Ex-Admarc staff quantify compensation at K52.3bn

Former employees of Agricultural Development and Marketing Corporation (Admarc) have quantified their compensation at K52.3 billion after the Industrial Relations Court (IRC) ruled in their favour in a case on unfair dismissal and unfair labour practices.

The IRC in January faulted a matter in which Admarc and then minister of Agriculture Lobin Lowe conducted themselves during the restructuring process that led to the closure of the State produce trader last year.

According to the court documents we have seen, out of K52.3 billion compensation claims for 3 283 former Admarc employees, about K35.9 billion is for unfair dismissal while K16.4 billion is for unsafe and unfair labour practices.

Reads the document in part: “It is our humble prayer that the court makes the following awards as calculated hereinabove.

“Compensation for unfair dismissal in the sum of K35 902 339 972.28. Compensation for unsafe and unfair labour practices K16 410 000 000.

“We also pray that the same be adjusted by 44 percent to take into account of the value of the currency and inflation.”

A quick analysis of the compensation list shows that the lowest employee may take home about K5.2 million while the highest is demanding about K336.9 million.

Each employee is demanding K5 million for unsafe and unfair labour practice while compensation for unfair dismissal depends on the employee’s grade and duration of service.

In his ruling on January 29 this year, IRC vice-chairperson Tamanda Nyimba faulted Admarc and Lowe on their conduct in the dismissal of Admarc employees and ordered the State produce trader to pay them compensation for unfair dismissal.

Nyimba noted that Admarc had a legal obligation to consult its former employees before effecting the mass terminations of employment.

In January 2023, Admarc fired its entire 4 000-plus staff effective February 1 2023 as part of its restructuring process. In a circular to the employees dated January 30 2023, then Admarc acting general manager Ethel Zilirakhasu said the company was implementing a 100 percent retrenchment and the last working day for all staff was January 31 2023.

In September 2022, the Ministry of Agriculture closed Admarc and sent its entire staff on paid leave to pave the way for restructuring.

However, it continued to perform some social services with selected staff members.

The ministry also cited low productivity by some company employees, suspected corruption perpetrated by some employees and unprocedural recruitment leading to excess workforce as other factors frustrating the growth of the company.