24 March 2018
'Stubborn' Khupe, Gutu fired from the MDC-T
MDC-T squabbles: national chair resigns
Give ED enough time to deliver-US envoy
ZACC storm as millions of dollars suits pile up
Pari acussed of jobs for wife's relatives
Zimbos sad under Zanu PF govt: report
Chamisa invades Zanu PF strongholds
Zapu swallows Barbara Nyagomo’s PDZ
Ramaphosa calls for single African currency
Moti Group doubles Zim investments
Deported anti-Bob SA band back at Hifa
Grace house arrest play rocks Masvingo
Cricket: UAE shatter Zim WCup dreams
Dynamos coach livid as Epoupua still unpaid
Follow Honourable Eddie Cross's example
Mugabe spoke for the marginalised, but
2018: of humour, fair analysis, healthy race
ZimDiaspora: Bum cleaners, runaway fathers?
Pay day for Zisco workers, after several years
12/05/2014 00:00:00
by NewZiana
Production to resume at Zisco in two years ... Industry minister Mike Bimha
Nothing happening at Zisco, Essar AWOL
Zisco 80pc closer to restart, minister
Zisco deal agreed, 7000 jobs expected
MPs take Bimha to ask over Zisco
Govt seeks loan to pay $200m Zisco debt
Ziscosteel workers turn to scavenging
Zisco debt hits $200m, govt admits blame
India urges speedy Zisco resolution

FOR the hundreds of workers at the defunct Redcliff-based steelmaker, New Zim Steel, formerly Ziscosteel, pay day will finally come this week when they receive part of their salaries for the first time in years, says a company official.

Ziscosteel has been dormant for more than five years and is expected to resume production in two years' time.

Essar Africa Holdings, a subsidiary of Indian conglomerate Essar Group, and the major shareholder in the firm, is set to pump in US$650 million in the first phase of the revival of the company.

The government sold its 54 per cent stake in the steel maker to Essar in 2011 and retained a 36 per cent shareholding, with private shareholders holding the other 10 per cent.

Workers at the company, who have been scrounging for survival because of non-payment of salaries, are owed more than US$110 million in unpaid salaries and other benefits.

"The relief is in many faces and it will start from next week and will be on-going thereout," said New Zim Steel Chairperson Nyasha Makuvise last week.

Makuvise said the board has held a meeting with the workers' representatives to inform them of the developments last week.

Essar Africa director Firdhose Coovadia said the bulk of the funds owed to workers were towards pensions and medical aid fund.

"The pensions fund and the medical aid fund have been bankrupt for the last four years," he said.

"The last actuarial valuation done of the pension fund deficit at Zisco was done in 2012 and showed a deficit of US$35 million. We have now engaged a consultant to undertake a current deficit (valuation)."

Coovadia said former Ziscosteel workers had not been able to get their benefits as a result of the deficit.

"It is important to rehabilitate the pension fund to allow pensioners and other beneficiaries to get their benefits," he said.

Once fully operational, New Zim Steel will employ around 7,000 workers, the majority of whom had been made redundant in the last few years.


Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker