UPDATE ON ARBITRATION PROCESS: 2022 CBN DISPUTE

From:             The Secretary General

At:                   No. 1 Kwame Nkrumah

To:                  National Executive Members

At:                   Various National Council Members

                         All Branches

                        All Members

 Date:             2 March 2023

 SUBJECT:REPORT ON MEETING WITH ZESA MANAGEMENT

We advise that we met Zesa Head of Corporate Services yesterday where we raised and discussed an array of Industrial Relations issues affecting workers. More particularly the following issues were raised and discussed.

  1. 2022 CBN Arbitral Award

The Union submitted that workers were aggrieved by the non-implementation of the 2022 CBN Arbitral award handed down on the 19th of January 2023 in circumstances where the existing salaries before the award could not sustain life. Management response was that its Board was seized with the matter and a pronouncement would be made soon.

  1. Irregular Payment of Salaries and Deductibles.

The Union raised that of late workers’ salaries were not being paid in time to their prejudice given the hyperinflationary environment. Zesa was also not remitting moneys deducted from employees to the intended recipients which include the union, insurance, and others. The Union pointed out that the reason given for the non-remittances i.e. scarcity of funds , was invalid as the amounts involved was so little compared to the amounts spent on its many managers on vehicles and luxuries. It was further submitted that there was a deliberate non-payment of Traveling and Subsistence Allowances with the Southern Region being the extreme case in point. Management s response was that it will refer the matter to Group Financial Controller.

  1. Transfer of Employees

The Union raised 2 issues on this subject

  1. There has been geographical transfer of employees in 2 categories i.e. Forepersons and Loss Control Officers. In both cases the transfers appear punitive in that they did not take employee personal circumstances into account and undermined the employee family integrity. In both cases employees were not advised of their rights or entitlements. In the case of forepersons no T and S and other allowances have been paid to those transferred and in the majority of cases descent accommodation has not been secured for the transferred. Regarding Loss Control Officers employees personal circumstances were not considered despite these having been raised by the affected employees.

Management undertook to liaise with line management to remedy the issues in respect of forepersons and that a Management Committee has been set up to look into the Loss Control Officers issue.

  1. There has been a recent transfer of employees from subsidiary garages to Zent. The transfers have been effected without consulting the employees so as to address their concerns. The approach taken by Management is not only inconsistent with good practice but the law and the union called on Zesa Holdings to take remedial action. Management appeared surprised by this development and undertook to engage all relevant players in addressing the issue.
  1. Rebundling

The Union requested an update on rebundling process and also a relation of the process to the current inter-subsidiary and Holdings staff transfers.

Management advised that the rebundling process was being handled by the Ministry and Government and that communication and update will be given in due course.

  1. Health and Safety

The Union submitted that health and safety issues are not being taken seriously throughout the group resulting in accidents causing serious injuries and deaths. At ZETDC the Union noted that the company was resorting to the use of contract workers, with no safety training as artisan and line assistants.  There is also non provision or inadequate protective clothing, equipment and T and E. At Harare Region the General Manager is forcing forepersons to use their personal vehicle to do Zesa work. The Union contended the conduct of the Harare Region General Manager had no basis at law and was unacceptable.  Management noted our concerns and undertook to refer them to the MDs of companies.

  1. 5th shift at power stations

The Union submitted it was desirable for ZPC to introduce a 5th shift in all Power Stations in order to harmonize the hours of work for shift workers with the rest of workers.  Management response was that it will look into the issue

  1. Disciplinary Cases

The Union submitted that there was a deliberate non-compliance with the Code of Conduct with Management treating cases falling in categories A, B and C as Dismissible.  Management undertook to engage all concerned in order to ensure a functional system.

  1. Skills drain/flight

The Union submitted that it had noted a heightened skills flight which is now impeding Zesa s capacity to deliver on its mandate. The Union identified some of the causes as poor remuneration in RTGS, unfair labour practices, poor management, undue harassment, disrespect, inadequate tools and equipment and that urgent measures must be taken to arrest this trend.

  1. USD salaries

The Union submitted that workers needed USD salaries as the economy had dollarised adding that we had it on good authority that Zesa now collects more than 70% of its revenue in USD and has now resorted to burning the rtgs at interbank to pay employees rtgs salaries.  Management response was that it noted our concerns and will escalate these to highest authorities.

Please revert to the undersigned for any clarifications.

SHINGA MUSHANDI SHINGA!

Regards

________________

T Masvingwe

Secretary General