The former leading wool and yarn manufacturing company was liquidated late last year after a long battle with its workers who were against the move.
They accused their employers of secretly applying for liquidation at a time when the company shareholding structure indicated that employees had a 15 per cent stake, which meant they had to be informed of critical decisions.
The workers’ committee chair, Superior Boka, believed the crude move by management was designed to avoid settling workers’ packages once the company had been wound up.
When the High Court approved the company’s liquidation application, the workers went on to mount another legal bid to claim their outstanding salaries and benefits, which was also approved.
The Zimbabwe Textiles Workers’ Union general secretary Silas Guvheya, said a total claim of $558,000 was approved during the first creditors’ meeting.
“The workers will be paid once the company has auctioned its remaining properties,” said Guvheya. Karina Textiles auctioned some of its property in December last year. However, this first auction, held at the company premises, didn’t realise the sum expected, raising concerns about whether the $558,000 claim would be met. Boka said only three vehicles were sold during the auction, with the highest selling car being sold for $6,000, far below the expected US$558,000 supposed to be paid to the workers.
Post published in: Business