By Own Correspondent
THE Food Federation and Allied Workers Union of Zimbabwe (FFAWUZ) have activated its two affiliates to strategise on how best to intervene and ease the impending jobs carnage at Tongaat Hullets Limited (THL).
THL plans to lay off 1,000 workers by August this year as part of a cost-cutting strategy to navigate the country’s currency instability and inflationary pressures.
As one of Zimbabwe’s largest employers, Tongaat Hulett Zimbabwe currently has a workforce of 16,000.
The company operates two sugar mills in the country, with a combined capacity to crush 3.5 million tons of sugarcane annually.
The THL spokesperson, Dahlia Garwe told the media that the layoffs will be carried out in three phases, with 500 employees from each of the company’s mills in Hippo Valley and Triangle being affected between February and August.
“It is very difficult to manage such a large workforce, so we need to look at ways and means of becoming a lot more efficient in how we do our business. The company reported that its profit margins have dropped by 55% since 2022, while labor costs have surged by 113%, leaving the sugar producer burdened with huge debts,” said Garwe.
Speaking to The Worker FFAW UZ general secretary, Runesu Dzimiri said he was working flat out to get to the bottom of the issue.
“I am trying to gather more information from the SMAWUZ/ FFAWUZ Union. The issue internally as it involves about three unions and also the matter was not properly communicated through the works council. Our members are writing a letter to the company inquiring and getting finer details about the process,” he said.
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