Union petitions Minister to halt ZCDC retrenchments

Published: 1 hour ago

A trade union representing diamond industry workers has petitioned Mines and Mining Development Minister Winston Chitando to stop mass retrenchments at the Zimbabwe Consolidated Diamond Company (ZCDC), warning that the cuts will leave hundreds of families destitute.

The Zimbabwe Diamond and Allied Minerals Workers Union (Zdamwu) said the state-owned miner's downsizing drive has already seen over 290 employees leave through voluntary retrenchment, with another 300 targeted for compulsory layoffs. The retrenchments come amid a steep decline in global diamond prices and financial strain at ZCDC, which has reportedly been struggling to pay salaries.

In a letter dated July 9 and copied to ZCDC management, Zdamwu secretary-general Justice Chinhema appealed for government intervention, urging Chitando to halt the process and push for alternatives to preserve jobs.

"This exercise, when concluded, will leave over 600 workers destitute, many of whom are burdened with loans obtained from banks guaranteed by the employer on the strength of continued employment," Chinhema wrote. "We respectfully urge your office to engage with ZCDC and the union to explore alternative measures such as retraining, value addition, and beneficiation, or any other schemes that minimise job losses."

The union accused ZCDC of acting "unjustifiably, carelessly, and inhumanely" and warned that retrenching workers without paying outstanding wages would worsen poverty in the affected communities. "Those already opted for the voluntary retrenchment have not been paid, and there is no plan in place addressing the payments," the letter stated.

The Chiadzwa Community Share Ownership Trust (CCSOT) has also voiced opposition to the retrenchments, calling for a freeze on the exercise.

ZCDC, established in 2016 after government cancelled the licenses of seven private diamond miners accused of underreporting earnings, received an initial US$80 million state investment. However, its troubles deepened last week when its parent company, the Mutapa Investment Fund, terminated a joint venture sales agreement with a Dubai-based firm.

The union warned that the layoffs undermine the government's drive toward middle-income status by 2030, noting that current economic policy emphasises job creation, social stability, and inclusive growth. Efforts to obtain comment from Minister Chitando on the matter were unsuccessful.
- The Independent

Tags: ZCDC,