Soft drink wage dispute reaches deadlock

Soft drink wage dispute reaches deadlock
Published: 21 July 2014
The wage dispute between the soft drink manufacturing employees union and manufacturing employers association has reached a deadlock on the issue of wage increase forcing the two parties to approach the courts.

Soft drinks manufacturing industry employees are arguing that they are still far behind, with minimum wages below half the poverty datum line.

Information says the employers argue that unless their businesses make more money they simply cannot afford to pay the proposed increment.

The soft drink manufacturers are proposing a five percent increment while the employees are bargaining for 15 percent.

Responding to questions from The Herald Business, Schweppes Zimbabwe general manager for Human Resources Mr Philimon Chitagu who commented on behalf of the soft drinks manufacturers confirmed that the matter was now before the courts.

"The employers in the Soft Drinks Manufacturing Industry and the workers in this sector were involved in a Collective Bargaining process in terms of which negotiations were conducted in respect of the conditions of service of the employees. There was a deadlock on wages and other issues and the matter is now before the courts," said Mr Chitagu.

Schweppes Zimbabwe Limited is the current Chair of the Soft Drinks Manufacturing Employers Association and the wage issue is a matter between the Soft Drinks Manufacturing Employers Association and the Soft Drinks Manufacturing Employees Union.

"However, the two parties could not agree and decided to put the matter before the courts to reach an understanding and this response to your enquiry was therefore made on behalf of the Association by Schweppes Zimbabwe."

Public Service, Labour and Social Welfare Minister Nicholas Goche on Wednesday intervened to stop an imminent strike by workers in the brewing and distillation sector after negotiations on the 2014 Collective Bargaining Agreement reached a deadlock, union sources said on Wednesday.

Earlier this month Brewing and Distilling Workers Union of Zimbabwe, a labour body representing more than 13 000 workers, announced it would go on industrial action from July 1 this year.

Last week Delta Beverages wrote to Goche, pleading with the government to stop a pending national strike in a fortnight that would cripple operations of the country's largest brewery and result in shortages on the market.

United Food and Allied Workers Union of Zimbabwe secretary general Adonia Mutero said Goche intervened to end a strike which was supposed to resume yesterday.

Mr Mutero said food industry employers had become a difficult group with a collective agenda to further tuck downwards the conditions of workers by offering a zero percent increment.

He said employers had refused to comply with section 76 of the Labour Act to disclose their financial status in a bid to prove their bankruptcy yet companies like Delta issued statements declaring $140 million profit.

"The brewing and distillation sector strike was intended to start tomorrow but Minister Goche said players should meet next week first and negotiate in good faith," he said, adding Goche had hinted the Government might consider hiring investigators to scrutinise accounts of the companies.

"If they then have powers more than the Ministry itself then we are going to withdraw labour," said Mr Mutero.

"We are done with the due process of law in terms of following proper procedures of doing a lawful strike and the membership in the brewing and distilling have voted 99 percent in favour of going forward with a strike," he said.
- Tinashe Makichi I The Herald
Tags: Delta,

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