Business / Companies
Ziscosteel lays off entire workforce
06 Dec 2015 at 03:42hrs | Views
THE Zimbabwe Iron and Steel Company (Zisco) has laid off its entire workforce after officially communicating the development to employees on Wednesday.
Finance Minister and Economic Development Minister Patrick Chinamasa during his 2016 National Budget Statement said Zisco would relieve more than 1 500 workers on three months' notice and announced that the Government would assume the integrated steelworks manufacturer's debt.
The announcement by the Finance Minister effectively confirmed the collapse of the much touted Essar deal which was consummated in September 2011 in an initial transaction worth $750 million.
However, Industry and Commerce Minister Mike Bimha recently said Zisco workers will be recalled once a new investor has been identified and production resumes.
He assured the Zisco workers that their jobs would be restored once an investor is found to partner Government at the giant steel manufacturer.
When Sunday News visited Zisco on Wednesday employees at the Redcliff-based company had been dispersed after they were notified of the development.
However, Zisco Joint Workers' Union chairman Mr Benedict Moyo professed ignorance on the development insisting that the management and board of the once giant iron and steel manufacturer in the region were still to officially communicate to the workers.
He said workers will not resist the development but would prefer the Government to take proper procedures as stipulated by the Labour Act.
"At the moment we are waiting for our human resources office to contact us to inform us about the latest developments and after that we will follow the labour rules because we have an obligation to follow them.
"Having said that we understand the Government's position very well and as workers we would want to see an amicable situation to this development and I am sure it would come to that," he said.
Finance Minister and Economic Development Minister Patrick Chinamasa during his 2016 National Budget Statement said Zisco would relieve more than 1 500 workers on three months' notice and announced that the Government would assume the integrated steelworks manufacturer's debt.
The announcement by the Finance Minister effectively confirmed the collapse of the much touted Essar deal which was consummated in September 2011 in an initial transaction worth $750 million.
However, Industry and Commerce Minister Mike Bimha recently said Zisco workers will be recalled once a new investor has been identified and production resumes.
He assured the Zisco workers that their jobs would be restored once an investor is found to partner Government at the giant steel manufacturer.
However, Zisco Joint Workers' Union chairman Mr Benedict Moyo professed ignorance on the development insisting that the management and board of the once giant iron and steel manufacturer in the region were still to officially communicate to the workers.
He said workers will not resist the development but would prefer the Government to take proper procedures as stipulated by the Labour Act.
"At the moment we are waiting for our human resources office to contact us to inform us about the latest developments and after that we will follow the labour rules because we have an obligation to follow them.
"Having said that we understand the Government's position very well and as workers we would want to see an amicable situation to this development and I am sure it would come to that," he said.
Source - Sunday News
