Ascot Clothing turns to Govt

The 105 workers at the company have expressed fear that should the auction go ahead, the company would be forced to close shop and render them jobless.

Ascot Clothing owes CIPF an estimated $55 000 in unremitted pension contributions that date back to 2009 when the country introduced the multiple currency system.

“We have written letters to the Ministry of Industry and Commerce and the Ministry of Labour and Social Services to assist us in this matter.

“The Ministry of Industry has already sent a delegation of officers to look into the issue. We also met with the National Employment Council over the issue,” said Mr Mxolisi Hlabangana, the company’s human resources manager.

He said the company has also engaged the High Court seeking to block the auction of its property.

Labour and Social Services Minister Paurina Mpariwa declined to comment on the issue saying she was out of her office and referred questions to her Permanent Secretary Mr Lance Museka.

Mr Museka said it was difficult to comment since the courts were handling the issue.

“It is a bit difficult to comment on this issue because it involves legal aspects. We cannot say the courts are wrong. Pensions as you know are private issues between employees and their employer.

We need more information about this situation and an explanation of how this issue came to this level,” said Mr Museka.

In a bid to recover the contributions, CIPF approached the High Court where they were issued with a Writ of Execution, which they forwarded to the Deputy Sheriff’s office.

The Deputy Sheriff’s office in turn published a notice in the press on Tuesday on the proposed auction that was supposed to take place last Wednesday .

According to the notice CIPF has attached 67 heavy duty industrial sewing machines and 20 overlocking sewing machines worth thousands of dollars.

Ascot Clothing is situated at Number 7 Doncaster/Bristol Road, Belmont.

The auction, however, did not take place as there were no buyers.

Mr Doron Kirkle who bought the company from Mr Elan Elkain in 2009, owns Ascot Clothing.

However, the workers accused Mr Kirkle of deserting them as they have not known his whereabouts for the past five months.

More than 85 companies have closed shop in Bulawayo in the past few years with an estimated 20 000 workers losing their jobs. The clothing and textile sector, once one of the largest employers in the city, has been the hardest hit with about 19 companies having closed shop and laid off thousands of workers.

Some of the textile companies that have either closed shop or scaled down include National Blankets, Archer Clothing, Cotton Printers and Security Mills.

Players in the industry have cited unfair competition from cheap imports and liquidity challenges as major factors behind the demise of the city’s industry.