Zesa to pay $5m tax liabilities

Published: 19 March 2014

ZESA Holdings may have to pay in excess of $5 million in tax liabilities accumulated from backdated salaries after the power utility effected a different salary structure to the one agreed at during collective bargaining.

The CBA agreement of 2012 provided for Zesa to effect a minimum of $275 and 12 percent grade differentials, 2,5 percent step (notch) differentials, non-pensionable allowance (30 percent of basic salary), $70 transport allowance, $23 canteen allowance (grade 1 to D2) with effect from January 2012.

Energy and Power Development secretary Partson Mbiriri wrote to the power utility advising on the payments for each grade and the projected grossed amounts inclusive of the tax liability and the lump sum payment plan for some grades.

"Please note that these payments are tax liable and Zesa Holdings shall meet the tax liability, which is projected at $5,2 million outside the proposed CBA dispute," Mr Mbiriri wrote in a correspondence dated March 13 2014.

However, the power utility could find itself paying even more in terms of the tax liability considering the fact that workers, through National Energy Workers Union of Zimbabwe are saying the amounts due to workers is multiple times more than what the ministry has proposed Zesa to pay.

This is because according to the Energy ministry, the least worker is owed $1 628 while the highest paid (skilled) worker should get about $2 418 but workers claim the least paid worker is entitled to $5 607 and the highest $37 102.

The energy industry workers have since threatened to down tools claiming that Energy and Power Development Minister Dzikamai Mavhaire has proposed to reduce millions of dollars owed to staff at a time when Zesa is paying out hundreds of thousands monthly to consultants.

Newuz secretary general Mr Thomas Masvingwe said the ministry's action is patently unlawful as it seeks to reduce workers' earnings and that the workers had rejected the proposal.

"The Ministry position is to offer a settlement which is ridiculously less than what the employees are owed. We have pointed out to the Minister that such action is patently illegal," said Mr Masvingwe.

"We have received responses from 75 percent of our members who have rejected the proposal. The workers want to go on collective job action immediately," said Mr Masvingwe.

Workers representatives wrote to Minister Mavhaire proposing that the correct 2012 CBA salary scale be adjusted in terms of 2013 Arbitral Award.

The letter followed the unions' meeting with Minister Mavhaire which was held on December 6, 2013.
- herald

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