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Zimpost employees' salaries slashed

by Staff reporter
30 Mar 2018 at 08:31hrs | Views
STATE-OWNED postal services company, Zimpost, has slashed employees' salaries by half as the entity struggles to stay afloat.

The company is not only behind on salary payments, but is failing to pay them in full, with acting managing director Sifundo Moyo blaming the high fixed cost structure "of the business to meet its operational costs which had not been matched with robust revenue inflows".

"While employees' salaries have always been and will remain a top priority ahead of other payments, the current inflows being generated by the company are not adequate to meet the financial obligations of the business. The company will in the meantime pay a part of the net salary," Moyo said in a circular Number 17, 2018 to Zimpost employees countrywide on the payment of salaries.

"The company will continue to pay part salaries for the coming period estimated at worst to be three to six months. Meanwhile, various initiatives are in motion to address this situation and ensure that full payment of full salaries is resumed at the shortest possible time."

According to Moyo, the postal services company has not been profitable since dollarisation.

The company has not been making profit since dollarisation and the accumulated loss as at December 31 was $30 million.

The company's annual losses have resulted in the liquidity challenge that the business is currently facing, with its working capital gap amounting to $29,1 million as at November 30, 2017."

It is understood that Zimpost workers were mulling a crippling strike on April 9.

But Southern Eye heard the Zimpost management has been meeting workers' representatives to avert the strike over the non-payment of full salaries.

Last year, the Zimpost indicated that it was facing working capital challenges and a growing debtors' book, as more and more were taking long to pay up for services rendered.

Source - newsday