaba said at the symposium.
“The legislature gets its power from people in terms of section 112(1) of the constitution. Thus one of the main duties of the legislature is to use the law as a tool of social engineering in order to promote harmony in society. Therefore, where a situation arises which threatens that harmony, the legislature has an obligation to cure this, even if it means enacting retrospective legislation.”
COMMENTS
These judges are just workers too, same as everyone in parliament and government. They don’t understand what it takes to build successful enterprises. They are all emotional as workers, not investors.
Ever wondered what comes out of workers judging on issues they themselves can never fully articulate other than their wages? All a worker needs is a cv. Has nothing to risk other than a certificate or reference. Once given a job, the worker has a forte of rights protecting them. Even when government takes money from companies through baccossi, bearer cheque printing or bond notes, worker’s rights come first. Only a fool invests in such a country.
Chiwakaika nyika yacho nema worker’s rights enyu iwayo! Since you have been penalizing companies, stealing from them through bearer cheques, bond notes and workers terminal benefits etc what have you achieved other than those filthy range rovers? You dont even make a bolt on that thing – just a driver- yet you penalize those who invest to create the jobs for there to be workers!
Zimbabwe is open for business? What business? Invest your capital so that some cv peddling dude and worker mentality ‘judges, politicians’ who have no knowledge of risks come in waving worker’s rights? Try invest your own capital and provide for all those you say are entitlements! The African is a primitive ape like creature no matter how educated they pretend to be. Laws are twisted and twisted to advance a consumption agenda believing wealth comes from rights.
A nation of workers and their entitled rights. Judge workers protecting fellow workers. Worker Presidents with entitled constitutional benefits, worker parliamenterians entitled to parliamentary benefits for noises in parliament and dozing.
Worker’s employed in govt to judge investor’s projects! Hahaha why do you think we were enslaved and colonized?
Worker mentality everywhere! Do these judges even know how the cars they drive came to be?
They came from RIGHTS? There was no range rover until Margarate Thatcher said to hell with trade unionism in Britain. When is the African going to learn?
Companies are being accused of internalizing. Politicians bought houses in Dubai, HongKong, South AFrica, they have Swiss and Panama accounts. No, they’re not externalizing! Only a fool invests in such a circus!