HomeBusiness DigestZupco defers salaries indefinitely

Zupco defers salaries indefinitely

TROUBLED parastatal, the Zimbabwe United Passenger Company (Zupco), has indefinitely deferred the payment of April, May and June salaries for its workers, businessdigest has established.

Kudzai Kuwaza

Workers at the organisation said the decision had riled workers.

Representatives of workers were said to have been locked in meetings with management this week to discuss the issue.

“Management has put on hold our payment of our April, May and June salaries indefinitely and this has angered workers,” a worker said.
Sources said this was over and above the outstanding 2010 salaries amounting to about US$520 000.

This comes after management sent workers on unpaid leave on a rotational basis for two weeks, effectively meaning that they will be paid half salaries going forward. The company had in March, made a decision to send workers on unpaid leave for three months.

Maternity leave, sources say, had also been converted into unpaid leave.

The decision was only rescinded after angry protests by workers and the intervention of the trade union for transport.

The food allowances which were allocated to bus drivers and conductors remain scrapped making it difficult for them to work especially when travelling long distances.

Workers said their pensions were under threat as the company has not been contributing to the employee’s pension scheme for some time.

Zupco owes creditors US$19,7 million which it is currently trying to recover through a recapitalisation exercise. Workers believe that more than 70% of the company’s revenue was being directed towards recapitalisation at the expense of their welfare.

They added that several managers including the human resources and operations managers are yet to be replaced months after they were dismissed.

Workers accused the board of increasing the frequency of their meetings, a ploy to earn more in sitting allowances while workers wallowed in poverty.

Senior Zupco officials including board chairperson Chipo Dyanda appeared before parliament recently where they were grilled on various issues including the alarming turnover of chief executives.

Zupco declined to comment on the problems at the transport company.



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