By Abel Zhakata
MUTARE – An estimated 400 Border Timbers Limited workers will reportedly lose their jobs in the next few months as the company plans to lay off the employees citing high operational costs and dwindling profits.
General workers who contacted The Business Post this week revealed the impending compulsory retrenchment will render many back to the streets. The company’s human resources manager, Mr Pisirayi, refused to comment on the issue, citing company protocol.
“I cannot speak to the Press because I am not qualified to do so,” he said.
Efforts to get a comment from the managing director, Mr Kuhn Erhard, who assumed office in January 2013, were fruitless at the time of going to press as his secretary said he was out in Chimanimani.
In its 2013 annual report, Border Timbers Limited said the company was facing high operational costs related to high wage bills and a litany of other costs.
BTL chairman Mr K. Schofield said in his statement that the group needs to deal with units that were not profitable and this might explain the impending closure of the Paulington factory and part of Nyakamete plant.
“What needs addressing are the underlying problems.
“Your group has set about addressing these problems by dealing aggressively with units that are not profitable, relooking at every aspect of how we operate and whether we are best placed to operate the different working parts of the business.
“In addition, we have to address the spiralling cost of labour. While every individual has a right to a fair wage, that wage must be affordable either by way of productivity or by way of direct cost.
“We are achieving neither and it is irresponsible of those involved in the wage decisions to continue to award wages that are quite simply miles out of the country’s — let alone this group’s — affordability. If structural issues such as lack of power, usurious financing, and wanton destruction of property cannot be addressed — then the cost of labour has to be reduced if the group is to survive.
“Make no mistake about it, the overheads of Border Timbers cannot be maintained in the medium term and your board is making a very focused effort to return the group to an acceptable level of performance — both operationally and financially,” reads the statement.
The affected workers said if they are going to be retrenched, they must be given packages that are commensurate with the period they have served the company.
“Look what happened with the Mutare Board and Paper Mills workers. They were retrenched and got peanuts at the end of the day. How can a worker who has worked for close to 30 years get a paltry $10 000 as pension? That’s ridiculous.
“These people made money long back and we need a fair share of the profits,” said one of the workers who requested anonymity for fear of reprisals. Manica Post
