Zimbabwe Stock Exchange-listed diversity miner, RioZim limited’s workers have threatened to apply for the placement of the company and its subsidiaries under corporate rescue as they deem the group to be under financial distress due to poor management which has led to its failure to look after the welfare of employees.
Rudairo Mapuranga
Writing to RioZim Chairperson Mr Saleem Rashid Beebeejaun, Zimbabwe Diamond and Allied Mine Workers Union (ZDAMWU) General Secretary Justice Chinhema said workers are opting to put the group under judiciary management because they share the view that the poor performance of the group of companies is due to financial distress, gross undercapitalization and lack of proper management.
“Our members have reached a stage where they are initiating a process of applying for the placement of RioZim Limited and all its subsidiaries under corporate rescue in terms of Section 121 as read with Section 124 & 131 of the Insolvency Act Chapter 6.07.
“It has become very clear to the affected workers and other stakeholders including the Union (ZDAMWU) that the organisation is in financial distress. Workers for two (2) years were made to understand that the Biox plant is going to be a game changer for everyone, months down after the commissioning of the Biox plant, things have gone from bad to worse.
“Lower level workers have lost employment and the community of Chakari where Dalny mine was operating is now in darkness because Zesa switched off the whole community. The situation in the RioZim group points to a lack of strategic direction.
“Workers and other stakeholders share the view that the poor performances of the group of companies are due to financial distress, gross under capitalisation and lack of proper management. There is great variance on workers’ welfare and extravagance on the part of the shareholders. To be honest Mr Chairman we have lost confidence in the shareholders of the company and its management. Workers have been living in abject poverty and facing hardships under the watch of the current management who have failed to find lasting solutions to all problems that affect parties to an employment contract.
“With all the above we are under instructions from our members to demand from you resolutions within (7) seven days in the following manner –All outstanding salaries be paid in full to everyone owed within the (7) seven days of receiving this letter. September salaries and all allowances be paid in full at once by the last day of September 2022.
“RioZim Limited through you Mr Chairman makes a pledge that going forward all salaries will be paid in full at the end of every month. No employee will be losing his/her employment because it is said workers are too many, instead the management team should see heads rolling. A financial re-capitalization is to be made in all the entities so as to secure jobs of current workers. In the event that you fail to address the above within the stated time, or chose to ignore, we are under instructions to immediately start the process of corporate rescue which we believe is long overdue.
“As you may appreciate, corporate rescue is meant to resurrect failing entities like Rio Zim. In our view, we should not wait until another mine collapses, and jobs lost, but diligence requires that we act now,” Chinhema said.
Chinhema also said that RioZim has been failing to pay its employees with most junior workers sent home without proper reasons.
“For the record, we have engaged the management of Cam & Motor Mine, Renco Mine, ENR, Murowa Diamonds and Dalny Mine on issues affecting workers. In some cases, meetings have been held, and in some cases our correspondence ignored. As we write to you, it is sad to note that Dalny mine has closed and workers’ contracts terminated and nothing paid to them, we are also aware that more than 400 workers who were signing fixed contracts are being terminated in phases. It has further come to our attention that there is rampant casualization of labour in your organisation Mr Chairman, workers are employed to work and after working they expect to get paid their salaries in order to bring food to their families, pay school fees, medical bills for them and extended families, buy clothes and enjoy life of someone employed.
“We are totally surprised and disappointed by your organisation which we regard as one of the biggest employer and economic enabler in this country that it can subject its workers to the worst conditions like non-payment of wages when production is happening.
“The economic situation currently prevailing in our country requires that salaries and wages be paid promptly, when they are due and when they still have value.
“The ILO’s Decent Work Agenda states- Every person on earth should be able to have a job that enables them to live a good life in which their basic needs are met. Employment is a crucial factor for achieving this and after working every employee is entitled to a salary paid in full on time.
“The women and men who are working for RioZim Limited need an employer that take adequate measures to: Ensure that social protection and workers ‘rights are fully respected in labour laws and in practice. Ensure that the living standards of its workers and communities they leave are uplifted not poverty situation they find themselves in. Create jobs linked to standards and rights as well as social protection that gives workers the security they need to face the future with confidence not the current situation, which is causing more harm and already caused some workers to lose their jobs. Management and shareholders of RioZim are required by law to make sure workers live the life commensurate to the work they do.
“The conditions your organisation has subjected its employees is not expected from such an organisation like yours. Only fly-by-night organisations can do this to its workers and the worse part of it all is when we hear some managers are in the business of intimidating workers for asking their salaries. This is contrary to the provisions of Section 2A, 5 & 6 of the Labour Act Chapter 28.01 together with ILO Convention No.95 and Section 65 of the Constitution of Zimbabwe,” Chinhema said.
