Provisional Liquidator breached Retrenchment Agreement
Botswana Mine Workers Union (BMWU) says the Government’s position not to pay Retrenchment Packages for former BCL and Tati Nickel miners must be reviewed.
The union has demanded that government should take out of the ill–advised liquidation and reopen BCL and Tati Nickel Mines. BMWU President Joseph Tsimako stated in a petition to the government this week that government must pay them retrenchment packages for unjustifiable destruction of their jobs, in the same way that they have paid off fixed term contracts of the mines' managers.
He said they must be paid off their loans with financial institutions because government destroyed their ability to do so.
“Pay cost of special medical care to all persons who were injured on duty. Stop current trend of liquidation of mines which kills jobs and economic growth. Give us the right to work in our country,” Tsimako said, adding "establish a statutory tripartite structure in the mining industry for dialogue on mining specific issues. We condemn foreign direct investment (FDI) which continues to deprive us of salaries, accommodation, job security, localisation and medical care and transportation to and from work,” Tsimako said.
He said former BCL/Tati employees were served with Section 25 letters as far back as May 2016, warning them of possible retrenchment which could arise out of the intended restructuring process. According to Tsimako, employees therefore had a legitimate expectation of retrenchment together with associated benefits and nothing else.
“As before the sudden closure of the Mines, the Company was in consultation with employees through the Union on Organisational Business Restructuring which could result in retrenchment. The Cabinet Sub-Committee which announced the closure of the Mines also attempted to consult with the Union in relation to Company restructuring and at no point did they show that liquidation was considered.
“We note that upon announcing the closure of these mines, Botswana Government announced its commitment to give ex-employees 'soft landing' in the form of the ex-employees would be paid salaries for duration of 12-18 months,” Tsimako said in the petition.
He indicated that however, this changed upon the arrival and commencement of duty by the Provisional Liquidator. It is their view that reneging on these, is totally not in the spirit of 'soft landing' as initially announced by the Botswana Government.
Tsimako stated that it is apparent that Government closure of the Mines side-lined the Management Turn Around Strategy and application of the existing Retrenchment Agreement which has the potential and characteristics of bad faith.
The union president also indicated that they continue to present a humble and unassuming plea to Botswana government in the predicament faced by the people who were working for BCL Limited and Tati Mines.
Tsimako said “this situation continues to present dreadful consequences not only to these former employees but the country’s economy at large.
Our plea will not only save people from present extreme hardship which is obviously getting worse with the passage of time but will go a long way in aiding the challenged perception or opinion about our country (Government) in many respects including and not limited to people’s welfare, employment creation, foreign direct investment. In general, the abrupt closure of these mines affected trading relations potential investor.”
He said previous attempts to address the Cabinet Sub-Committee and the Office of the President on the plight of the terminated employees have been unsuccessful due to Government unavailability.
"We have observed the minimal effort by the Government to revitalise the economy of Selebi Phikwe and Francistown, which we fully support and we want to see it succeed," Tsimako said, adding that it is clear that with no support by the Government the anticipated efforts will not see the light of the day.
He revealed that a combined total of 4 600 members of the Union at BCL and Tati mines became stranded without alternative employment or source of income when their Employment Contracts were unfairly terminated.
“At the time the Mines were closed, there was a Collective Labour Agreement commonly called the Memorandum of Agreement (MOA) which contains in part an Agreement referred to as the Retrenchment Agreement (RA). It is the Retrenchment Agreement which must be enforced hence our deeds.
“It is common knowledge that payment of terminal benefits, that is, one-month notice pay and accumulated leave made by the Provisional Liquidator, excluded those benefits provided for in the Retrenchment Agreement (RA).
“This is a great omission which must be corrected to ensure that the said packages are paid. In its construction, the MOA and its sub-Agreements which are inclusive of the RA formed an integral part of the Employees’ Contracts of Employment on the date they were signed by the Unions and Management,” Tsimako said.
The union has demanded that government should take out of the ill–advised liquidation and reopen BCL and Tati Nickel Mines. BMWU President Joseph Tsimako stated in a petition to the government this week that government must pay them retrenchment packages for unjustifiable destruction of their jobs, in the same way that they have paid off fixed term contracts of the mines' managers.
He said they must be paid off their loans with financial institutions because government destroyed their ability to do so.
“Pay cost of special medical care to all persons who were injured on duty. Stop current trend of liquidation of mines which kills jobs and economic growth. Give us the right to work in our country,” Tsimako said, adding "establish a statutory tripartite structure in the mining industry for dialogue on mining specific issues. We condemn foreign direct investment (FDI) which continues to deprive us of salaries, accommodation, job security, localisation and medical care and transportation to and from work,” Tsimako said.
He said former BCL/Tati employees were served with Section 25 letters as far back as May 2016, warning them of possible retrenchment which could arise out of the intended restructuring process. According to Tsimako, employees therefore had a legitimate expectation of retrenchment together with associated benefits and nothing else.
“As before the sudden closure of the Mines, the Company was in consultation with employees through the Union on Organisational Business Restructuring which could result in retrenchment. The Cabinet Sub-Committee which announced the closure of the Mines also attempted to consult with the Union in relation to Company restructuring and at no point did they show that liquidation was considered.
“We note that upon announcing the closure of these mines, Botswana Government announced its commitment to give ex-employees 'soft landing' in the form of the ex-employees would be paid salaries for duration of 12-18 months,” Tsimako said in the petition.
He indicated that however, this changed upon the arrival and commencement of duty by the Provisional Liquidator. It is their view that reneging on these, is totally not in the spirit of 'soft landing' as initially announced by the Botswana Government.
Tsimako stated that it is apparent that Government closure of the Mines side-lined the Management Turn Around Strategy and application of the existing Retrenchment Agreement which has the potential and characteristics of bad faith.
The union president also indicated that they continue to present a humble and unassuming plea to Botswana government in the predicament faced by the people who were working for BCL Limited and Tati Mines.
Tsimako said “this situation continues to present dreadful consequences not only to these former employees but the country’s economy at large.
Our plea will not only save people from present extreme hardship which is obviously getting worse with the passage of time but will go a long way in aiding the challenged perception or opinion about our country (Government) in many respects including and not limited to people’s welfare, employment creation, foreign direct investment. In general, the abrupt closure of these mines affected trading relations potential investor.”
He said previous attempts to address the Cabinet Sub-Committee and the Office of the President on the plight of the terminated employees have been unsuccessful due to Government unavailability.
"We have observed the minimal effort by the Government to revitalise the economy of Selebi Phikwe and Francistown, which we fully support and we want to see it succeed," Tsimako said, adding that it is clear that with no support by the Government the anticipated efforts will not see the light of the day.
He revealed that a combined total of 4 600 members of the Union at BCL and Tati mines became stranded without alternative employment or source of income when their Employment Contracts were unfairly terminated.
“At the time the Mines were closed, there was a Collective Labour Agreement commonly called the Memorandum of Agreement (MOA) which contains in part an Agreement referred to as the Retrenchment Agreement (RA). It is the Retrenchment Agreement which must be enforced hence our deeds.
“It is common knowledge that payment of terminal benefits, that is, one-month notice pay and accumulated leave made by the Provisional Liquidator, excluded those benefits provided for in the Retrenchment Agreement (RA).
“This is a great omission which must be corrected to ensure that the said packages are paid. In its construction, the MOA and its sub-Agreements which are inclusive of the RA formed an integral part of the Employees’ Contracts of Employment on the date they were signed by the Unions and Management,” Tsimako said.
