RioZim Retains Renco Management Despite Worker Petition for Removal

RIOZIM

RioZim has decided to retain the current management team at its Renco Mine despite a petition signed by 716 workers demanding their immediate dismissal.

By Ryan Chigoche

The petition, submitted on November 5, 2024, raised serious concerns about persistent salary delays, alleged financial mismanagement, and theft within the mine’s operations.

For over five years, workers at Renco Mine have voiced frustrations over management’s failure to pay salaries on time. Despite meeting production targets, employees have faced repeated delays in wage payments, leading to financial strain and declining morale.

In response, workers have staged several job actions, but their calls for timely and full compensation have gone largely unheeded.

Allegations of Mismanagement and Theft

Beyond the salary delays, the petition accuses management of severe financial misconduct. Workers allege that gold carbon has been removed from the mine for external processing without proper authorization and that funds meant for replacing boiler insulators were misappropriated. These allegations have further eroded the workforce’s confidence in the leadership.

The Zimbabwe Diamond and Allied Minerals Workers Union (ZIDAMWU) supported the workers’ grievances in a letter to RioZim’s CEO. The union urged the company to investigate the allegations, suspend implicated personnel, and address the workers’ concerns to restore trust and improve working conditions.

RioZim’s Response

Despite the petition and a strike that disrupted operations from October 9 to November 2, 2024, RioZim’s management has stood firm. In an internal memo obtained by Mining Zimbabwe, Group HR Manager Jasmine Njanike stated that the RioZim Board of Directors fully supports Renco Mine’s current management team.

“As you are aware, there were business disruptions at Renco Mine and ancillary activities due to the prolonged strike. We would like to reiterate that the Board of Directors and the Executive of the RioZim Group are in full support of the entire management team at Renco and the efforts they are making to resuscitate operations in a challenging environment,” Njanike stated. “For the avoidance of doubt, there is no intention to change Renco Mine’s management team. Therefore, the whole management team as it stands continues to have executive authority to direct and make decisions pertaining to Renco operations.”

In a separate memo, Njanike addressed the issue of wages for the strike period. She stated that the company would not pay workers for the days they were on strike, citing a recent labour court ruling that deemed the strike illegal. However, RioZim offered 50% of the salaries for the strike period as a goodwill gesture.

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“The collective job action was declared illegal as per the recent labour court order. In that regard, the company is not obligated to pay salaries for the days employees were on strike, as per Section 12A(6)(a) of the Labour Act Chapter 25.01,” Njanike explained. “As a measure of goodwill, the company is willing to pay 50% of salaries for the illegal strike period as an extra gratuity consideration.”

Worker Dissatisfaction Persists

The decision to withhold full wages for the strike period has further angered workers, who are already grappling with delayed payments. The workers’ union has warned that if the issue remains unresolved, it will escalate the matter to Parliament, calling for government intervention.

A labour court has since ordered Renco Mineworkers to return to work, ruling their industrial action unlawful. However, tensions remain high, as over 1,200 workers had gone on strike on October 9 to demand payment of salaries outstanding since July.

The Road Ahead

As tensions persist, the future of Renco Mine’s management and operations remains uncertain. The resolution of these disputes will have significant implications for RioZim’s operations and its relationship with its workforce.

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