GMB to retrench 2000
Posted By Own Staff Saturday, 06 March 2010 01:28
GRAIN Marketing Board is set to retrench 2 157 ‘idle” workers countrywide due to viability problems.
The retrenchments are compulsory as a voluntary scheme attracted a few takers.GMB board chairman Charles Chikaura said retrenchment of workers “has become unavoidable after special measures undertaken to avoid retrenchment failed to achieve the intended results”.
Chikaura said most GMB workers were “idle” due to the liberalisation of grain market.
“The liberalisation of the grain market changed the operating landscape significantly; the GMB is now in competition with many private players. This development resulted in some employees becoming idle yet the GMB is liable for their remuneration,” said Chikaura.
“The response to management’s proposal on voluntary retrenchment strategy was disappointing. Consequently, the compulsory retrenchment route will now be pursued,” he added. Voluntary and compulsory retrenchment would require US$62 294 and US$12 million respectively.
No dates have been set for the commencement but it is understood that by April some depots would start downsizing.GMB says after the exercise is complete it hopes to reduce operational costs from US$1,200 000 to US$500 000 per month. The GMB was struggling to pay workers from the little available resources, he said, adding that some employees were not as productive as they should be. Chikaura said the ailing parastatal would
re-introduce seasonal workers.
“This strategy is designed to deal with and manage overhead costs while ensuring that the institution remains adequately capitalised to perform its national mandate,” he said.