Delta ordered to pay ex-worker in US dollars US dollars

Court Reporter
The Supreme Court has ordered Delta Beverages to pay a former worker back-pay and damages in United State dollars, rather than the Zimbabwe dollars he was earning when last at work, putting to rest the 15-year old labour dispute.

The company was refusing to compensate Mr Kudakawashe Murandu over $28 000 for unlawful dismissal in August 2000 arguing the payment should have been made in Zimbabwe dollars.

But on appeal, the Supreme Court reduced the arbitral award of 36 months damages for loss of employment to six months.

Justice Elizabeth Gwaunza rejected Delta’s argument to have both damages paid in Zimbabwe dollars saying this was unrealistic in view of the currency now being used in the country.

She said Marandu suffered loss and was entitled to damages in the event reinstatement was untenable.

“Failure to award him damages in a currency that realistically compensates him for harm suffered, would in my view undermine the advancement of equity, social justice and democracy at the workplace,” she said.

“In the present case, the lower court simply endorsed the calculations made by the arbitrator, without questioning his competency to do so under the law.

“It is clear this was a misdirection. It is on this basis that the matter will be referred to the Labour Court for a proper computation and conversion to US dollars of the damages that this court has determined are properly due to the respondent.

“The same applies with respect to the back pay and benefits that were awarded to the respondent.”

Delta had appealed against the judgment of the Labour Court awarding Mr Murandu damages of $28 154 26 arguing that payment should be made in Zimbabwe dollars.

Advocate Fadzayi Mahere, who acted for Delta, argued that Mr Murandu was fired during the Zimbabwe dollar era making the award grossly unreasonable and unsupportable at law.

She said there was no basis at law for making an award in United State dollars to Mr Murandu.

“The respondent’s contract of employment did not provide for earnings in United States dollars,” she argued.

“The consistent position that has been adopted by this court is that damages for unfair dismissal are contractual.”

Mr Murandu’s lawyer, Mr Sibonile Kamupira, urged the court to dismiss the appeal, saying the Zimbabwe dollar was now moribund and the foreign currency was now the medium of exchange.

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