ZIMASCO (Pvt) Ltd, one of the Zimbabwe’s leading ferrochrome producers, is set to offload 400 more employees as companies continue to suffer due to a deteriorating economic environment.
EVERSON MUSHAVA CHIEF REPORTER
According to workers who refused to be named, management has already communicated its intention to trim the number of workers from 1 095 to 700 with immediate effect.
The workers said the message was communicated by Zimasco general manager Blessed Chitambira on December 24 to heads of departments and the workers’ committee for onward transmission to the rest of the employees.
“Morale is very low at Zimasco,” one of the workers said.
“The message has already been relayed to the workers following the verbal brief by the general manager.”
Efforts to get comment from Zimasco failed yesterday as Chitambira was said to be on leave and only starting work today.
The acting general manager, Mafilatelwani Gumbi, said he was not authorised to speak to the media.
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The struggling ferrochrome giant was reportedly one month in salary arrears.
Statistics by the Zimbabwe Congress of Trade Unions show that more than 700 companies have closed shop between July and December 2014, triggering over 9 000 job loses.
There are fears that most companies may fail to reopen after closing for the festive season.
President Robert Mugabe’s Zanu PF government romped to electoral victory on the back of promises to create more than two million jobs.
But more than a year after the polls, the country’s economy is showing signs of severe distress with many companies closing shop.
Analysts say policy inconsistencies, especially regarding indigenisation and empowerment laws are scaring away potential foreign direct investment.
As the political events triggered by the race to succeed Mugabe in Zanu PF continue to eclipse the economic situation, the government is failing to collect enough revenue to run its affairs and pay civil servants salaries.
Economists have already predicted a tough 2015 that will witness more company closures and job losses.
