Business / Companies
OK at loggerheads with workers
09 Oct 2013 at 03:14hrs | Views
OK Zimbabwe is embroiled in a potentially bruising wrangle with 51 former workers of Makro Zimbabwe over alleged unfavourable working conditions after its acquisition from Massmart in 2011.
The Zimbabwe Stock Exchange listed retailer last year acquired South African retail giant Massmart's sole Zimbabwe unit in line with provisions of the country's indigenisation requirements.
After buying Makro Zimbabwe from Massmart in March 2011, OK Zimbabwe rebranded the hypermarket to OK Mart and workers have alleged the takeover has brought about more misery than joy.
But OK Zimbabwe chief executive Mr Willard Zireva dismissed claims that conditions of employment had become worse saying Makro would not have given them better conditions as it was broke.
The wrangle has since been referred to the National Employment Council for the Commercial Sector of Zimbabwe for mediation after the feuding parties failed to come to an internal resolution.
The Progressive Commercial Trades and Allied Workers Union of Zimbabwe wrote to OK Zimbabwe in July this year advising that workers had lodged a complaint alleging unfair labour practices.
"It is alleged that from the time OK Zimbabwe took over from Makro as a going concern the conditions of employment have been less favourable instead of being more favourable," PCTAWUZ said.
Issues cited include access to free transport, failure to address an error on medical aid, increase of contribution for food provided at the firm's canteen and being made to work over time.
"It is also alleged that there is unfairness to former Makro employees who are not allowed to access loans from CABS because they owe CABS which they say is not true because the money was deducted by the employer (Makro Zimbabwe) from the employees," PCTAWUZ said.
However, Mr Zireva said the former Makro workers were only bitter because of tight internal controls at OK Zimbabwe which prevented them from "stealing" as they used to do at Makro Zimbabwe.
"You are always going to get that kind of talk, but nobody was forced to join OK Zimbabwe. Makro undertook to pay off all those who were not prepared to join OK Zimbabwe," said Mr Zireva.
He also argued that the retailer did not change conditions of service to worse for any worker. He challenged the workers to put in writing (their grievances) citing things they were promised but never got. Instead, he said Makro is the one not paying pension and medical aid it promised.
He said workers used to take advantage of weak internal controls to pilfer from Makro since the South African retailer was bankrupt.
"They are not happy because at OK Zimbabwe we have strong internal controls, which are what has kept OK Zimbabwe going. Makro was broke and the workers paid themselves since 2007."
But sources dismissed the argument saying Makro did not exit Zimbabwe due to bankruptcy, but acted in strict conformity with requirements of the indigenisation and empowerment law requiring foreign owned firm's to sell at least 51 percent of their equity to locals.
The Zimbabwe Stock Exchange listed retailer last year acquired South African retail giant Massmart's sole Zimbabwe unit in line with provisions of the country's indigenisation requirements.
After buying Makro Zimbabwe from Massmart in March 2011, OK Zimbabwe rebranded the hypermarket to OK Mart and workers have alleged the takeover has brought about more misery than joy.
But OK Zimbabwe chief executive Mr Willard Zireva dismissed claims that conditions of employment had become worse saying Makro would not have given them better conditions as it was broke.
The wrangle has since been referred to the National Employment Council for the Commercial Sector of Zimbabwe for mediation after the feuding parties failed to come to an internal resolution.
The Progressive Commercial Trades and Allied Workers Union of Zimbabwe wrote to OK Zimbabwe in July this year advising that workers had lodged a complaint alleging unfair labour practices.
"It is alleged that from the time OK Zimbabwe took over from Makro as a going concern the conditions of employment have been less favourable instead of being more favourable," PCTAWUZ said.
Issues cited include access to free transport, failure to address an error on medical aid, increase of contribution for food provided at the firm's canteen and being made to work over time.
"It is also alleged that there is unfairness to former Makro employees who are not allowed to access loans from CABS because they owe CABS which they say is not true because the money was deducted by the employer (Makro Zimbabwe) from the employees," PCTAWUZ said.
However, Mr Zireva said the former Makro workers were only bitter because of tight internal controls at OK Zimbabwe which prevented them from "stealing" as they used to do at Makro Zimbabwe.
"You are always going to get that kind of talk, but nobody was forced to join OK Zimbabwe. Makro undertook to pay off all those who were not prepared to join OK Zimbabwe," said Mr Zireva.
He also argued that the retailer did not change conditions of service to worse for any worker. He challenged the workers to put in writing (their grievances) citing things they were promised but never got. Instead, he said Makro is the one not paying pension and medical aid it promised.
He said workers used to take advantage of weak internal controls to pilfer from Makro since the South African retailer was bankrupt.
"They are not happy because at OK Zimbabwe we have strong internal controls, which are what has kept OK Zimbabwe going. Makro was broke and the workers paid themselves since 2007."
But sources dismissed the argument saying Makro did not exit Zimbabwe due to bankruptcy, but acted in strict conformity with requirements of the indigenisation and empowerment law requiring foreign owned firm's to sell at least 51 percent of their equity to locals.
Source - herald
