Zimbabwe: Embattled PSMI Imposes 'No-Work, No-Pay' Policy As Employees Clock Six Months Without Salaries

15 January 2023

The embattled Premier Service Medical Investments (PSMI) has imposed a no-work, no-pay policy in a bid to force employees who have been on strike for weeks to return to work, it has emerged.

This comes at a time the company was forced to literally suspend operations over a string of challenges including funding, which have seen it failing to pay employees since mid last year.

PSMI employees have in response warned the entity's acting Managing Director, George Farai Kutoka, to stop intimidating them.

Kutoka had demanded their return to work, informing the employees that those who fail to report for duty next Monday will not be paid.

In a letter dated January 12 and seen by NewZimbabwe.com, the employees said they have been sacrificing in support of the company since July 2022 and vowed not to return work until they are paid outstanding wages.

"We take note of your memorandum to all PSMI employees to report for duty effective Monday the 16th of January 2023 failure which a "No-Work No Pay" principle will be effected by the employer," reads the letter.

"As a way of update by our constituency of employees; we recognise that you have unilaterally decided to invoke Section 12A (6) (a) of the Labour Act (Chapter 28:01) despite the fact that PSMI employees have provided their labour and professional expertise since July 2022 and you have failed dismally as the employer to settle your outstanding obligations which is tantamount to a "NO WORK ,NO-PAY" model," reads part of the letter.

The employees said they have formally registered their incapacitation but the employer has failed to even provide basics such as transport allowances and fuel.

"Employees have always been and remain open to engagement with the employer several of which to date have failed to yield fruitful results on clearance of outstanding salaries as well as provision of fuel, transport and other allowances for rental and school fees payments."

They demanded a clear position on the recovery road-map in place going forward.

"Employees have been sacrificing their own resources since July 2022 to report for duty and yet we have a lot of arrears which the employer is yet to settle.

"Employees have even requested a Works Council to discuss the going concern status of the organisation which is clearly threatened as concerned stakeholders and to proffer possible solutions which are a win-win situation to both employer and employee.

"Unfortunately these have been met with no appetite to transact on the matter from management with the Acting MD expressly highlighting she was not willing at all to discuss the matter."

They said, given the current scenario, their employer cannot unilaterally decide to implement both "Work No-Pay" and "No-Work No-Pay" principles as it "suits them when they have failed dismally to deliver on their statutory obligations and engage in good faith."

The letter was also copied to the health minister, Constantino Chiwenga, his deputy John Mangwiro, principals and heads of departments at PSMI.

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