Union wary over welfare of HCCL contractors’ workers

A MINING labour body has expressed concern over poor working conditions of workers of companies contracted by HCCL Holdings while urging the coal mining firm to ensure a safe working environment is prioritised.

In a letter to the newly appointed HCCL managing director, Mr William Gambiza, the Zimbabwe Diamond and Allied Minerals Workers Union secretary-general, Mr Justice Chinhema, said the union had noted with concern challenges being faced by workers employed by Zhong Jian Investments, Mopani Mine, South Mining, Dinson Mega Coal and other contracted by Hwange.

Mr Gambiza, who has been HCCL’s acting managing director (MD) since November last year, was recently appointed substantive MD.

HCCL, which is under administration, has implemented a contract mining model, leading to increased production while significantly reducing mining costs.

The shift has brought down costs per tonne from US$33 to around US$22 compared to the period of the previous in-house mining operations, according to management.

“We acknowledge the challenges facing the mining sector and responsibilities that come with leading HCCL,” said Mr Chinhema.

“As you assume your new role, we urge you to prioritise workers’ welfare, safety, and fair labour practices with your organisation as well as addressing challenges being faced by workers working for, and other mining companies contracted by Hwange Colliery Company Limited Holdings.

“Workers employed by these companies face multiple challenges that must be addressed as soon as possible and as ongoing (practice).

Mr Chinhema said some of the challenges being faced by the workers included the casualisation of labor. He said the majority of workers working for the contracted companies are employed on short-term fixed contracts.

Most workers are working in very dangerous workplaces exposed to several health hazards such as heat, dust, noise, fatigue, and uncontrolled gas.

“In addition, workers are being forced to work long hours, without clean drinking water and proper, adequate PPE. Furthermore, most workers are physically abused and women are sexually harassed,” said Chinhema.

Other grievances include alleged illegal salary deductions, not being allowed to join trade unions, absence of works council meetings, not being allowed to form workers’ committees, discrimination, and salary discrepancies.

Communication barriers are also reportedly a problem, as workers face challenges in communicating with their supervisors.

The union also claimed workers complained about poor salaries, housing allowances, transportation to and from work, and general welfare are additional concerns.

Mr Chinhema said addressing the concerns of workers working for the contracted companies would be crucial to building trust and stability.

He said following the appointment of the new MD, the union was hopeful that there would be improvements in communication and transparency, prompt resolution of outstanding workers’ grievances, including those of retired employees, commitment to fair labour practices and compliance with regulations and enhanced occupational health and safety measures.

HCCL corporate affairs and public relations executive Dr Beauty Mtombe referred questions to the administrator Mr Munashe Shava, who could not be reached for comment.

Calls to Mr Gambiza were also unanswered. Some mining experts, however, said that under mining contract arrangements, the contractors should operate within the operational framework prescribed by the client.

The Government, the major shareholding in HCCL, placed the company under reconstruction for the second time in October 2022, having done so previously in 2018.

The earlier attempt was blocked by the High Court. An appeal at the Supreme Court was dismissed after it ruled that using the Reconstruction of State-Indebted Insolvent Companies Act to place HCCL under administration was legally ineffective.

The Reconstruction of State-Indebted Insolvent Companies Act (Chapter 24:27), enacted in 2004, provides a mechanism for restructuring state-indebted insolvent companies. It empowers the Minister of Justice, Legal, and Parliamentary Affairs to appoint an administrator to take control of a designated company.

The administrator’s role is to develop a restructuring plan aimed at transforming the company into a profitable entity.

According to the management, HCCL has achieved significant progress in its turnaround efforts since undergoing reconstruction and implementing a Business Improvement Project (BIP).

The positive trajectory, the management said, was reflected in improved production and increased revenue. The financial turnaround has allowed HCCL to invest in various capital projects, further solidifying its path to future growth. It has also paid off most of the creditors.

“I am super excited to join the HCCL family and be part of the reconstruction journey,” Mr Gambiza said during a media tour in July this year.

“It’s a journey that is focused on re-building HCCL Holdings and requires consideration of several business issues.

The BIP requires us to take a deeper look into the current portfolio of operations and projects. Among other things, the initiative demands us to sort out our project pipeline and one would ask how? It’s simple, ditch bad projects and keep the good ones.

“Generally, the company should move in the right direction, in response to market dynamics.
“It is very important to take cognisance that production and costs remain key to the company’s competitiveness. Therefore, BIP will explore low-cost and high-margin opportunities,” Mr Gambiza added.

The BIP is a business culture transformation initiative that aims at repositioning the company’s competitiveness.

Key deliverables for the BIP revolve around ESG, market share, productivity, plant efficiencies, costs, financial returns, sales, revenues, project management, capital structure, balance sheet optimisation, value accretive partnerships, governance and compliance.

The project aims at achieving high business productivity per manshift, promoting, and maintaining disciplined organisational spending, sales growth, effective contractor management, efficient debtors’ management, and growth in market share among other issues.-herald