Business / Companies
Air Zimbabwe battling to pay its workers again
06 May 2011 at 05:39hrs | Views
NATIONAL airline Air Zimbabwe is again battling to pay its workers their April salaries amid indications the employees were only given half salaries last month.
Acting Air Zimbabwe chief executive Innocent Mavhunga, yesterday confirmed the development and cited cash flow problems.
"Yes, they (workers) will continue to get half salaries. It is nothing new," Mavhunga said.
Last year, Air Zimbabwe paid its workers half salaries for several months, a development that saw arrears ballooning beyond its capacity to pay.
The CEO said he will not rule out a repeat of the same situation, adding that there was nothing the airline could do as it was facing cashflow problems that could not be resolved immediately.
"Naturally, we will end up in such a situation again. We have cash flow problems at the moment," he said.
Tension was said to be rising between management and workers.
The workers are arguing that they need to pay fees for their children ahead of schools opening for the second term next week.
Management says its coffers are dry because of the monthlong industrial action by pilots that was resolved recently when Government chipped in with US$4 million.
Workers met yesterday to map the way forward.
"We were given half salaries in April and management has made it clear that it does not have money at the moment to give us our full salaries.
"Management says the strike by the pilots worsened the cash flow problems faced by the company," a reliable source said. Air Zimbabwe is facing a number of challenges that are threatening its smooth operations.
It has a US$100 million historic debt and has struggled to pay its workers for the past few years, leading to industrial actions by the disgruntled employees.
The situation has been compounded by the decline in business with its routes falling from 25 to the current seven.
Air Zimbabwe is also incurring heavy loses on all routes.
Towards the end of 2010, the national airline suffered average monthly losses of US$2,5 million.
The situation worsened this year with the average monthly losses surging to US$3,4 million due to an increase in fuel costs against a decline in the load factor.
Acting Air Zimbabwe chief executive Innocent Mavhunga, yesterday confirmed the development and cited cash flow problems.
"Yes, they (workers) will continue to get half salaries. It is nothing new," Mavhunga said.
Last year, Air Zimbabwe paid its workers half salaries for several months, a development that saw arrears ballooning beyond its capacity to pay.
The CEO said he will not rule out a repeat of the same situation, adding that there was nothing the airline could do as it was facing cashflow problems that could not be resolved immediately.
"Naturally, we will end up in such a situation again. We have cash flow problems at the moment," he said.
Tension was said to be rising between management and workers.
The workers are arguing that they need to pay fees for their children ahead of schools opening for the second term next week.
Management says its coffers are dry because of the monthlong industrial action by pilots that was resolved recently when Government chipped in with US$4 million.
Workers met yesterday to map the way forward.
"We were given half salaries in April and management has made it clear that it does not have money at the moment to give us our full salaries.
"Management says the strike by the pilots worsened the cash flow problems faced by the company," a reliable source said. Air Zimbabwe is facing a number of challenges that are threatening its smooth operations.
It has a US$100 million historic debt and has struggled to pay its workers for the past few years, leading to industrial actions by the disgruntled employees.
The situation has been compounded by the decline in business with its routes falling from 25 to the current seven.
Air Zimbabwe is also incurring heavy loses on all routes.
Towards the end of 2010, the national airline suffered average monthly losses of US$2,5 million.
The situation worsened this year with the average monthly losses surging to US$3,4 million due to an increase in fuel costs against a decline in the load factor.
Source - TH
