Ex-Zisco employees' future hangs in the balance

Published: 03 September 2017

THE future of former Zimbabwe Iron and Steel Company (Zisco Steel) workers is hanging by a thread after the Government announced that it will not be part of the recruitment process in the new deal with Chinese investor R and F Company.

The ex-employees had hoped that the Government would facilitate their engagement under the new deal but Industry and Commerce Minister, Dr Mike Bimha poured ice on the prospects saying the Government would only guide the new investor in terms of policy and would leave the recruitment process to its management.

"As Government we will not be involved in the recruitment of employees. That would be done by the management of the new company. We are focusing on the new deal and we are discussing with them issues concerning the operationalisation of Zisco. We are confident that Zisco will come back to life," he said.

However, ex-Zisco workers' union chairperson, Mr Benedict Moyo said although the workers were cognisant of the fact that they were no longer part of Zisco they had hoped that the Government would at least facilitate their re-engagement by the new investor.

"As Redcliff community we are happy with the new development and we hope that the deal will not collapse as was the case with Essar. It's a new era for Redcliff and Kwekwe at large. It has also rekindled hope for the former employees of Zisco. We would want the new investor to re-engage former Zisco employees and other skilled workers who are in the community.

"It would be prudent for the company to engage its former employees who are still economically active and other local people because strategically it would be easier it terms of employees' accommodation. However, we are not sure of what is going to happen and it is quite a difficult situation," he said.

During his 2016 budget presentation Finance and Economic Development Minister, Patrick Chinamasa announced that the steel giant had relieved more than 1 500 of its workforce on three months' notice.

Finance Minister Chinamasa also announced that Government would take over the integrated steelworks debt which effectively confirmed the collapse of the Essar deal consummated in September 2011 in an initial transaction worth $750 million.

Government and Zisco workers have been at loggerheads with the workers demanding that Government should follow proper procedures of terminating contracts as stipulated by the Labour Act. They also emphasised that there was need for Government to pay the employees their outstanding salaries before offloading them.

Sunday News is reliably informed that deputy sheriff of the High Court recently attached properties at Zisco's other subsidiaries over outstanding salaries and retrenchment packages. Zisco's former employees are owed more than $60 million in unpaid salaries dating back to eight years ago. The workers had gone for eight years without salaries prior to their retrenchment on a three months notice by Government last year.
- online

Tags: Ziscosteel,