BY CLAYTON SIMUCHEMBU
Struggling Hwange Colliery Company Limited (HCCL) is headed to a bruising fight with its workers after it indicated that it will disregard the country’s labour laws when it embarks on a retrenchment exercise.
HCCL is one of the state-owned companies that were recently taken over by the controversial Mutapa Investment Fund.
In a leaked company internal memorandum dated September 19 addressed to employees titled “Procedures Relating to Employment," Munashe Shava, the company administrator notified the workers that they could not cite the Labour Act to challenge their retrenchment.
“In terms of Section 28 of the Reconstruction of State Indebtedness Entities Act [Chapter 24:27] (“the Act”), the Labour Act shall no longer be used for human resources matters in the company,” Shava said in a memo he co-signed with Mutsa Jean, an assistant administrator.
“However, during the subsistence of the administration and with effect from October 2, 2023, the company respects the employees' administrative rights and wishes to advise the employees' termination of employment will only be implemented, as necessary, in the following manner. . . ”
Shava said employees will, however, be duly notified and provided with the reasons for retrenchment.
“Employees will be afforded an opportunity to make representations,” he said.
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“The administrator shall have discretion on a fair package for employees in accordance with section 28 of the Act.”
The Act falls under purview of the ministry of Justice, Legal and Parliamentary Affairs.
The two administrators said HCCL reserved the right to request an employee to immediately stop reporting for duty and pay any affected employee salary/cash in lieu of notice.
“The Wankie National Code of Employment will no longer be applicable until the company has been removed from administration,” they said.
“Where an employee commits an act of misconduct, the procedures set out in terms of Administrative Justice Act (Chapter 10:28) will be applied.”
The company recently suspended nine managers pending disciplinary hearings while the majority of buyers and other related staff from the procurement section were sent on forced leave.
HCCL workers last week gave Shava seven days to retract the memo or face legal action.
Zimbabwe Congress of Trade Unions secretary general Japhet Moyo said the move was unprecedented and retrogressive.
“Unfortunately for the company the Labour Act regulations take precedence over all labour matters and the best way for them is to choose appropriate legal advice so that they are not found to be on the wrong side of the law,” Moyo said.
The company currently employs an average of 1500 workers and was placed under administration in October 2018 due to viability challenges among other related factors.
