ZCTU calls on companies to prioritise workers’ welfare

05 Apr, 2015 - 00:04 0 Views

The Sunday News

Mesabe Ncube
THE Zimbabwe Congress of Trade Unions has called upon companies to set up separate pool of funds and invest them in preparation for the payment of their workers’ pensions upon retirement.
ZCTU president Mr George Nkiwane said his organisation had received a number of complaints from workers who have been dumped by companies without receiving benefits.

Among these companies is Metal Sales, which relocated to Harare leaving its Renkini branch in Bulawayo manned by three employees who have not been receiving salaries consistently for over a year.

More Steel and NFH holdings are also among some companies in Bulawayo that closed without paying workers’ pensions.

“Such is a result of poor planning on the part of employers who do not prioritise labour costs in their budgets. Every employer is aware of the numbers due for retirement annually and nothing stops them from budgeting towards that,” said Mr Nkiwane.

He also said it was surprising that companies continued to cry that they could not pay workers when they were spending a lot of money in retooling.

“Most companies have been investing in properties and offshore accounts and those investments should be used to meet pension obligations,” he said.

Mr Nkiwane also said the pensioners’ true income value was in buildings and massive investments made over the years with their contributions hence the need for companies to convert the value of their investments and assets to compensate pensioners.

However, he also said an employee due for retirement could still continue working for an employer depending on the arrangements and negotiations between the worker and the employer.

“It only becomes unfair when the employer fails to pay the employee his or her terminal benefits and forces the employee to continue working after reaching retirement age,” he said.

Some affected workers at the now defunct Metal Sales told Sunday Business that they had not received any pay-out since the company closed.

“I wrote a letter advising them that I wanted my money but they are still quiet about my issue up to now,” said a former worker who requested anonymity.

Contacted for comment, the new shareholder and operations director, Mr Douglas Makuku, said he was not aware that his employees were due for retirement as he was a new shareholder.

Mr Makuku also said employees should have approached him with the issue instead of approaching the newspapers.
“Did they think they can solve this issue by approaching the newspapers? Tell them that next time they have a problem, they must approach me directly.”

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