Dube wins $3m arbitral award

By Tendai Kamhungira

HARARE – In a move that is likely to cripple the operations of the Premier Services Medical Aid Society (Psmas) and its subsidiary the Premier Services Medical Investments (Private) Limited (PSMI) — an arbitrator has ordered the institutions to pay its group chief executive officer Cuthbert Dube a collective amount of $3 million in salary arrears.

Following the arbitrator’s April 14, 2015 ruling, Dube, his lawyers approached the High Court last week seeking to register the arbitral award.

The arbitrator, identified as D Moyo, said Dube should be paid his salary arrears of $2 070 000 and a further $1 380 000 from PSMI and Psmas respectively, dating back to January last year.

Moyo ordered the payment of the outstanding salary to be done “immediately and forthwith”.

The matter was referred for arbitration after a conciliator failed to resolve it.

In his application, Dube claimed unfair labour practice against the two entities, arguing that the firms owed him his salary.

“The terms of reference for the arbitrator thereof were to determine whether or not the claimant (Dube)’s contract of employment is enforceable against the respondent (PSMI), if so whether or not the claimant’s contract of employment was lawfully terminated and remedy thereof,” Moyo said.

“Claimant raised the issue that he was the one who had taken the respondent to the courts and thus was clear about his issue and his issue is non-payment of his salaries and nothing more. On the other hand, the respondent presented that the issue of salaries does not arise as there is no subsisting contract between the parties.”

However, Moyo noted that in PMSI’s statement of March 16, 2015, it stated that, “The respondent herein wishes to state categorically that as it has no contract of employment with the claimant it therefore did not terminate any contract of employment.”

He said that true to this statement, PSMI did not terminate any contract with Dube.

“It is not in dispute that the claimant had obligations to direct the operations of the respondent,” Moyo said.

“It is inconceivable how a party doing work for the other for as long a time since 2001 and participating and supervising the employees of same for so long can work for so long and do so without a contract and for no remuneration.”

He also noted that in a board communication of March 14, 2013, the chairpersons of Psmas and PSMI spoke of an extension of Dube’s tenure of office for a further 10 years, with effect from January last year.

According to court papers, Dube was taking home $92 000 every month excluding allowances

Following the extension of his contract, Dube was entitled to $2 000 clothing allowance per year, $1 000 cell phone airtime, among other benefits. Daily News