Leader Comment: Schweppes shows the way with employee share empowerment

launched the Schweppes Employee and Management Share Ownership Trust in Harare.
This historic occasion marked another phase of the empowerment crusade that saw the Government make moves to return the country’s wealth to indigenous Zimbabweans.
Following the promulgation of the Zimplats and Unki Community Shares Trusts in the mining sector, it was obvious that the next move would be the manufacturing sector.
It is encouraging to note that at a time that the Government through the Ministry of Youth Development, Indigenisation and Empowerment has been having never ending fights with some foreign owned companies over compliance issues, Schweppes took the bold initiative and came to the party.
At no cost to them at all, a total of 700 workers and management now own 51 percent of Schweppes Zimbabwe Limited in partnership with Delta Corporation which holds 49 percent.
What this essentially means is that the indigenous consortium comprising the workers and management are now the majority shareholders of the firm.
By far the Schweppes scheme is the largest empowerment deal consistent with the indigenisation policy and law that is being championed by the Government.
Zimbabwean workers, who have for long toiled on the shop floor for a pittance, should embrace this process which effectively converts them into part owners of the enterprises they work for.
According to the Indigenisation and Economic Empowerment Act (Chapter14:33), indigenous employees are entitled to between five to 28 percent shareholding of non-indigenous companies.
This is in line with the broad-based economic empowerment thrust aimed at creating equitable development partnerships between employees and investors.
Employee Share Ownership Trusts are one of the designated vehicles for broad-based participation in the implementation of indigenisation and economic empowerment programmes.
Each trust will have a Deed of Trust registered with the Deeds Office spelling out the whole governance structure relating to the operations of the Trust.
This effectively lays to rest any fears members might have over the accountability, beneficiaries, use of money and transparency of the whole scheme.
Effectively, the Trust protects employee share ownership interests, national stipulations, regulations and expectations regarding worker entitlements in the new ownership structure.
There is no doubt both workers and employees can easily share the same vision for the company creating an enabling environment for honesty and transparency with issues of production, marketing and profit sharing being done in full view of all participating shareholders.
Workers in various enterprises around the country have every reason to look forward to their turn as the new dispensation catches hold.
It should however, not be just about profit sharing and dividend declaration, but the new owners should also focus on growing the business.
The employee shareholders should be prepared to recognise the obligation of partnership, which entails sharing the joys of successful times, and also the risks associated with lean times.
It is apparent that the Government’s thrust to democratise economic development and ownership patterns to create an enabling environment to raise the standard of living for the majority of the people, has failed to bear fruit over the years.
Naturally this calls for a paradigm shift that will bring to the fore the empowerment of all workers who are breadwinners.
It is now their time and there is no reason why they should be denied that opportunity.
It is the beginning of a journey that for years to come we will be able to look back and reflect on the benefits thereof as we recount the enhanced livelihood and standard of living of workers throughout the economy.
It is our hope that many other non-indigenous companies will take time and study the precedent that Schweppes has set, thereby setting a trend that will pave the way for the emergence of empowered workers throughout Zimbabwe.