NicozDiamond, workers clash over layoffs

Business Reporter
LISTED short-term insurer NicozDiamond is headed for a showdown with union representatives over alleged unfair retrenchment packages offered to former workers affected by its latest staff rationalisation exercise.
Workers’ representatives said Nicoz-Diamond insisted on “unacceptable” packages, claiming it would not afford packages the retrenchees demanded
But workers dismissed the claim.
NicozDiamond acting managing director Mr Nowell Manika dismissed the alleged looming clash.
He said discussions were in progress and the parties might agree.
“At this stage, we are still negotiating and have up to March 8 to engage. If there is a disagreement the matter will be referred to a labour body,” he said.
He said a number of issues had been settled, but a few were yet to be agreed. He said he hoped the parties would find common ground.
The company had asked workers to volunteer for retrenchment in a bid to reduce the head count by 18 people to realign the business model to economic conditions.
About seven employees considered key to its operations offered to be retrenched, but the company reportedly turned down their applications.
There are also allegations that Nicoz-Diamond had hired and/or enlisted the services of consultants to do work for which they had just laid off their staff.
Sources said the firm had to “finger-point” six workers who had not volunteered for retrenchment and the matter turned on its head after the affected workers rejected the firm retrenchment packages as inadequate.
On two occasions, workers’ union and employer representatives met but failed to agree on retrenchment packages acceptable to the workers.
Insurance Employees Association of Zimba-bwe secretary-general Mr Moses Hunga said there was little possibility of the parties agreeing due to the negotiating parties’ divergent views.
He said at the last meeting last week the negotiators agreed to adjourn to allow employer representatives to consult at “more senior level”.
“We realised the negotiations were not progressing as we had met twice and nothing came out. The offers they made were grossly lower than we expected.
“At the last meeting we told them to bring more senior people who could make decisions as it appeared we would never come to an agreement because their offers and our expectations were too contrasting,” said Mr Hunga.
Workers proposed that the severance pay be based on a worker’s 12 months gross salary. But employers were prepared to give two months’ pay.
The workers had proposed 12 months medical cover: employers offered cover for only three months. Workers also said they wanted 12 months funeral cover at staff rates, but NicozDiamond offered nothing in that respect.
Workers also proposed salary increases backdated to February 2009, share option scheme, long service awards, relocation expenses, insurance agency, scholarship and loans, but the company h offered nothing.
Mr Manika said the firm needed to restructure to realign its business model to the prevailing economic conditions, hence the staff rationalisation.