The Sunday News
Fairness Moyana, Business Correspondent
MINES and Mining Development Minister Walter Chidhakwa has ruled out the possibility of placing Hwange Colliery Company under judicial management following an application by workers who are arguing that this was the only way to save the company from total collapse.
The company’s 2 500 workers through the Affirmative Action Group (AAG) and their lawyers, Mathonsi Ncube Law Chambers are seeking an order to compel HCCL to be placed under judicial management and stop all court actions by its creditors which seek to attach property and equipment
Speaking during his visit to the mine on Friday after meeting the company’s management and the workers’ leadership, Minister Chidhakwa called on the workers to withdraw their application and pursue other means as the development was likely to derail turnaround initiatives.
“I don’t think you should accept a situation where something dies in your hands the company which your forefathers left you 115 years ago to face possible closure at your watch. I want to ask you to give the company a chance by withdrawing the application for judicial management you filed with the High Court. It is in the best interest of the company and you as workers to seek alternative means instead of the route you had taken,” said Minister Chidhakwa.
The development comes in the wake of an urgent High Court chamber application the workers filed last week in Bulawayo seeking to have the company placed under judicial management.
The company which is sitting on a $44 million debt has had to fight off litigation from attaching its crucial equipment.
The workers through their leadership said in their court papers that as the company slides towards bankruptcy its validity was under threat as well as their welfare as management were making decisions that were detrimental to the workers as they sought to siphon money from the company.
The workers’ committee chairman, Mr Casper Ndlovu, said they could not immediately assure the Minister that they would reverse their decision to file for judicial management as they needed to consult first.
“We cannot at this time promise you Honourable Minister that we will immediately withdraw our application as there are many issues we will need to discuss with you first and consult with the workers. However, we are not saying it’s not irreversible,” said Mr Ndlovu.
Associated Mine Workers Union of Zimbabwe (AMWUZ) western region chairman Mr Luka Katako said workers have lost faith in the management’s ability to turnaround the company’s fortunes as its woes were worsening by the day hence their stance.
“As workers we have lost confidence in the management, there hasn’t been much improvement to talk about in terms of performance from the last time you were here. There has been a lot of empty promises on the part of management and frankly we are tired of them. The problem is about equipment and how management is managing the situation,” said Mr Katako.
Minister Chidhakwa requested to meet the executive works council over the issue at his offices in Harare next week to finalise the withdrawal of the application.
