New Zimglass investor dumps ex-workers

Source: New Zimglass investor dumps ex-workers | Newsday (News)

BY Stephen Chadenga

THE stand-off between Gweru-based glass manufacturer, Zimglass and its former workers over outstanding salaries and allowances dating back to 2014 have intensified amid indications that the new investor, Brainman Investments, has not shown commitment to pay the dues.

The company owes workers a combined $3 662 442 as at June 30, 2014 when it was placed under judicial management.

Brainman recently acquired the company for $22,5 million, with workers expressing concern if the purchase price would cater for their outstanding payments.

According to a recent letter written by the employees’ lawyer, John Bakasa to the company’s liquidator, Winsley Militala, workers felt they were being sidelined in the deal.

“Following a meeting on May 13, we noted that Zimglass was purchased for $22,5 million by a buyer yet to be formerly revealed to creditors,” Bakasa said in a letter dated May 18.

“That in your opinion and one exercised off hand after disbursing funds towards administration costs, Zimra, NSSA and preferred creditors it is unlikely that the workers will get anything from the liquidation regardless of them never having received salaries since your appointment as judicial manager back in August 2014.

Militala confirmed that Brainman purchased Zimglass for $22,5 million, but said the new investor had not indicated whether it will re-engage the former workers or not.

Zimglass ceased operations in 2010 before being placed under judicial management four years later.

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