NRZ sued for failing to remit $493 000 to union

ZIMBABWE Amalgamated Railway Union (Zaru) is suing the National Railways of Zimbabwe (NRZ) to recover over
$493 000 in workers’ contributions which the parastatal failed to remit to the union.

BY SILAS NKALA

Zaru filed summons against NRZ at the Bulawayo High Court on Tuesday praying for the remittance of $493 253 with interest.

In its declaration of the suit, the union submitted that NRZ is obliged in terms of the Labour Act and agreement to collect union dues from employees and remit them to the plaintiff.

“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 declaration read.

“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.”

The union submitted that despite numerous undertakings to pay and notwithstanding demand, defendant had failed to pay the amount to plaintiff.

NRZ is yet to respond to the summons.

The financially-troubled parastatal, which owes workers close to $90 million in outstanding salaries and wages, is looking to raise $635 million to settle its debts and replace its antiquated equipment, most of which has outlived its lifespan.

NRZ has since approached the government seeking the greenlight to raise nearly $700 million by either disposing 60% of its stake or through borrowing money on the open market to fund its recapitalisation and turnaround programmes.

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