Operations resume at Ingwebu as management, workers agree on salary arrears plan

OPERATIONS at Ingwebu Breweries in Bulawayo resumed yesterday after workers ended a demonstration over salary arrears, with management and employees agreeing on a plan to progressively settle outstanding wages.

Both permanent and contract employees staged the demonstration at the company’s premises last week, demanding payment of salary arrears which they said had accumulated over the past 15 months.

Workers said prolonged delays in salaries had left many struggling to meet basic household needs, including food, school fees, rentals and healthcare despite continuing to report for duty and keeping production running whenever possible.

Some employees, who spoke on condition of anonymity said the financial burden was overwhelming.

“We have remained committed to the company because we understand that it is going through challenges, but our patience has been stretched to the limit,” said one worker.

“Many of us cannot pay rent, school fees or even buy groceries. We simply want management to honour its obligations.”

Another employee said the demonstration reflected a united position by both permanent and contract workers.

“This is no longer an issue affecting a few people. Every worker has been affected. We are simply asking management to give us a clear and credible roadmap on when our outstanding salaries will be paid,” he said.

In an interview yesterday, Ingwebu Breweries managing director Mr Dumisani Mhlanga acknowledged the company’s financial and operational challenges. He said the management had reached an understanding with workers to gradually clear the salary arrears while implementing a turnaround strategy.

He attributed many of the company’s difficulties to ageing production infrastructure that has become increasingly unreliable and expensive to maintain.

“Ingwebu is an old establishment and, naturally, we are facing serious operational challenges because much of our equipment has outlived its productive lifespan. Most of it is now almost obsolete,” said Mr Mhlanga.

“We experience equipment failures almost every week, if not every day. Our engineering teams are constantly carrying out repairs simply to keep the plant operational. Maintaining ageing brewery infrastructure has become increasingly difficult and this inevitably affects production efficiency.”

Mr Mhlanga said management remained committed to protecting jobs while restoring the company’s financial stability.

“We acknowledge that the company has been facing financial challenges. Those challenges have affected our ability to meet some of our obligations, including paying salaries. We have however agreed with our workers on the plan to clear the outstanding salary arrears,” he said.

Mr Mhlanga said the company’s priority was to ensure that productivity was maintained while working to address the issue of financial obligations such as paying salaries.

He said several recovery initiatives were already underway, including replacing obsolete production equipment and engaging potential strategic investors to recapitalise the brewery.

“We are in the process of procuring essential equipment over the next few months to replace some of the ageing machinery that has become unreliable. At the same time, we are actively engaging potential investors who can inject fresh capital into the business and support the modernisation of our operations,” he said.

Mr Mhlanga said the brewery suffered a major setback after its only operational boiler broke down.

“As of yesterday, the only functional boiler at the brewery crashed. That has further crippled our operations because the boiler is the heart of the brewing process,” he said.

Mr Mhlanga said they expected the boiler to be operational by the end of the week.

Despite the challenges, Mr Mhlanga expressed confidence that the combination of equipment upgrades, fresh capital investment and continued engagement with employees would restore the brewery to profitability.

“We remain optimistic. Our focus is on restoring operational efficiency, strengthening production capacity, securing investment and ensuring that Ingwebu returns to sustainable growth while honouring its obligations to employees and other stakeholders,” he said.

Founded more than a century ago, Ingwebu Breweries is one of Bulawayo’s oldest manufacturing companies. The brewery produces a range of alcoholic and non-alcoholic beverages and has historically played an important role in the region’s manufacturing sector.