Hwange workers want management overhaul

Source: Hwange workers want management overhaul | The Herald April 21, 2016

HWANGE Colliery Company Ltd employees are unhappy with their senior management and have since started lobbying for a complete overhaul, sources have said. Last week, the company held a meeting with workers’ leaders where they expressed concern over the company’s poor performance, which they blamed on the management.“Workers are generally unhappy with management and are lobbying for an overhaul,” said a source who attended the meeting. The meeting was chaired by acting chairman Mr Jemester Chininga. While efforts to obtain a comment from Mr Chininga proved fruitless, managing director Mr Thomas Makore confirmed the meeting.

“Yes, I know there was a meeting convened by the chairman in Harare but I did not attend,” he said. Hwange employees have gone for several months without getting paid.

Mr Makore said the company has begun staff rationalisation, starting with the management.

“We have an ongoing restructuring exercise and we are starting with the management,” he said. “Our aim is to bring down costs and ensure the company is competitive.”

The restructuring will see the company abolishing a majority of senior positions, sending some workers on early retirement, putting some on unpaid leave and out sourcing more functions.

The proposed restructuring may see the company cutting down its annual wage bill by $15 million, Mr Chininga said in a statement early this month.

Hwange is facing serious financial problems, which has seen the company failing to pay workers and various trade creditors. Its market has also been eaten by new players.

Several creditors owed about $43 million by the company have since filed lawsuits against the coal miner, threatening the going concern of the business.

The litigations cases include a court application by workers who are seeking to have the company placed under provisional judicial management.

The total value of litigations as at December 31, 2015 was $42,5 million; $21,2 million being value of cases for which judgment has been passed and $$21,2 million being value of cases pending judgments.

In total, Hwange’s total creditors for the year ended December 31 stood at $287,3 million.


  • comment-avatar
    Mafika 6 years ago

    Some things never change! HCC has been talking about changing course for a long time….very long time indeed. I recall the rather confused Mutezo calling for a turnaround of sorts in 2004 and nothing came from that. In fact, things really got worse as the colliery finances went from bad to worse. The challenge that the colliery is facing is simple…that of government ownership and interference. All management interventions are influenced by the populism from the shareholder. As long as Zanu PF is in power, with its corrupt officials and ministers, things will only change for the worse. You will be a fool to still think these guys will make any positive change to that company.