NRZ fails to pay salaries

THE National Railways of Zimbabwe (NRZ) has reportedly failed to pay its 7 000 employees for the past five months because of the country’s weakening economy, an official has said.
NRZ spokesperson Fanuel Masikati confirmed the State-run transport utility was five months behind schedule paying salaries to thousands of its workers.

Company closures in the country’, second-largest city of Bulawayo have hurt its ability to turn around operations, Masikati said.

“It’s true we haven’t paid the workers over the past five months,” Masikati said on Tuesday. “We are in arrears. The whole economy is not performing. We are the backbone of Zimbabwe, but without business there is nothing we can do.”

NRZ needs $400 million to upgrade its infrastructure, as it tries to boost its cargo carriage from the about 6,4 million metric tonnes of goods it is forecast to move this year. The company suspended recruitment and the replacement of retirees or employees who died, Masikati said.

NRZ has paid a $2,9 million deposit to China North Railway Limited for locomotives that haven’t been delivered because the government hasn’t guaranteed the $29 million loan, he said.

The development came at a time when the government was considering setting up a railway regulatory authority to formulate, monitor and evaluate the railways industry and restructure the struggling railway company.

Under the proposed turnaround strategy for the NRZ, the loss-making entity would be unbundled into three companies dealing with infrastructure, freight and passenger services, whose operations and management will be totally divorced from each other.—Bloomberg/Business Reporter

7 Comments

  1. As long as appointments to key roles in NRZ are political rather than professional based we wont get out of this mess!The question for NRZ board and Management is :how come BBR is doing well!!

  2. Tendai Chaminuka

    Does NRZ have a management

  3. Lets call a spade a spade. These guys have run-down the once vibrant entity into absolutely zero. They are failing to apply correct strategies that could be short-term to long-term ones. In this scenario the organisation needs firebrands who are totally apolitical and be able to turn around the company operations lucratively without leaning on the government etc. They have everything at their disposal, goods are being moved in and out Zimbabwe by other players undeterred. They need to identify strategies that will make them take their original pole position in the transport industry PERIOD!!! Varikutamba and they are pretty sitting on a time bomb. Things might go out of hand totally especially where workers are made to work without remuneration over such lengthy periods. Where did they borrow such kind of strategy? Least to say that top management came from a background of good governance where hardly a month went-by without being paid their salaries. Lets be serious guys and stop implementing the impossible while stretching the workers’ patience, confidence, motivation and loyalty….

  4. The solution for the NRZ issue is quite simple..fire the GM and recruit a new boss. There are so many competent Zimbabweans out there who can do the job..how do you expect these people who are working so hard to repair the aging rolling stock to continue to work if they have not been paid for the past 7 months? These are people with families and responsibilites. Put a new board in place whose sole to do list should include recruiting for a new GM who in turn will also get rid of the other passengers masquerading as managers. What surprises me no end is if you ask the management at NRZ like those at Air Zimbabwe, they will tell you that it is not their fault their companies are in this predicament. The Minister of Transport needs to get his hands really dirty on these two issues..otherwise, why not simply privatise the two entities? Perhaps asking the GM to resign is asking too much, who else in this land has resigned voluntarily for incompetence anyway?

  5. Fire the general manager karakadzai.he is incompetent.nrz workers living in poverty.its a lie that they is no bussiness.

    1. i remember air commodore when he was at the airforce of zimbabwe,this guy barely knows anything about running a huge company like this, he was moved to NRZ simply becoz he had failed to run his department when he was stationed at Defense House!! they should boot him out!!!! vanhu vauraya nyika ivava! they should have come from war and retired! we cant let the country be run down by such incompetent, old and selfish pricks!!

  6. NRZ and AirZim need to be rebranded. Govt should appoint executive boards, this give more accountability. Competent management and justifiable staff levels should be determined. Issues of partnership can be pursed when the entities are viable and attractive, otherwise it will be a giveaway.

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