• Fri. Apr 19th, 2024

ZIMPLATS announces voluntary retrenchment program amidst challenging market conditions

ByETimes

Mar 19, 2024 #Zimplats

By ETimes

In an internal memo circulated yesterday, Alex Mhembere, the Chief Executive Officer of ZIMPLATS, addressed the company’s workforce regarding the ongoing challenges faced in the operating environment.
“We have been communicating through our usual platforms about the difficult operating environment that we face,” Mhembere stated, highlighting the persistent weakness in PGM (Platinum Group Metals) prices, which are projected to endure for the next 12-18 months.
Acknowledging the collective efforts of the teams in implementing various cost containment and cash preservation programs, Mhembere expressed gratitude, stating, “I wish to thank all team members for diligently rallying behind our efforts in this regard. I am confident that as a team we will successfully navigate through the headwinds.”
Despite the efforts yielding some results, Mhembere emphasized the necessity for additional measures due to the ongoing challenges.
“While our cost containment and cash preservation programs yield expected results, the company’s situation remains difficult and therefore additional measures still need to be undertaken,” he wrote.
One such measure outlined in the memo is the introduction of a voluntary retrenchment exercise for all employees interested in being considered. Mhembere highlighted the aim of this initiative, stating, “If successful, this will mitigate the need for a compulsory retrenchment.”
Employees interested in the voluntary retrenchment package were instructed to approach their respective Divisional HR Departments starting from Tuesday, March 19, 2024, to obtain the application form. The deadline for submission of completed forms was set for March 22, 2024.
Mhembere underscored the management’s prerogative in approving or declining any application based on business requirements, stating, “It is important to point out at the outset that management reserves the right to approve or decline any application based on business requirements and this is not subject to an appeal process.”
Detailing the voluntary retrenchment package, Mhembere outlined the compensation structure, which includes two weeks’ pay for every completed year of service, one-month notice pay, and a minimum guaranteed package of three months for employees whose retrenchment package is less than three months. Additionally, all statutory requirements would be paid out together with the package.
To ensure clarity and transparency, Mhembere assured that the HR Team would provide full details of the process and packages to the employees.
Approved applicants would receive a voluntary retrenchment agreement outlining the terms and conditions, including all due payments. Notably, employees opting for voluntary retrenchment would be considered good leavers and remain eligible for re-employment in the future when suitable opportunities arise.
In closing, Mhembere extended gratitude once again, stating, “Thank you.”
The memo signified the company’s proactive approach in addressing the challenges posed by the prevailing market conditions while prioritizing the well-being of its workforce.

By ETimes

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