KUKHANYA WORKERS DEMAND EXIT BENEFITS

MBABANE - Where is the money?

This is the question that construction workers who were hired by Kukhanya (PTY) LTD are demanding an answer to following allegations that they were promised termination or exit benefits after the construction company, together with Stefanutti Stocks, sold their shareholding in the KISS Joint Venture to Inyatsi Construction.

The selling of the shareholding officially meant that Inyatsi is now the lead contractor of the project. 

In a letter dated December 12, 2020, which is in the possession of this publication, about 15 employees of Kukhanya communicated their discontentment regarding the termination benefits they claim were promised to them. The employees include foremen, quantity surveyors and safety officers among others.

Summoned 

According to the letter, which bears signatures of the employees, they alleged that on Tuesday November 24, 2020, they, together with those from Stefanutti Stocks, were summoned to the ICC Auditorium and addressed by senior management regarding the procedures which were to take place in order for them to ‘transfer’ to Inyatsi for the remainder of the ICC/KISS Projects.

“We were informed that if we are interested in joining Inyatsi, then we should sign a form expressing our interest in doing so. This was merely an indication from the staff and was accepted without prejudice,” reads part of the letter.

The employees said it was expressed by a representative of Kukhanya on site that those who would not express their interests would be left out.

“This was correctly interpreted by the personnel as being told that we no longer have jobs at Kukhanya Construction, and the choice to join Inyatsi was not a choice in the truest sense of the word. It was a case of either join Inyatsi or you are unemployed,” the employees stated.

The employees said the next step in the procedure was that all Kukhanya employees were instructed to resign, on or before November 30, 2020, in order for Inyatsi to incorporate them into the payroll so that they could be guaranteed of being paid in December 2020.

“During the various discussions and meetings, individual staff members enquired as to the benefits which would be paid out upon termination of our employment, and we were repeatedly informed that we would receive all of the applicable amounts in accordance with labour laws.

“It was also stated that in a meeting held in the site boardroom on Monday, January 4, 2021, Kukhanya human resources manager was working on the severance packages and that it would be sorted out in two to three days,” the employees alleged. They claimed that upon reporting for work on Monday December 10, 2020, they were verbally informed that no termination benefits would be paid to them as they had all resigned.

“We feel that this is unfair, as nobody resigned on their own accord. We were all advised or even instructed to resign, with the understanding that we would be paid our severance benefits. Also, there were no exit interviews done,” alleged the employees. They also alleged that it was widely known that included in the settlement amount for the buyout of ICC, Kukhanya Construction was paid an amount which was intended for the payment of termination or severance benefits.

According to the employees, such was a fact that could not be denied and that in the event it was disputed then Kukhaya would have been unjustly enriched.

“There has also been a sentiment expressed, admitted indirectly, that the staff has not lost anything, because they have all commenced new jobs at Inyatsi. This is not true, as all of the affected staff members will be starting with negative leave because of the impending builders break. We have all essentially lost the leave that we accrued during the year at Kukhanya,” emphasised the employees. They said they were reiterating their position that they were entitled to some or all payments pertinent to the termination of the employment.

Payment 

These include payment in lieu of annual leave accrued, severance pay, and termination benefits as prescribed and in accordance with the length of service plus notice pay.

In the letter, the employees requested urgent response within 48 hours in order for them to explore other courses of action which could be deemed necessary.

The letter was addressed to Peter Ngwenya, who when called by this reporter, mentioned that he was not the one to give answers on the concerns raised by the employees. Ngwenya said this was so because he was no longer an executive member of the construction company.

“Unfortunately, I do not know anything about Kukhanya and KISS because I am not part of the executive now. I am a retired person and I am sure they know that very well. There’s management at Kukhanya who deals with those things,” Ngwenya said.

He said it was unfair to seek a comment from him when he retired five years ago from the company.

In an interview with some of the employees, they mentioned that they were of the view that the company had pulled a fast one on them yet they were aware that there were funds meant to cater for their termination benefits.

“Yes, we have written to the company because we feel management is being unfair to us. We delivered the letter to the head office at Moneni and further sent it through WhatsApp to the managers,” they alleged.

According to the employees, management said it was still consulting with its legal representatives on the matter.

The employees also said that they had approached the Office of Labour Commissioner, Mthunzi Shabangu, to lodge their complaint. Shabangu, when called last Friday, confirmed that the concerned employees wrote to his office.

“For now, we are advising the company on the legal process of the matter you are talking about,” he stated.

In November, this publication reported that Inyatsi Construction was now the lead contractor of the KISS International Convention Centre (ICC) project in Ezulwini. This was after the company and its two initial partners, Kukhanya (PTY) LTD, and Stefanutti Stocks (PTY) LTD who were part of the initial KISS Joint Venture finally agreed to an amicable settlement regarding their status after government terminated the main contract a few weeks ago. It was stated that by agreement, Kukhanya and Stefanutti Stocks had agreed to sell their shareholding in the KISS Joint Venture.

KISS Joint Venture newly-appointed representative Wayne Levendale said all he could confirm was that they agreed on a payout with Kukhanya and Stefanutti.

“We cannot be sure how they used the money that was paid out to them,” he said briefly.

Nilson Biton, who was identified as the Managing Director of Kukhanya, was also called last Friday and he responded by saying he was in a meeting. 

An SMS was sent to him to provide answers on the concerns by the employees and there was no response.

When called yesterday, he informed this reporter that he was awaiting a response from the company’s lawyers.

Response 

“Let me get the response from the lawyers and I will get back to you probably tomorrow (today). I would rather give you the response from the lawyers than me saying anything. What we did is, we requested the lawyers to look into the whole issue so that the company can know what is due to the employees and what is not,” he said.

It should be noted that in December last year, this publication called Biton regarding the matter and he gave assurance that the company was working on it.

He said the company was handling the process of paying the employees what was due to them.

He said this was being done in accordance with labour laws.

“It is not like we are refusing with the payments. We are working on what is required. I think this issue should not stress the employees. I say this because there was actually no termination. They were not terminated. Remember, this is a settlement between three companies so these employees were moved into a new company. So it is not a termination per se but look, people when they raise issues like this, they do not know exactly what is happening,” he said.

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