Firm avoids collapse after ‘last-ditch effort’, but laid-off workers lose benefits

2011-09-21 00:00

MORE than 60 workers from LCM Engineering in Pietermaritzburg have complained that they were not given their benefits when the the company told them it would wind down its affairs.

Workers told The Witness that the company said it had ceased trading and was to be placed under liquidation.

A worker said, “They gave us all documents to sign that they are anticipating retrenchment. We accepted the notice, but then they put up a notice to say they ceased trading and they are in liquidation. So we lost out on all our benefits.

“They paid everyone R275 for every completed year worked, but the legal pay is two weeks for every year completed for the first four years, on September 2, but on September 5 they resumed business as normal.”

The company’s lawyer, Dev Maharaj, said in a statement the owners considered placing the company in liquidation largely on account of certain members of staff having severely disrupted production by embarking on an unofficial go-slow, vandalising some of the equipment and generally resorting to widespread insubordination.

“A last-ditch effort was made to salvage the company, and rather than placing the company into liquidation many of the staff resigned and received ex-gratia payments from a third party as opposed to being left destitute should the company have been liquidated.”

However, workers said this was not true as in June this year short-time working was introduced.

A worker said this is disappointing because the company is still employing other people while they did not receive their benefits.

 

 

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