HARARE – Jena Mine in Zimbabwe’s Midlands Province has been sued for US$3 million by 400 workers over outstanding salaries.
The company could pay about $30 million in the domestic currency, when calculated using the prevailing market rates if the 394 current and former workers succeed.
According to court papers the workers are claiming the money on the basis of what they call a “default of payment of a certificate of settlement which was signed by parties on 10 April 2019.”
“Parties agreed that the respondent (Jena Mine) should pay a total of US$3 588 795, 241 in 12 months on monthly installments of US$ 2 99 066-27 starting on 31st May 2019 to 30 August 2020,” the claim indicated.
It is the workers’ contention that Jena Mine was underpaying them salaries below figures agreed at the National Employment Council (NEC).
Disgruntled ex-workers late last year locked management within the company premises as they were demanding payment of outstanding salaries and severance packages.
Jena Mine is owned by mining parastatal, the Zimbabwe Mining Development Corporation (ZMDC).
Apart from Jena Mine, ZMDC also owns Elvington and Sabi Gold Mines.
Of the three only Jena Mine is fully operational albeit at a loss, while Sabi and Elvington are under judicial management and care of maintenance respectively.