Ex-Ziscosteel employees give defaulting RBZ ultimatum to settle salary arrears 

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By Staff Reporter

FORMER workers of Kwekwe based steelmaker, Ziscosteel have threatened legal action against the Reserve Bank of Zimbabwe if it does not settle outstanding salary arrears with the next seven days.

The Apex Bank has failed to pay the ex-workers after the Zimbabwe Revenue Authority (ZIMRA) garnished the accounts of former integrated steel works giant.

However, nearly a month since the lifting of the garnish order by Zimra, the salaries are yet to be paid.

“We are yet to receive our salaries and we really don’t have information for the cause of delay,” workers representative Benedict Moyo said in an interview.

Labour lawyer Rogers Matsikidze who is representing the workers in a letter dated April 23, a copy of which has in its possession issued the ultimatum.

“We note that the employees have not been paid their full salaries for March 2019. The employees have not been informed on why the payments have not been made to date.

“We have instructions to activate the writ of my execution against the Ziscosteel if payments are not made within seven (7) days of this letter,” Matsikidze wrote to RBZ Governor John Mangudya.

Mangudya had not responded to questions sent to him by time of publication.

In 2017, former Ziscosteel employees started to receive a part of the RTGS$38 million windfall availed by government, as part of their outstanding salaries backdated to 2008, after agreeing to settle the arrears in tranches beginning September 2017.

Government took over Ziscosteel debts under the Debt Assumption Act in 2017 after retrenching of all employees in 2016.

Majority owned by the State, the company effectively stopped production at its Redcliff main plant in 2018.

The arrears were then settled following a court order after lawyers representing the workers moved in to attach the parastatal’s properties.

The Sheriff of the High Court had moved in to attach the company’s vehicles, machinery and other movable property.