Exploitative and illegal! – Workers’ union slams OK Zimbabwe payroll suspension, threatens legal action

THE Commercial Workers Union of Zimbabwe (CWUZ) has condemned OK Zimbabwe’s recent decision to suspend salary payments, describing the move as “exploitative and unlawful”.

The union argues that legally prescribed procedures were not followed in reaching the agreement.

Over the weekend, the embattled retailer announced that all salaries and wages had been suspended with immediate effect following the adoption of a resolution at its Joint Works Council meeting last Friday.

The resolution, signed on May 22, 2026, states that the company “will, therefore, not be running any payroll beginning the month of May 2026 until further notice and in any case until such time that business and revenue return to profitable levels.”

Signatories to the agreement include Workers Council chairman Alex E. Siyavora, National Workers Committee chairperson (Managerial) Isaya Mutema, Corporate Rescue Practitioner Bulisa Mbano of Grant Thornton (Zimbabwe) and National Workers Committee chairman (NEC) Givemore Dondo.

Ok Zimbabwe has been grappling with severe financial distress. In the 11 months to February 2026, the retailer’s revenue plunged from US$245 million to just US$40 million, an 84% decline,p while units sold dropped sharply from 208 million to 32 million.

The company also reported current liabilities of US$38.7 million against only US$12.8 million in current assets, leaving it unable to meet its financial obligations.

However, speaking to NewZimbabwe.com, CWUZ Secretary General Cuthbert Chikwekwete condemned the salary suspension, insisting the process violated labour laws.

“The arrangement is a direct violation of the Labour Act [Chapter 28:01], which makes it clear that collective bargaining agreements shall not come into effect outside wide consultations, a voting process which requires 50% of workers’ approval plus the consent of the employees, who in this case are represented by the trade unions,” he said.

Chikwekwete said despite CWUZ being the largest workers’ representative body in the sector, the union was never consulted.

The union leader also questioned the legitimacy of National Workers Committee chairman Givemore Dondo, arguing that his term of office had already expired.

“He is not the legitimate leader (Dondo). Even if he was still in office, his signature alone, outside due process, can never subject workers to this slave-like arrangement.

“Workers are still commuting to work. They have expenses to meet. They must pay their pension contributions at month-end, so how will that be possible?” Chikwekwete asked.

He also issued a stern warning to the corporate rescue practitioner, urging professionalism and adherence to established rescue procedures.

“Our previous experiences with other rescuers on similar issues inform us that the first port of call is to come up with a rescue plan, which must be approved by the affected parties.

“We have never been invited as workers’ representatives. Instead, the rescue practitioner is opting for a half-baked arrangement.

“It must be reversed as a matter of urgency, otherwise we will be left with no choice but to pursue legal action,” added Chikwekwete.

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المصدر: NewZimbabwe