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Patrick Chitumba Senior Reporter—
THE government has blocked Hwange Colliery Company Limited (HCCL) from retrenching at least half of its more than 3,200 workers in the second half of the year, Mines and Mining Development Minister Walter Chidhakwa has said. Minister Chidhakwa met the company’s management and employees in Hwange on Wednesday evening and told the HCCL board to seek other ways of resuscitating the company to avoid the retrenchments.
“On the issue of retrenchment, personally I’m not for the idea. After discussions with the employees, retrenchment will be shelved and the board should find other ways of resuscitating the company,” he said.
In June 2012, the company in which the government is the majority shareholder, retrenched 304 employees and up to now they are yet to be paid their benefits.
In an update to shareholders this week, HCCL board chairperson Farai Mutamangira had said the company was going to implement a raft of measures aimed at turning around the fortunes of the beleaguered coal giant.
However, Minister Chidhakwa said even if the company was to lay off some workers as it did in 2012, there was a high probability that the measure would not solve its problems as there are other matters that needed to be addressed such as the issue of debts and liabilities.
“Looking at this retrenchment – where you say let’s reduce the number of workers and reduce cost of labour – will you (HCCL) get the results you are looking for? There’s another way of increasing production. Let’s sell more coal and let’s look after our costs.
“Therefore retrenchment for now is off the table,” he said.
He said the new Hwange managing director, Thomas Makore, needed to familiarise himself with the state of affairs at the company before job cuts were considered.
Minister Chidhakwa said the company has the mineral and what was needed was to do the right things, such as restructuring its balance sheets.
He said relying on HCCL, the country had the potential to have more energy — a catalyst to the growth of the economy.
“We’ve what it takes, you have the human resources, the qualified management. Coal has a huge role to play in the recovery of the economy,” he said.
Minister Chidhakwa said the government was fully behind HCCL’s recapitalisation and as such it would continue providing guarantees for borrowings.
“The Minister of Finance Patrick Chinamasa has assured me that the government will continue to support the company,” said Minister Chidhakwa.
He said the government was going to provide new coal concessions to increase its lifespan.
HCCL workers’ union chairperson, Emmanuel Riyano, commended the government for stopping the retrenchment of workers.
He said they were committed to work for the company provided it honours its pledges.
“To us as workers, the Hwange community and Matabeleland North province at large, it has brought us relief in the sense that we don’t want retrenchment.
“The meeting we held with the minister was successful, he gave confidence to the workers. In terms of production, when people are motivated, production increases,” he said.
HCCL owes its present and retrenched workers nearly US$19 million.
Online Reporter