Power Sales workers fume over salaries

Powersales, a retail clothing chain in Bulawayo, is embroiled in a dispute with its employees after management decided to offset outstanding salaries with sewing machines, leaving workers dissatisfied and concerned about the future of their jobs. The company, which has been struggling to compete with informal traders who often sell cheaper smuggled goods, is now facing criticism for its handling of wage arrears.

Employees of Powersales have claimed that they are owed three months of unpaid salaries dating back to July 2023. In a controversial move, management allegedly gave each worker a sewing machine as compensation for the outstanding wages without consulting them. Workers have expressed frustration over this decision, especially since the machines, valued at approximately US$280 each, are worth more than their monthly salary of US$110.

"They have literally closed after deciding to send us home for six months unpaid leave, but they owe us salaries backdated to July," said one of the workers, who wished to remain anonymous. "Now, they want to give us a sewing machine instead of the money we're owed. This is unfair, and we feel like we are being left with nothing."

The decision to offer sewing machines comes at a time when the retail sector in Zimbabwe is under significant strain, with formal retailers like Powersales facing tough competition from informal traders who do not incur the same operational costs. Informal traders, who often sell goods at much lower prices, are not burdened by overheads such as rent, salaries, and other business expenses, which has put formal shops at a disadvantage.

Adding to the employees' frustration, Powersales reportedly served retrenchment notices to some workers earlier this year without providing clarity on their severance packages. Several workers refused to leave the company's Belmont factory in protest, demanding the payment of their back wages.

"Their thinking is that they are now done with us," another disgruntled worker commented. "They are now selling all the machines to the public and buying finished products from other companies, but they are not paying us our outstanding salaries."

In response to these developments, the employees have approached the Ministry of Labour, seeking intervention to address what they have described as unfair labour practices by their employer.

Fanuel Mahachi, the Director of Operations at Powersales, confirmed the company's financial difficulties and explained that it has had to make some tough decisions. "We have so far closed six shops this year that have become unprofitable," Mahachi stated. "We currently have 35 permanent workers, and those with leave days are on paid leave, but those without leave days are going without pay."

The situation at Powersales highlights the ongoing challenges facing businesses in Zimbabwe, where economic hardships, including inflation and competition from informal traders, have put many formal businesses in a precarious position.

As the retail chain faces mounting pressure, the dispute over unpaid salaries and the controversial compensation scheme is likely to spark further tensions between management and employees, with no clear resolution in sight.