Home » General » New Zimsteel to Retrench Workers

New Zimsteel employees who cannot adapt to new technology set to be introduced by the steel maker will be retrenched, Government has said.

The company has not been operating for almost seven years now with some of its equipment deemed obsolete.

Industry and Commerce Deputy Minister Chiratidzo Mabuwa told Senators during an oral questions session recently that the company was putting a number of mechanisms in place to rationalise operations.

“New Zimsteel is also embarking on skills assessment to establish whether the current skills base will be able to use the new machinery,” said Deputy Minister Mabuwa.

“Those who will not be able to work in the new set up will be given a package of a three months notice in the form of a salary.”

Deputy Minister Mabuwa said the investor — Essar Holdings — had put mechanisms in place to reduce the plight of workers.

Workers at the New Zimsteel have gone for more than three years without full pay.

The workers are also failing to send their children to school.

It is understood that hundreds of children who completed Grade Seven over the years failed to proceed to Form One after schools withheld results insisting that parents settle outstanding fees first.

But Deputy Minister Mabuwa said the investor would come to the rescue of employees whose properties were subject to attachment by the Messenger of Court.

“The investors have informed us that they have got funding and this is from other companies.

“So they have requested that we talk to the workers on the issue of education as well as medical aid. The workers had a challenge that they had accrued so many debts and the investors are willing to take up these debts so that they bear the debts as a company to safeguard the welfare of the workers,” Deputy Minister Mabuwa said.

Source : The Herald