Judgment No. SC 26/18 3 Civil Appeal No. SC 164/16 Before the arbitrator, the respondents contended that in November 2011, most Section Managers under the M2 grade were earning salaries ranging from US$400.00 - US$450.00 per month whilst they were earning US$360.00 per month. They argued before the arbitrator that there was no rational basis for the distinction. They also suggested that in November 2011 following their complaint, each of their accounts was inexplicably credited with the sum of US$40.00. It was also the respondents’ contention that in February 2012 they were demoted to grade 10 without consultation. In the result, the respondents claimed back-pay in the sum of US$2 390.00 each and prayed that the appellant be ordered to stop acting unilaterally in violation of the labour laws. Per contra, the appellant averred that initially the Section Managers were paid equitably and the decision to pay them based on branch performance was reached sometime in December 2010. The appellant also submitted that the respondents were in grade C2 in terms of the “Patterson” grading system and that, as they were managerial employees, their salaries were negotiated on an individual basis. Contrary to the respondents’ contention, the appellant claimed that the US$40.00 deposited in the respondents’ accounts were given to every employee of the appellant. It submitted that there was no back-pay due to the respondents because it was gravitating towards the normal payment system where employees are paid the same regardless of performance. The arbitrator found that, in the circumstances in casu, the performance-based bonus constituted a contravention of the audi alteram partem principle as the respondents had not been afforded an opportunity to be heard concerning the new grading salary scales. He therefore held that the appellant was committing an unfair labour practice in terms of s 6 of the Labour Act in