eBusiness Weekly
Fidelis Munyoro
Tanzania’s Bakhressa Group has been ordered to implement the empowerment plan approved by Government five years ago, divesting 10 percent ownership in the company and three subsidiaries to eligible permanent workers.
The High Court ruling follows an application by the company’s 105 workers seeking a mandatory interdict to compel Bakhressa, which acquired Blue Ribbon Foods, to implement the plan approved by the Government in terms of the then Indigenisation and Economic Empowerment Act.
Although legal changes allow companies to seek modifications of previous schemes approved under that Act, Blue Ribbon never applied for the review within the deadline.
An employee share ownership scheme is a contribution plan that provides a company’s workers with an ownership interest in the company.
Shares are held in the scheme’s trust until the employee retires or leaves the company, or earlier diversification opportunities, creating an opportunity for workers to amass long-term savings and benefits from their work.
In a recent judgment, Justice Owen Tagu granted the order sought by the workers after finding merit in the application.
“The application be and is hereby granted,” ruled Justice Tagu ordering Bakhressa to within 21 days receipt of the order, consider and sign the draft deed of trust of the share scheme.
In the event the company and staff were not agreeable on any issues regarding the draft deed of trust, the workers “shall forthwith refer the draft deed of trust to Industry and Commerce Minister Dr Sekai Nzenza”, who through the relevant unit under her ministry would make a final determination on the issues arising within three weeks of the order.
Following some amendments to the Act in March last year, which provided business with existing indigenisation and economic empowerment plans with an opportunity to revise the workers’ indigenisation implementation plans that had been previously approved within a period of 60 days after commencement of the amending statute, the workers made an inquiry on the status of the scheme to the ministry.
The ministry advised them that the indigenisation had not been revised.
When the workers approached the employers for explanation they were met with no joy, prompting them to seek the intervention of the High Court.
Fidelis Munyoro
Tanzania’s Bakhressa Group has been ordered to implement the empowerment plan approved by Government five years ago, divesting 10 percent ownership in the company and three subsidiaries to eligible permanent workers.
The High Court ruling follows an application by the company’s 105 workers seeking a mandatory interdict to compel Bakhressa, which acquired Blue Ribbon Foods, to implement the plan approved by the Government in terms of the then Indigenisation and Economic Empowerment Act.
Although legal changes allow companies to seek modifications of previous schemes approved under that Act, Blue Ribbon never applied for the review within the deadline.
An employee share ownership scheme is a contribution plan that provides a company’s workers with an ownership interest in the company.
Shares are held in the scheme’s trust until the employee retires or leaves the company, or earlier diversification opportunities, creating an opportunity for workers to amass long-term savings and benefits from their work.
In a recent judgment, Justice Owen Tagu granted the order sought by the workers after finding merit in the application.
“The application be and is hereby granted,” ruled Justice Tagu ordering Bakhressa to within 21 days receipt of the order, consider and sign the draft deed of trust of the share scheme.
In the event the company and staff were not agreeable on any issues regarding the draft deed of trust, the workers “shall forthwith refer the draft deed of trust to Industry and Commerce Minister Dr Sekai Nzenza”, who through the relevant unit under her ministry would make a final determination on the issues arising within three weeks of the order.
Following some amendments to the Act in March last year, which provided business with existing indigenisation and economic empowerment plans with an opportunity to revise the workers’ indigenisation implementation plans that had been previously approved within a period of 60 days after commencement of the amending statute, the workers made an inquiry on the status of the scheme to the ministry.
The ministry advised them that the indigenisation had not been revised.
When the workers approached the employers for explanation they were met with no joy, prompting them to seek the intervention of the High Court.
