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Tuesday / May 14.
HomeLifestyleEx-Railways employees get terminal benefits after engaging lawyer

Ex-Railways employees get terminal benefits after engaging lawyer

The Ministry of Justice has disclosed that K19.4 million (about US$1.1million) has been paid off as terminal benefits owed to over 820 former Zambia Railways employees after negotiations with their lawyer.

Speaking during a briefing in Lusaka monitored by the Zambian Business Times – ZBT, Justice Minister Mulambo Haimbe stated that the amount paid includes interest accrued over a period of time. The Justice minister disclosed that the arrears have also been cleared following successful negotiations between Government and the lawyers of the former Zambia Railways employees.

In 2020, ZBT reported that the Railway Workers Union of Zambia had disclosed that only 13% of Zambia Railways (formerly Railway Systems of Zambia) ex-workers who took litigation against government have so far been paid leaving out about 87% who took the dialogue route still waiting for payment of their terminal benefits.

At that time, Railway Workers Union of Zambia president Nathan Zulu stated that only 112 (13%) out of the total number of 866 ex-employees had been paid their outstanding retirements benefits and these are the ones that took government to court.

ZBT had reported that government only paid ex-employees of Zambia Railways who took legal action but left out the group that opted to dialogue to avoid paying high legal fees that are usually deducted from the awarded terminal benefits, a trend the disadvantages the retirees. See report on link Only ex-Railways employees who sued get paid

And Haimbe pledged that government will remain committed to clearing outstanding payments of terminal benefits of all former employees of government agencies and parastatals like Zambia Railways whenever resources are available.

He stated that the delay in paying terminal benefits to people who have contributed to the development of the country subjects them to unnecessary and avoidable poverty which his government aims to eradicate.

The Justice Minister has since called on all former government or quasi-government employees to remain patient as government works out modalities to clear any outstanding arrears.