Indigenisation minister Patrick Zhuwao yesterday said workers of companies which will be shut down due to failure to comply with the country’s indigenisation laws, will be assisted to take legal action against directors of the closed entities.
By Everson Mushava/Tatira Zwinoira
Zhuwao has set today as the due date for companies that have not complied with the indigenisation laws that require all foreign-owned firms to cede 51% of their shareholding to locals to do so.
Speaking at a breakfast meeting on indigenisation yesterday, Zhuwao said companies that missed today’s deadline would have their operating licences revoked and the directors of such companies would be made to pay the price of recklessly rendering thousands of workers jobless.
“Directors of companies have a judiciary responsibility to safeguard all stakeholders, so if they then wilfully disobey the law, workers have the legitimate right to go after them,” he said.
“So if a company then wilfully neglects its employees, they have a legitimate right to sue, which government will support until workers are compensated.
“If they want to shut down, they will, but believe me, I now have three legal opinions. If they decide to wilfully disobey the law, workers have the legitimate right to go after them. Workers will go after the directors, for the Mercedes Benzes and beautiful houses. If they decide to ignore the country’s laws and close down, the directors will be putting their assets at personal risk.”
Zhuwao said he had already received representations from worker organisations that they were concerned. “I have told them, and I will be engaging with worker organisations, that it is the fiduciary responsibility of directors of such companies to make sure that they look after their workers,” he said.
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Zimbabwe is currently grappling with unemployment that has scaled to over 90%. Thousands lost jobs last July after the Supreme Court ruled that companies can fire their workers on three-month’s notice without compensation. But Zhuwao said companies had a responsibility to compensate those workers rendered jobless by their failure to comply with the country’s laws.
“So if you are a director of a company, be rest assured that I will be supporting the workers that you will have rendered jobless to come after you,” the outspoken minister said.
“I will support the workers who are rendered jobless by the irresponsibility of these directors or managers, who fail to comply with the law to make sure that they go after those directors in both their individual and institutional capacity. I have already sought legal opinions from three lawyers, and am seeking legal opinions from two more lawyers to make sure that I have a very strong case against the directors.”
Zhuwao said there would be no grace period for companies to comply.
