1 500 Zimasco workers face axe

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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.

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.

11 COMMENTS

  1. Mining is a turbulent industry, as metals and mineral prices go through cycles, with some dips very difficult and rough esp the current one and that of 2008. Most mining companies are retrenching all over the world. Now our ZANU PF govt wants the country to entirely rely on mining, while they destroy agriculture and manufactiuring sectors? Idzi harahwa ngadzichimbosiya. Fungwa dzavo dziri kure ne the happenings of today and we doubt they even understand global economics. Ngavaende vanotaurira vazukuru ngano kumusha uko. Ko iye Bona uchazvara riniko?

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  2. we hv long said it ”mazhingzhong a not here for economical businness that will enable zim economt to grow,hezvo mamwe marovha to add to ziscosteel’s”Madhara bvumai u hv totally failled

  3. Can we ignore what the workers are saying. Let us have the executive salary schedule please. U will be surprised Dube is not the highest paid. Togona kuwana varikutambira million per month…kkkkkk

  4. The people’s party will create 2.265million jobs don’t worry. Patakavhita takasainira agirimende kuti pachaita 2.265million mabasa matsva and not 2.265million lost jobs.

  5. Hurumende inofanira kuongorora macompany akadai pamwe neukama nenyika dzakaita seChina.

    Kubva zvatorwa kambani neSino zvinhu hazvina kumbozofamba mushe.

    Kunyika kwavo kunedambudziko rekushaya hanya nevashandi. Kare Zimasco yaibatsira zvikuru even kanzuru yaibatsirwa zvikuru pamvura. Ikozvino hapachina social responsibility.

    Yaakuda kuwana mari nekudhurisira vashandi vairi kunyima mari dzimba dzayakapiwa mahara nekanzuru.

    Hurumende pliz pindirai kuparara kwekambani iyi kufawo kweKk given macontribution ayakaita uye madownstream industries, ndiyo yakavaka kkpoly, mutual centre (formerly chrome centre),etc. Lets protect jobs inline with our manifesto

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