THE state-owned Grain Marketing Board plans to lay off workers and says it needs US$24 million to embark on a compulsory retrenchment exercise. By FELUNA NLEYA
In a statement distributed at all its depots, circular number 110/2014, deputy general manager (human resources) Sibongile Muchirahondo confirmed the intent to lay off workers but said lack of funds was stalling retrenchment which is going to be compulsory.
“GMB has proposed to right-size the organisation through compulsory retrenchment since 2013,” reads the circular.
“Due to lack of funds, this has not come to fruition as this requires plus or minus US$24 million. The board and management has taken cognizant that employees cannot be asked to leave employment without being paid anything as this is unethical and in violation of labour laws.”
Muchirahondo said the parastatal had soldiered on without sending employees on compulsory retrenchment despite its failure to pay salaries.
She was updating workers on the challenges facing GMB in relation to its failure to pay salaries.
Because of the financial crisis, GMB has offered 10 bags of maize to every employee as part of payment of salary arrears.
Muchirahondo said non-remittance of handling fees (of agricultural produce) by government was one of the causes of the crisis.
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The circular cites “Non-remittance of handling fees by government towards the core social GMB mandate of managing strategic grain reserves to ensure food security in terms of the Act,” as one of the major challenges stalling retrenchment.
“During this year’s intake, GMB collected strategic grain stock to the tune of 251 000mt valued at US$97,8 million. All things being equal, government was supposed to remit 10% of the value of the stock as handling fees amounting to US$9,7 million and storage charges of US$3 per tonne per month thereafter excluding handling fees amounting to US$22 million owed to GMB from previous years.”
However, Finance Minister Patrick Chinamasa last week said as at November 13 last year, US$57,6 million had been paid to farmers for grain deliveries and US$22 million was paid to GMB for handling and storage charges.
Muchirahondo also said due to availability of cheap imported maize consumers were shunning local products, including GMB mealie-meal and the silo range of products.
The cash-strapped GMB recently ordered all its 3 600 employees to go on a compulsory two-week-long unpaid leave each month as it battles a crippling financial squeeze.
