WALLACE LABORATORIES employees are up in arms with their employer Seke MP (Zanu PF) Phineas Chiota for non-payment of salary arrears, amounting to $543 000 accrued since 2009.
Report by Veneranda Langa
Yesterday, the 43 employees vowed to sleep at the company premises until their outstanding salaries were paid.
Workers’ committee chairperson Thomas Ndakaripeyi said the company faced serious viability problems and had not been operating for the past five months.
“On average workers earn $300 per month and since Chiota was failing to pay, we suggested he should get an investor to help him run the business,” Ndakaripeyi said. “We have decided to sleep here at the company premises until our salaries are paid in full because workers are suffering and some families have broken down due to these problems.”
According to employees interviewed by NewsDay yesterday, the company had been placed under judicial management and in desperation they even approached Zanu PF Politburo member Dzikamai Mavhaire to assist resuscitate the company.
Workers also alleged they had suggested that Chiota get an investor, but he refused. They said Chiota had also resisted involvement of the appointed judicial manager Knowledge Hofisi to try and resuscitate the company.
The workers showed NewsDay their pay slips which indicated that they were owed amounts ranging from $3 664 to $41 286 each since 2009.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
They said they had been reduced to near destitution.
“Our families are struggling to get food and many of our children are out of school because we can no longer afford to pay school fees for them,” the employees said.
Hofisi acknowledged the company was facing serious viability challenges and that initially Chiota had resisted the coming in of a judicial manager.
“The company is facing serious financial constraints. We are trying to engage the shareholder (Chiota) to introduce a scheme whereby workers become shareholders since the company is in no capacity to pay them. The company owes a number of creditors and workers a substantial amount. We need to court an investor, but we need the shareholder’s approval on that,” said Hofisi.
Contacted for comment, Chiota said production at the company had stopped five months ago and there were 14 employees who wanted to smear his name by influencing other employees to stop working. He dismissed suggestions of getting in an investor saying it was not necessary, as he had already acquired adequate material to resume operations.
“The idea of people sleeping here is to try and frustrate me. The company has been affected by sanctions just like other industries, but on Thursday (today) operations will begin,” he said.
Chiota said it was untrue that workers had not been paid for five years, adding any marketable employee would have found alternative employment instead of staying at a company without pay.
