adminLloyd Gumbo Herald Reporter
ESSAR workers are hopeful that the incoming Zanu-PF Government will urgently address logistical problems stalling resumption of operations at New Zimbabwe Steel, formerly Zisco Steel.This, they said, would see them being paid after going for almost two years without salaries, besides sporadic allowances. Despite Government and Essar Africa signing a US$750 million agreement in 2011 for the takeover of the company, disagreements over the control of iron ore reserves have hampered the implementation of the deal.
“As workers, we expect things to move fast now that we have one party that will be running government,” said Zisco Joint Unions chairman Mr Benedict Moyo.
“We no longer have three heads (three parties Zanu-PF, MDC-T and MDC) fighting each other so we are hopeful that the incoming Government will ensure immediate resumption of work.”
Mr Moyo said challenges facing over 3 000 workers at the giant steel company continued to mount as they have not received salaries since Essar Group suspended salaries in March 2012.
“Our biggest challenge at the moment is the issue of school fees for our children. Schools will be opening soon but we have not been paid so that means our children may not be able to go to school.
“We honestly don’t know what to do if resumption of operations continues to be delayed. Last time, Doves (funeral assurance) came to the rescue of some children after they chipped in and paid school fees. We appreciate what they did. But now the question is what are we going to do if we don’t get paid?”
Mr Moyo said workers were given some allowances last month but declined to divulge the figures. However, insiders said the least paid was given US$60.
Mr Moyo said Essar resident director Mr Firdhose Covadia last toured the steel company about three months ago, and promised that operations would start at the end of July. The Indian firm suspended salaries arguing that it could not continue pumping out money without production on the ground. The firm insisted that it wanted guarantees of mining rights at the iron-rich Mwanesi where the iron ore has not yet been tapped. On the other hand, the Ministry of Mines and Mining Development raised concerns that Essar was getting the iron ore deposits worth US$30 billion when the company only paid US$750 million. To that end, Cabinet resolved that there was need for a joint exploration exercise to be conducted by the ministries of Mines and Mining Development and that of Industry and Commerce and the investor.
Outgoing Industry and Commerce Deputy Minister Michael Bimha said everything was on course to ensure resumption of work.
“Everything is on course because from the policy level Government has cleared everything and made recommendations,” he said.
“The recommendation was that there must be a committee of the ministries of Industry and Commerce, the Ministry of Mines and Mining Development and Essar to ensure the implementation. Because of the size of the investment there are a number of things that have to be put in place. The committee is actually executing that. There is no debate whatsoever within the committee so everything is flowing.
“Some of the things the committee is looking at are the issue of salaries and medical aid for the workers before actual operations resume. We believe the committee would have completed everything by the end of the year,” Deputy Minister Bimha said.
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