Rufaro should invest in workers

troubled company. Rufaro Marketing was reported to be operating at a loss, with a number of its outlets under performing, and hence causing a strain on the firm’s budget.
It became logical for the firm to lease out some of these outlets to individuals, among them TN Holdings, a financial services provider in Zimbabwe. To all those concerned with nation building and share a common vision of having a Zimbabwe that will provide employment opportunities for all, and create an equal (or close to equal) society for all citizens this should be a matter of concern.

It is not my intention to point a finger at anyone or do the blame game, for, at the end of the day, this certainly will not resolve anything, or benefit anyone.
At any rate, Rufaro Marketing is not the only firm to retrench, and will not be the last. But there could be a way around the contentious and emotive issue of retrenchment. Zimbabwe already has a high unemployment rate, and most sectors ironically still believe in “laying off” or retrenching as a solution to their financial constraints that hinder maximum performance of these firms.

Because half of Rufaro Marketing’s human capital will be left unemployed, with some having limited skills outside their current occupations, selling beer.
This calls into question the concept about a need to develop new business that will operate under capitalistic principles of making a profit, but will also have the interest of the workers at heart. In other words, big businesses like Rufaro Marketing should also invest in their work force and give them a piece of the enterprise, through use of the co-operative model.
Certainly, one or two people might shrug at the mention of the word co-operative, as a lack of proper understanding of the co-operative functions over the years has led them to be quite unpopular with many, and the number of failed co-operative ventures stand as evidence.

According to the International Co-operative Alliance, a co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through jointly owned and democratically controlled enterprise. The co-operative model certainly has a number of benefits attached to it, especially looking at addressing fundamental issues as creation of employment opportunities and poverty alleviation.

As one who has seen the model successfully being implemented both in a rural and urban area’s context as a way of alleviating poverty, through the P.E.A.C.E (Planning, Education, Agriculture, Co-operatives and Environment) Foundation and the PEACE Model, certainly, this is perhaps one of the ways in which Africa can be able to deal with some of its social ills like poverty and unemployment.

However, in this scenario this model would be perhaps the best way to go, together with the restructuring strategy that the company already has.
Instead of having to send off about half of their 500 or so workers, rather invest in them, and give them ownership to some of the profitable outlets so that they can run them as co-operatively owned business entities under Rufaro Marketing franchise.

Rufaro Marketing together with TN Holdings will therefore become strategic business partners to these co-operatives, providing second tier co-operative services in bulk buying, marketing and distribution and financial services like co-operative banking to help cushion some of the risks involved.

A well-managed co-operative can be comprised of between 5-25 individuals. Take a group of 20 for example. If 300 potential retrenchees form into companies of 20, it gives us 15 co-operatives.
Already, it was said workers might get about eight of the outlets, if possible, the number could be taken up to 15, for argument sake, and for the sake of this demonstration. TN Holdings can potentially create more employment opportunities for these workers, depending on their willingness to help develop such enterprises. Alternatively, they can also assist these co-operatives to gain basic financial management skills, especially looking at the co-operative banking model.

At the end of the day, both TN Holdings and Rufaro Marketing would not only have created alternative employment that would give over 300 families hope of surviving and pulling through difficult financial and economic times.

They would have also acted socially responsibly by giving back to the people who most need their assistance.
In this case, the model will have the potential of reaching out to more than 300 families, with the potential of expanding to other individuals outside the wings of Rufaro Marketing. In this regard, the 300 or so workers facing retrenchment will form primary co-operatives that will directly benefit themselves, with Rufaro Marketing and TN Holdings acting as second tier co-operatives, that offer broader services like marketing, branding and bulk buying on behalf of the primary co-operatives.

On the other hand they will be assisting in training co-operative members especially through the business management knowledge transfer, so that the co-operatives realise the significance of being in business.