Steel­mak­ers in­tro­duces per­for­mance based con­tracts

Chronicle (Zimbabwe) - - Business - Mid­lands Cor­re­spon­dent

REDCLIFF-based steel man­u­fac­turer, Steel­mak­ers, has in­tro­duced per­for­mance and pro­duc­tiv­ity based con­tracts for its em­ploy­ees as part of mea­sures to con­tain costs.

Op­er­a­tions di­rec­tor Mr Upen­dra Alamwar told Chron­i­cle Busi­ness that un­der the per­for­mance-based con­tracts, em­ploy­ees will have their ba­sic salary and be re­warded ac­cord­ing to per­for­mance.

“We want to en­sure that the em­ploy­ees also be­come part and par­cel of the com­pany so that they ap­pre­ci­ate that their bread is but­tered here.

“So this is to make them more in­volved and we will give in­cen­tives to hard­work­ing em­ploy­ees,” said Mr Alamwar.

“This comes af­ter a re­al­i­sa­tion that some com­pa­nies are pay­ing work­ers for idle hours.

“This is not fair to both par­ties as the worker may be work­ing hard and the com­pany is not re­ward­ing him/her for the ef­forts.

“In some cases the work­ers are spend­ing most of their time on so­cial me­dia there­fore per­for­mance-based con­tracts gives room for the em­ploy­ees to be re­warded based on their out­put.”

Mr Alamwar said the com­pany had not re­sorted to tra­di­tional meth­ods of re­duc­ing labour costs such as the slash­ing of salaries as “this has a neg­a­tive im­pact on the strate­gic ob­jec­tives of the firm”.

The lo­cal foundry em­ploys more than 500 work­ers and man­u­fac­tures close to 36,000 tonnes of steel per an­num, which is con­verted to var­i­ous shapes to cater for the en­gi­neer­ing, agri­cul­ture, motoring, mining, con­struc­tion and man­u­fac­tur­ing in­dus­tries.

The lat­est de­vel­op­ment comes as the Redcliff-based com­pany re­sumed ex­ports into the re­gion and the move is part of the var­i­ous strate­gies the com­pany is im­ple­ment­ing to re­duce its over­heads.

Steel­mak­ers aban­doned ex­ports at the be­gin­ning of the year owing to the firm­ing of the green­back against re­gional cur­ren­cies, which has made lo­cal man­u­fac­tur­ers un­com­pet­i­tive.

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