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Business Reporter
A wrangle has erupted between Asa Resources Plc and employees at its gold producing unit in Zimbabwe over management issues after Asa Resources (formerly Mwana Africa) rationalised and restructured staff salaries across the group including at the country’s single largest gold miner Freda Rebecca.
According to information obtained by The Herald Business, Freda Rebecca workers are planning industrial action over concerns which they believe emanate from the hostile takeover of the group by China International Mining Group Corporation from Kalaa Mpinga.
The workers have given notice of their intention to strike against the mine’s management to the Ministry of Labour, Public Service and Social Welfare.
“We regret to inform you that Freda Rebecca Gold Mine employees have resolved to have a collective industrial action against its management and that of the Asa Group due to their failure to resolve the dispute that we presented to them in the extra-ordinary works council,” said the Freda Rebecca workers committee in a letter addressed to management and copied to the Ministry of Public Service and Social Welfare.
“We have seen a deliberate neglect of the negotiation process by the employer through (the interference of the Chinese investor as demonstrated by what happened after the meeting,” said the employees.
The workers committee said there is too much interference by the shareholder in Freda Rebecca operations that had resulted in dubious decision making and mismanagement.
“This is evidenced by a notable shift in priorities of the mine which resulted in the collapse of the mill which could have been avoided. This also resulted in a knee jerk establishment of a plant without funding thereby pushing the business further into debt.”
In a statement emailed to The Herald Business, Asa Resources confirmed that its directors had received certain anonymous allegations relating to the operations at Freda Rebecca, in which the group has an 85 percent interest.
“The directors believe these allegations to be completely mischievous and their origins appear to have certain similarities to the previously notified lawsuit served on Freda Rebecca in January 2017.
“Directors strongly suspect that certain disgruntled former employees may be at the root of some of the allegations.
“The board believes these new allegations to be unsubstantiated and designed to distract further from the ongoing restructuring to improve the efficiency and profitability of
its Zimbabwean operations,” said Asa Resources Plc.
The mining group said the board has agreed to initiate a review of these allegations led by group legal advisor, Barry Dearing, the findings of which will be reported to the group’s independent non-executive directors, none of whom have been associated with the allegations.
Senior non-executive director Dr Scott Morrison added, “We take our corporate governance duties seriously and we stand by the executive’s efforts to drive through efficiency measures of its subsidiaries for the benefit of all stakeholders.
“We regret if difficult retrenchment decisions need to be made, but the executive must take every effort to ensure our mines are profitable. Any re-organisation takes time and there are inevitably and regrettably casualties along the way.”
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