Legal Battle Now Looms Over Uchumi Super Makert Closure


 About 460 workers of Uchumi Supermarket are collecting their particulars to support them in claiming their legal and contractual rights.

The move comes after Uchumi management through its contracted Mawalla Advocate law chamber reported that the company was set for liquidation so that all obligations are settled.

Tanzania Union of Industrial and Commercial Workers (Tuico) Kinondoni District secretary, Mansoor Ramadhan told The Citizen that workers will each need to fill a form detailing his or her names, employment history, place of work, leaves that are for payment and other important information.

We had a meeting this morning with advocates from Mawalla law firm where we discussed the fate of the employees after the employer announced to end operations in Tanzania,” he said.

In its letter to Dar es Salaam Stock Exchange (DSE), Uchumi company secretary John Wambugu said the board was cognizant of the responsibilities in respect of the obligations of two subsidiaries to various stakeholders.

Uchumi is pursuing various avenues of raising funds to meet these obligations as well as to finance its activities over the coming Christmas and New Year period which is typically a busy one for the retail sector,” he said is a statement published on DSE website.

He said the company was already in the process of engaging all stakeholders including suppliers, employees, financiers and regulators in the jurisdiction in which it operates.

Mr Ramadhan met with Uchumi staff to give them the updates with regard to the fate of their employment. Some workers seemed to be over ambitious about their benefits during the meeting.

But they were cautioned that some particulars for submission will only hold water if attached with evidences like leaves that were not granted when sought.

“It is unfortunate that most of us do not keep records when at work which makes you risk losing your rights,” he said.

They also wanted to know which specific benefits are they entitled to given the employers’ decision to end the contract. He told them that benefits might differ due to a number of factors like a number of years they been at work.

Asked about the October salary as it was agreed, Mr madhan said the employer did not pay as it was agreed but promised to pay this week. “I have written a letter to the management and copied to the law firm, asking how the company will handle employees’ benefits,” he said.

and more importantly pay the October salary as it was agreed when we met last month,” he said.

According to him, Tuico is currently collecting evidences that will support employees when the issue is forced to go to Commission for Mediation and Arbitration (CMA) in case the Uchumi is not compliant.

Mr Ramadhan said the meeting also leant that there were some staff who were assisted by Uchumi to secure loans from some banks like Equity and Kenya Commercial Bank (KCB) and they were still paying.

We will also see how to handle this issue in the process of resolving the matter. I have leant that Uchumi will also involve the bank. That is why I tell you to be patient,” he said.




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