Metro Peech, a leading wholesaler, has given its workers, some who have served the company for more than 12 years, final benefits of $77. The package was paid after Sub-Sahara Capital Group (SSCG)-owned Gain Cash & Carry bought the company in a deal agreed at the end of last year.
Metro Peech, which has been unable to pay its 497 employees since August 2023, paid severance benefits in December last year.
“Under normal circumstances and conditions based on your employment contract, your severance benefits determined using a normal involuntary termination formula would have totaled $239 and been subject to pay-as-you-earn (PAYE) taxes.
“However, due to the forced closure of Metro Peech & Browne Wholesalers under the Corporate Rescue Program (CR9/23), the agreed upon decision was that all terminated employees would receive 0.32 cents for every $1.00 they were owed. Based on the allocated allocation For severance benefits using the 32 cents on the dollar formula, the total severance benefits owed to you would be $77 taxable.
“Your total amount includes Cash in Lieu of Leave (CILL) paid at a rate of 0.32 cents per US dollar. Your $77 net of tax will be paid to you by Gains Wholesalers by December 31, 2023.
Mutasa, a rescue practitioner with Metro Peech, argued that the payment was the best that could be saved. He said the worst-case scenario would have been had the company been liquidated because both creditors and employees would have received 0.07 cents on the US dollar.
“As a corporate rescue practitioner, I feel this is our best option. Consideration has been given to employing existing management and staff at Metro under new contracts on the terms and conditions to be agreed.” Masvingo Mirror
