RSZ to retrench 170 workers

RSZ to retrench 170 workers
Written by Masuzyo Chakwe
Wednesday, March 04, 2009 8:29:28 PM

RAILWAY Systems of Zambia (RSZ) has said the 170 employees to be retrenched this month will be done under the Voluntary Separation Scheme, which represents only 10 per cent of the company’s direct and indirect workforce.

In a statement, RSZ chief executive officer Benjamin Even stated that despite the global economic crunch not sparing RSZ, the company had managed to keep the employees and that retrenchment was the last option.

However, Even stated that some events had forced the company to embark on separating with some employees.

Taking into account the difficulties in finding employment, as a company, we engaged the Railway Workers Union of Zambia (RWUZ) with whom we agreed that employees would first be given the option of voluntary separation under generous conditions, he stated.

He stated that RSZ management and RWUZ officials agreed during the collective bargaining process, which had been in effect for the past two weeks that RSZ, should first consider the voluntary separation scheme.

Even stated it was further agreed that the compulsory retrenchment should only be effective if the mutually agreed 170 workers should not be attained through the Voluntary Separation Scheme.

We also agreed that all employees who will be separated will receive their full payments on the day of departure. RSZ sees this exercise as an important measure to face the recent unfortunate developments while doing its utmost to minimise the effect, he stated.

However, Even stated that RSZ was re-emphasising the commitment to continue investing in infrastructure and improving the company’s performance within and beyond the contractual obligations, and see this exercise as a strategy to save costs and prepare for the future.

He stated that despite the separation on the company caused by the global economic meltdown, RSZ would continue to positively contribute to social and economic development of Zambia through improved service delivery.