adminNgoni Dapira
MOST companies in Mutare have failed to reward employees with bonuses for 2014, a snap survey by Post Business has revealed.
The survey revealed that most companies in the city’s private sector will not be able to pay workers bonuses this year due to liquidity constraints.
With the Confederation of Zimbabwe Industries revealing that capacity utilisation fell from 39 percent to 36 percent in 2014, non-payment of bonuses should not come as a surprise.
Post Business talked to some employees whose festive mood spirit has already been dampened owing to the non-payment of bonuses.
From manufacturing companies such as Tanganda Tea Company, Mutare Bottling Company, Cairns Foods, Delta Beverages, Border Timbers, Quest Motors and Wattle Company, to quasi-government enterprises in the service sector such as the Zimbabwe Electricity Transmission and Distribution Company, Tel One, NetOne and private firms such as Telecel, Econet, Amber Hotel and Golden Peacock Hotel, only 30 percent are receiving bonuses this year.
Most managers who spoke on condition of anonymity said they failed to meet targets, as a result bonuses were not possible to pay while others said it was a decision by the board members regardless of having a fairly decent productive year.
An employee from Tel One who requested anonymity said things were getting worse.
“Personally I was not expecting a bonus. Things are getting worse each year. Government really needs to take practical measures to get control of the economic state of affairs. There is no more festive mood to talk about these days.
“Christmas is now just an ordinary holiday.
“Apart from the bonus issues, we are afraid to just wake up and hear the company is closing down.
“The business operating environment is now harsh for local companies,” he said.
An economist, Mr Crispen Mukarakate, said having no bonuses was inevitable.
“The economy continues to be dragged down by liquidity shortages, antiquated plant machinery, cheap imports and high cost of production.
“For most companies having no bonuses was inevitable. Government needs to stand firm on protectionism of local industry and easing the business environment, otherwise things will get worse,” he said.
On the other hand, it is the civil servants who are smiling this festive season after getting bonuses.
Ironically, in the 2015 budget, Minister Chinamasa revealed that the Government’s wage bill jumped to 81 percent of the budget from 70 percent last year.
The sombre mood in Mutare portrays that all is not well financially. By the second week of December most shops are supposed to be decorated with bright Christmas lights.
“Boutiques and clothing stores are supposed to be enjoying brisk business from shoppers but it is slow business as usual,” revealed one owner of a boutique in town.
Mr Tendai Chisora, a cross-border trader, said he usually got large orders for Christmas but this year several of his customers were singing liquidity blues.
“Things are really bad. I usually get a lot of orders from my working class clients but most are saying they have no money this time,” said Mr Chisora.
In his 2015 budget presentation Cde Patrick Chinamasa, while appealing for foreign direct investment, said 4 610 companies had shut down in the past three years, resulting in over 55 000 job losses.
Online Reporter