Maravi

(HERALD) ‘Empowerment should not burden workers’

‘Empowerment should not burden workers’
Monday, 05 December 2011 00:00
Business Reporter

Workers should not be burdened with paying for shares they are given under employment share option schemes as this is against the principles of economic empowerment, two Cabinet ministers have said.

Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere and his Industry and Commerce counterpart Professor Welshman Ncube maintained that workers should not pay for equity meant for empowerment.

Speaking to journalists at the launch of the Schweppes Employee Empowerment Scheme in Harare last week, Minister Kasukuwere said he had been advised that some companies were demanding huge sums to effect the empowerment transactions.

"This is clearly against the letter and spirit of economic empowerment. By right, the workers are entitled to some equity in recognition of their sweat and sacrifices for the well-being of the firm," he said.

"It is wrong to burden them with demands to pay for that stake. They have earned it for their toil over the years."

Professor Ncube said there was no single model that could be used for employee empowerment schemes as each case was dealt with on its merits.

"It is up to the company to come up with a system that addresses those issues such as the settlement for the shares," he said.

"Ideally, the company should come up with a self-financing scheme so that you do not overburden the very same workers you want to empower.

"Another way is to find finance elsewhere and then warehouse those shares so that if there are dividends to be paid, the workers could forego them in the initial stages with the proceeds going to settle the money used to acquire the shares."

Chairman of the National Indigenisation and Economic Empowerment Board Mr David Chapfika said companies demanding payment for the shares were in breach of the Indigenisation and Economic Empowerment Act.

"The corporate world needs to understand the objectives of the Act whose thrust is broad-based economic empowerment. It is our intention to promote harmony in the workplace and also create wealth for the employees and this they can only achieve through gaining equity in the firms," Mr Chapfika said.

Under the Schweppes Employee Empowerment Scheme officially launched by President Mugabe last week, the workers were presented with a 31 percent stake while the management was given 20 percent of the firm. The other partner is Delta Beverages with a 49 percent stake.

The workers have already started enjoying the fruits of their empowerment, having received their first dividend in 2010 and look forward to more as the business continues to boom.

A representative of the Schweppes employees, Ms Brenda Mubonderi, said there was unity of purpose throughout the organisation as the workers and management were now all owners of the business.

"To further drive business based on a strong view that we reap what we sow, we have put in place a robust performance management system that addresses performance issues at all levels within the organisation.

"It has also enhanced self-discipline among the employees," she said.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE

posted by MrK @ 10:25 PM