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Harare Bureau
RADAR Metal Industries has transferred the majority of its permanent staff to a private firm which acquired some of its movable assets, sparking outrage among workers who feel they have been cheated. The assets were sold for $1 million in an “empowerment offer” for takeover of part of the troubled Bulawayo-based engineering company.
The sale of certain assets of Radar Metal Industries or National Fencing to Fortsign has sparked an outcry from workers who smell a rat, as they feel the sale is simply meant to get rid of permanent employees.
The engineering firm, a division of Sedan Chair Trading, was at logger heads with workers who demanded payment of severance packages and pension contributions running into several millions of dollars
According to the agreement of sale, Sedan Chair Trading sold certain moveable asset of Radar Metal Industries to Fortsign Investments.
The effective date of the transaction was August 1, 2015.
“In addition, a list of employees that will be transferred to Fortsign Investments has been made available to the works council,” reads part of the agreement signed by financial director Jay Vaghmaria.
But the affected workers fear the calculated move will result in hundreds of workers losing all their benefits accrued over a long period.
Workers from the firm’s Bulawayo branch claimed that tensions rose last year when they discovered the company was not remitting their pension contributions to Comarton, an entity that collects the money.
The workers said the company’s immovable properties had been sold to one Lihle Dube whom they said had no traceable financial history to be able to meet benefits claims as and when they fall due.
These movable assets, which workers claim are antiquated, include plant and machinery valued at $618,550, furniture and fittings $23,500, raw materials worth $311,000 and motor vehicles valued at $47,500.
They alleged the offered assets were obsolete and accused directors of stripping the firm of all usable equipment before selling.
“The person who bought the business has nothing, we suspect this is simply a ploy to transfer all the permanent workers to Fortsign so that they remain with contract staff with no pension,” said a source.
Sedan Chair Trading chairman Denzel Marsh declined to give a comment and referred all questions to the company’s lawyers, Sobuza Gula Ndebele who could not be reached for comment yesterday.
Unable to run the firm viably, company directors reportedly offered workers the option to take over the company and run it under what they term “employee share ownership scheme transfer of assets”.
Sedan Chair Trading runs National Fencing, Radar Casting in Gweru and Hogarth’s and Home Furniture with branches in Harare and Mutare.
Online Reporter