ZESA Holdings is involved in a dispute with workers over non-payment of Covid-19 and Cost of Living Adjustment Allowances (COLA) to more than 6 000 workers.
The workers' representatives claim the power utility has not paid what is due to the workers despite several written promises to do so.
This has forced the workers, through the Zimbabwe Energy Workers Union (ZEWU) and Energy Sector Workers Union of Zimbabwe (ESWUZ) to confront the management.
But, Zesa Holdings spokesperson Dr George Manyaya said the power utility had communicated with the employees and would start paying on Monday.
In a letter dated June 13, 2024, to the ZESA executive chairperson, Dr Sydney Gata, ZEWU and ESWUZ jointly asked the utility to pay the outstanding fees as promised, to which the company responded to on June 14, 2024 promising to pay by June 21, 2024.
Mr Martin Mhikuni, general secretary of ZEWU and Constantine Rutsate, general secretary ESWUZ on June 13, 2024, jointly said; "We are extremely disappointed by your management's refusal, failure or unwillingness to pay employees their January and February 2024 Covid-19 allowance arrears, despite having committed, in writing, to do so before the end of May 2024 and further assurances.
"The above attitude is not only reckless, but totally unacceptable as it shows how indifferent and inconsiderate your management is to the plight of the struggling employees whose commitment to duty is without doubt."
The two unions said ZESA management did not even have the courtesy to inform the employees of the challenges, if any, the organisation was facing, so as not to discharge its obligation.
"The failure/refusal to pay the Covid-19 allowance arrears has worsened the employees' plight, considering that your same management is so determined and has done everything, including litigation, to resist any increment for the employees.
"This is so as your management has also refused to negotiate a Cost of Living Adjustment (COLA) proposed by the unions to mitigate the employees' welfare given the economic hardships they are facing," they added.
In response, ZESA executive chairman Sydney Gata said; "Reference is made to your letter dated 13th June 2024 on the above subject. Please be advised that we are at an advanced level of obtaining governance approvals required to implement a COLA. We shall promptly advise you once the requisite approvals have been granted. Please bear with us in the interim.
"On Covid-19 allowance, the employer remains committed to settle the outstanding arrears whose payment was delayed due to inadequate cash-flows. However, we shall endeavour to clear the arrears by Friday 21 June 2024."
According to one member of the worker's committee, the Covid-19 allowance amounts to US$75 per month per employer.
"The figure is US$75, which some will say is nothing, but if you take into account low-level employees, it is significant. If you calculate for the number of low-level employees, which is roughly 6 000 you will see that these employees are owed about US$450 000 for January alone," the source said.
"The company has refused to negotiate on our COLA rates for 2024. The problem is we do not have anywhere to complain to as the chief executive reports to himself since he is also the executive chairman of the company."
Regarding the COLA negotiations, ZESA has sent a memorandum to its employees that they would get a temporary financial reprieve while the company resolved sticking issues.
"I wish to advise all staff that they shall receive an interim cushioning allowance equivalent to 30 percent of basic salary payable in ZWG backdated to June 2024. The above changes will be effected in the week starting 08 July 2024.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"Kindly note that this interim cushioning allowance is on a without prejudice basis to the ongoing 2023 Arbitration Award dispute. The adjustment is therefore being implemented as a stop-gap measure to cushion employees in view of the increased cost of living.
"Therefore, any outcome of the dispute shall take into account the 30 percent cushioning allowance. Management undertakes to continuously engage with employees in the spirit of improving their welfare and enhancing productivity," said Dr Gata signed by him.
"ZESA understands the plight of the workers and it has decided to pay 30 percent as COLA backdated to June starting next Monday.
"The move has been welcomed by employees and the company will continue to seek ways to make the lives of its workers bearable," Dr Manyaya said.
