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Original Post Date: 2010-04-12 Time: 07:00:04 Posted By: News Poster
Harare – CASH-STRAPPED Zimpost has appealed to the Labour Court to be exempted from giving its workers an arbitration award for a backdated salary increment amid revelations the company is broke.
In its submission, the company warned that any adjustment to current salary levels, let alone paying salaries backdated to last year, would be devastating and could cripple its operations and drive it into insolvency.
The workers are presently getting US$150 per month.
Zimpost is contesting the US$300 per employee awarded by an independent arbitrator for the period May to December 2009.
Employee representatives had pressed for a Poverty Datum Line linked salary of US$490 per month, which the company said it could not afford.
This prompted Zimpost and representatives of the Communications and Allied Services Workers Union of Zimbabwe to go for arbitration after failing to agree on salary adjustments for the period May to August and August to October last year.
Zimpost managing director Mr Douglas Zimbango told the Labour Court that the company was broke.
Mr Zimbango said mail volumes have declined by 37,2 percent since 2005 due to modern technology, which has negatively affected revenue generation and drove the firm into losses. Zimpost reportedly made a US$2 million loss last year with staff costs chewing 52 percent of expenditure and 67 percent of revenue.
It was also revealed that as of January Zimpost had a funding gap of over US$2 million and was also in a US$295 000 loss position. Further, Zimpost claimed that it had outstanding financial obligations to the National Social Security Authority and arrears arising from Value Added Tax and Pay As You Earn amounting to US$3 million.
The postal company said its Avondale, Mt Pleasant, Belvedere, Southerton, Mwenezi, Masvingo, Mt Darwin, Murewa Hillside, Luveve, Hwange, Mupandawana and Renco Mines branches posted losses last year.
Zimpost said the operations should, ideally, just be closed, but the company could not do this due to the universal service obligation it carries.
Last year, Zimpost managed to handle mail volumes of 15 983 677 against a target of 26 973 647, falling short of its budgeted target by 40 percent.
At its peak in 2005 the company moved 40 904 402 mail.
Zimpost cited declining business from departmental shops, utilities, mobile service providers, the global economic crisis and increased use of modern technology such as internet for the fall in volumes.
The arbitrator Mr Modercai Pilate Mahlangu, while noting Zimpost precarious financial position still awarded the increment backdated to the period May to December 2009.
He said while an increase in salaries would worsen Zimpost’s situation, he could not deny the workers a salary adjustment in light of their plight and would thus give an increase that would not “break” the company.
He had said Government was supposed to chip in with financial resources to make sure that the loss-making company does not collapse.
Original Source: 
Published by the government of Zimbabwe
Original date published: 12 April 2010
Source: http://allafrica.com/stories/201004120115.html?viewall=1