Hwange sacks 55 managers

Source: Hwange sacks 55 managers | The Sunday Mail  May 1, 2016

HWANGE Colliery Company has embarked on a restructuring exercise which has seen at least 55 senior and middle level managers losing their jobs in a move aimed at reducing the company’s wage bill.
The coal mining company is currently sitting on a monthly wage bill of about $3,5 million and the move to trim the managers is expected to reduce salary costs by 50 percent.

Some of the senior managers who have been axed include company secretary, operations director, Information Technology director, marketing and finance directors.

Mines and Mining Development Minister, Walter Chidhakwa yesterday confirmed the development to The Sunday Mail saying the company’s management was bloated.

Minister Chidhakwa said it was important for the company to streamline its senior managers because it was presiding over an unsustainable situation.

“We had to streamline the labour because it was too big because our revenue has been going down and we were not able to meet the salary wage bill,” he said.

HCCL managing director, Mr Thomas Makore last week told The Sunday Mail that the coal mining company had adopted a strategy to ensure production levels are reflective of the workforce.

“What we are doing is to allow the company to be competitive we want to reduce the level of our wage bill from the current $3,5 million and to align it in line with our revenue,” he said.

Mr Makore said at least five senior executives and 50 managers have been shown the door while their exit packages of the senior executives were being negotiated. Currently the company has a labour force of 2 600 and about half of that will be relieved of their duties as part of the company’s restructuring.

In June last year the company commissioned the $31,2 million investment equipment from Belaz and BEML under vendor-finance facilities but the company’s production remained low.

The new equipment was expected to increase production from 300 000 to 500 000 tonnes per month but things did not go according to plan.

Since last year Government has given several ultimatums for the management to shape up or ship out.
During the commissioning of the equipment last year, Minister Chidhakwa challenged the company’s board and management to deliver the expected results as Government was running out of patience.

This has seen several marathon meetings and trips to Hwange in an effort to deal with the rot at the coal mining giant.
Government was committed to allocate more concessions to the coal miner that has lost its dominance to competitors among them Makomo Resources.

COMMENTS

WORDPRESS: 8
  • comment-avatar
    Joe Cool 6 years ago

    Learning that any company has 55 disposable managers tells us all we need to know.

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    Clive Sutherland 6 years ago

    Ha ha 55 managers!! In days gone by I worked for Wankie Colliery Company for years and we certainly did not have or need 55 managers! Wankie Colliery was the Countries largest flagship Mine, In the new Zimbabwe it soon became apparent that it was being abused by zanupf – jobs for the boys, well now it is a microcosm of Zimbabwe – totally run down and stuffed!!

  • comment-avatar

    They should trim & sack the thieving vultures in the Zanu PF party, including the minister mentioned, they are also not delivering, & im sure cost more than these managers,millions could be saved, & spent on the suffering people, not on enriching themselves!!!

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    Concerned Citizen 6 years ago

    The exit packages of the senior executives were being negotiated!What happened to the 3 months notices either way? I wouldn’t be surprised if the exit packages for each manager will be worth 5 years of their current income. Cost Cutting Measures or Reward For Ineficiency?

  • comment-avatar
    Concerned Citizen 6 years ago

    “While their exit packages are being negotiated”.I won’t be surprised if these exit packages will be worth 10 to 100 times their monthly income. So much for cost cutting and rewarding incompetence. What happened to the 3 months notices.

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    mark longhurst 6 years ago

    mmmm who wants 49 % of zanooolooooters flagship coal company…going cheep

  • comment-avatar
    nelson moyo 6 years ago

    The biggest shareholder after the Government is Nicholas Van Hoogstraten – the well known ZANUPF supporter

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    harper 6 years ago

    How many of the 55 were put there by Obert?