The struggling national airline, AIR Zimbabwe has been ordered to pay its former manager Mercy Sanzira US$21 000 as a retrenchment package. The airline entered into a voluntary retrenchment agreement with Sanzira, but failed to pay her and she took the matter to an arbitrator who ruled in her favour.
"The respondent (Airzim) is hereby ordered to pay to the claimant the full amount of US$20 764,03 at the prescribed rate of five percent per annum in three installments. The first payment should be made within seven days of this order.
"In addition, the respondent is ordered to pay on top of the retrenchment package US$843, which constitutes arrears in the differentials in salary and benefits during the time in question.
"The outstanding arrears are to be paid as a once-off payment within seven days of this order," ruled arbitrator P Mubvumbi.
Sanzira, through her lawyers, Matsikidze and Mucheche, has filed a chamber application at the High Court seeking to register the arbitration award.
On February 28 2010, Sanzira volunteered to go on retrenchment and the employer agreed to pay her US$20 000.
The retrenchment board approved the development but the airline failed to pay the package as agreed, prompting Sanzira to take the matter for arbitration.
The airline argued that it was facing serious cash-flow problems and that it was not able to pay the package.
Airzim sought to make the payment in nine months installments.
Sanzira strongly opposed the application on the basis that Airzim had earlier made some undertakings it failed to fulfill and that the money should be paid in full.
At the end of last year, the arbitrator granted the award trying to balance the interests of the two parties.
The award allowed Airzim to pay the money in three instalments.az
