NRZ slashes salaries by half

THE National Railways of Zimbabwe (NRZ) has slashed worker’s salaries by between 40% and 50%, citing a tough operating environment, a development that will see some employees taking home less than $90 per month.

Source: NRZ slashes salaries by half – NewsDay Zimbabwe July 16, 2016

BY NQOBANI NDLOVU

This comes months after NRZ workers downed tools protesting the non-payment of their salaries for over a year now.

NRZ acting general manager Lewis Mukwada, in a circular, said the harsh operating environment and an attempt by the rail parastatal to ensure its employees are paid every month necessitated the 50% salary cut.

“The increase in volumes is, therefore, not yet at the level which can sustain the current predictable salary. In an effort to ensure that employees are paid a salary every month, it has been found necessary to review the predictable net salary,” he said in the circular, adding “payments are subject to a minimum of $150”.

He said employees should expect their salaries on July 22, while pay dates for August and the following months would be announced at the beginning of each month.

Mukwada blamed the work stoppage early this year for further exacerbating the financial situation at the rail parastatal.

“It is advised for the information of all concerned that, while there has been some additional tonnage due to maize and sugarcane traffic, the challenges facing the organisation still persist as a result of the prevailing depressed macro-economic environment and the liquidity crunch,” he said.

“The situation has been further exacerbated by the recent illegal collective job action which crippled NRZ operations for nearly three months and saw the organisation losing some of its business to competitors.”

The NRZ is saddled with a $144 million debt, with workers owed more than $68 million.

Efforts to recapitalise the company have failed as the government’s negotiations with the Development Bank of South Africa for a loan of up to $700 million to fund its rehabilitation appear to have stalled.