Former Nyanza workers demand sh7b entitlement
Nov 28, 2010
OVER 3,000 former employees of the defunct Nyanza Textiles Limited (Nytil) have sued the Government.
By Hillary Nsambu
OVER 3,000 former employees of the defunct Nyanza Textiles Limited (Nytil) have sued the Government.
Through their lawyer, Augustine Ssemakula, 3,247 former employees want the Government to pay over sh7.5b in entitlements left unpaid at the time the Government closed down the factory.
The factory, that was closed down between 1990 and 1995, used to produce cotton fabrics.
The claimants said when the Government terminated their services, they were paid only sh500m.
They said the Government breached all the contracts of employment when it ignored to pay the balance of their entitlement.
The plaintiffs want the court to order the Government to pay an interest of 25% per annum on the remaining balance and costs of the suit.
They contended that since the factory was closed, they have been in several meetings with the Privatisation Unit, which have yielded no results.
However, the Attorney General denied the allegations.
He also argued that he was not liable to settle Pay As You Earn to the former employees. It is the Uganda Revenue Authority that would be liable to pay the money.
OVER 3,000 former employees of the defunct Nyanza Textiles Limited (Nytil) have sued the Government.
Through their lawyer, Augustine Ssemakula, 3,247 former employees want the Government to pay over sh7.5b in entitlements left unpaid at the time the Government closed down the factory.
The factory, that was closed down between 1990 and 1995, used to produce cotton fabrics.
The claimants said when the Government terminated their services, they were paid only sh500m.
They said the Government breached all the contracts of employment when it ignored to pay the balance of their entitlement.
The plaintiffs want the court to order the Government to pay an interest of 25% per annum on the remaining balance and costs of the suit.
They contended that since the factory was closed, they have been in several meetings with the Privatisation Unit, which have yielded no results.
However, the Attorney General denied the allegations.
He also argued that he was not liable to settle Pay As You Earn to the former employees. It is the Uganda Revenue Authority that would be liable to pay the money.