KWEKWE-BASED Zimbabwe Alloy Smelting Company (Zimasco) says it plans to retrench 50% of its 3 000-strong workforce as a cost-cutting measure in the wake of a global slump in the producer price of chrome.
BLESSED MHLANGA
Zimasco general manager (marketing and administration) Clara Sadomba told NewsDay yesterday that the company’s profitability had been gravely affected by world market prices which she said had been on a downward spiral since 2008.
“Zimasco continues to pursue various cost-cutting initiatives in all its operations. This is in response to the adverse global market conditions which have impacted negatively on commodity prices in general and ferrochrome prices in particular since 2008,” Sadomba said.
However, the workers disputed the company’s claims, saying chrome prices were in fact rising.
According to information posted on KPMG Canada’s website, prices of chrome have been on a steady increase, jumping 20% in 2012 from $220 per tonne to $249 per tonne.
“We have been offered a chance to take the voluntary retrenchment package which is not really voluntary because we have been told that if nobody takes it, we will be forced to go on unpaid rotational leave and take salary cuts,” a worker who refused to be named said.
From October 2012 to late last year, workers were forced to take a pay cut, with the lowest paid taking home less than $150 after working just two weeks per month.
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The workers blamed the company’s top-heavy structure for contributing to its financial woes.
“Instead of focusing on the small guy, I think they should cut on their (managers’) perks and reduce management positions some of which are totally not necessary. In the past we had two managers, but now we have 22 — all of them getting company cars, fuel and other benefits which drive up costs,” another worker said.
Sadomba denied the allegations, saying the retrenchment exercise was transparent and all workers were constantly being informed about the actions being taken by the Sino-Zimbabwe-owned company.
“One of the initiatives relating to labour include voluntary retrenchment. All our employees are fully aware of the initiatives being undertaken and are continuously being kept abreast of all developments within the organization as well as the efforts being taken to achieve sustained vaiblity,” she said.
