NewZim Steel to retrench

HARARE - Essar Africa Holdings (Essar) owned iron processor NewZim Steel – formerly Zisco Steel – plans to retrench once it resumes operations.

The Redcliff-based steel maker, with a 3 000 workforce and has been dormant for more than five years, was acquired by the Indian group in 2011 in a $750 million deal.

Abigail Shoniwa, Industry and Trade secretary, said after a skills audit to determine the number of workers required in the structures, some employees will have to be laid off.

“When the project starts, not everyone would be fully employed. Others have already agreed to terminate their contracts when the company starts operating,” she told Parliament this week.

“It’s possible that others might not find a slot and would have to be paid their retrenchment packages,” she said.

This comes as workers at the company, who have received intermittent salaries over the years, are owed more than $110 million.

Comments (2)

I thought the government was in Bulawayo recently telling us that ZiscoSteel would back from the dead, l guess they lied.

Jackson Dube - 27 September 2014

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.