Elusive 13th cheque dampens Xmas cheer

07 Dec, 2014 - 00:12 0 Views
Elusive 13th cheque dampens Xmas cheer Bonus for workers

The Sunday Mail

Shamiso Yikoniko – Extra Reporter

Many companies will not pay their workers bonuses this year due to financial constraints.

In an interview last week, Confederation of Zimbabwe Industries president Mr Charles Msipa indicated that over 50 percent of companies were affected.

The Industrial Psychology Consultants Annual Bonus Survey, released two months ago, also established that half of the firms surveyed were unable to pay the 13th cheque.

Regardless, workers remained optimistic that something would give and a bonus would find its way into their pockets.

Mr Msipa said: “Considering the low levels of capacity utilisation in the manufacturing sector and depressed performance results from the corporate sector in 2014, the IPC survey results indicating that at least 50 percent of companies will be able to pay a bonus is a pleasant surprise.

“Concern is on those companies that are in financial distress and have been forced to retrench employees or are in arrears on salaries, wages and other obligations.

“Workers and managers alike need to redouble their collective efforts to improve competitiveness of their firms and preserve jobs.”

Zimbabwe Congress of Trade Unions secretary-general Mr Japhet Moyo attacked company executives for “lack of transparency and greed”.

“For the past few years, we have had instances in which our members weren’t getting their salaries (if at all), not because entities aren’t doing well but because lack of transpency and greed overtook events.

“With the prevailing economic situation and inconsistent salary payment, those in managerial positions are going to hide behind their fingers to justify not rewarding workers their bonuses.”

A number of companies are operating below capacity due to economic problems stemming from the Western sanctions on the country, liquidity constraints, graft, ageing technologies, high production costs and poor business models.

According to CZI’s 2014 Manufacturing Sector Survey Report, industry capacity utilisation has declined from 39,6 percent to 36,3 percent.

The report also shows that 64 percent of industries are lying idle, forcing companies to shed jobs and adjust business models.

Over 4 000 workers have lost jobs since January.

Those who have stayed on have, in some instances, gone for months without salaries.

Government is working on remedial action, including deepening co-operation with friendly nations.

Zimbabwe has signed major deals with China and Russia, which are expected to spur economic development and create thousands of jobs.

The authorities are also prioritising reviving manufacturing, with industrialists scheduled to engage Government at the highest level.

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