Published: 21 October 2025

The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has rejected a US$160,000 settlement offer from RioZim Limited, dismissing it as inadequate and lacking assurances for the long-term welfare of workers and the company's sustainability.

RioZim, one of Zimbabwe's largest diversified mining groups, is currently facing severe financial distress and stands accused of failing to remit subscriptions owed to the union. The dispute has escalated into a legal battle, with ZDAMWU leading an application to have the company placed under corporate rescue.

ZDAMWU insists that RioZim's financial situation has reached a critical point, arguing that corporate rescue proceedings are necessary to protect both employees and the company's assets from total collapse.

The union's rejection of the proposed settlement follows RioZim's "without prejudice" offer, which was made through its lawyers, Nyahuma's Law. The company offered to pay US$160,000 on the condition that ZDAMWU withdraws all legal proceedings related to the corporate rescue case and agrees not to tarnish RioZim's image.

"The tender is made on condition that prior to the release of the funds, you make an unequivocal undertaking to withdraw and abandon all its (court) cases relative to the placement of our client under corporate rescue," RioZim stated in its offer.

ZDAMWU, however, argued that the proposal was self-serving and failed to address key issues, including unpaid employee benefits, operational viability, and assurances of future compliance. Union representatives said the offer appeared aimed at silencing workers' concerns rather than providing a genuine solution to the company's mounting financial woes.

RioZim chief executive officer Mr. Rajgopal Swami recently urged the union to "cease creating hurdles" that he said were obstructing efforts to recapitalise the company. He maintained that RioZim was "at the cusp of a breakthrough" and capable of turning around its fortunes if all stakeholders worked together.

"The future of RioZim hinges on unity and shared commitment to long-term recovery," Mr. Swami said, adding that the corporate rescue application was discouraging potential investors and delaying payment of arrears to workers.

However, ZDAMWU remains unconvinced, insisting that the company's leadership has failed to demonstrate transparency or a viable recovery plan. The union maintains that only court-supervised corporate rescue proceedings can ensure accountability and protect workers' rights during the restructuring process.

The standoff highlights the deepening financial troubles at RioZim and growing frustration among its workforce, who say years of unfulfilled promises and unpaid dues have eroded trust in management's ability to deliver a genuine turnaround.
- The Herald

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