AAG attacks FMI Energy

position that workers would be given 10 percent shares in the new company, FMI is aggressively busy trying to terminate all employee contracts, presumably in a deed that may be unchangeable.
“The workers were meant to be assimilated into the shareholding six months from the date of the deal, but to date, nothing has happened. Instead, workers have been given notices of dismissal.
“The Ministry of Youth Development, Indigenisation and Empowerment ordered the company to comply, but as FMI would have it they responded by putting all employees on retrenchment on December 15,” he said.
The proposal to give workers 10 percent of the shareholding was part of the company’s indigenisation compliance proposals after its acquisition of BP Zimbabwe assets.
The acquisition involved 72 retail outlets in addition to storage capacity.
The move by FMI to shift goalposts in its original plans apparently also extends to other areas, notably the cancelling of certain lease agreements that BP Zimbabwe had with some local fuel dealers for its service stations.
Dr Gomo said the alteration of the deal was disadvantaging several concerned parties.
“We are very concerned that the recent FMI deal does not seem to have fully addressed all conditions that were very fundamental to obtaining approval.
“From what we have been told by all stakeholders, that is employees, dealers, women and youths as well as the losing bidders, FMI is determined to sideline everyone. And to date, from all the paperwork we have seen, it is unfortunate that FMI appears ready to defy Government and the courts,” he said.
Masawara chief executive Mr Shingi Mutasa has, however, since denied making any changes to the agreements that existed prior to the acquisition of BP Zimbabwe assets. It is also alleged that FMI is seeking to bring in foreigners for all its key management positions.
According to Zimbabwean law, a foreign firm can only hire an expatriate worker in any field if they can justify that the foreign professional is coming in with knowledge and skills not found locally.