Eleco, workers in salary dispute

The disgruntled employees have since taken the company to the National Employment Council for arbitration.

In a written submission dated May 24, 2013 to the workers’ committee and a Ms M. Tokwani, the NEC for the Engineering, Iron and Steel Industry, Eleco managing director Mr Alan Nyashanu acknowledged that employees were indeed owed salaries.

Mr Nyashanu attributed the company’s failure to settle the salaries to the general economic challenges dogging the country and the employees’ incompetence resulting in customer dissatisfaction with the com- pany’s services.

“Eleco Elevators Company (Pvt) acknowledges that employees are owed their salaries. The company was not spared by the challenges that the industry is currently facing, including own internal challenges.

“Major causes of salary arrears (include) customer dissatisfaction with the com- pany’s service — clients are therefore refusing to pay. The company is owed US$383 217 accruing over four years,” said Mr Nyashanu.

He added that Eleco has also lost 367 contracts due to employees’ negligence and incompetence, losing US$146 800 per month in potential revenue.

“(There is also) over employment — there is a mismatch between the wage bill versus turnover. The company had anticipated an increase in the number of contracts (and) that did not happen resulting in overstaffing,” said Nr Nyashanu, adding that Eleco was currently paying twice the NEC salary.

Mr Nyashanu said the company had engaged the workers’ committee in various works council meetings in a desperate bid to thrash a workable payment plan, but dismally failed to reach an agreement.

He said the company was unable to settle the arrears of US$111 000 inside one month as demanded by employees due to “serious financial challenges”.

Mr Nyashanu pleaded with the NEC to be allowed to settle the arrears over six months.
The lowest paid employee at Eleco is understood to be taking home about US$300 while the company’s 13 technicians are earning US$900 per month.

Some employees who spoke on condition of anonymity said claims of unavailability of funds do not hold water as technicians were generating lots of money through repairs.

They said the minimum charge for repairs was US$4 000, half of which is paid as deposit while the balance would be settled upon completion of the job.