'NewZim Steel deal to take longer than expect'

Published: 15 November 2013

WORKERS of NewZim Steel, formerly Ziscosteel, might have a gloomy Christmas following revelations by Industry and Commerce Minister Mike Bimha that Essar Africa Holdings and the Government were still engaging each other over the possible resumption of operations.

Essar Africa Holdings is an Indian-based steel conglomerate that bought the majority shares from the Government in Ziscosteel to give birth to a new company, NewZim Steel (Pvt) Ltd.

In an interview, Minister Bimha said his ministry was not involved in salary discussions for NewZim workers arguing that such issues needed a higher platform - the Government.

He said Government's focus at the moment was on ensuring that NewZim Steel commenced operations and help revive the economy.

He said people should appreciate that the revival of the Redcliff-based steel giant was going to take longer than most expect owing to the enormity of the project.

"Ziscosteel is a big project. Its revival cannot come in a day. It takes time to rehabilitate. The Government is engaging with Essar on how best to revive Ziscosteel as NewZim Steel. We want Essar to get into operations, once that happens, employment will be there; even money for workers will be there. However, we can't talk of money for workers at ministerial level.

It is a subject that needs the Government. The focus is on Zisco to work. The Government wants the economy to start functioning then the other things follow. Reviving Zisco is a process that cannot be completed overnight. It needs time."

Minister Bimha could not be drawn to reveal the timeframe of when the Essar/Government talks would be concluded to allow production to commence.

NewZim Steel workers have, over the past few months, been receiving insignificant fractions of their salaries paid by the Ziscosteel management.

Ziscosteel Chief Executive Officer Mr Alois Gowo said yesterday they were paying part of their workers' salaries through selling sundry products like coke breeze and blast furnace slag.

"We pay the workers as and when we raise the money through selling sundries like coke breeze. This is what we have been doing throughout the year. However, this is a company that is in transition. We, as Zisco, are only taking care of the assets. Full authority to comment on the company issues lies with Essar. Get in touch with Essar for more information," he said.

Essar Holdings staff is still to set base at the Redcliff plant.

However, NewZim Steel workers said what they were being paid by management did not qualify to be called a salary.

They said they were struggling to fend for their families owing to the delays in the commencement of production at NewZim Steel.

"We occasionally receive unspecified amounts from management. It's not enough. We hope as we approach the festive season, the new investors would have touched base and started paying us living salaries. We struggling to fend for our families," said a worker who refused to be named.

The challenges of non-payment of salaries have spread to NewZim Steel subsidiaries like Lancashire Steel in Kwekwe.

A committee member of the Lancashire Steel Workers Committee, Mr Stanford Dhlamini, said workers at the Kwekwe-based steel company were only paid twice this year.

"At times we are paid as little as $5. I don't know if that qualifies to be called a salary. Our colleagues at Zisco are in a better position because they are regularly given something. Their management has something to sell to raise their salaries unlike here at Lancashire.

"We meet occasionally as workers committees of the NewZim Steel Group of Companies to exchange notes. That is how we get to know what is happening at our sister companies," he said.
- chronicle

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